Dollar General Diaper Revamp Boosts Sales Dramatically
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November 2, 2010
Last summer, Dollar General revamped the way it wanted its private label diapers made and marketed, which has resulted in double-digit sales increases.
Since 2004, Valor Brands has been supplying Dollar General with its private label diapers, but the program was tuned on its ear last year by Todd Vassos, the discounter’s chief merchandising officer, according to a report in NYSE Magazine.
“They said to us that they wanted to build brands, not just sell the product,” Kyle Tucci, senior vice president at Valor Brands told NYSE. Dollar General really wanted to make an emotional connection with customers so that its brand is perceived is a premium diaper that just happens to cost less than the national brand, Tucci explained.
The basic conversation was that we were the diaper experts,” Tucci said. “They wanted to know what parents were looking for, what features appealed most to moms, and how merchandising, display, packaging, technology and price would all play into the decision to buy the DG brand versus the national brands they carried, such as Luvs and Huggies. The emphasis over and over again was on improving the quality.”
Since last August when the revamped diapers were introduced, sales have increased by double digits, according to the report.
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