A Tale Of Two (Store Brand) Programs

A Tale of Two (Store Brand) Programs

American consumers are clearly viewing store brands as viable options when shopping, but they still remain very brand-centric, especially in center aisle categories. What are they truly looking for?

' A consumer-based program really dives into a customer's lifestyle and daily routines. '

In reality, Americans identify themselves by the brands they cherish. Going into a store brand program thinking you're going to capture more than a minimal share of Coke's market is unrealistic.

But retailers have an advantage over the national brands: They can address the specific needs and aspirations of their core consumers, while the national brands have to try to appease everyone. But as a retailer, you should embrace Coke. Look qualitatively into the lifestyle of the Coke consumer and identify where you can effectively market a strategic store brand program to meet the needs of that consumer.

You could create one of two different types of store brand programs: a category-based program or a consumer-based program. Both programs have similarities, but the choice of one over the other will depend on the items you are marketing and the needs of your consumers.

Category-based program

To develop a category-based program, start with your core "iconic" consumer. Identify that consumer's needs, desires and aspirations in relation to lifestyle. Think macro.

Take, for example, the health and beauty care (HBC) segment. What are the best-selling brands and why (at your store and at the most popular salon in town)? What basic attributes are important to your core customers (function, ingredients, scents)? How many SKUs are needed in the program? (Engage in a "less-is-more" mentality — focus on the top-selling items in the category.) Will the consumer trust this brand? (Develop a road map to build brand equity.) Does the consumer understand the brand messaging? (Use "kitchen science" — keep it simple.)

Branding and packaging are important, but the right SKU mix with the appropriate attributes generates shelf presence and repeat purchases. By creating touch-points throughout the HBC section, you deliver a familiar path for your customers. With a category-based program, you must stay within the confines of one category with your brand. Think "store within a store" on this type of program.

Consumer-based program

A consumer-based program really dives into a customer's lifestyle and daily routines. It touches multiple categories and targets high-volume items within specific categories.

Your brand message needs to transcend from frozen and dairy to shelf-stable and beverages. Think micro. The key is keeping the message consistent from category to category and offering similar attributes among all SKUs.

For instance, consider the needs of your sports fitness consumer. What do they look for in products (clean ingredient decks, protein, no trans fat)? How does the product line fit into their daily routine (morning, noon and night)? How do you deliver brand equity to the consumer (license opportunities, co-branding, partnerships)? Where does the consumer use the products outside the home (gym, office, triathlons)? Does the consumer understand the brand's messaging? (Again, use kitchen science — keep it simple.)

Critical to both types of store brand programs is the ability to deliver a brand message that is simple enough for consumers to understand. Whether the message goes across a single category or multiple categories, consumers need to understand it in less than five seconds. Brand name, attributes and packaging are all extremely important, but the products also need to function as advertised, or consumers will not be back for a repeat purchase, PGSB

Sean McGirr is senior partner at Boomerang Brands, a Chicago-based brand management company specializing in consumer-centric positioning and supply-side support. You may reach him at [email protected].