Branding Private Label
While all products have names, only some of these names are actually “brands.” A proper brand has clear differentiation in the market, a strong “preference” or “loyalty” among its target consumers, and a well-established value proposition. Loss leaders need not apply.
Successful branding is much more than placing a private label shield on a package and offering a lower price point at shelf. Everyone upstream and downstream from the point of purchase needs to be living the brand day in and day out in order for it to be successful.
A true brand stands for, or promises, something and delivers on that promise, which results in deeper customer engagement every time a consumer uses the brand’s products. For example, Tide laundry detergent has always kept its brand promise of delivering the cleanest clothes compared to other products. The customer relevant brand promise is more than just talking points – it is consistently delivered benefit.
Building Brand Loyalty
Brands should not be built on what a retailer or manufacturer thinks is a unique benefit or feature, but rather are derived from unbiased evidence from a target specific customer. For example, it is unlikely that Lay’s potato chips compiled robust consumer data prior to their introduction of their 100% compostable packaging. While conceptually a great idea, in reality the bags produced a loud crinkling sound that resulted in major consumer complaints about the “deafening” bags. Soon thereafter, Lay’s removed the packaging from the market. In this case, while Lay’s may have met a consumer desire for environmentally responsible packaging, its benefit was outweighed by a negative product experience.
The first step in building lasting private label brands is to think about the points of difference between your brand and others from the consumer’s perspective. A “me too” product is only as good as the brand you are emulating, and a copy is not a brand. The loss leader approach can also hurt your brand. A “buy one, get one free” strategy can attract customers initially, but it can also lead to the expectation that this will be a frequent offer. This cycle can force retailers into making further price reductions over time just to get consumers as excited as they were with the initial “buy one, get one” platform.
The key is to define your objectives and measure points of difference using customer’s feedback. What opinion do you want customers to form by using your brand? The answer should drive the design of your consumer testing strategy and provide the benchmark for developing actionable data from the study. Do the results and supporting evidence from your study group show a reason to believe in your brand? Did the customer’s motivation and decision strategy align with your objectives?
The goal is to create a brand that means something and is different from competing brands. In some categories, there is just one brand that immediately comes to mind. For tissues, there is Kleenex. For jeans, there is Levis. For diamonds, there is Tiffany. In other areas, there are multiple brands that dominate the space. For example, in the chip category there is Pringles, Lay’s, Wise, etc.
Deep Customer Focus
This is where brand strategy is key. Why are there standout singular brands like Kleenex and Levis? There is something in their branding that consumers form a relationship with and a personal connection to. In the end, perception is everything when it comes to branding and consumers will view your products by how the brand impacts them. Your consumer’s experience with your store brand will create the mental image of the defining terms of your brand.
Whatever the brand concept is going to be, you need a deep customer focus from the beginning in order to make informed branding decisions. Consumer panels can demonstrate what triggers excitement and leads to brand loyalty. Consumer testing can help uncover the emotional appeal of a particular product, which can be used to stimulate trust and confidence in your brand. This information is an integral part of building the brand concept. Remember, it’s easier to build a solid brand from the ground up instead of trying to rebuild good will after a brand failure.
Retailers must also keep in mind that too many brands can cause consumer confusion. For example, in the cosmetics category it’s now commonplace to see multiple extensions of a brand with similar ingredients. Retailers need to be careful not to dilute or damage the brand with new extensions to meet every consumer want. A retailer’s established point of difference, such as flavor or quality, must carry over to any brand extensions or else they are a waste of time.
The bottom line is every brand action you take articulates a message to your customer. Cut back on the chocolate chips or lessen the thickness of a baby wipe, and you are showing you care less about your brand image. On the other hand, add four scoops of raisins to your store brand cereal and you are living the brand. Consumers form associations with your brand each and every time they interact with it. So if you build your brands with your customer’s input, you will have better success with branding your store brands.
* Scott A. MacLennan is director of store brands at UL-STR (formerly Specialized Technology Resources, Inc.) in Canton, Massachusetts, which is a leading global consumer product testing and quality assurance company. UL-STR develops robust testing programs for retailers to help them take their store brands to the highest quality level. He can be reached at Scott.MacLennan@STRQuality.com.
