Nielsen Offers Advice for Private Labels, National Brands

SCHAUMBURG, Ill. — To grow corporate-brand share, retailers should disguise the private-label status of their store brands, adjust price gaps according to category and study the category consumer before going upscale, advises Tom Pirovano, director of industry insights for the Nielsen Co.

Retailers should also:

• Offer multiple brands in multiple tiers since no one brand can stand for value, gourmet and healthy eating.

• Drive store-brand trial by offering a free item with a $50 purchase.

• Use private-label packaging to show the brand supports local suppliers or a charity. Pirovano’s advice was part of a blog entry on www.theshopperwonk.com, which is powered by Nielsen.

“I recently shared some thoughts on how CPG manufacturers can protect their brands from private label expansion,” he said. “It didn’t take long to hear back from retailers asking for tips on growing their own brands.”

Among his tips to national brand manufacturers:

• Introduce more products with new health and wellness claims like “now with more calcium.”

• New package designs with claims like “resealable” or “renewable.”

• New package sizes and shapes to make it more difficult for store brands to copy.

• Innovate new flavor profiles with more line extensions.

• Advertise in new places.

“Winning back these shoppers will not be easy for branded manufacturers,” he said. “Although many will be tempted to cut back on new product development, now is the time to innovate.”

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