Back Page: It's Promotion Time

March 11, 2009
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An old saying contends every adversity carries with it the seed of opportunity. In today’s economic climate, it might seem difficult to find that seed, particularly with recent news reports on the nation’s economic status causing many shoppers to spend less, and more wisely. Although reduced shopper spending certainly won’t make any retailer optimistic, the trend toward shoppers looking for more value in what they do buy could provide the perfect opportunity to step up the promotion of your private label products.




Our Value Proposition

An old saying contends every adversity carries with it the seed of opportunity. In today’s economic climate, it might seem difficult to find that seed, particularly with recent news reports on the nation’s economic status causing many shoppers to spend less, and more wisely. Although reduced shopper spending certainly won’t make any retailer optimistic, the trend toward shoppers looking for more value in what they do buy could provide the perfect opportunity to step up the promotion of your private label products.

Today, shoppers are taking notice of private label offerings for a number of reasons, and only one of them is price. No longer considered generic versions of the “real thing,” private label products are now seen as a value alternative to more expensive brands - and a true extension of a retail banner’s promise. 

It is important to understand the contribution of store brands in your long-term business strategy. Offering customers appealing products they can’t find in other stores increases loyalty and drives higher margins - positive goals for retailers in any economy.

To create an effective marketing strategy, first define the target shopper for your private label line. In doing so, it will become clear what type of in-store marketing will create the visibility and appeal that attracts that shopper.

Then, market the private label products in much the same way the national brands are marketed. One way to do this is to link the private label name and logo graphically to your store's name and logo. You also might want to suggest that private label products have been “singled out” and presented to shoppers for their special value. Using words such as “Choice” or “Select” in the brand suggests the retailer’s personal endorsement for the quality of its products.

Shelf-edge communications that use shopper insights to provide compelling and relevant information also can reinforce the link between the retailer banner and its private label offerings. Attention-getting graphics and messages can serve as reminders of special benefits. Create a “story” for the brand to elevate it from simple product attributes and per-quantity price advantages, and you’ll elevate the value perception as well.

Store brands provide a perfect opportunity for retailers to differentiate themselves from their competitors, and to create loyalty in a highly competitive marketplace. Statistics show that today’s shoppers consider store brand quality equal to - or better than - that of national brands. It makes perfect sense, then, that efforts taken to build a strong private label program in a tight economy only will reap benefits later.

In the end, the most important message to convey to shoppers is that they need not sacrifice quality for a lower price. In these times, that’s an offer few shoppers will refuse.

 

Jeff Weidauer is vice president of marketing for Vestcom International Inc., a provider of technological retail solutions based in Little Rock, Ark. He can be reached at jweidauer@vestcom.com,

or visit www.vestcom.com.

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