growing brand equity and supplying store brand programs slideshare

Growing Brand Equity and Supplying Store Brand Programs

Tim Forrest, Senior Advisor and CEO

www.timforrest.com

How should you participate in the

growing private label area with your

products?

Private label and store brands have

dramatically increased over the last

decade.

Private Label and Store Brands

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● Clearly identifies their products and services for current and potential

customers.

● Easier to negotiate lower costs on store brand products.

● Can readily purchase direct without distributor middlemen and

import from overseas product.

Why Retailers are Building Retailer Brands

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Manufactures that supply retailer

and distributor organizations with

private labeled products are

reporting strong sales growth.

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● Category

● Competitive Manufacturing Capacity

● Competitive Initiatives

● Own Product Development Process

● Plant Capacity

● Product Portfolio – commodity, unique and revolutionaries

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What areas should you consider when reviewing your private label strategy?

Commodities● Milk and Dairy products especially fluid

milk.● Fresh eggs.● Cold and Allergy Tablets along with

vitamins.● Sugar

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3 Basic Category in Building Your Response

Unique products

● Specially Meat Snacks

● Taco Mexican Dinner Kits

● Organic and Local Harvest

3 Basic Category in Building Your Response

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Revolutionary products

● Kraft Bagelfuls

● Unilevers Pro-Activ Yogurt

● Aronia Fruit Juice

● Batter Blaster

3 Basic Category in Building Your Response

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The larger the universe of

manufacturing plants capable of

producing an item, the less likely

you will benefit from selling a

branded product.

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Retailer’s marketing and budget is what makes store brand products successful. The

consumer recognizes the store brand as part of the product mix of the retailer and will

anticipate a particular level of quality and determine purchase opportunity. Thus,

traditional budgeting and overheads of a branded product do not adequately reflect the

nature of costs associated with Private Label suppliers with specific marketing costs,

packaging design, and product development costs are radically different from branded

product manufacturing and marketing.

Definition

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Invest in systematically improving and developing

your product. It can save you more money than

developing one. Instead, license or purchase

products, patents, and intellectual property from

outside of the company. Proctor and Gamble and

Nestle both are moving fast in this direction. The

Swiffer Wet Jet® and Forceflex Bags® are

examples of the results of this process.

Definition

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Creating a portfolio of store branded merchandise should come first. One portion of

the manufacturer’s portfolio should include commodity style items that can easily and

quickly deploy into the store brand channel alongside their branded unique and

revolutionary items. The avoidance of store brand manufacturing with retailers not

only shrinks the dollar volume opportunity but weakens the potential for a strong and

viable supply relationship with the retailer. Gather all the necessary information on

your market category, the retailer’s efforts, and your product line-up to determine

your best strategy in this environment.

Summary

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What actions are you taking to grow

your business? Send a note or comments

to tim@timforrest.com. Also, follow me

on Twitter. I want to hear about your

success!

Contact Tim

www.timforrest.com