Dive Brief:
- Bryn Banuelos, director of marketing for Albertsons, told Store Brands there are many ways to boost creativity in marketing of private label brands.
- One way is showing customers that preparing great meals doesn’t have to be expensive or overly elaborate. Banuelos also suggests telling engaging stories about store brands with TV spots or other branding that showcases brand personality.
- Store marketers can also engage influencers or hire celebrity spokespeople to create buzz on social media and encourage trials of branded products. Banuelos also recommends getting retail associates excited about store brands and involve them in brand storytelling.
Dive Insight:
A generation ago, consumers viewed private label products as generic knock-offs of national brands. Many believed these items were less nutritious, safe, or delicious than a product from a major manufacturer. Today, this sentiment has largely changed. Younger millennial shoppers have developed significant spending power and have less interest in name brands than previous generations.
Grocery retailers have also improved product design, packaging and ingredient offerings, and have worked to meet health-conscious consumers' demands for natural, organic product offerings — all at a lower price than most national brands. This doesn't mean that store brands don't continue to face obstacles, however. A survey from Trace One showed 44% of consumers don't buy private label brands because they have more trust in national brands.
Still, 80% of consumers say that private label products meet their expectations, and total sales of store brands have increased $1.1 billion over the last two years. As Banuelos suggests, retailers should capitalize on this increased consumer interest by investing in engaging marketing strategies that will help store brands stand out from both manufacturer and grocery competitors.
Not every grocery retailer can afford a celebrity spokesperson or an expensive TV ad campaign, but that doesn't mean that retailers are without advertising options. Social media is a powerful tool for engaging consumers, especially younger demographics, and sharing content that tells the "story" of a private label line can help spread brand awareness. Partnering with nutritionists, food bloggers and Instagram and Twitter influencers can also help reach a mass audience and give a credibility to private label lines.
Grocers could also launch a dedicated website, like krogerstories.com, to share content about store brands' sustainability efforts, the communities it sources ingredients from and other company initiatives.