While big brands used to rule the CPG space, the rise of private label products has been making a huge impact in retail sales. In fact, owned brands are projected to capture 25% of dollars in the next decade, accoriding to CB Insights. Where private label used to seen as the second-rate bargain option, consumers—namely Millenials—have shifted their mindset to view smaller brands and new retailer-owned brands as the smarter, more economical choices. Retailers are creating better, more marketable brands such as Target’s Cat & Jack and Whole Foods' 365 offerings, and they’re starting to make sure they meet the demands for healthy, “clean labels” as well.
As owned brands continue to grow in retailers across the country, it’s important for retailers to understand how to market those products in-store, and work with the name-brand companies they promote to find harmony at the shelf. The following are three ways virtual simulations are making that possible:
By using VR solutions like InContext’s ShopperMX enterprise platform, owned brands can get a sense of how to arrange their products on the shelf for best noticeability. With virtual simulations, teams can visualize different arrangements and assortments to see what makes the most sense for their store. They can test out their current concepts against different variations by leveraging virtual shopping exercises with real shoppers to get a sense of how they will perform and what changes can be made.
Test new products with shoppers
Perhaps you are looking to launch a new private label product. You want to know how best to market it in the store, but you have no historical data to start from. Virtual allows you to create the new label in a simulated space before prototyping anything in the real world. Visualize and test it in different scenarios to see what resonates best with customers.
Collaboration and retailer buy-in
As private label products rise, collaboration is key. Retailers need to be mindful of the balance between their owned labels, and the national brands they stock and promote. And category leaders need to learn how they can recommend the best category or planogram arrangements without hurting the retailer’s private label brands in the process.
For example, one manufacturer planned to present a new category arrangement recommendation at a regional grocery retailer that would change from vertical brand blocking to horizontal blocking. But the buyer worried the private label products wouldn’t be seen by shoppers in the new arrangement and have a negative impact on overall category sales. They worked together to create a winning planogram arrangement that not only contributed to the manufacturers’ brand share increase, and but made sure private label product placement still captured shopper attention.
As the trend toward smaller, up-and-coming brands and owned labels grows, it’s important to leverage cutting-edge technology to make sure you’re ahead of the game when it comes to shopper perception. Virtual can help do just that. Want to get started?