Private label branding or store branding started to hit the shelves in the 1980s, about 30 years ago. Today, private label products are, on average, about 30% lower in price than the equivalent national or known brand product according to Packaging Digest. Those early strategies of offering commodity-type merchandise at prices lower than their known brand counterparts have come a long way since they were first introduced.
Once seen as the generic, no bells and whistles, lower cost alternative to the national or known brand product, private label strategies are changing and changing fast. Today, most store brands claim their products are equal to or better than the national brands (NBE). Going forward, private labels will drive competition on other key attributes as well. Although store brands span across all types of retailers, the fiercest competition is in the grocery sector. Grocery store brands have stepped up their game in terms of in-store promotion, product packaging and corporate support.
So can new brands, regionally known brands and national brands win at this ever-pressing private label competitive threat? You bet they can!
Here are some essential areas young brands, regional brands and well-known national brands should focus their attention in order to pull ahead and win the war against private label branding.
Tell Your Story With Passion
Known brands have history on their side, while even young, up-and-coming brands have a story to tell. The way to win at this game is to communicate your story in a way that emotionally connects to consumers. Strong, emotionally appealing visuals on your graphic packaging, floor displays and across all of your marketing is essential for winning the store brand game and turning customers into loyalists.
Customer Loyalty is a Two-Way Street
Speaking of loyalists, growing your most loyal customer base is one thing, but if you don’t make a big effort to show your appreciation, customers will not become, let alone remain loyal to your brand. Get to know them directly through your various social media channels and thank them with offers, specials and insider information. Communicate your appreciation - not just online, but in-store as well - by including customer loyalty information on your product packaging. Point of purchase display programs not only enable in-store, off-shelf sales, they also offer brands a tremendous opportunity to communicate with loyal customers.
Millennial Customer Alignment
Prove you care about what millennial consumers care about such as their health and the health of their families. Today, more than ever, they want to see brands putting their money where their mouth is and sharing in the responsibility of the well being of others around the world. It’s common for brands to communicate their causes online, but not as common offline. Visual assets such as a product’s graphic packaging could contain this information, but space is often limited. POP display packaging graphics and messages must sell the products within and that’s not in question, but the opportunity to include brand messaging is lost if it’s not at least considered. A skilled designer will know how to include different messages that do not compete with each other. Brand causes and values that align with the millennial customer will pull ahead of a store brand, especially when they are well communicated and included on advertising and throughout your marketing campaigns.
TIP: Don’t forget to let consumers know how much of a difference they are making when they purchase your products. Together, you are a team that can bring about real change to others.
Introduce the Next Best Thing
Since retailers are in the business of selling products and not in the business of making them, they are not as well positioned to know your industry and products as intimately as you do. By nature, private label products come about after a known name brand product has been established and is selling. And just as important, they are not in the product innovation space either. Use this to your advantage, invest in R&D, and bring to market new and exciting recipes and innovative product solutions. Then bring that excitement and innovation to your graphic packaging and to all of your other visual assets too. The more ‘perceptional’ distance you can build between your brand and a store’s brand, the easier it will be for customers to become and remain loyal to you.
Whether private labels are your closest competition or not, ProCorr Display & Packaging can create your graphic packaging and display packaging to get customers to notice your products.
Our packaging experts have spent years mastering the art of getting products into a retail environment and ensuring your packaging stands out in a crowded space.
Contact us today and let us get started on your next packaging project.
