Private label brands have come a long way. They’ve evolved from a mostly “follower” dynamic of mimicking national brand products to creating brands with unique benefits that meet their customers’ needs.
But with this growth and consumer acceptance, many retailers face complex brand decisions that once belonged solely to CPG marketers.
A portfolio optimization process addresses all of these challenges and is a smart solution for retailers who are faced with growing portfolio complexities, says Teresa Liu, Senior Strategist at Anthem.
A typical optimization process includes a rationalization analysis to remove brand and product redundancies, along with white space analysis to identify where there may be compelling opportunities to address unmet needs.
This is where conducting research to understand consumers’ need states is invaluable. By isolating distinct consumer need states within the context of their store, retailers can develop brand propositions that better serve their customers.
The practice of portfolio optimization should be a fluid, continually evolving process. This helps ensure it’s up to date with today’s consumers’ quickly evolving needs, offering relevant brand and product propositions to meet them.
For more insight read, Why Retailers Should Consider Portfolio Optimization, by Teresa Liu.