Succeeding in private brands requires great products, but that’s not all.Increasingly it’s also about pursuing key strategies to accelerate the business. A number of strategies were discussed at the recent FMI Private Brands DC Summit.

<p>By: Doug Baker, Vice President, Industry Relations - Private Brands, Technology, FMI<br /> <img src="https://www.fmi.org/images/default-source/blog-images/private-brands-dc-summit-family-meals-event.tmb-large-350-.jpg?sfvrsn=7157536e_1" data-displaymode="Thumbnail" alt="Private Brands DC Summit Family Meals Event" title="Private Brands DC Summit Family Meals Event" style="float: right; margin: 10px;" /></p> <p>Succeeding in private brands requires great products, but that&rsquo;s not all.</p> <p>Increasingly it&rsquo;s also about pursuing key strategies to accelerate the business. A number of strategies were discussed at the recent <a href="https://www.fmi.org/private-brands-dc-summit">FMI Private Brands DC Summit</a>, including:</p> <ol> <li>Powerful branding.</li> <li>Solid engagement with consumers.</li> <li>Strong relationships with suppliers.</li> </ol> <p>It&rsquo;s important to further understand these strategies and how they are playing out today in private brands. The Summit attracted a wide range of private brand retailers, suppliers and other stakeholders.</p> <h5>Powerful Branding</h5> <p>The importance of branding was underscored during an interactive segment of the Summit. I asked audience members to call out what they consider key attributes of a brand. We recorded the numerous responses on large sheets of paper, and hung these on a wall.</p> <p>Here are attributes the audience used to describe brands: trust; purpose; integrity; emotional connection; safety; loyalty; promise; control; ownership; intrinsic value; consistency; transparent; strategic; and differentiated.</p> <p>Why was it important to conduct this exercise? In the 2019 FMI <a href="https://www.fmi.org/forms/store/ProductFormPublic/power-of-private-brands-from-the-industry-2019"><em>The Power of Private Brands: From the Industry</em></a> report, retailers overwhelmingly used the word &ldquo;brand&rdquo; over &ldquo;label&rdquo; in describing how they view this business.</p> <p>All of this indicates &ldquo;label&rdquo; is more tactical, while &ldquo;brand&rdquo; is more strategic.</p> <h5>Solid Engagement with Consumers</h5> <p>The Summit also spotlighted a number of ways for private brand retailers to solidify relationships with consumers. One of these is by promoting the FMI Foundation&rsquo;s <a href="https://www.fmi.org/family-meals">National Family Meals Month&trade;</a> campaign. John Evans, director of private brands for Weis Markets, described how his company made private brands a centerpiece of its 2019 efforts around this campaign.</p> <p>Initiatives included running ads in the retailer&rsquo;s circular and <em>HealthyBites</em> magazine, showcasing meal solutions, making coupons available, conducting in-store events with dietitians, and leveraging social media, podcasts, and media appearances.</p> <p>Another Summit presentation relayed how private brands are increasingly driving consumer decisions on which stores to shop. Mark McKeown, client insights principal for IRI, outlined findings from FMI&rsquo;s latest <a href="https://www.fmi.org/forms/store/ProductFormPublic/power-of-private-brands-from-the-consumer-2019"><em>The Power of Private Brands: From the Consumer</em></a> research<em>. </em>Citing IRI data,<em> </em>he noted that 46% of consumers say private brands are very or extremely influential in their choice of food retailer, up significantly from 35% in 2016. Moreover, millennials are especially on board with this point &ndash; 54% point to a strong connection between private brands and store choice.</p> <p>&ldquo;If you&rsquo;re a retailer, that&rsquo;s really good,&rdquo; said McKeown. &ldquo;Your younger shoppers are saying that your brands are more important. So I would double down on that. What do you need to do with your brands to continue to have them be a critical part of why these consumers shop with you?&rdquo;</p> <h5>Strong Relationships with Suppliers</h5> <p>The Summit underscored the importance of retailer engagement with private brand suppliers. A new research report on this topic was unveiled by David Taylor, client success director for Solutions for Retail Brands (S4RB).</p> <p>&ldquo;Private brands by its very DNA is a collaborative endeavor between manufacturers and retailers,&rdquo; said Taylor. &ldquo;Collaboration can become your competitive advantage. Successful supplier engagement means successful private brands.&rdquo;</p> <p>This research was based on an industry survey conducted in partnership with FMI. It shows widespread industry understanding of the value of private brand retailer-supplier engagement, but less than satisfactory levels of current engagement. It also indicates huge opportunities for future partner collaboration, Taylor said.</p> <p>So, what&rsquo;s my overall take on the FMI Summit? I&rsquo;m pleased that attendees gained a lot of insights on branding, consumer relationships and supplier engagement, among other topics. These will be important areas to pursue as private brands move further along the journey from &ldquo;fast follower&rdquo; to innovative leader.</p> <p><a href="https://www.fmi.org/industry-topics/private-brands" class="button-secondary">FMI Private Brand Resources</a> </p>

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