Private Label are
now bridging cost gap by delivering quality comparable with national
brands. Private label
products are on average about 30 percent lower in price than national
brands. Here are some considerable advantages of Private Label Branding.....
1. Control
Private labels offer
retailers control over product factors such as pricing, size, package
design, production and distribution. Retailers can develop and
implement innovative ideas to gain market share over national brands.
2. Branding
Successful private
label brands will be able to create better sales opportunities for
retailers. The customization of store brand labels -- such as to
logos and tag lines -- can personalize a customer's shopping
experience that can lead to higher customer loyalty. As an example,
Supervalu's Wild Harvest organic food line offers its customers
healthy food options at low prices with sophisticated package design
that rivals that of more exclusive national brands.
3. Structural
Unlike national
brand labels, retailers with store labels can shape the shopper's
in-store experience. This might translate into marketing advantages
gained from in-store placement of private label products and signage.
For example, retailers can use horizontal shelf displays techniques,
such as brand blocking, and end-cap display fixtures to make private
labels stand out from national labels.
4. Value
While value is not
the only factor consumers consider when choosing private label
brands, it still remains an important one. "The need for
affordable packaged goods solutions is high, and private label
products are going a long way toward answering that need," Thom
Blischok, Consulting and Innovation president at Information
Resources Inc., told Packaging Digest. The most significant advantage
of store brand labels during economic downturns is that price gains
importance as consumers increasingly turn to money-saving strategies
like increasing private label brands to manage budgets.
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