Katie Kelly-Landberg, SVP of business and brand leadership at Favorite Child
Retailers in recent years have invested time and money to develop and expand private label assortments across a host of categories. Accordingly, as inflation in recent years led many consumers to alter their shopping habits and turn to the money-saving options store-brand products offer, retailers have taken steps to raise the profile of their proprietary brands.
In 2023, The Kroger Co., Target Corp. and Whole Foods Market, among others, led the charge to raise the profile of their respective store brands. Following a playbook long used by national brand CPGs, retailers focused on the quality and value of their assortments, and often used themes such as happy families cooking at home to convey the vital role that their products play in the daily lives of consumers.
Will the trend continue? Will we see retailers expand their efforts to promote their store brands to consumers? Katie Kelly-Landberg, SVP of business and brand leadership at Minneapolis-based Favorite Child brand design, part of Periscope – a Quad company, shares her insights on the advertising efforts of retailers as it pertains to their own-brand products, and what we may see from retailers continuing this effort throughout 2024.
Store Brands: When we see retailers more aggressively advertising their private label products, are we seeing a change in mindset, or are they merely reacting to the needs of their shoppers?
Katie Kelly-Landberg: With the economy being shaky over the years since COVID and shoppers’ habits changing, private label has continued to grow and earn trust with consumers. As a result, businesses are definitely focused on bringing more consumers to their private label products. The other key is personalization. As a mom of teenagers, what am I interested in from [a retailer’s] private label assortment. What am I looking for in clothes, snacks and food? Social media is a huge support of that. It’s fascinating to watch the work retailers have done with influencers, or even getting their customers to be supporters of the brands.
SB: We expect to see more retail advertising focus on private label products. What would you recommend as the best tactics they should use to communicate with shoppers?
KKL: I think it falls in line with traditional marketing. It’s important to really figure out who the consumer is and how this product or brand is going to add value to their life. The next step is to figure out where to meet them in their day-to-day interaction with the brand. That could be retail media networks. It could also be pop-up ads that appear on their phone when consumers are searching groceries or recipes. It’s always important to keep in mind that [consumers] need to hear how products are going to add value to their lives.