OWN LABEL Private Label Brands Helping Consumers To Compete To Get What They Want By Dean Crutchfield AssociatesOWN GROWTH
Misconduct by big brand names and shifting consumer behaviorhas changed the perceived value exchange between brands andconsumers. In a rapidly changing market, how do you separatevalue from commodity, especially when the nature of competitionhas changed dramatically; it’s no longer your obvious competitor? Dean Crutchfield Associates
TodayIt’s about the power of fickle customers, suppliers, potential substitutesand the threat of new entrants: if you can’t build an advantage on whatyou sell, create a brand advantage on how you sell.The focus for retailers is to differentiate their products and brands, butthat has been vitiated with conflicting pressures to finding growth in thisdeleveraging recession. Dean Crutchfield Associates Dean Crutchfield Associates
Today By taking a sweeping glance across the media, you get a sense of the important issues: 1. Attracting and retaining loyal customers 2. Improving productivity 3. Cutting costs 4. Speed to market 5. Increasing market share Evidently top line growth is a priority, but the second and third issues of improving productivity and cutting costs reflect that businesses remain under immediate pressure to improve the bottom line. So what’s the best way forward?Dean Crutchfield Associates
1. Attracting and retaining loyal customers Great customer experience is good. Great customer experience that helps you make more money is better. And what really matters to your customers is how you engage with them - through products, people, environments and communications. In a time where consumers are trading down and pundits are employing phrases such as “austerity chic” and “luxury shame” and the only businesses that seem to be enjoying this vituperative parsimony are McDonald’s and Wal-Mart: What’s your best strategy for growth?Dean Crutchfield Associates
Further compounding the torment, we have consumers bombarded with an array of choices 247, where winning ideas are replicated and brought to market in a matter of weeks by nimble competitors. And winners are more focused on how to move out of a competitive environment to a differentiated one. Therefore, differentiation and innovation is essential and much of this is can be driven and created by a reallocation of resources to innovative operational models, Private Label brands or both.Dean Crutchfield Associates
The challenge is how to successfully develop and facilitate theirimplementation to provide a sustainable, uncopyable, competitiveadvantage in the market that results in creating a unique position for the retailer with high visibility, boldness, clarity, consistency and customer appeal. That requires developing a strategy - driven by improved costeffectiveness and streamlining of NPD - that has appropriateness to product and target customer, harmonization with advertising,promotions and POS that can ultimately generate increased brand equity. Dean Crutchfield Associates
2. Improving Productivity performance management andThe key focus now is in talent management.removing non-value addedactivities, steps, processes Needless to say, offshore Full Service Manufacturers (FSM’s)and entities, such as moving are prevalent across all majorto point-to-point, right first verticals with India and Chinatime (Six Sigma) and lean leading the way and othermanufacturing principles regions like South East Asiaincluding moving in fast. The efficiencies and savings are substantial – recent studies indicate more than 85% of outsourced transactions have achieved savings greater than 30%, a boon for manufacturers and beneficial for retailers. Dean Crutchfield Associates
However, there is also an accelerating trend with offshore FSM’s buying EU and US based brands and importers in addition to creating new brands. These are primarily focused at the new and emerging markets (as well as the more traditional US and European markets) and represent a paradigm shift: As new entrants they represent both a challenge and an opportunity to the “competition” status quo re: suppliers and potential substitute brands.Dean Crutchfield Associates
3. Cutting CostsOutsourcing to low cost locations isa no-brainer. So too is reducingCOGS, that tried and tested initiativeto continue to reduce the cost of theproduct and so increase initial markup.The road less travelled is brandrationalization. Believe it or not, manybrands don’t make money forcompanies and it’s amazing to knowthat most companies don’t knowwhich of their brands make money forthem or how many are profitable andin some extreme cases, especiallywith Private Label/ Own Brands, donot know how many brands they have!
3. Cutting Costs their equities and attributed awareness, the strategic prioritiesThe key is to have all for each product category, successinvolved in the process so metrics with regards to thethat you can identify performance for each category andpotential opportunities in the the benefits and costs for brandmarket. Encompassing your rationalization as a growth strategy?customer needs and how Evidently companies can boostthey’re satisfied, the number profits by deleting loss-makingof brands in the portfolio, brands as the freeing up of resources can be invested in making the remaining brands better. However, there is always pressure from executives, brand and category managers who keenly retain sub- optimal brands for emotional or historical reasons and job security that can literally paralyze any rationalization occurring, no matter how well planned out.
4. Speed To Market Therefore, the businessAll successful strategies are priorities of senior executivesdestined to fail at some point are more than likely to changeand retailers must bestow from strategic to more tacticaladaptability and flexibility to as the economic situationchange by building a responsive improves.Private Label business, moreadaptive to the changing Therefore, the drive to removebusiness environment. time from the supply chain and so improve a businesses ability to respond to the new trends, the known sales data and basket analysis is paramount. This is a top line profitable sales driver: the more products sold at full price the lower discounted goods and “trading down” are prevalent.
For this to be achievable it cannot be done in isolation as it counts onunderstanding a number of interrelated factors:The shared values with the customer, the PL portfolio good, better,best brand strategy, ROI expectations, retail style and the skill andpersonnel requirements. Dean Crutchfield Associates
5. Increasing Market Share Good, Better, Best is a tremendously useful framework, but it’s tough to win by design against brands that have originality and years of heritage: a simple solution to a complex problem is often simple, straightforward and wrong. We need to assess what is the future of private label and what is the brand opportunity for US retailers to ramp up their portfolios to levels enjoyed in Europe.Dean Crutchfield Associates
5. Increasing Market ShareAdditionally, understand what the growth and proliferation of privatelabel brands mean for the role of the retailer brand?And what is the right brand architecture framework for all retail brands(Own and Private Label brands, Contract brands, Partner and Licensedbrands, Category and Service brands) and how can they work bettertogether? Dean Crutchfield Associates
Profligate amounts of money Eighty percent are stillborn: Alland resources are spent on in the attempt to capture marketeither launching, acquiring or share and build multi-brandmaintaining brands. From line strategies to capture the heartsextensions, brand extensions and wallets of customers.through to sub-brands andchannel extensions, desperately, P&G’s former CEO, Mr. AG Lafleysome marketers strew 12,000 would tell you “When times arenew products across the tough, you build share.” The timeshelves in a single year. is now for calibrated boldness from retailers with Private Label as the platform for growth, but it’s best tackled as a Brand. Especially as the consumer movement from a "we" to "me" culture enables Private Label brands to help consumers compete (to get what they want).
Dean Crutchfield Associates Growth Advisors Dean Crutchfield Associates
Seize More Opportunity Brand Strategy Team Building Personal Branding Brand Building Business Activation Sell More Services Selling Presentation Skills Ambition Planning Pitch Forum Win More Business Sharpen Offers New Business 101 Pitch Boot Camp Growing Clients Pitch DoctoringDean Crutchfield Associates
Delivering Your Best Case & Winning Face Dean Crutchfield Associates
In the pursuit of opportunity without regard to resources held, Dean Crutchfield has targeted and won millions in new fees from the world’s leading brands. By convincing senior executives at Fortune 500 companies on brand architecture, portfolio rationalization, go-to-market brand strategies, product and business innovation, Dean Crutchfield has directly helped clients generate billions in new business growth.Dean Crutchfield Associates
Armed with rich content, deep knowledge, 2x2 matrices and a white board, we rapidlycreate targeted, multi-channel growth programs that generate immediate Impact Dean Crutchfield Associates
What DCA Delivers Achieving growth For ambitious leaders who are driven to grow fast Creating new business Orchestrating and activating accelerated outreach programs Building efficiencies Rapidly sourcing the best talent for the business Improving margins Rallying teams behind the brand and go-to-market strategy Boosting win rates Delivering your best case and winning face forward Dean Crutchfield Associates
Working with DCA Catalyzing top line growth for clients is what we thrive on: delivering your best case and winning face, encourage your people to move the needle north and sharpen the product offering. DCA (Dean Crutchfield Associates) achieve growth for clients by tailoring brand-led techniques that are uniquely participant centered. We guarantee results. Whether it’s a better pitch, winning new mandates, a better team or more fees, you will find our fee in your business within weeks. DCA programs have been thoroughly tested and proven with start-ups and the world’s greatest brands, uniquely adding immediate value. When you hire DCA, you get results. If you have the right people attend the sessions and complete all of your committed decisions and pilot initiatives and are still not satisfied or seeing results by the agreed time frame, we will coach and advise you free until you do!Dean Crutchfield Associates
Working with DCA By deploying real world strategies and hands-on collaboration to inspire teams we create content backed by actions that will assure you of seizing every good opportunity, selling more services and winning new business. For 20 years Dean Crutchfield has advised the worlds most iconic brands, built businesses, created new companies, opened international offices and spoken about the role of brands at Duke, Kellogg, Wharton and the Google Speaker Series. He has made appearances on all major TV news networks, commentary in the global press, editorials in major business publications and is a Contributor to Forbes. With a proven ability to inspire and push the boundaries beyond the notion of what was thought possible, DCA excel with clients who are looking to run fast, led by CEOs, CMOs, entrepreneurs and executive teams eager to capture dominant levels of success.Dean Crutchfield Associates
Global Client Experience Aviva* McKinsey BP Metsä Serla* BT* Nomura* BSkyB* PepsiCo Camper & Nicholson PG&E Carter’s Pitney Bowes Cellcom* RBS* CITI Scanfinest* Comcast Shell“Dean always cuts to the core of what needs General Electric Smirnoffto be done and said. He helps bring clarity and Kraft Staplesprovides value by being an outsider with noagenda, so he can help you stand back and see Fila Sunglass Hutthings from different perspectives. Frito-Lay TargetDean helped us think through solutions and Littlewood’s* Tower of London*then form the best way to present those McDonald’s Warburg Pincussolutions in a persuasive and compelling way.” M50 WGM*References upon request * Overseas Project Dean Crutchfield Associates