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PLBUYER AUGUST 2011                    The Ten Keys to Private Brand Success




                Guest Commentary
                BY PATRICK RODMELL
                                                                                                                                                       8
 THE 10 KEYS TO
 PRIVATE BRAND SUCCESS:
 KEY NO. 8: ASSOCIATE ENGAGEMENT
 Don’t forget internal brand building.


 D
         uring the past 18 years         free sampling, staff coupons and        relationship levels with
         here at Watt International,     training videos all designed to         many of their shoppers.
         I have supported and            rally the troops and get positive          But even center store
 witnessed the launches of dozens        momentum around the brand               grocery staff can have
 of new private label brands.            from the first day it appeared on       a material influence.
 Without question, the most              the shelves.                            For example, they are
 successful launch was Safeway              Despite the tremendous               often the first source
 Select – by a country mile.             improvements in quality of              for shoppers to help
                                                                                 locate products in the
                                                                                 store. So in the case
  Staff turnover and brand apathy make it                                        of someone looking
  important to have an ongoing internal                                          for a national brand, it
                                                                                 would be very easy for
  brand education/engagement program.                                            them to encourage trial
                                                                                 of the less expensive/
                                                                                 equal quality private
    While the branding, packaging        private label products over the         brand alternative – so
 and product quality were all            past 20 years, many consumers           long as they know the
 significant contributors to the         maintain a degree of skepticism         brand story and feel
 brand’s ongoing success, what           when it comes to trial of new           comfortable with the                 and promotion of the brands
 got Select out of the gate so well      private label brands. It’s all about    endorsement.                         to all employees. But some
 was Safeway’s commitment to             trust in quality, and most retailers       While Safeway’s comprehensive     organizations are skeptical about
 engaging its associates in the                                                                                       the cost/benefit of associate
                                                                                                                      engagement in driving private
 brand, creating ambassadors
 all the way from management
                                           Every retail organization should have                                      label sales. If you want proof,
 levels to store staff. There              a resource dedicated to internal brand                                     visit a few stores and ask the staff
 was a passionate commitment                                                                                          some questions about the private
 from senior management to get
                                           building.                                                                  brand, including whether they
 everyone on board and singing                                                                                        would recommend you buy it.
 from the same song sheet – with         simply don’t invest in marketing        launch program for Safeway           Better yet, undertake structured
 a launch party, team jackets,           ‘trust’ in their private label brands   Select is a great way to build       mystery shops at your stores and
                                               (something I’ll cover in more     immediate momentum behind            those of your competitors. You
                                               depth in “Key No. 9: Market       the brand, it can’t stop there.      will quickly identify whether you
      The Ten Keys to                          Like a National Brand”).          Staff turnover and brand apathy      have Brand Ambassadors for your
  Private Brand Success:                           Combine this with             make it important to have an         private brands, and see just how
                                               the growing influence of          ongoing internal brand education/    influential they can be in driving
                                               personal endorsement in           engagement program. We               sales, or not.
1. Strategic Brand Positioning
                                               their brand decisions –           encourage our clients to tie their
2. Product Quality Management                  social media being the main       internal engagement programs         Patrick Rodmell (prodmell@wattintl.com)
3. Effective Pricing Strategies                driver of this – and you          to events in their marketing         is president and CEO of Watt International,
                                               quickly see how important         calendars, and use the natural       a Toronto-based integrated retail agency
4. Communication of Purchase Drivers
                                               store associates can be in        momentum of significant SKU          with more than 40 years experience in more
5. Process Engineering                         motivating trial of private       launches as catalysts for keeping    than 40 countries around the world. The
6. Product Innovation                          label. Pharmacists and            staff passionate about the private   company is well known for creating such
                                               service counter staff (deli,      brand.                               landmark private brands as President’s
7. Performance Measurement
                                               butcher, etc.) are the most          Every retail organization         Choice, Great Value and Safeway Select,
8. Associate Engagement                        likely influencers, as they       should have a resource dedicated     and more than 100 other private brands
9. Market Like a National Brand                are considered trusted            to internal brand building for       worldwide. To read the first seven of
                                               experts and quite often           private brands and a structured      Patrick’s keys, go to privatelabelbuyer.com
10. Store Execution
                                               develop at least basic            program around the education         and look in the PLBuyer Voices section.

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The Ten Keys to Retail Brand Success - Part 8

  • 1. PLBUYER AUGUST 2011 The Ten Keys to Private Brand Success Guest Commentary BY PATRICK RODMELL 8 THE 10 KEYS TO PRIVATE BRAND SUCCESS: KEY NO. 8: ASSOCIATE ENGAGEMENT Don’t forget internal brand building. D uring the past 18 years free sampling, staff coupons and relationship levels with here at Watt International, training videos all designed to many of their shoppers. I have supported and rally the troops and get positive But even center store witnessed the launches of dozens momentum around the brand grocery staff can have of new private label brands. from the first day it appeared on a material influence. Without question, the most the shelves. For example, they are successful launch was Safeway Despite the tremendous often the first source Select – by a country mile. improvements in quality of for shoppers to help locate products in the store. So in the case Staff turnover and brand apathy make it of someone looking important to have an ongoing internal for a national brand, it would be very easy for brand education/engagement program. them to encourage trial of the less expensive/ equal quality private While the branding, packaging private label products over the brand alternative – so and product quality were all past 20 years, many consumers long as they know the significant contributors to the maintain a degree of skepticism brand story and feel brand’s ongoing success, what when it comes to trial of new comfortable with the and promotion of the brands got Select out of the gate so well private label brands. It’s all about endorsement. to all employees. But some was Safeway’s commitment to trust in quality, and most retailers While Safeway’s comprehensive organizations are skeptical about engaging its associates in the the cost/benefit of associate engagement in driving private brand, creating ambassadors all the way from management Every retail organization should have label sales. If you want proof, levels to store staff. There a resource dedicated to internal brand visit a few stores and ask the staff was a passionate commitment some questions about the private from senior management to get building. brand, including whether they everyone on board and singing would recommend you buy it. from the same song sheet – with simply don’t invest in marketing launch program for Safeway Better yet, undertake structured a launch party, team jackets, ‘trust’ in their private label brands Select is a great way to build mystery shops at your stores and (something I’ll cover in more immediate momentum behind those of your competitors. You depth in “Key No. 9: Market the brand, it can’t stop there. will quickly identify whether you The Ten Keys to Like a National Brand”). Staff turnover and brand apathy have Brand Ambassadors for your Private Brand Success: Combine this with make it important to have an private brands, and see just how the growing influence of ongoing internal brand education/ influential they can be in driving personal endorsement in engagement program. We sales, or not. 1. Strategic Brand Positioning their brand decisions – encourage our clients to tie their 2. Product Quality Management social media being the main internal engagement programs Patrick Rodmell (prodmell@wattintl.com) 3. Effective Pricing Strategies driver of this – and you to events in their marketing is president and CEO of Watt International, quickly see how important calendars, and use the natural a Toronto-based integrated retail agency 4. Communication of Purchase Drivers store associates can be in momentum of significant SKU with more than 40 years experience in more 5. Process Engineering motivating trial of private launches as catalysts for keeping than 40 countries around the world. The 6. Product Innovation label. Pharmacists and staff passionate about the private company is well known for creating such service counter staff (deli, brand. landmark private brands as President’s 7. Performance Measurement butcher, etc.) are the most Every retail organization Choice, Great Value and Safeway Select, 8. Associate Engagement likely influencers, as they should have a resource dedicated and more than 100 other private brands 9. Market Like a National Brand are considered trusted to internal brand building for worldwide. To read the first seven of experts and quite often private brands and a structured Patrick’s keys, go to privatelabelbuyer.com 10. Store Execution develop at least basic program around the education and look in the PLBuyer Voices section.