05 Nov Press Release: SymphonyIRI Group Releases Two New Reports Citing Strength of Store Brands and Determination of National Brand Manufacturers
Store Brands Activity
Nearly every household in the United States purchases store brands today, and 80 percent of consumers believe store brand products are equal or superior to national brands in terms of quality, value and packaging. These are just two statistics that demonstrate the remarkable strength of store brands. Retailers have introduced sophisticated strategies to build store brand dollar and unit share growth, while national brand manufacturers have responded with aggressive new marketing strategies of their own.
SymphonyIRI Group, Inc. announced today the availability of two new reports that analyze the dynamics of today’s store brands market. New executive research, titled “Understanding and Mitigating the Private Label Threat,” which is published annually, provides a highly-detailed, 146-page perspective on the store brands market and is tailored for national brand manufacturers. The current issue of SymphonyIRI Group’s monthly Times & Trends, “Store Brands: More Than Just a Safe Harbor in Turbulent Times,” provides manufacturers and retailers insight into current and emerging store brand trends as well as influencing factors that are helping to define the CPG industry of tomorrow.
Information from these reports will assist marketers as they develop their product, pricing, merchandising and promotion strategies moving forward.
“Store brands growth galloped during the recession as shoppers revised their definition of value to be much more focused on price,” said Sean Seitzinger, senior vice president, Consulting & Innovation, SymphonyIRI. “Today, growth continues at albeit a slower pace as the economy recovers, but store brands are here to stay and are gaining in importance. As retailers accelerate investment in aggressive assortment, product and promotion strategies, we expect store brands to play a critical role in offering value and differentiation.”
Among the principal findings of these new reports:
* Dollar and unit share each grew 0.2 share points, to 18.3 percent and 23.1 percent, respectively, in 2010 over 2009; contrasting with growth of 1 point and 1.3 points in 2009 over 2008.
* Dollar and convenience stores enjoyed the most rapid unit share growth of 1.1 points and 0.9 points, respectively.
* The healthcare department witnessed the most significant store brand growth in both dollar and unit share of 2.6 points and 1.7 points, respectively.
* On average, store brands offer a savings of 30.5 percent as compared to national brands, but average price gap varies widely across departments. These savings range from as low as 7 percent in fresh/perishable products to nearly 61 percent in beauty and personal care products.
* Store brand sales tend to be more concentrated versus the CPG industry as a whole. One-third of shoppers account for 62 percent of store brand sales, and the top 50 categories of store brand products account for more than two-thirds of store brand sales, versus 59 percent for the CPG industry as a whole.
Both reports outline important strategies for manufacturers to consider, among these:
* Continually identify and assess brand-specific opportunities, such as optimal price gaps versus store brands and means to protect and grow share in categories where there is a strong store brand presence through value-oriented promotions.
* On an ongoing basis, redefine pricing strategies to ensure alignment against the needs of key consumer segments, invest in product, packaging and promotion innovation across key categories, and implement highly-targeted and affordability-oriented marketing campaigns where store brands exhibit the greatest threat.
* Implement metrics to monitor actual versus planned impact of store-brand related initiatives.
In addition, the “Understanding and Mitigating the Private Label Threat” research includes a section devoted to specific-store brand mitigation strategies as well as provides multiple case histories.
The Times & Trends report also offers a section on recommended retailer strategies, which include:
* Continue to understand core shopper needs and align new product strategies accordingly; tailor offering at the market level, while supporting store brands with consumer-centric and highly-integrated marketing campaigns.
* Evaluate feasibility of multi-tier offerings across key categories and product lines, review pricing strategies to ensure alignment with store goals and analyze product development best practices across departments to identify low-cost innovation opportunities.
* As with manufacturers, retailers should test market product, pricing and promotional changes before and after rollout as well as track/benchmark store-level brand share shifts relative to national brands.
“Store brand success moving forward hinges on real marketing prowess,” said Susan Viamari, editor, Times & Trends, SymphonyIRI. “The need to understand and deliver against the most pressing needs of consumers is high. Those who do so effectively will be rewarded with share of wallet and, perhaps, true shopper loyalty.”
About the Reports
The new Executive Research, “Understanding and Mitigating the Private Label Threat,” is the result of recently-completed research conducted by surveying members of SymphonyIRI’s Consumer Network™. For detailed information about the report’s availability and pricing, contact Sean Seitzinger at email@example.com.
This month’s Times & Trends: “Store Brands: More than Just a Safe Harbor in Turbulent Times,” is a free report available from SymphonyIRI, the world’s leading innovation partner that enables CPG, retail and healthcare companies to create and maximize new opportunities. The findings of this report were compiled based on information from SymphonyIRI MarketInsight™ and the SymphonyIRI Consumer Network™. To download the special report, visit http://symphonyiri.com/NewsEvents/LatestPublications/tabid/100/ctl/Details/mid/1112/ItemID/1100/Default.aspx
About SymphonyIRI Group, Inc.
SymphonyIRI Group, formerly named Information Resources, Inc. (“IRI”), is the global leader in innovative solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies. SymphonyIRI offers two families of solutions: Core IRI solutions for market measurement and Symphony Advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and category management. SymphonyIRI solutions uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI helps companies create, plan and execute forward-looking, shopper-centric strategies across every level of the organization. For more information, visit http://www.SymphonyIRI.com.
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