Private Brand Growth Based on Quality – Not Lowest Price

SITUATION

A large regional grocery chain was significantly underperforming in a key category for many years, compared to the national private brand penetration of this specific food category. Manufacturer created a unique quality story and strategy to position itself for business vs category leader price focused National Brand Equivalent supplier.

PROBLEM

The national brand category leader dominated retailer’s geographic market with share near 75%. Current private brand products had no point of differentiation to other retail competitors serviced by same vendor or the leading brand.

SOLUTION

New supplier was positioned to generate superior quality, story line and logistics benefits for the retailer. Innovative labeling and marketing strategy was also proposed to focus on product quality and differentiation benefits of new products.

BENEFITS

Manufacturer secured business based on product quality and differentiation vs lowest cost in a bid. Manufacturer gained higher margins vs other programs. Retailer generated double digit private brand sales growth.

For more information, contact Mike Hackbarth at 716-627-4369 or [email protected].