Why Private Label For Business Branding?

Private Label are now bridging cost gap by delivering quality comparable with national brands. Private label products are on average about 30 percent lower in price than national brands. Here are some considerable advantages of Private Label Branding.....

1. Control

Private labels offer retailers control over product factors such as pricing, size, package design, production and distribution. Retailers can develop and implement innovative ideas to gain market share over national brands.

2. Branding

Successful private label brands will be able to create better sales opportunities for retailers. The customization of store brand labels -- such as to logos and tag lines -- can personalize a customer's shopping experience that can lead to higher customer loyalty. As an example, Supervalu's Wild Harvest organic food line offers its customers healthy food options at low prices with sophisticated package design that rivals that of more exclusive national brands.

3. Structural

Unlike national brand labels, retailers with store labels can shape the shopper's in-store experience. This might translate into marketing advantages gained from in-store placement of private label products and signage. For example, retailers can use horizontal shelf displays techniques, such as brand blocking, and end-cap display fixtures to make private labels stand out from national labels.

4. Value

While value is not the only factor consumers consider when choosing private label brands, it still remains an important one. "The need for affordable packaged goods solutions is high, and private label products are going a long way toward answering that need," Thom Blischok, Consulting and Innovation president at Information Resources Inc., told Packaging Digest. The most significant advantage of store brand labels during economic downturns is that price gains importance as consumers increasingly turn to money-saving strategies like increasing private label brands to manage budgets.

The original article published on http://goo.gl/LGYD6R