4 - Refresco.de

Market review 2009
“The premium category offers a huge opportunity
they can build consumer loyalty and are
What differentiations can be made in private label?
They have enough scale to introduce their private label products
We often make the mistake of talking about private label as one in a wider range of categories. Second, hard discounters are
single category. The experts distinguish between three types of forcing retailers to have alternatives available for consumers
private label, each having a different starting point, background, looking for value-for-money products. Furthermore, consumer
strategy, and future perspectives. De Jong: “In general we talk awareness has grown through the years; the ‘smart consumer’
about good (value), better (standard), best (premium), the so- was introduced. The recession boosted this trend even further.”
called three-tier structure all carrying the name of the store on Sonneville adds: “An important factor is also: how easily can
the pack. First, we distinguish the type ‘value’: retailers will try you copy a product? And finally, the driving forces behind the
to prevent customers turning to hard discounters
success of private label often coincide with buying
by having their own range of value-formoney
products as an alternative to
hard discount products. Second,
standard: private label can serve
moments and occasions. The recession can
DIFFERENTIATION
function as a stepping stone for private
OF PRIVATE LABEL
label. If the consumer has chosen
Four types can be distinguished:
private label because of its lower
as an alternative to an A-brand:
GOOD
prices during the recession, it is up
a ‘me too’ product. Third, ‘Value’ – an alternative to hard discount products to the food retailer to retain these
premium or niche: more and
more retailers build their own
BETTER
‘Standard’ – ‘me too’ products as an
private label buyers when the
economy recovers. Rather than
retail brand and introduce alternative to traditional mainstream A-brands returning to A-brands, these
products to load their brand
with premium products or to
fill a niche (e.g. organic), often
positioned above A-brands,
BEST
‘Premium’ – loading the retailers
brand via premium or niche products
customers could also opt for
mainstream or premium private
label alternatives.”
transforming the retailer brand
ALTERNATIVE
into an asset.” Grievink: “On top ‘Hard discounter’ – high quality - low
of that, I distinguish a fourth type of
private label in hard discount. This fourth
category of private labels can be found at hard
prices through fancy labels
discounters, who distinguish themselves by a portfolio
of high quality products against low prices presented in fancy
labels. They have no intention to load their own brand via their
products or private labels.”
What explains the success of private label?
Schreijen: “Private label growth is driven by a combination
of three forces: first, retail concentration: the economic
viability of any product launch depends on the size of the
prospective market. Not surprisingly, larger retail chains
generally have been more successful in their private
label strategies.