Retailers understand the value of good private label promotion, but doing it well requires forethought and strategy similar to tactics followed by national brands, according to an industry expert. Retail Wire presented a summary of a current article from the e-zine CPGmatters that offered ten best practices for retailers to follow when it comes to private label campaigns. It noted professor Mark Lang of St. Joseph's University said retailers may want to follow the lead of brand managers who conduct continuing promotions.
The ten tips provided in the article came from Lang’s recent presentation at the Food Marketing Institute (FMI) conference and trade show in Las Vegas. A few of his tips included: focusing on the target customer, not promoting on price, partnering with national brands and cross promotion.
Besides for the tips, Land said the common elements of successful promotions include a good offer, message, display and delivery.
The Retail Wire article also offered private label statistics, noting sales of store brand products topped $86.4 billion across the major U.S. retail channels during the past year, and store brands growth outpaced national brands in supermarkets during that same period. Additionally, they noted store brands accounted for 90 percent of the sales growth in supermarkets, adding $1.5 billion in incremental sales (+2.9 percent), while national brand sales were virtually flat for the year at +0.1 percent.