Sell At The Shelf

The history of store brands in the United States is a long one, and to date, it is without a truly happy ending. Store brands have never been able to completely shake the identity of being nothing more than cheap substitutes for their national brand counterparts.

From a retailer perspective, store brands are receiving increased attention and investment, resulting in the creation of unique offerings that are more than just traditional copies of successful national brand products. Many retailers offer multi-tiered programs that cover the spectrum from value to premium, with the higher-end products serving as a differentiator to drive shopper loyalty.

In-store, at-shelf

But investment in store brand products goes beyond product development — in-store marketing also is critical for private brand success. POPAI, the global association for marketing at retail, recently announced the findings from its 2012 Shopper Engagement Study. The study found that 76 percent of buying decisions are made in-store. This is good news for private brands, and it speaks to the overall effectiveness of in-store — especially shelf-edge — marketing.

One way to assist shoppers in their pursuit of value — and help drive private label sales — "instructional selling," which educates the shopper at the shelf edge. Private brand products could benefit from instructional selling that explains the quality and value each product provides, without having to rely solely on price to get attention.

Effective instructional selling calls for five key steps:

1 Make the information relevant to the shopper

Tell the shopper why the product is better than others, and why he or she would benefit from it (beyond just saving money). This is an opportunity for the retailer to use private brands as a springboard for a broader point of differentiation. Information such as health benefits or recipe ideas could be presented, along with the benefits of the store brand that will ultimately reflect on the retailer's overall brand image.

This "halo effect" can be a significant benefit to retailers as they work at differentiating themselves from competitors in areas other than price. A strong private brand creates overall loyalty for the retailer.

2 Make the information easy to access

Put the information right at the shelf, using the price label or a shelf strip right where the shopper is looking. Printing brochures is fine, but team members don't always place them where the shopper is going to see them. Simplicity and consistency are the watchwords here; available space is limited, and any communication needs to be direct and easy for the shopper to understand.

3 Point out the unique value of the product (beyond price)

This step is connected to the first point, but should be more about the product. This type of information works best for those "tier three" products such as gourmet or organic items that are designed to elevate the brand.

If the product is truly exemplary, while providing a value to the shopper, then be overt in pointing out those attributes. Play up the "available here only" aspect for unique products.

4 Don't use technology if it's not adding value

Quick-response (QR) codes have gotten a lot of press. And although these codes can add value, don't ask your shoppers to jump through hoops to scan them just because they're something new. Plain old bullet points work great, don't take as much effort to read, and don't require technology.

However, in some cases, offering a QR code makes sense. For example, a QR code that connects shoppers to a video demonstrating how to use a product can be much more effective than printed instructions. But keep in mind that when the shopper goes through the effort of pulling out a phone and scanning a code, he or she expects a bigger benefit.

5 Keep the information fresh and up to date

Products change; competitors change; and shopper needs change. Product information also should change on a regular schedule to keep the message itself fresh. After six to eight weeks, shelf edge information — as with any other point-of-sale material — becomes part of the landscape and is no longer effective. Shake things up on a regular basis.

The corollary to this is to make sure you're keeping up with external changes. If a new study comes out touting the benefits of coffee, use that information at the shelf edge. Shoppers who aren't aware of the study will appreciate the information, and those who do know of it will give you credit for being "in the know." The information helps to create a stronger bond than price alone will ever do.

Keep it simple and relevant

Retailers can accomplish each of these steps at the shelf edge in an effective manner without a significant investment; simplicity and usability are the key elements to a successful shelf edge communication program. The biggest investment lies in staying current and relevant to shoppers. Too many programs are launched and forgotten; this program can't be one of them.

Jeff Weidauer is vice president of marketing and strategy for Vestcom International Inc., a Little Rock, Ark.-based provider of integrated shopper marketing solutions. He may be reached at [email protected].