Competing in Tough Times: Business Lessons from L.L.Bean, Trader Joe’s, Costco, and Other World-Class Retailers

Chapter 6. Differentiation Strategies III: Developing and Maintaining a Strong Private Label Program

In a similar manner to the store experience, retailers need to develop distinctive private label products that communicate important functional (rational) and emotional benefits. Functional branding benefits relate to a product’s physical attributes (such as quality, value, freshness, health, and convenience). Emotional branding benefits represent image-related considerations, such as what a brand name represents to consumers in terms of status, social responsibility, trust, and degree of culinary sophistication appeals.

Too many private labels lack a clearly focused image. Often, a retailer’s private label program is viewed by consumers as ...