Brand Name or Private Label
TRENDS: BRAND NAME OR PRIVATE LABEL... RELAUNCHES CREATE RENEWED INTEREST
by Julieun Kawasaki (Command Packaging parent company of RestaurantBags.com)
"If retailers go after the value at stake, it is possible that store brands' dollar share could climb to 24% by 2016" ~ according to reports provided by McKinsey & Co.
A growing percentage of consumers are shifting to generic or private labeled products that offer basically the same value propositions at a lower cost. In anticipation, earlier in 09, Walmart RE-launched, RE-packaged, RE-formulated, and RE-vised their value propositions of their private brands to appeal to more consumers. They are clearly the experts when it comes to taking advantage of economic woes.
"The Great Value Brand was originally introduced in 1993. Why RE-launch it now? This is an opportunity for us to provide solutions to our customers at a time when they need to save money." ~ CNNMoney.com reported.
Restaurant RE-launches can also have their benefits to create excitement, RE-newed interest, and increased sales as the following national chains have demonstrated:
- Carl's Jr & Hardee's RE-launched their 3D interactive websites in the last quarter of 08 to update their image, expand interactivity and RE-new customer loyalty.
- Throughout 09, we found Jack In The Box trying "out of box" initiatives with its icon "Jack" awaking from a coma to inspirations of new logo, new website, in store RE-modeling, menu innovations, and social media efforts. With reports of millions tuning into the online viral marketing activities, it's definitely interesting to watch the brand evolve.
As store closures continue into 2010, many retailers enjoy online increases and sometimes without the physical stores:
According to the U.S. census bureau, retail and foodservice sales hit their all time lows in 2008 and even lower results in 2009. With these bleak brick and mortar sales trends, many retailers are finding online presences can be much more lucrative as consumers turn to more online sales to compare and shop. Coremetrics credited the surge in the last "Black Friday" online sales to consumers' appetites for bargain hunting and best deals. According to its benchmarking report, consumers' average dollar per order rose 35 percent year over year with as much as 152 percent more online visitors enjoyed by department stores. According to ComScore, Hitwise, and a number of other online analytics firms, Walmart enjoyed the most traffic followed by Amazon and Best Buy Inc during the Thanksgiving days. Stores like Circuit City may have closed their physical doors forever, but the brand (acquired by Systemax) continues to live virtually through a RE-launched and improved website positioned to take full advantage of these online trends.