Different Formats, Same Skill Sets
This year’s Store Brand Leadership Award recipients operate in different channels of trade, and with different store formats. Yet they all share the same go-to-market strategy executed by using the same private brand skill sets. Although ALDI does overlap Meijer in the Midwest, ALDI is a limited assortment chain that offers about 1,400 items in just 10,000 sq. ft. of retail space while Meijer is a mass merchandiser that stocks more than 100,000 products offered in 250,000 sq. ft. stores. Duane Reade, of course, is New York City based drug store chain, while Sobeys operates grocery stores and supermarkets across Canada. Not surprisingly, their greatest shared strength is the prowess in private brand development.
Meijer Research = Customer Knowledge
Each retailer starts its new product development process with a clear understanding of who are their target customers and what are their needs and tastes.
Here’s how JK Symancyk, exec VP merchandising, Meijer, explains the process:
“Developing Meijer Organics for us meant looking at our own brand portfolio and understanding: • where the business opportunity is, • where customers give us credit, • where we know we have this type of customer within our box.
“Through research, we know our customer who values organics and is going to appreciate both the breadth of assortment and extended value that we can provide to them.
“Meijer Organics started as a new platform within Meijer and from that we then expanded into Meijer Naturals and eventually this new product development process led to a revitalization of our Meijer Gold brand.”
Our other Store Brand Leadership Award winners also are constantly refreshing their private brands and store formats.
ALDI Fit Facts
For example, in response to its customers growing interest in healthy foods, at the end of 2008 ALDI introduced an easy-to-understand nutrition information system, called Fit Facts, on package fronts of its Fit & Active own brand line.
As a result of the positive feedback from customers, ALDI is extending the Fit Facts concept to other product categories with cereal now also carrying the information.
Duane Reade Rx For Change
Under a new management team, Duane Reade engaged in extensive consumer research to find out what New Yorkers wanted in a neighborhood drug store.
This resulted in a new go-to-market strategy and brand positioning statement called “New York Living Made Easy.” This in turn has produced a number of new private brand product lines including a premium food line called DR Delish and an eco-friendly nonfood line called Apt. 5 Goes Green.
Sobeys Resets Portfolio
Based on its customer research at the end of 2008, Sobeys has begun an extensive private brand renewal program that includes the launch of a new value brand called Signal, and the expansion of its premium Sensations by Compliments brand (formerly called Compliments Sensations) into several new categories and SKUs.
We invite our readers to read the Store Brand Leadership profiles in this issue to learn more about their winning ways.
