As always my focus is b2c packaged groceries , where my personal core experience lies; things may well be very different elsewhere, and I'd be interested to hear about it.
The questions it prompted were ones I occasionally mused about during my time as a brand marketer when first grappling with the challenges of competing with retailer private label, from way back when this was a new phenomenon in the UK in the 80's.
For context retailers today may have up to four tiers of private label in the same category from lowest price hard discounter clone without retailers logo or identifying marks on the pack through value , standard and premium, all bearing the retailers pack identifying codes and logos. Furthermore retailer private labels are frequently when aggregated together the overall market leaders which makes for a more complex competitor landscape for the manufacturer brand marketer
The questions :
*Do the same rules of branding apply to retailer private label brands as those of manufacture owned brands?
For example could I as a manufacturer brand of cheddar enter the market for say deodorants with the same brand without losing brand identity in the minds of consumers? I think not, but this 'no borders' approach is one of the basic operating characteristics and differentiators ( for marketers anyway) of retail private label. Similarly I note from my experience in food how rare it is for brands to successfully go cross category within food without a landscape brand positioning and benefit which is not anchored in any one specific category , thinking du darfst from Unilever, weight watchers etc.,
more outside food though, thinking Dove, Nivea and such.
*Do consumers see differences between manufacter brand and retailer private label and what are they ?
I've read plenty of anecdotal commentary in qualitative research mainly about price/value/quality parity, freedom from brand tax and so forth ,but haven't read anything more substantial, particularly if ( to simplify in the extreme) manufacturer brands can maybe win on psychological benefits whilst retailer private labels are more likely to win on a rational / transactional basis.
* Can manufacturer brands own relevant different associations in the minds of consumers as a result ?
Kellogg's from memory used to have body copy along the lines of ' we don't make for anyone else' , but this is functional rational talk.
Conversely , in my own experience some retailer private labels , especially a
in the premium tier are seen as doing a better job than manufacturer brands in some categories in terms of functionality, quality, innovation and prestige.
There was even a thing called ' having a Mark's and Spencer dinner party ' where the accent was on the conversation and all the food was ready made and sold under the retailers own brand.
As retailer private label has grown in presence and market share across all categories we have seen manufacturer brands going the other way ,with high profile multinationals like Unilever and Danone seeking to rationalise their portfolio of brands and categories that were partly the result of acquisitions , either by divestment or migration.
So in summary retailers, because they control access to the consumer via ownership of the shelves as well as ultimate consumer prices , have been able to rewrite part of the brand marketing handbook as regards core competence if nothing else, and together with a quality supply chain have fully segmented and met consumer needs .
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