Review Your Resolutions
The gyms and fitness centers were full as usual this past January, after the waistline expansion of the holiday season. I wonder if your strategic “think tanks” have been as busy, reviewing your own company’s trading frenzy over the holidays, now that we are all reverting to the post-holiday trading period.
We all made new resolutions for our business. In trying to prioritize some key resolutions into the top 10 ideas for everyone to consider implementing, I distilled them down further into a top 5 for retailers and a top 5 for manufacturers. This month, it’s the retailer’s turn.
1. Don’t let private label share slip. Your customers still will be looking for the ongoing values and great products that private label provides.
A lot of brand money is out there trying to stem the growth of private label. The gap of margin advantage is narrowing. What are you doing to ensure your customers still see the economic advantage of private label? Are your merchandising and buying teams doing everything possible to maintain the marketing of great-margin products that make sense to your customers?
2. Focus as much on the top-tier/higher-end products as on the value items. Growth opportunities can be found in both tiers.
Is your product development pipeline filled with good volume and destination products at both ends of the spectrum?
3. Strive to increase quality and brand image.
The ads these days are full of brands. Are your private label brands getting their share of space, both in ads and on shelf? And are you reviewing your private label brand message more so than item and price?
4. Benchmark your performance and your competitor’s performance in private label product development and marketing.
Self-explanatory, but you need a commitment to do this seriously.
5. Evaluate your private label teams and reward where justified. Replace where necessary, and re-invigorate everyone to strive for greater heights.
Not what everyone wants to hear, but now more than ever, we need to ensure we have the “A team” in place and back it up with the very best resources available. There are a lot of good people out there!
We cannot let 2010 get away from us. There’s a lot to be done, for sure. And everyone is heads down and hands to the wheel. But don’t forget some strategic thought behind the process. It is never too late for a strategic review and benchmarking of your competition.
The post-recession recovery (if that’s what we are in right now) is a crucial time for continuing the upswing in our private label business. Let’s not miss the opportunity to protect and maintain the progress we have made in the last two years.
