“This year’s Private Brands Summit goes beyond creating ‘me too’ products and looking at how to successfully compete on more levels than just price,” said Joe McKie, vice president of private brands at FMI.
Since its introduction on supermarket shelves in 1978, Private Brands shifted from competitively priced substitutes to items that are considered not only affordable, but also high quality and flavorful. According to FMI’s U.S. Grocery Shopper Trends 2011 report, shoppers originally purchased Private Brands to save money, but are now sticking with the products for their taste. These trends open up more discussions for Summit attendees, as they learn how to strategically manage their brands and grow stronger consumer loyalties.
FMI will share results from a partnered report with Buxton, looking at customer analytics for private brands at retail and present case studies for determining an ROI calculation. Buxton’s process included testing and fine-tuning marketing efforts to provide an understanding of the best ROI when marketing to loyal Private Brand customers, while giving incentives to “switchers,” or those likely to buy both Private Brands and National Brands. Meijer, Inc. and John B. Sanfilippo & Son, Inc. were the retailer and supplier companies, respectively, who participated in the case study.
“When it comes to private brands,” knowing your customers” is the most critical element for brand owners when developing their brand strategies.” McKie said. “Our research, supplier partners and presenters at the FMI Private Brands Summit, indicate that we need to challenge the strategy model for private brands – we have to give customers one more reason to shop and a reason to come back – since price is no longer the unique motivation.”
Media Information:
Studies available for press
Interviews with Joe McKie
Food Marketing Institute (FMI) conducts programs in public affairs, food safety, research, education and industry relations on behalf of its nearly 1,250 food retail and wholesale member companies in the United States and around the world. FMI’s U.S. members operate more than 25,000 retail food stores and almost 22,000 pharmacies with a combined annual sales volume of nearly $650 billion. FMI’s retail membership is composed of large multi-store chains, regional firms and independent operators. Its international membership includes 126 companies from more than 65 countries. FMI’s nearly 330 associate members include the supplier partners of its retail and wholesale members.
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