COVID-19 has radically changed the context in which shoppers make purchasing decisions, often resulting in a forced trial of brands that they may not have previously considered — private label brands among them. This disruption is as much an opportunity for smaller brands as it is a potential threat for category leaders.
Focus on what you can control
Private label manufacturers and retailers should focus on what they cancontrol. Get back to basics with the 4Ps: product, price, place and promotion.
Solid behavioral insights are the strongest foundation upon which to build your new marketing mix. Skim's Habitual-Deliberate Decision Loop model provides a framework for understanding disrupted decision behavior.
In fast-moving consumer goods segments, consumers spend most of their time on the habitual side of the loop during “normal” times. Shoppers know which brands they prefer, how often they purchase, where they shop, and how much they’re willing to pay. These decisions don’t involve much deliberation; they’ve become habits. Leading brands want to keep their customers in this habitual loop, and they use their 4Ps to do so.