Retailers nowadays are sophisticated and more aware than before. Hence, retailers have to devise a more efficient retail presence to gain the attention of the customers of their beverage brand.
A major trend gaining popularity amongst retailers is the application of private labels to develop loyalty for their brand and boost profitability. To compete with their counterparts, knowing the private label approach and how it helps retailers and affects other brands is important.
Private label
A private label product is produced by a manufacturer that can be sold under a new brand name. Often retailer provides all details about the private label product they need, it’s packaging, and everything else. The retailer also pays for its production and delivery. The strategy is different from buying products from companies with their brand names.
Private label products are available in almost all industries, from food to cosmetics. They are low-priced, high-quality substitutes for expensive international brands.
Manufacturing in private label
A private label can be the name of the store or brand name developed by the retailer. The retailer develops the idea, manufacturing process, packaging, and promotion of the goods to develop a relationship between the product and its targeted customer base.
What leads to the success of private label beverages?
• It offers support to the brand
Customers trust the retailers more as they deliver a better customer experience. They expect the store brands to provide a similar level of quality and traits as the store. For instance, Trader Joe has all products free from fructose corn syrup, artificial colors, preservatives, and MSG.
• It offers differentiation and enhances value
A private level adds differentiation to a category. They add value and fill in the gap which other brands lack. They address the customers’ unmet needs and bring innovation to the market.
• It comes with boundaries
A successful private label becomes a brand with boundaries to be salient in the minds of its customers. Retailers use them in several ways, but they should be transparent and precise in their approach. Private labels should also follow brand strategy principles, and companies should understand to which segment their product appeals to and how they can align their brand with the needs of their customers.
For instance, Macy’s has a well-outlined private label strategy. A representative quoted that some of its loyal consumers are loyal because of their private brands.
• It has a unique visual identity
Private label beverages use attractive packaging design that helps them better focus on their target audience. Winning products are appealing and seek the attention of their consumers. Good packaging visually ties your product to the customers. The packaging and visual identity of the private label beverages help them stand out from the other brands.
People buy or invest in a product depending on 60% of their perception about the company and 40% of their perception about the product.
With the rise of private labels, more and more suppliers are emerging. The opportunity is open for those who understand their customer best and deliver a high-quality product at the perfect price. So, grab this opportunity and use the best strategies to gain success.
Nice Post