Packaging Design: Top 16 Tips for Great Eye-Catching Packaging Design

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Today’s retail environment is highly competitive place.

         • 70% of purchase decisions are made in store

         • 10% of shoppers switch brand inside a store

 

The most effective and profitable brands are those that stand out distinctively—and packaging design is a critical element for effective brand standout. Whether you’re developing a new brand for launch to market or rebranding an existing brand, the right packaging design can give your brand crucial visibility, helping your products stand out on retail shelves in markets where there is more competition than ever before, and attract more customers who will buy and remain loyal to your brand. Make no mistake, great packaging design is a critical part of any successful brand strategy if you want to grow your business and increase your profitability.

 

 

Top 16 Brand Packaging Design Tips

 

Effective and eye-catching pack design is more than simply being different, because poor packaging design can torpedo your branding efforts and sink your profits. These sixteen tips will help keep you on trend and help you develop strong brand packaging design that catches the attention of your customers, so your products can fly off the shelves.

  

  

 

  

1. Packaging Design is an Investment

Many brands fail to ascribe enough significance to packaging design, and this is a mistake that will ultimately cost you in multiple ways. An investment in high quality package design signifies to customers that your brand has value. When you increase the perceived value of your brand through distinctive, creative, carefully evaluated and well-executed packaging design, you’re able to compete with other products in your range and charge a premium price.

 

 

2. Packaging Packed with Personality

Zig when others zag! If you do things differently and develop a really compelling personality for your brand, using a system like our Personality Profile Performer™, and then bring it to life visually through all your brand collateral, in this case your brand packaging, it can have massive shelf impact.

 

Assuming you’ve thoroughly developed your brand’s personality and what it stands for etc. you should pick out key characteristics of your brand’s character, tone of voice, story, humour, language and leverage them to maximum effect in your packaging design in a way that’s relevant to your primary customer. It’s these kinds of details that capture attention, create distinction, engender engagement, provoke emotional engagement and help build a long term loyal and profitable customer base.

 

 

3. Study the Competition

While it’s definitely important for your packaging to stand apart, you also need to consider the known “lingo” of product category packaging—the aspects that signify what the product is, in a way your customers are already familiar with. Look to successful brands in your space and consider what their package design has in common. This does not necessarily refer just to packaging colours, but also the physical or structural design, materials used, on pack messaging and so forth. Your packaging must be distinctively different but your customers must still be able to relate to it in a way that’s relevant to them and their needs within that product category.

 

 

4. Opt for Clarity and Simplicity

The most successful brand packaging is iconic and easily recognizable—and when it comes to package design, usually less is more. Your product packaging should convey your brand at a glance, and instantly tell the customer what your product is for. Developing a clear and simple package design will go a long way toward giving your brand increased visibility on store shelves.

  

  

5. Keep it Honest

Packaging design should make your product look attractive, but not at the expense of honesty. A misleading package design that promises something not contained in the package will damage your reputation and your brand—for example, depicting a chocolate-drenched dessert on a tin of simple chocolate-flavoured biscuits is not an accurate representation of the product inside!

  

   

6. Be Authentic

Authenticity can be a difficult characteristic to define, but your customers know it when they see it. Strive to develop packaging that is authentic to your brand’s values, promise, story, alignments, platforms, and positioning statements etc. A sense of character and originality infused with your pack design can help you build a memorable brand that engages customers while also enhance brand perceptions in terms of being seen as a brand that is real and authentic – true to its purpose.

   

   

7. Differentiate Visually

A twist on the standard design styles for your product categories can help your brand enjoy increased visibility, allowing you to stand out from a sea of similar products. For instance, if most of your competitors use a horizontal layout, design along the vertical in your packaging. If the majority of similar items feature product photography, consider type-based designs, icons, or illustrations.

 

The choice of signature brand colours is another great way to differentiate. One striking example is Rachel’s Organic products, which use primarily black packaging for products such as butter and yogurt to jump out on retail shelves or O’Egg which uses pink on its white egg packaging.

   

  

O Egg Pink Ribbon

  

   

8. Pay Attention to Typography

The words used on your package design matter—not just what they are, but how they look and what they say. Stunning typography is an eye-catching differentiator for your packaging. Choose distinctive, premium fonts with high readability, and pay attention to spacing (kerning), the size of the text, and the colour in comparison to the rest of the package design.

 

The naming conventions used, together with language style chosen and messaging conveyed in the creative copywriting on your packaging design can add immensely to enhancing your brand’s personality and connecting emotionally with your primary audience. Remember, people buy with emotion and justify with rationale—male or female.

 

 

 Hema Tea 600px

Image via www.hema.nl

 

 

Dutch private label brand HEMA is a striking example of the effect of great typography. The company’s line of ready-to-eat lunch items features a handwritten-style design of labels with a very distinctive font, and simple colour bands that help to quickly categorize items in a visual nature.

  

  

Hema Juice Range 600px 

 Image via www.hema.nl

 

 

 

9. Embrace Green

With more customers increasingly conscious of environmental issues, investing in eco-friendly, sustainable packaging design is a smart move for any brand, not too mention helping improve your brand’s carbon footprint. Whether the packaging is limited to reduce the amount of waste, or made from recycled, biodegradable, or reusable materials, going green with your packaging can make your products more attractive and premium to customers. Sustainability is an increasingly important issue to customers and ‘responsible’ or ‘caring’ brands are seen to be more desirable.

  

 

10. Design for Durability

Depending on the supply chain process and the shelf life of your products, your packaging may require extended durability. Long-lasting packaging is especially important for slower moving, high value, consumer goods, but FMCG products will also require a high degree of durability. Damaged packaging at the point of sale or post-sale can have a very negative effect on your brand, as customers will view it as “cheap” or substandard quality.

 

 

11. Production and Manufacturing Constraints

It’s important to consider production line requirements, how your product will fill the packaging – is it hand packed or on an automated production line? What are the specific packing needs of both those environments?

 

When designing a pack, it’s also really important to take into account the final appearance of the product inside the package, to ensure an attractive overall presentation. Make sure the packaging is not too loose or too tight, and that it displays the product in an appealing way and that the colours or textures and so forth of the actual product are enhanced through the design of your packaging.

 

If something tastes incredible but visually doesn’t look too appealing then maybe you should not make it visible within your packaging design. On the other hand if yours is the kind of product that visually sells very well, particularly when enhanced with great packaging—like a lot of bakery goods or confectionery—or consumers really need to see it to make their purchasing decision such as with certain perishables like meat, fish or vegetables then you need to take this into account within your packaging design.

  

    

12. Choose an Unusual Shape

Package design with an unusual shape can be a very challenging process, but very worthwhile for the right idea. A uniquely shaped package truly stands out on retail shelves and can become a trademark protectable and uniquely valuable asset of your brand. Other important design choices here include display considerations, such as allowing the package to stand or stack on shelves appropriately too.

 

  Gloji Bottle 600px

Image via www.gloji.com

 

 

Gloji uses a unique package design to fantastic effect with its light bulb-shaped juice bottles, which are meant to represent the healthy properties of the beverage that “light you up” from the inside.

 

  

  

  

13. Think Beyond the Shelf

Your package design should continue to work effectively even after purchase. Making a package that’s too difficult to open will turn off customers, making them less likely to stay loyal to your brand. Another consideration is product use. If all of the product won’t be used immediately, you’ll need a way for customers to reclose the package and store unused contents or portions. It also needs to ‘look attractive’ in the home or out of the retail environment so it continues to sell itself and reaffirm important, asset building brand values.

 

 

14. Choose Special Materials

Giving your package design a luxurious detail or two can help your brand stand out. Consider invoking the customer’s sense of touch through materials like velvet, wood veneer, or higher quality paper. Embossing, wax seals, hot foil stamping, and letterpress seals can also add a premium touch to your pack design.

   

  

15. Add The Personal Touch

Handmade, hand-crafted, or otherwise personal details can deliver a stand-out appearance to your brand packaging. Details that appear handwritten, handcrafted, hand-tied, or individually applied can add to a really premium sense of personalization for your products. You can even create an overall handmade look for your products with creative use of production techniques—UK based organic food company Kallo uses illustrations and traditional lino printing to give their product packaging handmade appeal.

 

 

   Kallo Range 600px

Image via www.kallo.com

 

 

16. Focus on Shelf Impact

Shelf impact is a retail term that describes the way a product actually looks on store shelves—whether it blends in, or stands out. Even the most unique and distinctive package designs may not be effective if they don’t have shelf impact. This is a really important aspect of your packaging design to test before launching a product or package redesign.

 

Physically arrange your products on shelves, next to competitors’ items in the same product category—just as they would appear in stores. The more distinctive your product appears from the surrounding items, the better it will sell. Achieving shelf impact can take some experimentation, but it’s critically important and worth all the effort.

 

In fact you may be surprised to find that often overly elaborate designs tend to vanish or blend in on shelves, while simpler designs “pop” and stand out in amongst the visual barrage.

    

   

You may also like:

 

• Colour in Brand Strategy: Colour Psychology and How it Influences Branding

     

• Packaging Design: How It Can Make or Break Your Brand

     

   

 So, what do you think?

 

• Is your current brand packaging design category appropriate yet distinctive, different and memorable?

 

• What are the distinctive elements of your packaging designs and are they on trend?

 

• Is your use of colour similar to, or distinctive from, your direct competitors? Have you developed your own signature brand colour palette?

 

• How could you use non-traditional shapes or materials in your packaging?

 

• Does your packaging design integrate appropriate environmental factors? Is it eco friendly?

 

Feel free to share your thoughts in the comments. We’d love to hear from you!

FMCG Branding: Top 4 Tips For Competing Profitably Against Own Label Brands

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The fast-moving consumer goods (FMCG) market is one of the most competitive and aggressive in the world. Whether your products are foods or beverages, toiletries, cleaning products, household or office supplies, or consumer electronics, your customers have a vast array of brands to choose from—and it’s up to you to build a brand platform, with a sustainable business model, that attracts, retains and grows your target market.

 

As every FMCG brand owner or manager knows, today’s FMCG brands are not only competing against comparable brands at equal retail pricing levels. In fact, the stiffest competition comes from private label brands offering similar products with significant price discounts, which your business may not be able to match. In a suppressed global economy where customers are looking to make every dollar, pound or euro count, you need a multi-pronged branding strategy that addresses the price fighting battles and enables your brand to flourish more profitably, at higher price points.

  

 

4 tips to help you increase your FMCG brands profitability and take market share from private label brands

  

1. Highlight Innovation

Customers are always hungry for something new and different—as the long lines or queues at Apple retail stores whenever a new iPhone is released can attest. Building a brand promise around innovation can also work for FMCG products. Innovative brands have inherent value to the customer, and can therefore command higher prices.

 

To bolster sales in its flagging UK and European markets due to damaging competition from private label brands, Unilever has shifted its brand strategy emphasis to innovation. The company has seen early success in UK markets with the introduction of compressed deodorant cans, presented as an environmental innovation in sustainable living across its Sure, Dove, Vaseline and Lynx brands and, the recent introduction of a new toothpaste brand called Regenerate Enamel Science NR5 which highlights a “unique enamel science formula” for rebuilding tooth enamel. This highly innovative new brand has achieved a significant price premium for the category, retailing at $17 /£10 / €13 per tube—much higher than regular toothpaste prices.

  Regenerate Enamel Science Nr5

Image via www.unilever.com  

 

The innovation lies in the formula they came up with which combines calcium silicate and sodium phosphate to regenerate enamel by up to 82 per cent in three days, while also making the tooth three times stronger. When you consider 80 per cent of tooth problems in adults are caused by enamel erosion Regenerate Enamel Science NR5 is a very compelling brand innovator.

 

However the brand didn’t just stop at this one highly innovative $17 / £10 / €13 Regenerate Enamel Science NR5 toothpaste for daily use, to achieve the best effect is has to be used in conjunction with a second product, a ‘Boosting Serum’ if you want to achieve the full 82 per cent effect, which retails at a further $51 / £30 / €38 and gives the user just the ‘once a month’ required 3 day usage amount! The consumer has to spend $51 / £30 / €38 per month on the ‘Boosting Serum’ plus $17 / £10 / €13 on the Regenerate Enamel Science toothpaste, requiring a monthly expenditure of $69 / £40 / €51 per person on their ‘at home’ dental care! So where the average humble regular toothpaste with an RRP of around $7 / £4 / €5 or less endeavours to prevent erosion, Regenerate Enamel Science NR5 is the first to reverse it. Similar to Apple this is a superb example of brand innovation with premium positioning achieving a premium pricing strategy.

 

  

  

2. Focus On Your Brand Story

Stories hold a timeless attraction for everyone, and brands with strong stories behind them are much more memorable and compelling with customers. Tradition, heritage, and history are classic elements for many successful brands, allowing companies like Burberry, Rolls Royce, and Smythson to cash in on higher price points by emphasizing the timeless qualities and standards of their brands. The same principles apply to FMCG goods, with brand heritage delivering a promise to customers that the extra cost is worth paying for. Note: Your brand story must be authentic, irresistible and consistent in a way that’s relevant to your target audience throughout every touch point of your brands’ existence and engagement on or offline.

 

Fairy Liquid Royal Wedding 

Image via www.pg.com

  

The UK brand Fairy Liquid has effectively utilised history and heritage to increase market share and surpass competition from private label brands. Beginning in 2010, Fairy Liquid launched a commemorative heritage campaign celebrating the iconic brand’s 50th anniversary, and a consistent brand vision of mildness and domestic harmony. The nostalgic hark back to simpler times, including a re-launch of its original white bottle packaging, drove impressive year-on-year growth of 13.1% in the hand dishwash category and 24.2% in the auto dishwash category.

 

 Fairy Liquid Diamond Jubilee

 Image via www.pg.com

  

In 2011, Fairy Liquid once again realized sales growth with the launch of a commemorative bottle to celebrate the royal wedding and another to commemorate the Queen’s Diamond Jubilee in 2012. Further, the brand is the most popular for parent company Procter & Gamble on Facebook, with a strategy of frequent engagement on social media through nostalgia-based topics. With the right brand strategy, even newer brands can employ history and heritage to add value to their FMCG products.

 

 

3. Inspire Customer Loyalty

Customer loyalty is a driving force behind the power of a brand, particularly for FMCG brands. Customers who are loyal to your brand will buy your products every time, regardless of cost – but you’ve got to consistently give them a compelling reason for their loyalty! When you develop a loyal customer base, you enjoy not only repeat business, but coveted word-of-mouth advertising as your brand fans tell their family and friends that they’ll only use your products.

 

Procter & Gamble, the parent company to dozens of FMCG brands, creates customer loyalty for not only individual product lines, but the corporation’s umbrella as a whole. The company’s loyalty-driven ongoing Olympics campaign is one of the most notable and effective in the world, with a series of commercials celebrating international mothers and their everyday work in raising Olympic champions. Each of these inspiring, heartstring-tugging commercials ends with a series of brand placement images, and the campaign’s tag line: “P&G. Proud sponsor of Moms.”

 

 

  

  

4. Create Exclusivity

Many luxury brands rely on exclusivity to maintain sales and customer levels at premium price points. Creating exclusivity can also be an effective strategy for FMCG brands in two ways—by developing the perception of exclusivity for customers, and by building retailer relations for exclusive product distribution.

   Grey Poupon Mustard

Image via www.kraftfoodservice.com  

 

FMCG brand Grey Poupon has built a brand on exclusivity. The “luxury” mustard brand has always catered to a higher end customer, creating a brand that is synonymous with discerning tastes. Early in 2014, Grey Poupon applied the exclusivity concept to social media marketing with a unique Facebook campaign that only allowed customers to “Like” their page if their application was approved and they were able to “cut the mustard.”

  

Grey Poupon Facebook Application 

  

The ‘Like Applications’ were weighed using several factors, including education level, number of friends, and books read. Those who failed to hit the mark were offered tips to improve their standing and invited to try again.

 

 

  

  

In 2013, Duracell rose to 46% of the alkaline battery market share after developing an exclusive distribution relationship with wholesale retailer Sam’s Club, a Wal-Mart company. While the wholesale deal required a slight discount on bulk sales, Duracell was still able to maintain a higher price point than private label battery brands and realize an additional $140 million in sales.

 

As the competition increases between FMCG brands and private label discounters, companies must develop multi-faceted value-added branding strategies to differentiate their products, attract new customers, and earn customer loyalty at higher price points. As always, a consistent brand promise built on delivering incomparable ‘perceived’ value remains essential to long term success in the FMCG arena.

 

What do you think?

• Does your brand have an innovative element you can highlight in your marketing campaigns?

 

• How can you highlight your brand story in a way that adds value for customers?

 

• Are there any traditions or heritage stories you can tie to your brand to invoke nostalgia or pride?

 

• Who is your ideal loyal customer? How does your brand marketing strategy reach them?

 

• Can you develop exclusivity around your brand, either through customer perceptions or distribution and retail relationships?

 

Feel free to share your thoughts in the comments below. We’d love to hear from you!

 

Private Label: Branding Tips for Own Label Brands

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Private labels used to be seen as the second rate offering in the retail world with a majority of consumers shying away from these alternatives to major brand products. They were viewed as knockoffs, cheap substitutes or poor quality ploys only purchased if you were trying to make your weekly shopping budget stretch a bit further. However the market view on private label brands has shifted considerably, especially with the recent economic downturn, and more consumers are willing to forgo the big brands in favour of lower-priced private labels—as long as the quality is maintained.

 

 

 

Time Magazine reported that since the latest recession, 93 percent of grocery store shoppers have changed their buying habits and now stock up on own label, also often referred to as private label store brands. Major chains stores have seen significant increases in consumer purchases of private label brands according to Bloomberg. In the USA, Safeway’s store brand has shown a 3-to-1 growth margin over major brands, and Kroger’s store brand sales accounts for 27 percent of total grocery sales.

 

 Kroger Logo

 

Image via www.kroger.com

 

Of course, in order to sell private label brands successfully, retailers must promote their own label brands to their customers and make them just as appealing compared to major brand names. It’s not enough to simply stock them high and sell them cheap, as in the early days of own label branding.

  

Brand positioning, the brand promise, brand values, the brand story and category segmentation together with consumer mindset and so forth, must all be very carefully developed and fully integrated into the brand strategy for private label items to be most successful, with the same level of intricacy as major brands, and perhaps more so, because they’re competing with the automatic perceived quality of big, familiar brands.

 

In fact it would be fair to say that private label branding has become extremely sophisticated in some of the retail groups with their ‘private label’ brands carrying significant weight and authority amongst their target audience consumers.

 

 

The Importance of Superb Private Label Packaging

As every marketer knows, presentation is key to selling products. In fact people’s willingness to buy, recommend, refer, work for and invest in an organization is driven 60% by their perceptions of the brand and only 40% by their perceptions of the product or services (source: Kasper Ulf Nielsen).

  

Perhaps one of the primary reasons for the underperforming sales of private label brands in the early days was the bland, generic packaging and questionable quality. Many retailers felt that a lower price would sell these own label brands so few bothered to give any significant thought to packaging. In fact private label products were noticeable, for the wrong reasons, with their generic and non-descriptive packaging that looked completely underwhelming next to the carefully designed major brands. Also plagiarism of major brands was a notorious problem in the early days until legal channels flexed their muscles accordingly.

 

Today’s successful private label brands incorporate appealing packaging design into their branding with a very clear focus on who their target audience is and how they’re going to grab attention and engage with them effectively, through their packaging design. Gone are the stark, single or two-color boxes that simply state the name of the product inside.

 

Waitrose Love Life Range

Image via www.waitrose.com

 

Many retailers are creating entire lines of own branded products carefully segmented and tied to their “brand name” such as UK grocery retailer Waitrose’s impressive portfolio of store brands including Seriously, Heston, Menu, Duchy Originals, Love Life, Good to Go and Essentials, each with its own specific brand strategy and distinct look or brand style.

  

Waitrose Seriously Range

Image via www.waitrose.com

 

These proprietary Waitrose brands are not always directly comparable to any other ‘brands’, be they national or private label, thereby making them unique all of which helps support growing consumer Waitrose brand loyalty and increased wallet share. Some don’t even mention the proprietary store owner, such as department store chain Target’s Simply Balanced health foods and beverages.

  

Duchy Originals From Waitrose 

 Image via www.waitrose.com

These private label brands and their relevant product lines feature distinctive packaging styles and well defined brand propositions with clear target audiences that are competing with major brands on the shelves. In fact, many are indistinguishable from standalone major brands as they’ve become ‘brands’ in their own rights, with the exception of the lower price segments.

 

The best private label brands are blurring the lines of ‘major brand’ or ‘own label’ brand distinction through ensuring superb product quality, creative brand packaging and compelling brand offerings all of which attracts consumers to choose the own brand product without compromises on quality or price. Many are now brands in their own rights without any of the old stigmas of the early days.

  

 

Embracing Environmental Causes and Sustainability

Sustainability and environmental consciousness in both food sourcing and packaging is another major brand selling point that some private label brands are adopting. For example Waitrose has made several changes to its private label products that reduce packaging waste significantly.

 

Recent changes to the packaging of a number of Waitrose’s private label brand lines is estimate to have saved the company almost 100 tonnes of packaging annually. Among other changes, the company’s line of prepared meals, Menu from Waitrose, now features a reduced-width package sleeve and a recyclable, lacquered aluminum tray that allows consumers to cook and serve the meal right from the packaging.

 

Waitrose Menu Beef Goulash 

 Image via www.waitrose.com

 

It’s effectively a ‘win win’ for all concerned, rubbish is kept out of the landfills, the packaging changes make life easier for the consumer – who now has less waste to deal with and less space used in their refridgerator. Waitrose has also raised consumer awareness of their rebranded, environmentally conscious private label packaging through a marketing campaign in which they pledge to reduce packaging by half, by 2016, all of which helps generate a very positive engagement with the Waitrose brand.

 

 

Encouraging Consumer Interaction

Just as with any form of branding, interaction and a personal touch can help to promote private label brands. Several companies have launched innovative campaigns that aim to introduce consumers to their brands, and give them the opportunity to experience high quality at a lower price—therefore earning repeat business and private label brand loyalty.

 

Co Op Tweet4a Table 

Image via www.co-operativefood.co.uk

 

As an example, business group The Co-operative in the UK recently launched a Twitter campaign called “Tweet for a table,” which offered a grand prize of a free, gastro-style meal for up to 4 people, served in one of the company’s pop-up restaurants. The winning meal was created entirely with private label products from The Co-op, introducing potential shoppers to a number of brand lines during a fun and memorable experience.

 

 Dm Foto Paradies

Image via www.produktdesigner.fotoparadies.de 

 

German drugstore DM uses an innovative way to personalize the shopping experience with private label brands. The company teamed with a product designer to create a website called “Foto Paradies” where customers can create their own custom labels for a range of private label items—choosing their own text, and even including photos.

 

 

Broadening Private Label Brand Distribution

Recognition and visibility is an essential component of branding, and some retailers are branching out by offering their private labels for distribution in other markets. Once again, Waitrose UK is demonstrating private label innovation in this area, offering several of its lines through international grocery corporation Dairy Farm’s retail locations in Singapore.

 

French mass retailer Groupe Casino is expanding its private label brands to the Asian market. The company works with Rustan in the Philippines, and A.S. Watson in Hong Kong, to distribute and sell several store brand lines through the retail chains Shopwise and Taste.

 

 

Expanding Your Private Label Brand Revenue

Consumers are no longer ignoring private label brands, they’re actually seeking them out, and often preferring them over major brands. In fact, shoppers are willing to pay more for store brands than they had previously. The Wall Street Journal (via Time Magazine) reported that average prices for private label brands have increased by 12 percent, compared to an 8 percent increase for major brands in the same time period—yet store brands still cost an average of 29 percent less than major national brands. If you’re a independant brand owner maybe supplying ‘private label’ along side your ‘branded’ product could also be a significant part of your growth strategy.

 

Its the combination of erasing the perceived quality gaps between private and major brands together with solid brand strategies underpinning ‘eye popping’ great packaging design, excellent customer experiences and consistently engaging customer campaigns, alongside maybe broadening distribution through strategic partnerships, that can collectively help increase sales of own brand for more profitable long term growth and increased customer loyalty.

 

What do you think?

  

• Is your private label brand packaging comparable in quality to major brands? Is it time for a redesign?

 

• What kind of consumer experience are you offering for your private label brand?

 

• Are your private label brands developed with the capability of range extensions, or are they simply single-shot offerings?

 

• Are there any markets you could investigate to broaden your private brand distribution?

Feel free to share your thoughts in the comments below, we’d love to hear from you!

 

 

Own Label Powers Ahead – Growing Brands & Engaging Consumers

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The battle for the supermarket floor between “private label brands” and “branded goods” has never been more competitive then in recent years. Economic pressures have encouraged consumers, who were previously much more loyal to branded goods, to discover the quality of, and buy, private label brands because they’re invariably cheaper. 

Private/Own Label << versus >> Branded Products

Own Label V Branded

 

Own label brands have become a lot more sophisticated, moving beyond the early ears of perceived poorer quality “me too” copy cats, thinly disguised from their branded counterparts, to stand alone quality brands in their own right. Indeed the private label sector is now distinguished by sub-brand segmentation with a variety of offerings such as value, mid-tier, premium, organic, healthy, speciality, allergenic, vegetarian and child friendly etc. 

 

Private Label or Own Label in Ireland still holds a smaller relative market share of approximately 20% then the more mature UK market of over 40%, but it is growing rapidly. With profit margins up to 25% higher and prices between 10-18% lower, private label proliferation is a very strong economic motivator for retail groups. Amongst other things it is a very compelling vehicle to grow retailer market share through consumer loyalty to their “brand”.

 

Private label brands are very much in the lime light in the UK at present with both Asda and Sainsbury’s relaunching or launching new own label brand ranges motivated by the need to increase their market share. Asda’s, the UK’s second largest supermarket group owned by Wal-Mart, has relaunched it’s entire range of more than 3,500 own label food products and invested over £100m in a drive to improve product quality without impacting on prices. The Asda own brand ranges, “Smart Price”, “Chosen by You” and “Extra Special”, account for close to 50% of group sales with 85% of that accounted for by the mid-tier range “Chosen By You”.

 

Asda Chosen By You

 

From a branding perspective the Asda own label “Chosen By You” range, while price positioned as a mid tier offering, has sought to really connect with the hearts and minds of their consumers. No other retailer to date has visibly endeavoured to so actively seek both the counsel and consent of the very people who buy and eat their products. 

 

Asda Video Link

http://www.asdachosenbyyou.com/

 

What better way to engender positive brand sentiment, trust and loyalty ? Their dedicated “Chosen By You” website is totally focussed on engaging with their customers at multiple levels in a very tangible way to really demonstrate they care about what their customers want, and most importantly, what they think.

 

What does this kind of private label brand challenge mean for “branded goods” ? Retailers have a significant impact on what brands get to shelf and stay on shelf. Shelf facings are a premium but ultimately it’s the decisions of consumers that decide whether brands survive and thrive or disappear. 

 

Consumers buying decisions directly impact the bottom line. If a brand sells it stays on shelf. If consumers care about a brand it sells. Their choices are made at both rational and emotional levels. 

 

Branding is about winning and keeping customers. It’s about influencing choice. The onus then lies with the brand custodians to really connect with their customers, build enduring relationships and really give them a compelling reason to try and continuing buying their brand. 

 

What do you think ?