Times & Trends: Opportunities for private label and national brands lie in collaboration
Traditionally, private label and national brands have competed with each other, each vying for a larger share of consumers' CPG dollars. In "Private Label and National Brands," IRI reports that private label and national brands can enjoy mutual growth by, not just co-existing, but evolving and working together to deliver what consumers want, when they want it.
During the past year, national brands captured share across five of the 10 largest CPG categories, and share of dollar sales remains 18 percent. Private label share has also increased across half of the largest CPG categories, with drug, convenience and dollar channels showing the most momentum.
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Consumers' "new normal" puts value in the crosshairs of every purchase decision and offers opportunity for private label and national brand CPG marketers. Manufacturers and retailers must work together to provide a balanced assortment of national and private label solutions, targeted at the store level, to offer consumers solid value.
IRI offers three key strategies that enable national brand and private label CPG marketers to drive growth and capture share within the CPG industry:
- Drive increased penetration;
- Expand breadth of ownership within the CPG basket;
- Strengthen price and promotion strategies by aligning them closely with the needs and wants of key consumer segments.
These goals can be achieved by building strategic partnerships between private label and national brand CPG marketers that drive collaborative marketing programs with a strong value proposition aimed at getting the right products to the right place at the right time–and at the right price.
TIP: Marry traditional promotional programs with technologically driven programs that engage shoppers early and throughout the purchase process.
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National brands gained share across five of the 10 largest private label categories during the past year.
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The price gap between private label and national brand solutions is diminishing; today nearly one-third of private label products offer savings of less than 20 percent versus their national brand counterpart.
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