Strategy: Developing Private-Label Brands

- December 4, 2012

Strategic Tuesday/Positioning

Hello, I’m Jim Glover, That Branding Guy, for Once a Day Marketing™. Today is Strategic Tuesday and we are going to discuss private-label brands.

You've probably heard of popular name brands like Pam, Reddi-Whip and Healthy Choice. These are all products that are produced by ConAgra, one of the largest food packing companies in the world. ConAgra recently agreed to purchase Ralcorp Holdings, a leading manufacturer of private-label brands for other companies.

A private-label brand is something that is manufactured by one company then branded and marketed by the store that is distributing it or selling it as their own. These private-label brands typically provide the merchant with 10 to 15% greater profit margins than national brands due to the fact they are not paying for all the overhead associated with manufacturing and advertising of the national brands.

A retailer like Target with their brand Archer Farms and stores like Wal-Mart, Safeway and Trader Joes all use private-label brands.

The strategic question for you is whether or not you can create your own private-label product. This is especially meaningful if you are delivering products directly to you own clientele, perhaps in a retail environment. For example, a card shop selling Hallmark cards could create their own line of cards or, a garden center may decide to package a soil amendment using their own name.

You may want to consider developing a private-label that makes sense for your company. You will be able to market it yourself and it will be branded as your company’s instead of the national brand. There will also be an opportunity to generate more margins. I'm sure there is a partner out there that will work with you to develop your private-label brand.

That concludes Strategic Tuesday. Join us tomorrow for Action Wednesday. If you need any branding or marketing support, please contact me to discuss an online or onsite service engagement. You can always find that information at the end of this video. I'm Jim Glover, That Branding Guy, for Once a Day Marketing™ and we will see you next time. 

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