Sunday, October 4, 2009

Food Private Label Brand Managers Making Private label Brands in the Grocery sector!

George Bernard Shaw said, “There is no love sincerer than the love of food.” There is no greater gift that customers that love your food, and will pay for it-but at what price? The consumer does not understand or believe in channel blurring. Channel blurring is only in the minds eye of the Brand Marketer. Here is my formula for establishing customer focused price:

Price + Quality + Service + Portability = Value

Incremental Value = Constantly Changing Menu (Seasonally / Sustainability with creditability).

The battle for the hearts and mind of the consumer is not only between Grocery Stores, Restaurants and Convenience Stores it can be found with in a sector as well. Here are several examples of how Grocery chain private label brand managers are waging the battle for your mind and wallet.

Food Lion gave consumers coupons worth between $1-$10 for purchasing their house brands during is “Private Brand Super Sale.”

German-owned Aldi is moving into Florida to compete against Publix by stocking up to 95% house brands, far above the national average (9.7%) as reported by the Food Marketing Institute (FMI).

Target’s Kathee Tesija, EVP for Merchandising, says 40 product categories have been transformed. Target’s house brands have shown 25% growth over the past five years, with off-price the selling point (usually 30% less than national brands according to Tesija).

Publix is going one further and giving away three of its private label cereals: Buyers of Kellogg’s Special K Red Berries cereal, Special K cereal bars and Quaker raisin, date and walnut cereal can take him the Publix equivalents (Publix-brand raisin, date & walnut cereal, strawberry bars, and crunchy rice & wheat cereal) for free in an effort to get consumers to switch over.

Retailers understand the value of branding, legacy brands are now focusing on the first if the four P’s of Marketing Price! The Grocerant sector is growing in porifts and scope, are you? Contact me for more at: or leave a comment below. Foodservice Solutions is located in Tacoma, WA

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