Sunday, May 6, 2012

Differentiating brands from private label

Dominic Citino CPG Director, Microsoft has highlighted 5 key trends that will impact the category from a digital perspective. The emergence of the strategies to counter Private Labels is one of the trends as he sees impacting brands marketers in the future.

Shoppers are savvier than ever. Through the use of technology, social networks, and peer groups, they are deal-hunting faster and more effectively than ever. Private label brands and couponing behavior represent a permanent challenge for CPGs. In 2010, 62% of U.S. adults purchased more generic brands when compared to the previous period in 2009, and private label market share has increased across Europe, accounting for as much as 49% in the UK (SymphonyIRI Private Label in Europe, Dec 2011).

Takeaway: More and more branding initiatives will hinge upon differentiating brands from private label. Some strategies might focus on providing value-add in the consumer relationship to augment the loyalty agenda. These strategies will include better ‘solutions’ for shoppers in areas such as meal planning and health and beauty care. This will be critically important as brands look to pull back from leveraging trade promotions and/or discounts as a primary vehicle for driving loyalty.

AaramShop. offers the platform for brands which is void of private labels and commodities, making it a pure play for FMCG / CPG brands. Brands can leverage AaramShop to build deep loyalty using technology solutions like "add to quick order lists" to reaching out to consumers using past shopping behavior.  

Read more of Dominic Citino views here

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