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Private Label & National Brands: Dialing in on core shoppers
An IRI analysis illustrates that retail shelves must contain both national brand and private label solutions.
January 20, 2015
3 Min Read
IRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. To provide a framework for CPG marketers looking to solidify consumer loyalty and spur volume and margin growth in 2015 and beyond, IRI commissioned an extensive analysis of the reciprocity of national and private brand CPG solutions and the role they play in helping consumers to live well for less. This analysis clearly illustrates that retail shelves must contain both national brand and private label solutions.
Situation:
The economy is stabilizing and optimism is spreading. Still, four in 10 consumers remain financially challenged and many consumers are still entrenched in conservative behaviors. Consumer packaged goods (CPG) industry sales trends are stagnant, with dollar sales growth being largely driven by price increases. But the economic outlook for 2015 is favorable, giving CPG marketers hope for more widespread organic growth in the new year.
The shopper journey has become complex—consumers have more choices than ever in today’s omni-channel marketplace. Ultimately, driving growth in this environment is about making the shopper journey simple, convenient and affordable. It’s about giving the shopper control.
Opportunity:
Intelligent deployment of national brand and private label strategies will provide consumers with simple, convenient and affordable solutions to their everyday CPG needs, and support vitality in a CPG industry that is looking to provide affordability and value in a diverse and complex consumer marketplace.
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• Private label strategies vary at the channel—and sometimes retail banner—level. Developing programs that underscore value and affordability is critical to protecting and growing share for national and private label marketers alike. Focus on protecting and deepening penetration in channels and banners most frequented by key and target shoppers.
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• With the right base assortment in place, marketers have an opportunity to spur purchase behavior by tapping into existing growth pockets. Marketers can fracture concentration with innovation that addresses key consumer trends and white-space opportunities. Consumers’ quest for healthier eating and marketers’ efforts to answer calls for healthier options are combining to support outsized growth around the store perimeter.
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