Retailers Give Preference to In-store Brands Through Retail Merchandising

Private labels have been immersed in a battle to compete with store brands in the consumer packaged goods space for many different reasons. This represents a huge challenge to B and C level brands. 

Store brands are more competitive than ever, offering lower prices on the backs of the brands that they compete with. In addition to lower pricing, better packaging, marketing campaigns and preferential retail merchandising has made is more difficult and more expensive than ever before to compete.

National brands with deep pockets are definitely better positioned to compete. Smaller B and C brands are in a vulnerable position and in a virtual war zone because they not only find themselves having to compete with the store brands but also with the national brands.

This is a real catch 22 because in order to sell product, private brands must maintain strong relationships with the very stores that have brands that they are competing with, and in some cases, even white label their products to. Without the retailers, brands don’t have a place to sell their products. Without strong sales, brands face having their products de-prioritized and even de-listed.

If you represent a brand, you know that you pay big bucks to have your products listed with retailers. Retailers who sell their own brands give preference to the retail merchandising of their brands which means that private brands must make a more assertive effort to control their retail merchandising at the retail level.

When a retailer gives preferential retail merchandising to their brands, what does this mean for you?

It means that they see better product placement and more effort is made to see that that product is properly priced, in stock and on the shelves.

The only way B and C brands can compete in this environment is to make more of an investment in the customer’s experience through increasing their investment in retailmerchandising at the point of purchase to ensure customer retention and customer loyalty.

So how can you do this? By knowing where you stand at the retail level at all times and having eyes on the ground at the retailers. When customers are in-store the three most common reasons that they shift brand loyalty are when products are moved, when products are not properly priced and when products are not on the shelves.

If you represent a smaller private brand you can work with retail merchandising companies to come up with a plan to ensure that your product is where you expect it to be, is not in stock but not on the shelf, is not out of stock or is not improperly priced. This could include scheduled visits by the retail merchandising company to ensure that your in-store presence is in order. Retail merchandising companies can be provided with your product so if it is out of stock, they can place more product in-store. If product is sold out on the shelf, they can go into the stockroom and place more product on the shelf. If your product has been moved, you will be made aware of it and they can even correct incorrect pricing.

These small changes can make an incredible difference in your sales. When customers visit the retailer, your product will consistently be available to them. When other brands see their products sell out now you are in a position to shift the customers’ loyalty to you because you not only offer great product but your brand is reliable.

For more information about how you can compete with store brands or for more information about our retail merchandising solutions please contact Storesupport at 1(877) 421-5081 or visit www.storesupport.ca.