By Doug Baker, Vice President, Private Brands, Food Marketing Institute
With a last name like “Baker” you’d expect me to know a thing or two about ingredients. When it comes to making a cake I’m decent, but where my baking skills excel is actually with private brands. We recently teamed up with Acosta Mosaic Group’s Strategic Advisors team to survey food retailers about what are the best active ingredients to private brands strategies.
The FMI Store Brand Strategies 2014 Report finds that today’s private brands are facing a new value equation, where customers are looking for their brands to go beyond price, placement, promotion, product and profit. Instead, private brands need more active ingredients that speak to strategy, value and quality, such as:
- Flour, Not Fluff – Internal support and leadership combined with associate support from in-store brand ambassadors is key to building a solid private brands strategy.
- A Pinch of Spice – Product innovation mixed with consumer engagement and feedback should continue to drive private brands strategy.
- Icing on the Cake – The value equation continues to evolve from simply price to performance through function, health, convenience or even social responsibility. Private brands that offer these added components will stand out to consumers.
In the end, food retail private brand owners no longer need to be singularly focused on moves made by national brands, but instead should capitalize on this new consumer value equation. Join us to learn more at the Private Brands Business Conference this November at www.FMIPrivateBrands.com and connect with us on Twitter at @FMIPrivateBrands.