As you walk the aisles of your grocery superstore, you will see many products that are branded in the name of the superstore company. These are private label packaging products, where a superstore has taken a well-known product and packaged the item to appear as their own.
The Difference Is in The Price
Many of these superstores spend considerably less on the design and printing of labels for their private label packaging. This is one step that helps reduce the price, compared to the brand-name competitor.
In modern times, the technology behind designs and printing labels has changed significantly which is why many companies using private label packaging are able to offer spectacular designs and presentations, equally as good as the well-known branded products.
The Advantages of Using Private Labels
At the early stages of the warehouse layout, private label companies can change the size and numbers of products within a carton before packaging and labeling. This provides them with the advantage that they can price as they please and organize their own production and distribution, which is easy when the products only move through their own stores. This reduces the cost of production and distribution because their freight transportation is already organized and they will only move stock to a certain number of stores.
Effectively, private label companies offer their own branding when they use private label packaging. When all their private label products use the same logo, similar taglines and are the company’s own brand, they can build a high level of customer loyalty.
Using the private label route is an effective way of providing value to your consumers while competing against similar products that are more expensive on the shelves.
If the profit levels are maintained, companies can boost their profits by using more private label products.
