Shopper loyalty to store brands is on the rise as “people attach themselves to your products,” he added. “Retailers have the added weapon that scares national brands –– control of retail spaces.”November 16, 2009
Despite the soft economy, there is a great deal of store brand development occurring in the marketplace, “and the time is now to find ways to make private label growth sustainable through innovation,” said Scott Lucas, executive director of Interbrand, the keynote speaker during Monday’s breakfast at the PLMA Show.
Shopper loyalty to store brands is on the rise as “people attach themselves to your products,” he added. “Retailers have the added weapon that scares national brands –– control of retail spaces.”
Brand development starts with the big idea and consumer insights, but should also include the following disciplines and important queries:
• Can your brands work together to create a point of difference?
• Do you have too many brands, not enough brands?
• How does your design strategy and packaging communicate your brand story?
• Brand development includes everything from packaging design, graphics, positioning, establishing your point of difference from national brands, and merchandising –– how are you going to most advantageously present your products?
Of all the disciplines and areas of focus, product packaging is the key, according to Lucas. In fact, “80 percent of a brand experience is packaging,” he said. “Brands influence shopper behavior that becomes a relationship that drives short-term growth and long-term profitability.”
Wegmans’ Food Safety Focus
Later in the morning, Gillian Kelleher, consulting vice president of food safety and quality assurance for Wegmans Food Markets, outlined the important role food safety testing and certification plays at the 75-store chain, based in Rochester, N.Y.
In 2000, Wegmans got involved with the Global Food Safety Initiative (GFSI) and has embraced their standards and guidance documents, primarily because of the “rigor and consistency of their standards, the checks and balances present and the auditing experts in specific food categories,” Kelleher said. “The GFSI standards are good enough for Wegmans because they are raising the bar across the industry.”
Wegmans is focused on all activities that promote quality and safety in their products to continue to build on high trust that customers have for the grocer’s brands, she added, sharing several customer letters the highlighted how important trust is to the shopper/Wegman relationship.
Recent research conducted by the grocer indicates that 91 percent of shoppers trust Wegmans and its brands, a record the company hopes to continue to protect and improve, Kelleher said.
To date, 37 percent of Wegmans’ suppliers are GFSI certified, with the goal of reaching 50 percent by the end of the year, according to Kelleher. The ultimate goal is for 100 percent of the chain’s suppliers to become GFSI certified, she added.
Once certification is achieved, ongoing compliance is a critical component. “We know a lot of work goes into supplier certification and we appreciate it,” Kelleher said. Interestingly, she shared a few testimonials from certified suppliers such as Sara Lee, Fleischer Bagels, Mastronardi Produce and The Carriage House Companies, which highlighted some side benefits to certification such as increased customer satisfaction, increased employee retention, less waste and less audits.
In addition to requiring its suppliers to become GFSI certified, Wegmans is going through the process itself for its new Culinary Innovation Center, a 53,00 square-foot research and development facility, and its Bake Shop, a 220,000 square-foot central bakery that supplies all Wegmans’ stores.