Inflation continues to drive the growth of private label products, pushing premium brands to find new ways to strengthen their propositions and maintain a competitive advantage. Is this also your challenge? Before making strategic decisions, ask yourself and your colleagues these three strategic questions:
1. How does inflation impact your target audience?
It's important to realize that inflation affects everyone, but its impact can vary among consumers. To make strategic decisions, it's essential to understand your target audience and how inflation influences them. Tom Cornelis, Commercial Lead at GfK, emphasizes this in a recent publication in the magazine Gondola (text in Dutch).
2. When do consumers switch to private label?
How do consumers react to price changes? It's logical for brands to increase their prices, but what is the optimal price point for your product? At what point do consumers switch to private label or a competitor? Conducting price research can provide answers to these questions. Make sure the research not only focuses on your own products but also considers the prices and developments of competing products.
3. How can your premium brand differentiate itself?
Look for other aspects in which your premium brand can differentiate itself from private label products. Consider factors such as packaging, ease of use, design, product variety, innovation, brand experience, or additional services. Which points of differentiation do you want to emphasize and invest in? Insights from in-store consumer research can be valuable in this regard.
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Prefer direct contact with one of our experts? Get in touch with Theo Toering, Founder & Managing Director at Bamboo Brands, via theo@bamboobrands.com. We're here to assist you in any way we can!
