Customer perception on private label products
Increased share in private label products have come from two areas: first, more customers trying and liking existing private label products that are available, and second,from retailers expanding their private label offering Consumers no longer view private label products as generic, but as another real option for snacks.As long as private label brands keep the quality up and manage the shelf correctly by keeping the right offerings in the right flavors in front of the right consumers, theyare going to do great. Supermarkets can create a completely custom interaction that is tailored to create a stronger bond between their customers and their private label brand. They can use specific consumer knowledge collected through social media interactions, loyalty programs, in store promotions, etc to field products and develop graphics that resonate, creating better differentiation from the national brands and giving their consumers something that feels custom-made just for them. Grocers can build on the success that private label brands have experienced in recent years and create something special that advances both sales and share for the retailers.
In recent years, consumers have been forced to make sacrifices because of tough times. In light of the economic crunch, people have been more cost conscious than ever before. As a result, retailers have been forced to figure out new ways to get consumers in the store and spending money. The obvious way is to promote store brands because these goods are typically lower in price than national brands ,while being equal to or better than them in quality. But there are other financial implications of private label that benefit retail more directly. A benefit of the private label is the reduced advertising costs related to marketing of the product,which is a prime benifit for the retailers Typically, marketing is done in store or in the aisle itself. National brands require...
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