How Consumer Brands Can Fight Private Label Erosion_rev Branding Agency

How Leading Consumer Brands Can Fight Private Label Erosion

The rise of private label (retailer-owned brands) presents a significant challenge for leading consumer brands who face the risk of being replaced, or potentially losing valuable shelf space within major retail chains.

But fear not, there are strategies to combat this threat and secure your brand’s future!

As the cost of living continues to rise, and consumers seek more affordable options, private label brands are becoming increasingly dominant. So, how can brand marketers overcome this challenge and retain their shelf position?

Investing in Your Brand

One of the most critical strategies for brand marketers facing the threat of private label erosion is to continue investing in their brands. However, this goes beyond simply throwing money into social media campaigns.

It involves a more strategic approach to building brand loyalty, engagement, and online sales.

Building Brands that Last

To compete effectively with private label brands, leading consumer brands must focus on developing a robust brand strategy that includes instore and digital tactics.

Here are some essential tasks to help retain your shelf position:

1. Optimise Your Brand Content

Investing in content management and optimisation is crucial for ensuring that your brand’s content is clean, accurate, and fully populated across retailer systems and online sales channels. By optimising your brand content, you can enhance your brand’s visibility and appeal to shoppers, helping them make more informed purchase decisions.

By investing in brand content, you can effectively differentiate your brand from competitors and secure your shelf position in major retail chains. Providing shoppers with high-quality, accurate, and comprehensive product information will not only drive sales but also build long-term brand loyalty.

2. Build a Multichannel Digital Sales Strategy

A robust multichannel digital sales strategy is essential for leading consumer brands to maintain their competitive edge and combat the threat of private label erosion. With consumers increasingly turning to digital channels for their shopping needs, brands must ensure that their products are visible across a wide range of digital sales channels, including online search, marketplaces, and digital shopping apps.

To ensure that your brand stands out in online search results, it’s crucial to invest in search engine optimisation (SEO) techniques. Using tools like Content Marketing, Google Search, you can target relevant keywords and search phrases, as well as optimising your product listings to improve your brand’s visibility in search engine results when shoppers are searching for products like yours.

3. Invest in Digital

Engaging with your target audience is essential for building brand awareness, fostering customer loyalty, and driving sales. To maximise engagement with your target audience, utilise marketing tools such as Social Media, Google Ads, CitrusAd (Coles Group and Independents) and Cartology (Woolworths and Dan Murphy).

CitrusAd and Cartology are powerful marketing tools that can help you maximise engagement with audiences who shop at Coles, Woolworths and Independents food and liquor banners as well as Pharmacy Chains like Chemist Warehouse. These platforms offer a range of features and capabilities designed to help you connect with consumers, drive brand awareness, and increase sales.

From targeted advertising and sponsored product listings to advanced analytics and reporting, CitrusAd and Cartology provide the tools you need to get the best results from your marketing efforts.

Partnering with an agency like rev™ Branding who specialises in digital engagement campaign services, can help you get the most out of campaign investment, drive measurable results that ensure your brand stands out in a crowded digital marketplace. Future of eCommerce >>>

4. Build Brand Loyalty

Building brand loyalty is essential for long-term success. Investing in programs that create brand trust and loyalty, from pre-purchase to post-purchase experiences, is crucial for establishing a base of loyal customers.

Building brand trust begins with providing customers with exceptional pre-purchase experiences. This includes offering detailed product information, transparent pricing, and excellent customer service. By providing customers with the information and support they need to make informed purchase decisions, you can establish trust and confidence in your brand.

Once a customer has made a purchase, it’s essential to continue engaging with them to foster loyalty and repeat business. Implementing post-purchase programs such as loyalty rewards, personalised recommendations, and targeted marketing campaigns can help keep customers engaged with your brand and encourage them to make repeat purchases.

5. Enhance Brand Experience

Providing customers with a unique, engaging, and personal brand experience is essential for building brand affinity and loyalty. Utilising AI and Augmented Reality (AR) tools can help you create innovative and immersive brand experiences that resonate with consumers and set your brand apart from the competition.

Whether it’s through virtual try-on experiences, interactive product demonstrations, or personalised recommendations at the checkout, these innovative technologies can help you create memorable brand experiences that leave a lasting impression on your customers.

6. Utilise Product Variants

Investing in product variations that extend your brand’s category is an effective strategy for maintaining your position within the category and combating the threat of private label erosion. By offering a range of product variations, you can meet the diverse needs and preferences of your customers while also differentiating your brand from competitors.

Extend your brand’s category by introducing product variations that allows you to offer a wider range of products to your customers, increasing your brand’s appeal and relevance. Whether it’s by introducing new flavours, sizes, or formulations, offering product variations can help you attract new customers, retain existing ones, driving sales and long-term brand success, and influence your position within the category.

7. Invest in Category Planning & Space Management

Investing in category planning is crucial for leading consumer brands looking to combat the threat of private label erosion. By spending time creating in-depth category development plans, brands can build detailed arguments for their brand positioning within the category.

These plans not only help brands understand category and consumer purchase trends but also provide valuable insights for retail buyers. Backed by quality shelf planning and planograms, brands can visually demonstrate their strategic category plan, making a compelling case for retaining their shelf space.

8. Create Quality Retail Buyer Presentations

At your next category or range review, take the time to create a quality retail buyer presentation that truly stands out. Working with brand agencies like rev™ Branding, you can implement unique strategies to ensure your presentation captures the attention of buyers and creates an emotional connection.

Say goodbye to boring PowerPoint slide decks and hello to presentations that leave a lasting impression. By investing in quality retail buyer presentations, you can effectively communicate your brand’s value proposition and secure your shelf position against private label competitors.

Learn more about our Brand Storyboard >>>

Securing Your Brand’s Future in the Face of Private Label Dominance

As private label products continue to gain popularity, major retail chains are increasingly relying on them to control categories and boost profit margins, especially during challenging economic times.

With shoppers actively seeking more affordable alternatives, leading consumer brands must ensure their visibility and implement robust marketing strategies to retain their shelf positions.

To combat the threat of private label erosion, it’s crucial for brands to invest in the quality and innovation of their products. By focusing on detailed research and development, brands can highlight their unique value proposition and differentiate themselves from private label alternatives.

By investing in your brand marketing, category planning, creating compelling retail buyer presentations, and prioritising quality and innovation, brands can effectively combat private label erosion and secure their shelf positions in major retail chains.

Take Action…

Now is the time to take proactive steps to protect your brand and maintain your competitive advantage in the market. Don’t wait until it’s too late — act now to secure your brand’s future success.

Speak with rev™ Branding about how we can help….

rev™ Branding is a specialised digital brand agency for the food and beverage segment, offering a comprehensive suite of services covering category development, brand launch, and eCommerce marketing services.

Drawing upon more than 20 years of experience, our team has transformed the marketing and sales strategies for 70 of the top 100 Global FMCG / CPG companies and successfully redefined how these brands engage with consumers.

Our digital brand agency is well-recognised for its ability to empower food and beverage brands to secure coveted product placement in physical stores and online whilst closely collaborating with major retailers and distributors across Australia and New Zealand.

Over the course of more than two decades, rev™ Branding has revolutionised the way brands market and sell products across traditional brick-and-mortar retail spaces and ever-evolving digital sales channels, including platforms like eBay, Amazon, Catch, WooliesX, and Coles 360, among others.

Start developing Category Strategies and Brand Launch Tactics now by learning more about the services available from rev™ Branding that can help you to succeed.

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Consumer Product Branding Whitepaper

Create a robust and powerful product brand strategy which connects with shopper’s emotions to encourage repeat purchases bu downloading our free Consumer Product Branding Whitepaper.

Consumer Product Branding Whitepaper

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For additional information, please speak with our experienced and industry recognised team with more 30+ years working in the FMCG and CPG sectors.  Contact us on +61 3 9863-7444 or email us at [email protected] 

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