As seen in Modern Distribution Management.
It does not really matter what you call it – private label, private branding, store brand, white label, proprietary brand – coming through on the implied promise of quality or experience that comes with the product line should be front and center. Unfortunately, many distributors who have ventured into private label have not kept a sharp focus on a branding strategy and the risks if not done right.
Brand management, says Evergreen Consulting’s Brent Grover, involves creating, growing and protecting a product or group of products sold under a particular name. Here are keys to successful branding, according to Grover:
Designing a product identity that is fresh and relevant to the target market, while also being consistent and in line with the company’s image and overall objectives.
Positioning the brand relative to the company’s other brands, competitive manufacturers’ brands and the brands offered by the distributors’ own suppliers.
Promoting the brand to create brand equity.
Pricing the brand correctly in relation to its perceived value and where it is in its lifecycle.
Protecting the brand against competition.
Repositioning the brand when needed to preserve its brand equity.
Meeting company’s strategic and return-on-investment objectives.
Ensuring suppliers chosen to manufacture the products maintain the necessary levels of quality and service.
While in retail branding is more of a “pull” relationship – customers’ needing to connect with the brand – in business-to-business selling, it is more a “brand push.” “Distributors typically rely heavily on personal selling and customer relationships,” Grover says.
The article goes on to discuss: High Costs, High Responsibility; Sourcing; Brand and Price; Balancing Manufacturer Brands; and Smaller Distributors. Click here to continue reading.