Private Label Manufacturers, Retailers Cooperating More Frequently, Says Kantar
Private label manufacturers and retailers are increasingly cooperating so that they can compete directly with national brands, says Dan Kitrell, vice president of account solutions for the Edina, Minn.-based research firm Kantar Media.
“Private labels are using online media to broadly communicate with the consumer. Anyone going to the Target or Kroger site is probably already loyal to the brand and more likely to be interested in private label promotions,” he explains.
“Increasingly, manufacturers and retailers are participating in cooperative events to influence the shopper on their path-to-purchase, making free standing insert coupons an important lead indicator of competitive promotion tactics, creative brand messaging, and retailer promotion alignment,” explains David Hamrie, general manager of Kantar Media. Kantar reently reviewed 2011 promotional activities for a variety of food categories, releasing its findings Jan. 4.
Seven out of nine categories reviewed by Kantar saw an increased use of retailer promotions in 2011 including frozen products, personal care and health care.