HOW PRIVATE LABELING WORKS
EXPLORE THE BENEFITS OF A PRIVATE LABEL APPROACH.
“Private label brands comprise about 25% of retail sales in the U.S. and are expanding faster than national brands. Why? There's several distinct advantages to a private label approach. ”
Choosing a company name is no easy feat. We must have thrown out a million ideas and spent hours researching monikers that would represent our in-house meets agency approach with equal parts creative and strategic representation. (The reject list includes some real doozies!)
However, in talking with partners a common theme kept arising. The need for an internal/external blend that would help consolidate high overhead staffs with a multitude of agencies. We repeatedly found ourselves referencing a "private label approach" that would allow us to function not as an extension of the client's team, but as a core part of it. Hence, Private Label Marketing was hatched.
So what exactly is a private label brand and how does it relate to our mobilized marketing model? Typically a retail term, private labeling means selling products one business makes under another company's brand. Many consumers are unaware of its prevalence, but market share estimates have private label brands comprising about 25% of retail sales in the U.S. and expanding faster than national brands. Why? There's several distinct advantages to a private label approach.
Better Brand Loyalty
Private label branding allows you to create your own image and identity that promotes stronger customer recognition and loyalty. Successful private label brands create better sales opportunties for retailers, with lower operating and marketing costs.
Our approach is that our work is always about your brand and its needs, not us. What this means from a day-to-day perspective is we adopt the mentality of an in-house employee with the creative muscle of an outsourced agency. We don't impose rigid structures, reporting or agency practices just "because that's how we do it." Every project is 100% unique and is treated that way from the outset.
Higher Profit Margins
With private label brands, it is up to the end retailer to design the manufacturing, packaging and marketing - not up to the creator of the good, eliminating costs. You only pay the product cost without a premium for the brand name. Plus, on average private label products sell at five to six times the manufacturing cost!
Our private label approach means you're only paying for the work itself from the senior-level team members who will most benefit your business. It allows you to be extremely targeted, and yet extremely nimble, in your marketing efforts.
Control and Flexibility
Private labeling also offers control over factors such as pricing, size, package design, production and distribution. Companies can develop and implement innovative ideas to gain market share over other brands. This includes the ability to make quick adjustments based on customers' changing preferences.
Our broad expertise and vast co-op network of subject matter experts ensures that when you need to adapt and pivot, you do so seamlessly and cost-efficiently. In fact, we are often the ones recommending that pivot! Acting as the eyes and ears of your customer, we proactively suggest innovations and adaptations, always with their evolving needs at the forefront.
Consumers often choose private label products for quality, consistency and affordability. Even in economic downturns, private label goods enjoy steady sales thanks to lower price points. In fact, most retailers will increase their order quantities during economic downfalls.
One of the toughest things about economic downturns is the need to adjust operating costs and therefore efforts, even if the work to meet customer needs or evolve for the future doesn't dissipate. Our approach thrives on an affordable, flexible model that doesn't sacrifice experience or output, no matter the economic climate.
Is private labeling resonating with you? Get in touch, we'd love to chat more about how we can apply these advantages to benefit you!