YOUR STORE BRAND. Private Label Merchandising & Marketing Best Practices

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1 YOUR STORE BRAND Private Label Merchandising & Marketing Best Practices

2 Why Private Label? Private Label = Profit Builder Store Brands are more than TWICE as profitable as National Brands Store Brands are more profitable than National Brands Increasing store brand penetration increases profits Promoting store brands increases penetration Returns Higher Gross Margins/Per Unit Profits Accelerate category profits Frees up Capital On a comparable unit cost basis, inventory investment is significantly lower Each shift of sale reduces capital costs and improves return on investment

3 Why Private Label? Private Label = Everyday Savings for the customer Shopping Private Label saves consumers an average of 28 to 33% What happens to the savings? It creates residual sales and margins! An average of half of the savings are re-spent in the store. Source: FMI and BLS data (calculated) CSI Markets (Gross Margin)

4 Why Private Label? Retailers Higher gross margins Residual sales and margins More capital for growth Higher sales efficiency More trade dollars Increased company value Bigger share of profits for retailers Store Brand Shoppers Are more profitable and loyal shoppers Spend more Are worth more Have market baskets Make more frequent trips

5 Why Quality Choice? QC boosts your front end profits 20 to 30% Savings for your customer Premium product & packaging Marketing & merchandising support Customer service 100% Satisfaction Guarantee

6 WHAT IS BRAND AWARENESS? brand a ware ness brand əˈwernəs noun the extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services. WHAT IS BRAND LOYALTY? brand loy al ty brand ˈloiəltē noun the tendency of some consumers to continue buying the same brand of goods rather than competing brands.

7 Store Brands Drive Loyalty Customers come back because they know where they can buy the brand they trust for their families. The authors demonstrate a strong and robust positive monotonic relationship between loyalty to store brands and store loyalty, providing support for the store differentiation rationale for store brands. Further, they demonstrate a link between store brand quality and store loyalty-- premium store brand patrons are more loyal than regular store brand patrons an incentive for retailers to invest in store brand quality. SATHEESH SEENIVASAN, Mowash University; K. SUDHIR, Yale University; DEBABRATA TALUKDAR*, State University of New York at Buffalo, December 2014

8 Store Brands Drive Loyalty Store Brand Spend is Similar Across Incomes of consumers are likely to make a special trip to buy their retailer s store brands. Source: Daymon Worldwide Survey of 1,000 Shoppers Source: Nielsen Homescan, Total U.S., 52 weeks ending 12/31/16, reported in Nielsen ECRM Store Brand Food & Beverage Report, 4/4/17.

9 The 4 P s of PRIVATE LABEL MERCHANDISING BEST PRACTICES

10 Product Quality Choice offers 1100 SKUs across a variety of OTC, HBW, and GM categories. Offer a QC alternative to every item sold in your front end.

11 Product Having multiple private label and control brands causes the consumer frustration and postpones the decision to buy a product. When a consumer has to choose from several brands, usually they do not buy any, or they stick with the brand.

12 TIP: Using only one private label against national brand avoids customer confusion and helps to create brand loyalty to Quality Choice

13 TIP: Simple and clean two-brand merchandising makes the experience easier for customers

14 QC 100% Solution Some categories only need a private label without the national brand. You can give your front end profits a major boost by omitting national brands and offering a 100% QC solution in the following categories: Nail Polish Remover Cotton Petroleum Jelly Implements Medical Compliance Brace Supports

15 Placement The placement of your Quality Choice items at shelf can be a major factor in influencing consumer buying behavior.

16 Think Right! Private label should always be placed to the right of the national brand. We read from left to right. Most consumers are right-handed, and are more likely to select the product on the right.

17 Small to Large Always merchandise small to large from left to right. This increases the chances of the higher dollar ring product.

18 Be Two Faced Whenever possible, put two facings of the QC brand product on the shelf. This makes it easier for the customer to see and select the QC product.

19 Secondary Placements Secondary placement can be effective in boosting sales, building brand awareness, and capturing impulse buys. We offer planogram endcaps for various themes and events such as cough cold, sun care, and first aid. Try secondary placement on a POP display or cross merchandising with a relevant category.

20 Price Private label should be priced 20 to 30% less than national brands.

21 Promotion Use marketing and merchandising tools to call attention to your QC items and promotions.

22 Displays Use displays to draw attention, create more brand awareness throughout the store, and encourage impulse buys.

23 Pitch the Switch Train your staff! When a customer requests help finding a product, walk with them and show them where the product is placed. Take an extra moment to ask if they are familiar with Quality Choice. Mention that that your pharmacy is proud to recommend QC and that there is a great savings and a 100% Satisfaction Guarantee.

24 QC Marketing & Merchandising Support

25 Marketing Support QC provides B2B marketing tools for wholesalers and retailers: Buying opportunities Category trend & data flyers Banners for marketing and websites Planogramed endcaps Merchandising tips Planning support

26 Marketing Support QC Provides consumer facing marketing tools for wholesalers and retailers: Ad circulars Sale flyers Banners for their , web & social Planogramed endcaps Merchandising tips

27 Marketing Support QC item B2C advertisements for retailers: As bag stuffers On social media posts In marketing On websites Shelf signage In ad circulars Various sizes and formats for print and digital are available and easy to download!

28 Marketing Support Shelf Materials and Education We provide useful and easy to understand consumer-facing vitamin recommendation charts and guides for our Vitamin program.

29 Signage Program

30 Put Up the Signs QC offers a great free signage program. Brand your store and promote loyalty with: Endcap signs Aisle blades Shelf talkers Pharmacy counter mats Vinyl window decals Pharmacist Recommended buttons

31 Put Up the Signs Draw attention to items with shelf talkers Communicate QC brand messaging to your shoppers Give your front end a face lift Promote brand awareness, loyalty and trust

32 Coming together is a beginning, Keeping together is progress, Working together is success. Thank You! - Henry Ford