Bright Start, Bright Future

With store brand sales rising in several oral care subcategories, retailers have plenty to smile about.

Are private label oral care products poised to come out from the long shadow of their national brand counterparts? If recent sales data are any indication, they have already started to do so.

According to data from SymphonyIRI Group, a Chicago-based market research firm, some private label dental care categories and subcategories posted strong growth during the 52 weeks ending Feb. 19 (U.S. supermarkets, drugstores and mass merchandiser outlets, excluding Walmart). For example, dollar and unit sales within the store brand toothpaste category (which also includes tooth bleaching/whitening powders) rose 8.2 percent and 1.1 percent, respectively. And store brand dollar and unit sales within the power toothbrush subcategory climbed 33.1 percent and 43.6 percent, respectively, during the same timeframe.

"It will be important for private label brands to set the pace in terms of innovation, rather than coming to market with iterations of existing name brand products," says Amy Ziegler, global personal care analyst for global market research firm Mintel.

As in many other categories, store brand oral care products benefited from consumer trial during the recession, Ziegler says, and many consumers are satisfied with their quality and not concerned about going back to the national brand.

Evaluate pricing tiers

The diverse oral care market offers opportunities in all pricing tiers, from value to super-premium.

"Value is number one, with consumers looking at Dollar General-types of stores for value at a good price," contends Jim Leonardi, vice president of sales and private brands, Sheffield Pharmaceuticals, based in New London, Conn.

But other consumers are looking past the value tier for added benefits.

"Some retailers are working with private label manufacturers to create a new pricing tier, perhaps a premium or super-premium line in addition to baseline items, which can not only improve the image of private label oral care, but also increase the register ring and ultimately penny profits for the retailer," says Tony Clark, vice president sales, DentaCare/Team Technologies, based in Andover, Md.

He notes that the recent trend of whitening products also increases demand for sensitivity and tooth discomfort items.

"Also, we are seeing more demand for private label interdental specialty items like picks and mirrors," Clark says. "Floss picks are not brand loyal."

Retailers also could benefit by extending their national-brand-equivalent (NBE) line to provide a total oral care offering.

"Or they can offer a complete oral care system, such as one large retailer who is selling a battery brush, accessories and floss in one package," says Paul Cira, managing director, Brushpoint Innovations Inc., based in Markham, Ontario.

A broad product assortment is critical for retailers, Cira explains, if they are to promote their brand across multiple segments and show consumers they provide a complete solution for their oral care needs.

And look beyond only products that compare to the national brand, Clark advises.

"There are areas of incremental sales and profits that may not have a national brand," he says. "Retailers have to look beyond the traditional NBE-only philosophy and look to items that consumers will embrace and further increase their private label image."

Encourage trial

To attract attention to store brand oral care products, retailers should highlight the link between oral health and overall health right on the package, Ziegler says.

"The brand that can establish a link between itself and overall health has the opportunity to own that space," she says.

And retailers should consider incorporating private brands into their rewards program — retailers that do so seem to be having success in gaining trial and increasing awareness, Clark says.

"It seems to be most effective in new categories, like whitening strips or sensitive-related items," he adds.

Because some oral care items (such as toothbrushes) usually are impulse buys, Clark suggests retailers look for ideas to capture impulse sales for the category. "Front ends are a great area for placing impulse items," he says.

In addition, Leonardi points out that retailers can convey value through bonus packs.

Finally, to keep consumers post-trial, retailers will have to commit to quality.

"Private label products are no longer affordable if they don't deliver on their claims, and bad experiences will drive consumers back to name brand alternatives," Ziegler says.