As we enter a downturn in the economy, it’s time to evaluate our private label go-to-market strategies and what we’re doing to help our customers. Some retailers have rushed to promote private label as the low-price alternative, which does nothing for the industry in the long-term. In an economic downturn, it’s far better to use private label as a way to ensure total satisfaction for the consumer — from “value” to “value-added.”

Target’s long-standing banner statement — “Expect more. Pay less.” — is a particularly good message for everyone in the private label business. And Wal-Mart recently changed its mantra to “Save money. Live better.” Both of these well-crafted messages serve as good standards for us to emulate in our own customer communication.

As we all know, customers are the best low-cost sales and advertising medium. So what message are you conveying to them? Now is the time to be focused on consumers and how we talk to them. Sure, we need to make a big deal out of fighting inflation, but we also need to offer a series of affordable luxuries rather than just the lowest-price commodities.

Now is also the time to identify the “star products” we have in our portfolio. If we review our frequent shopper habits — and focus on the customers who pay the freight — we’ll see that their baskets are still loaded with good margin products and not just the cherry-picked commodities on sale. Let’s make sure we’re not talking ourselves down into the bottom of the barrel. Let’s find the great value-added products to offer in our private label programs. And let’s make sure we continue to excite the customer with great quality and alternatives.

Review your communication strategies and make sure they echo the theme of expecting more for less. Don’t become a once-great chain that uses its respectable store banners to beg customers to “Spend Less!” Instead, please review what you stand for, and tell your customers everyday. If you do, then you’ll have a good chance at being “on target!”

Tom Stephens is the founder of Brand Strategy Consultants, North York, Ontario. He can be reached at 416-391-1635 or VOIP him at: Vonage 416-907-9848 or Skype at stephenscrimson, or e-mail at tomstephens@brandstrategyconsultants.ca. Stephens says thinking “inside the box” is often appropriate, since answers to 90 percent of retail problems can be found inside the four walls of the store.