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In a report based on its 2012 Store Brand Survey, released earlier this summer, New York, N.Y.-based market research group Accenture details the ways that consumer packaged goods companies can win their battles against private label products, a battle that Accenture’s survey showed was tipping in favor of retailers’ brands.
The survey showed that 64 percent of respondents, said their grocery carts were at least half full of private label products, and 77 percent said they would continue to buy the same amount of private label products, even if their disposable income rose to the level it was before the recession began.
In the report released Monday, Accenture says consumers traditionally have been skeptical of the “quality and efficacy of private label products,” but that those barriers have eroded. Now, it says, “private label is much more of a threat to CPG companies than ever before.”
To strengthen their ability to compete against private label, Accenture says CPG companies need to increase their shopper relevance. It suggests CPG companies:
* Understand with better accuracy specific product attributes that are important to shoppers and predicting their buying behavior better.
* Create products and campaigns that appeal to emotions and shared values.
* Engage in product development that leverages innovation to make more relevant and timely products.
* Understand the unique needs of emerging market consumers.
* Create multi-channel relationships to build loyalty and understand long-term consumer preferences.
* Drive execution excellence at point of purchase.