A Blog on Marketing & Packaging

Private Label Reports to Training Camp

Posted by: Directions Inc on: July 15, 2010

Private LabelPrivate Label, explain to me how you came into our ranks.

Sir, yes sir! I’m one of many products manufactured by large companies to be marketed and sold under another company’s name. Someone in your corps recruited me to snap to attention on the shelf, sir. And sometimes, sir, I am referred to as “Store Brand.”

How is it possible that you, Private Label, are able to stand out in this crowd?

Sir, you see products like me every day, everywhere. Marketers are screaming for fresh, innovative packaging so that private labels like me stand tall next to brand names.

We private-label products are lined up next to the competition as lower-price alternatives to more recognizable brands, yet we offer comparable performance. And, sir, some private-label products are produced and marketed as premium brands to compete with heavily advertised name brands.

Okay, Private Label, how is this “premiumization” accomplished?

In a world economy where responsiveness is the front line to a successful strategy, you need a source to manage the production and marketing of your product with efficiency. Whether sourced internally or externally, you need packaging that will grab consumer attention, and be executed with sharp-shooter precision.

But WHY would these retailers choose you over name brands?

In 2009, Private Label’s share of new products increased to nearly 25 percent, and in some retail sectors, these brands account for about 40 percent of store sales. Many retailers note that while advertising national brands brings shoppers in, they profit more by selling private-label brands.

In the current economic environment, Private Label’s benefit (value) loyalty is replacing brand loyalty. Some packaging professionals call the trend a “flight to value.” A well-executed package design creates the image of value in the shopper’s mind, and that means a likely purchase.

So, Private Label, are you implying Directions can help manufacturers and retailers share in those profits?

Yes, sir! They know how to market a company’s private label without eating up profits in their competing name brand product. By creating a distinct image and fresh customer perception from other brands, Directions can provide a separate presence for a company’s alternate offering. Real price gaps exist between private label and name brands. Directions’ know-how in package design capitalizes on those gaps, beating out the opposition.

Enlist Directions’ talent, experience, and professional contacts in the industry and maximize the profitability of your private-label consumer goods.

Hooah!

Linda, Prepress Specialist

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About Directions

About DI Directions is an integrated marketing and packaging communications agency with more than 50 years of experience in connecting our clients’ brands with their customers.

For business-to-business, business-to-consumer and nonprofit companies, our integrated marketing solutions meet precise marketing objectives with high-impact creative and measurable results.

We are unique because we are small enough to be nimble and flexible on daily requests, but large enough to handle large-scale projects within tight timeframes.

We offer access to an in-depth pool of knowledge from more than 50 professionals within six key areas under one roof: packaging production, packaging design, research & strategy, marketing communications, interactive and public relations.

www.directions.com

Strategic Creative that Connects!

About Kay

I have 20+ years advertising, marketing and branding experience for internationally known industry leaders. I am adept at strategic planning and working with multiple brands and consumer segments.

About Tom

I have more than 15 years of marketing and public relations experience which follows 17 years as a newspaper journalist. I know how to tell your story to your target audiences.

About Todd

I have more than 25 years of experience in business-to-business and business-to-consumer marketing, package development, brand refinement and
brand promotions. I find success in creating emotional connections to brands.

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