growing brand equity and supplying store brand programs slideshare
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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 [email protected]. Also, follow me
on Twitter. I want to hear about your
success!
Contact Tim
www.timforrest.com