12 PLBUYER AU GUS T 2 0 11 WWW.PRIVATELABELBUYER.COM

During the past 18 years here at Watt International, I have supported and

witnessed the launches of dozens of new private label brands. Without question, the most successful launch was Safeway Select – by a country mile.

While the branding, packaging and product quality were all significant contributors to the brand’s ongoing success, what got Select out of the gate so well was Safeway’s commitment to engaging its associates in the brand, creating ambassadors all the way from management levels to store staff. There was a passionate commitment from senior management to get everyone on board and singing from the same song sheet – with a launch party, team jackets,

free sampling, staff coupons and training videos all designed to rally the troops and get positive momentum around the brand from the first day it appeared on the shelves.

Despite the tremendous improvements in quality of

private label products over the past 20 years, many consumers maintain a degree of skepticism when it comes to trial of new private label brands. It’s all about trust in quality, and most retailers

simply don’t invest in marketing ‘trust’ in their private label brands

(something I’ll cover in more depth in “Key No. 9: Market Like a National Brand”).

Combine this with the growing influence of personal endorsement in their brand decisions – social media being the main driver of this – and you quickly see how important store associates can be in motivating trial of private label. Pharmacists and service counter staff (deli, butcher, etc.) are the most likely influencers, as they are considered trusted experts and quite often develop at least basic

relationship levels with many of their shoppers.

But even center store grocery staff can have a material influence. For example, they are often the first source for shoppers to help locate products in the store. So in the case of someone looking for a national brand, it would be very easy for them to encourage trial of the less expensive/equal quality private brand alternative – so long as they know the brand story and feel comfortable with the endorsement.

While Safeway’s comprehensive

launch program for Safeway Select is a great way to build immediate momentum behind the brand, it can’t stop there. Staff turnover and brand apathy make it important to have an ongoing internal brand education/engagement program. We encourage our clients to tie their internal engagement programs to events in their marketing calendars, and use the natural momentum of significant SKU launches as catalysts for keeping staff passionate about the private brand.

Every retail organization should have a resource dedicated to internal brand building for private brands and a structured program around the education

and promotion of the brands to all employees. But some organizations are skeptical about the cost/benefit of associate engagement in driving private label sales. If you want proof, visit a few stores and ask the staff some questions about the private brand, including whether they would recommend you buy it. Better yet, undertake structured mystery shops at your stores and those of your competitors. You will quickly identify whether you have Brand Ambassadors for your private brands, and see just how influential they can be in driving sales, or not.

BY PATRICK RODMELL

Guest Commentary

THE 10 KEYS TO PRIVATE BRAND SUCCESS:KEY NO. 8: ASSOCIATE ENGAGEMENTDon’t forget internal brand building.

Patrick Rodmell (prodmell@wattintl.com) is president and CEO of Watt International, a Toronto-based integrated retail agency with more than 40 years experience in more than 40 countries around the world. The company is well known for creating such landmark private brands as President’s Choice, Great Value and Safeway Select, and more than 100 other private brands worldwide. To read the first seven of Patrick’s keys, go to privatelabelbuyer.com and look in the PLBuyer Voices section.

Staff turnover and brand apathy make it important to have an ongoing internal brand education/engagement program.

Every retai l organization should have a resource dedicated to internal brand building.

1. Strategic Brand Positioning

2. Product Quality Management

3. Effective Pricing Strategies

4. Communication of Purchase Drivers

5. Process Engineering

6. Product Innovation

7. Performance Measurement

8. Associate Engagement

9. Market Like a National Brand

10. Store Execution

The Ten Keys to Private Brand Success:

PLBUYER AUGUST 2011 The Ten Keys to Private Brand Success

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