Friday, October 15, 2010

Private Label brand managers vs. shelf space managers.

What is the role of the legacy national brand manager in a world where private label is branded? National brand manufactures all of whom are highly valued continue paying slotting fee’s to grocery stores and supermarkets as the easiest way to reach the consumer.

Companies the ilk of A & P that rely on slotting fees are fading away faster than the fees themselves. The ready-to-eat ready-to-heat retail food price + value + service equilibrium continues resetting driven in large part by private label brand mangers focused on the customer not the shelf.

The brand managers of the private label products have are utilizing a tool out of the National Brand Managers playbook to build loyalty, reinforce value and generate additional sales and profits for the store and their particular private label product. They are taking the end caps for themselves!

Price Chopper is utilizing what they call “power displays”. Wal-Mart is utilizing the end caps to reinforce value of their private label products and consumer is picking them up! Wegmans gets the customers coming and going utilizing the vestibules with the likes of Wegmans private label potato chips and the next week Wegmans own canned tuna and their own mayo for example.

Deep in the store the private label battle continues with ready-to-eat and ready-to-heat portable food. All prepared fresh and in most cases right in front of the customer. Private Label Grocerant ready-to-eat and ready-to-heat food now has brand managers of there own and they are building sales not slotting fees.

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1 comment:

  1. Having to be innovative to increase sales and not rely on slotting fees ...what are all the old-timers going to do?

    I can remember when we had to post future slotting fees to an under performing sales period so the execs were sure to qualify for their bonuses.

    Oh, how times have changed.