How Can Regional Retailers Grow Their Brand?
Regional retail can help a lot the brands to sell in this market as they are easy-going connected and communicate daily with the local customers.BY Madhushree Chowdhary | May 03, 2018 | comments ( 0 ) |
The two major factors of brand-specific association are perceived quality and emotional value. “Emotional value” denotes the value associated with individual customer’s emotions towards the products or the feeling of pleasure they get from purchasing or by using a brand’s products. “Perceived quality” denotes the customer’s judgment or subjective evaluation of the overall superiority, quality or excellence of the products.
Buyers are more connected to the consumer market regarding purchasing goods and getting services than resale. The taste, preference, and choice of the customers vary. The growing consumer demands and the consequent response of leading retail business have taken the market to a more competitive field.
To stand here it’s very important to understand the customers and adapt as per their needs and demands. Big brands naturally have no idea about the local buyers’ choices and their natures. So under these circumstances, regional retail can help the brands to sell a great deal in this market as they’re easy-going, connected and communicate daily with the local customers.
Here are some tips on how regional retailers can help to grow brands.
- Before going upscale, it’s necessary to study the customers’ categories and mindset, which the regional retailers are very much aware of. Just wrapping a quality product in premium package isn’t enough.
- Many customers prefer cheap knockoffs with private labels rather than premium brand products. In such situation, regional retailers can position the premium brands as exclusive products, such as – Canopy at Walmart and Choxie at Target.
- Right pricing is very important. Usually, the price gap between national brands and local brands are notably high through every category. Local retailers are aware of the price sensitivity of the local consumers and can recommend to the manufacturer, accordingly.
- Offering multiple brands at multiple tiers can be proved helpful. Most retailers are witnessing increment with various store brands. Being placed among the reputed brands can help your product getting pushed through. A single brand can’t stand for healthy eating and gourmet and value.
- A single bad product can affect the reputation of the whole store brand, including the retail banner itself. So always exempt the faulty or weak goods. The consistency of products’ quality in each and every store is very important. The perceived quality of the brand is equally good as of its weakest SKU.
- Sometimes a driving trial gives your brand a good start and flow. First be sure that the quality of your brand is equally good as of the national brand (or even better) and offer of trial by the regional outlet can help the customers experience your goods before buying. Bonus savings, gift vouchers, free package etc. always attract the consumers. These promotional campaigns are often carried out by regional retail outlets.
- If it is a local brand, promote it properly at the retail stores. Big private labels get a wide range of feature and support. According to ECRM’s Marketgate data, private label gets the feature ads range differently at different stores, such as – 10% at Publix to 25% at HEB to an increased level of 45% at Wegmans.
- There’s no need to exempt all value products. Sometimes value brands bring higher margins and lower price than retailers can get with the private label ones. For example, just check the performance of the shampoo category at low prices with popular brands.
- Use smartly the package labeling to indicate some worthy causes and make your brand more popular. Regional retailers carry on activities such as – spreading awareness about health and wellness, protecting the environment, funding local charities and such others. This’ll definitely attract similar consumers. Choosing the high road helps to build the retailer’s image, keeping aside the sales performance.
- It is very necessary to understand the difference between strong brand equity and strong sales. As for example, Walmart’s Great Value brand asserts to be the no 1 food brand among all categories. But majority customers tend to choose a national brand over the Great Value brand when it comes to the same price point.
Selling of the store brands in new markets and new channels offer more opportunities to the retailers.
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