Private Label Strategy

TWELVE

Create Winning Value Propositions for Manufacturer Brands

Price premium for brand image: 23 percent

IN THE END, the battle against private labels must be fought at the level of each individual manufacturer brand. There must be a compelling value proposition for consumers to buy the manufacturer brand instead of the private label. Part of this battle is of course won through innovation, having products that are not comparable to private labels. But if reasonably similar choices are available, then consumers make buying decisions by trading off price against the value provided. Value has both rational and emotional aspects to it. Rational reasons to purchase a particular brand or private label are all about functional benefits, performance, ...