A private label brand offers a merchandiser the opportunity to sell a product without the worry of manufacturing.
Private labeling occurs in a wide variety of industries from cosmetics, clothing and accessories to household cleaners, furniture, and foods. When creating a private label product, it puts you, the merchandiser, in control of your branding, marketing, and customer experience.
When you create a unique, reputable brand you create endless opportunity. Branding, marketing and establishing a loyal customer base is just the tip of the iceberg.
The Power of Branding
A private label product offers a merchandiser the opportunity to create and cultivate a strong brand. A recognizable and reputable brand will be what sets your company and product apart from your competition.
With a private label, merchandisers can obtain higher profit margins all while offering cheaper alternatives to brand names. In most cases, a private label product provides the consumer a very similar item to that of a brand name. Whether the similarities be in ingredients or quality, private labels stand up against their branded competitors. Herein lies the importance of branding and showcasing similarities and benefits with your private label.
In a world where anything can be purchased online, a distinguishable brand that resonates with your target audience and provides value to your customers is a distinct competitive advantage.
Your company/product name, logo, vision, tagline, and overall aesthetic are all crucial pieces to creating an unforgettable brand. This brand image provides consumers with their first impression of your offerings. It provides a glimpse of who you are and what you offer. And your outward-facing brand persona may be what entices a customer to make their first purchase.
Marketing = Growth
By creating a private label, you are establishing your brand in the marketplace.
Once your branding has been created for your private label, you can begin executing strategically crafted marketing efforts. Even a simple marketing plan will enhance your image through cohesive output targeting your ideal audience. Utilizing digital marketing mediums with engaging marketing collateral is proven to be one of the most effective ways to generate leads with first-time purchasers.
It takes a minimum of seven times for a consumer to remember a message/product/service. I would even dare to suggest that with the micro-consumption of content and shortened attention spans, it might even be more. What does this mean to you? Having a private label brand that you can promote to your target market offers you the opportunity to be memorable and incite action—and action = sales.
Establishing a Loyal Customer Base and Beyond
The hardest sale to make is the first one. However, it takes more than a good product to create repeat purchases and a loyal customer base. Establishing this loyal customer base is simple but not easy. It requires a reason to come back, and more so, a reason to choose you over your competition. You can begin this process by implementing a customer relationship management strategy.
Creating customer lists and serving personalized content has shown to be a sound method to retaining customers. By capturing your new and existing customers information, you are able to analyze that data and provide valuable content straight to their emails. This content could be a coupon, trial options, FAQs, customer testimonials, new product information, and so much more.
There are numerous CRM and email management platforms that offer streamlined services for simple implementation and maintenance. Properly utilizing these types of platforms will not only build your reputation and customer base but take your brand to the next level.
Start That Private Label Today
Branding, marketing and customer engagement tactics work together to enhance your image and reputation. The resources involved in successfully implementing each of those strategies will be worth every penny and second. Those pieces coupled with perceived value and satisfactory customer service set you up for a successful business venture.