You may have noticed more companies that cater to lifestyle industry are listening to customers by repackaging and redesigning ingredients in products as they watch consumer trends change, and I say it’s about time! Grocery store shoppers should be aware that you don’t need to pay higher prices for premium national brand names when they may be identical to the less expensive (generic) store-brand. 20 years ago generic store brands screamed for attention as they were all yellow, void of any branding and made you feel like a loser at the check out counter.
KNOW THE FACTS: If you're considering changing your packaging to make it "prettier" on the store shelf, then get ready for a marketing disaster. Packaging redesign is not a beautification project. It's about:
* Meeting the ever-changing needs of your target consumer group. For example, your target group may be aging. Also, younger and more affluent shoppers are entering the marketplace.
* Reviewing competitive products, new product launches and your category.
* Monitoring shifts in distribution channels, retailer formats and economic conditions.
* Optimizing both the graphic and structural elements of your packaging.
* Revitalizing a brand and product sales, maintaining or growing market reach.
More grocers are trying to reel in the loyalists to high-end quality food, while not losing their consumers who need to purchase items at a lower price. Supermarkets are now giving their private labels a face lift, not only in terms of quality of ingredients, but also by making their private label brands sound more upscale. Publix has their generic line, but now also their Publix Premium line, which is their generic line with a little more oomph. Many other grocers are following suit, such as Trader Joe’s, Food Lion, and Kroger.
Since you can’t only lure back those who defected to lower priced stores back by a dollar sign, these grocers are showing that you can have a generic label brand that is lower in price, yet equal if not better in quality. Recently, when I was at my mother’s house for a family get together, I recall my aunt asking me if I wanted any “diet cola.” I am a tried and true loyal addict of Diet Coke and the thought of drinking generic diet cola is laughable. However, my aunt persisted and even said, “This isn’t your typical store brand diet soda, it honestly tastes just like Diet Coke.” The funny thing is, she was right.
The other thing that grocers are keying into, is that if a consumer becomes loyal to their private label brand, it means future repeat purchases, thus improving their bottom line.
Do you find yourself buying more private label products? Have you seen the increase in quality in recent months? Let me know which private labels you have been finding yourself buying more of in the comments.
Posted by Shannon Nelson on November 9, 2006 8:40 AM
| Permalink
