FMI’s Upcoming Private Brands Summit : Think Like A Customer
The Food Marketing Institute (FMI) will feature the 2012 Private Brands Summit, taking place alongside “FMI2012: The Food Retail Show” in Dallas, Texas, in May. The Summit will provide greater communication and collaboration amongst trading partners in order to promote the growth of private brands.
“This year’s Private Brands Summit goes beyond creating ‘me too’ products and looking at how to successfully compete on more levels than just price,” said Joe McKie, VP of private brands at FMI.
Since its introduction on supermarket shelves in 1978, Private Brands shifted from competitively priced substitutes to items that are considered not only affordable, but also high quality and flavorful. According to FMI’s U.S. Grocery Shopper Trends 2011 report, shoppers originally purchased Private Brands to save money, but are now sticking with the products for their taste. These trends open up more discussions for Summit attendees, as they learn how to strategically manage their brands and grow stronger consumer loyalties. FMI will share results from a partnered report with Buxton, looking at customer analytics for private brands at retail and present case studies for determining an ROI calculation. Buxton’s process included testing and fine-tuning marketing efforts to provide an understanding of the best ROI when marketing to loyal Private Brand customers, while giving incentives to “switchers,” or those likely to buy both Private Brands and National Brands. Meijer Inc. and John B. Sanfilippo & Son Inc. were the retailer and supplier companies, respectively, who participated in the case study.
“When it comes to private brands, knowing your customers is the most critical element for brand owners when developing their brand strategies,” McKie said. “Our research, supplier partners and presenters at the FMI Private Brands Summit, indicate that we need to challenge the strategy model for private brands—we have to give customers one more reason to shop and a reason to come back—since price is no longer the unique motivation.”