Obvious store brand versus not-so-obvious store brand

10Jun10

Typically, a retailer’s private label brand is easy to spot, since it carries the same name as the store itself. But this isn’t always the case. Consider the following three approaches:

– Obvious store brand: The private label items are easy to identify, e.g. CVS brand products in a CVS store.

– Not-so-obvious store brand: The private label items have their own brand name, e.g. Archer Farms brand products in Target.

– Best of both worlds: Obvious and non-obvious private label brands are merchandised side by side.

Though I’ve rarely seen it used, I would venture to say that the third option is the most effective — especially if the obvious store brand is cheap and the non-obvious store brand is priced just below the premium, third-party brands. When you think about it, this is how companies like P&G and Unilever gain market share: they offer multiple brand names in each category. And the same approach should work wonders for retailers who are seeking to maximize sales of their in-house products. Use two or more brand names to take up shelf space and grab more mindshare among consumers, and you’ll generate higher revenues across your product portfolio.



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