Once the decision has been made to offer a store brand line, the real work begins. “Private label is a continual investment,” noted Brad Grossman, president, Fusion Formulations. “Unlike national brands that are backed by consumer advertising, a retailer’s brand cannot just sit there on the shelf hoping to be noticed. Retailers need to support their brand via advertising and promotion. Advertise, publicize and have in-store signage reminding customers that the store brand exists.”
Selecting the products is only the first step. “After proper selection of what to private label, look honestly at the logo and tagline,” advised Sunil Kohli, COO, Health Plus Inc. “How well will it reproduce? Does it need modification? Does it clearly convey your mission and the experience the customer should have in your store? If not, perhaps a logo/tagline redesign may need to be done first. Remember pointedly that your brand identity stares that consumer in the face every time the supplement is taken, potentially up to three times a day.”
A number of private label companies offer assistance in this area. “Many retailers don’t know about graphic design,” noted Peter Sokoloski, NOW Foods private label manager, “so we offer stock label designs in a variety of styles. We provide feedback and marketing assistance wherever possible.” Reliance Private Label Supplements and Nutricap Labs also noted they can assist in logo and label development to best position the store brand.
Incorporating the logo into brand marketing and merchandising further builds recognition. Kohli suggested creating a monthly bag stuffer with facts and articles about private label items, using the logo as the only artwork for visual tie in. He added investing in strategic advertising can also enhance the store’s brand; Sokoloski agreed, as “aggressive” promotion may be necessary to put the store brand on the shoppers’ radars.
There are a number of marketing and merchandising opportunities. “The difference between a manufacturer’s brand and a private label brand is that the former invests in consumer marketing; marketing of private label products is solely up to the retailer,” said Stephen Lukawski, sales and marketing director, Niagara Naturals. “The basics should be followed: advertising, couponing, creating and placing shelf talkers, and even making in-store displays. The sky is the limit as far as how creative the retailer wants to be. But here is the absolute key—retailers need to understand that the cost of private labeling goes beyond the mere manufacturing of the products; investment needs to be set aside for store brand marketing.”
Finally, don’t forget the key investment in education about the products to both shoppers and the staff. “The staff’s recommendations and understanding of each product are critical for the success of their private label line,” said Melissa Barns, national sales manager, Reliance Private Label Supplements. Echoed Sokoloski, “If it’s not important to the staff, the product will never get off the ground.”
Kohli advised managers to encourage staff to speak out about private label items. “They should be aware of all the products that are private labeled and if a customer brings a prominent brand to checkout, the staffer should mention—as a courtesy to the customer—that, ‘we have the same product, but for less, in case you’re interested,’” he said. “Some may exchange on the spot, others may tuck it away for future consideration and purchase.”
What it comes down to is delivering value and quality. “Reliance encourages retailers to promote their private label as the premium brand in the store, at the best value,” Barns said. “The retailer needs to promote and take an aggressive approach in both education and value. Having the private label product line in the most visible and accessible area of the supplement department is important. This reinforces the store’s confidence in their brand. Be creative with in-store promotions, special themes and end caps. Keep the staff up to date and informed about the key points of the product line. Make sure the products are backed up by direct scientific validation wherever possible; use brochures that explain how the product is selected and manufactured to help them be comfortable with their purchase; and ensure the purchase is 100-percent satisfaction guaranteed.”
Ultimately, selecting the right product mix, working with a quality-focused partner, and effectively marketing private label products can cement customer loyalty and extend a store’s brand further into the community. Scott Stobaugh, sales manager, contract manufacturing/finished goods, Nutraceutix Inc, noted, “A retailer has built a reputation for their store brand with their customers, and it is imperative that any private label/store brand product be of the highest quality to maintain and/or enhance their reputation and image.”