1 / 59

PLMA Australia

PLMA Australia. Building A Successful Store Brand Program – A Proven Road Map August 22, 2007. Agenda. Why Store Brands? Quality – Job #1 Focus on the Consumer Brand Strategy Design and Impacting Consumer Choice Pricing and Profitability Brand Communication Execution and Implementation

cadee
Download Presentation

PLMA Australia

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PLMA Australia Building A Successful Store Brand Program – A Proven Road Map August 22, 2007

  2. Agenda • Why Store Brands? • Quality – Job #1 • Focus on the Consumer • Brand Strategy • Design and Impacting Consumer Choice • Pricing and Profitability • Brand Communication • Execution and Implementation • What are the Benefits?

  3. Why Store Brands? Setting the Stage for Success

  4. Why Store Brands? • Retailer Factors • Ownership • Flexibility • Profit • Image and Market Position • Consumer Factors • Need Satisfaction • Value Focus • Trust and Repeat Purchase • Customer for Life

  5. Why Store Brands?

  6. Quality As Job #1 Building a Strong, Lasting Foundation

  7. Define Quality Levels ELPP NBE Premium Establish Quality Specifications Create Quality Review Process Consumer Technical Specifications Align Organization Behind Quality Hold Manufacturers Accountable Be Aware of Consumer Perceptions Focus Brand and Brand Image on Proper Quality Levels Maintain Quality with a Fanatical Focus Quality As Job #1

  8. Quality As Job #1

  9. Focus on the Customer Getting to Know the End User

  10. Focus on the Consumer • Two levels of sales • Big C – retailer to the consumer • Little C – central organization to retailer • Know why the consumer buys (or does not buy) • Know how various factors can influence purchase • Design • Cost/Price • Merchandising and promotion • Product Experience • Tiers or quality perceptions • Interaction of all of the above

  11. Carlita-Branding for the Future • Internal Research— “El Store Brando” • Single Brand and legal • Onda, Dona Perlita, El Campito, La Companer, Pais del Sol, Rico Gusto, Rico Sazon, Fiesta Latina, La Buena Mesa, La Concineros, Tio Vivo • El tiempo para un experto

  12. Carlita-Branding for the Future • Consumer Research—Time for Experts • Four branding houses engaged to help • Understand consumer shopping • Understand consumer usage • Identify image and attributes of brand • Determine design system • Assess consumer gaps with current brands

  13. Carlita-Branding for the Future • Consumer Research—Mexican Food • Understand consumer shopping • Non-Hispanic Americans • Buy Mexican food at supermarket • Buy mainstream brands-Pace, Ortega • Prepare Mexican food 3 to 4 times a month • Hispanic Americans • Buy fresh ingredients in other outlets • Use authentic brands-La Costena, La Modera, Goya • Prepare Mexican 2-3 times a week

  14. Carlita-Branding for the Future • Consumer Research—Mexican Food • Understand consumer usage • Quick and Easy • Convenient • Spicy and flavorful, not processed • Fun and Festive • Inexpensive

  15. Carlita-Branding for the Future • Consumer Research—Mexican Food • Identify image and attributes of brand • Tested logo design

  16. Carlita-Branding for the Future • Consumer Research—Mexican Food • Identify image and attributes of brand • Tevivo • “It looks like a logo for pizza” • “It looks like something for kids” • Mavo • “It looks authentic” • “It looks like Mayo, like mayonnaise jars”

  17. Carlita-Branding for the Future • Consumer Research—Mexican Food • Identify image and attributes of brand • Candella • “It sounds Mexican” • “It looks like all other American brands” • Carlotta • “I imagine a Mexican grandmother” • “Carlotta sounds Italian--should be Carlita”

  18. Carlita-Branding for the Future • Consumer Research—Mexican Food • Determine design system • Carlotta preferred over others for • “High quality photography and design” • “Premium quality” • “Eye catching, fresh and appetizing” • “Good for Mexican and authentic”

  19. Carlita-Branding for the Future • Consumer Research—Mexican Food • Determine design system • Carlotta preferred over brands • “Stands out amongst mainstream brands” • “Higher quality” • “Eye catching”

  20. Carlita-Branding for the Future • Consumer Research—Mexican Food • Signature Brand vs. Master Brand • Carlotta preferred over current brands • “Does not communicate Mexican” • “Interest in trying product none” • “Cheesy looking” • “Went from high quality and authentic to store brand”

  21. Carlita-Branding for the Future • Consumer Research—Mexican Food • Conclusions • Single brand concept validated • Carlotta design chosen • Consumer perceived product as better than the national brands • Design conveys ‘Authentic Mexican’ quality through • Uniquely different look from traditional American brands (e.g. Old El Paso, Ortega, Taco Bell, etc.). • The rich brown background color (“like Mexican clay”) andAztec design. • The high quality image of each product depicted, featuring very fresh looking tomatoes, lettuce, cheese, salsa, etc. • The Mexican-like bowls on the salsa package.

  22. Brand Strategy Deciding Who You Want to Be

  23. Brand Strategy • What is “Brand”? • Brand hierarchy • Company • Store • Store décor and layout • Department selection and communication • Products carried • Store brands or private labels • Staff – knowledge, service and interaction

  24. Brand Strategy • Common Store Brand Hierarchy: • Good (price focused) • Better (value focused – national brand equivalent) • Best (Signature, Artisan, Aspirational, Premium) • All three always fit EVERY retailer – but to varying degrees based on format and consumer base • Mission Critical – create and communicate a Brand Portfolio Strategy • How product links to other brand pieces

  25. Brand Portfolio Strategy PRODUCT TIER / LABEL QUALITY ROLE Entry Level PRICE POINT Master Brand Good Value National Brand EQUIVALENT Master Brand Better Profit “National” Brand UNIQUE/EQUIVALENT Signature Brand Better / Unique Image Premium/Gourmet Level UNIQUE Master Brand Best Innovation

  26. Brand Portfolio Strategy PREMIUM TIER Premium / Gourmet FIRST TIER National Brand Equivalent SECOND TIER Entry Level Price Point Master Brand Signature Brands Master Brands Master Brand • Meets needs of growth consumer that focuses on higher end products • Point of differentiation • Premium, unique, or custom quality where it fits • Natural baseline – organic when available • Premium packaging • Meets Consumers • emotional needs based • on Consumer Research • Proven Need not being • met by Master Brands • Point of Differentiation • High Image Packaging • NBE Quality or Better • Combines Volume for • Lower cost of Goods • Meets Consumers • needs for High Quality • Items at Prices Lower • than National Brands • Cornerstone of Store • Brands Program • Consumer Focused • Packaging • NBE Quality or Better • Meets Consumers • needs for Good Quality • Items at Prices Lower • than Regional Brands • Proven Need for the • Budget-Conscious • Consumer • Potential to Build Value • Image with Family Look Single Brand Logo & Image for Single Category Single Logo & Varied Image for Multiple Categories Single Logo & Image for Multiple Categories High Impact Logo & Image across categories

  27. Brand Strategy • Little C – very important all associates understand the brand structure and approach • Big C – will fundamentally understand how this works if… • Communication in-store is appropriate • Shelf placement reflects brand image • Pricing reflects brand image • Promotion and advertising reflects brand image • Individual tiers are treated as individual tiers

  28. Design and Impacting Consumer Choice Creating a Compelling On-Shelf Image

  29. Design and Impacting Consumer Choice • Package design is critical to brand and store brand success • Command attention • Stand out from the “clutter” on the shelves • Convey brand message • Entice consumers to change purchasing behavior • Reinforce brand strategy and support store image • Reflect intent and integrity of the overall branding system • For the consumer, the packaging IS the product

  30. Design and Impacting Consumer Choice • Why is packaging so important? • 75+% of all purchase decisions are made at the shelf – packaging becomes the best advertising • There are only two to three seconds to grab a consumer’s attention • Brand architecture must convey the message in six seconds or less • Color, logo and package layout all impact a consumer’s perceptions about the quality and value of the item in question

  31. Pricing and Profitability Strategically Driving Behavior Through Retail Pricing and Business Economics

  32. Pricing and Profitability • Pricing strategy varies by tier and by desired consumer image • Good – everyday low price • Better – national brand comparative price gap • Best – premium pricing approach • Profit can also vary by tier • Good – what the market will support • Better – minimum 5% more than the brand target • Best – whatever the market will bear • Profit is not a bad word!

  33. Brand Communication Steering Consumer Image – Delivering the Proper Message

  34. Brand Communication • Big C – “Consumer” • Specific by tier • Consistent application • Limited interaction across tiers • Helps minimize confusion across product lines • Little C – “Customer” • Education and support • Understanding of the benefits • Clear communication of the strategy

  35. Signage Program Available to Retailers Dangler & Mall Sign Shelf Sign Blank Shelf Sign Channel Strip

  36. Advertising Campaign Available to Retailers ½ Page Newspaper Ad Format Newspaper Ad Drop

  37. MASTER BRANDS Umbrella Signage Two Campaigns for competing retailers “Quality Guaranteed” & “Make Our Brands Your Brands” Available for: • Flavorite • Richfoods • Foodland • IGA • HomeBest 2’ x 4’ Banners

  38. MASTER BRANDS Common Theme Focusing on Variety, Quality and Great Price “Quality Guaranteed”

  39. MASTER BRANDS Common Theme Focusing on Variety, Quality and Great Price “Make Our Brands Your Brands”

  40. SIGNATURE BRANDS Umbrella Signage Floor Graphic 2’ x 4’ Banner

  41. SIGNATURE BRANDS Common Theme Focusing on Quality

  42. Merchandising Strategy Point of Sale Blade Signs Banner Signs Header Board

  43. Merchandising Strategy Point of Sale Shelf Talkers Recipe Boards Shelf Strips

  44. Execution and Implementation Delivering “The Last Mile”

  45. Execution and Implementation • Communication is very important • Internal vs. External • Focused by organizational level • Continuous • Continuously refreshed • Brand Image and Brand Equity • External communication will build brand image • Trial will build brand equity • Associate support and focus will do both

  46. Cascade 7 • Define levels in an organization • From C-Level to associate level • If there are more than seven levels, your organization may benefit from change management assistance • Tailor the message to each level • Move organization from Alignment to Agreement • Develop a communication schedule and appoint a communication lead

More Related