DCA Private Label Brands

Private Label Brands Helping Consumers To Compete To Get What They Want

By Dean Crutchfield Associates

OWN LABEL

OWN GROWTH

Dean Crutchfield Associates

Misconduct by big brand names and shifting consumer behavior has changed the perceived value exchange between brands and consumers. In a rapidly changing market, how do you separate value from commodity, especially when the nature of competition has changed dramatically; it’s no longer your obvious competitor?

Today It’s about the power of fickle customers, suppliers, potential substitutes and the threat of new entrants: if you can’t build an advantage on what you sell, create a brand advantage on how you sell. The focus for retailers is to differentiate their products and brands, but that has been vitiated with conflicting pressures to finding growth in this deleveraging recession.

Dean Crutchfield Associates Dean Crutchfield Associates

Today By taking a sweeping

glance across the media, you get a sense of the important issues:

1. Attracting and retaining loyal customers

2. Improving productivity 3. Cutting costs

4. Speed to market 5. Increasing market share

Evidently top line growth is a priority,

but the second and third issues of improving productivity and cutting costs

reflect that businesses remain under immediate pressure to improve the bottom line. So what’s the best way

forward?


1. Attracting and retaining loyal customers Great customer experience is good. Great customer experience that helps you make more money is better. And what really matters to your customers is how you engage with them - through products, people, environments and communications. In a time where consumers are trading down and pundits are employing phrases such as “austerity chic” and “luxury shame” and the only businesses that seem to be enjoying this vituperative parsimony are McDonald’s and Wal-Mart: What’s your best strategy for growth?


Further compounding the torment, we have consumers bombarded with an array of choices 247, where winning ideas are replicated and brought to market in a matter of weeks by nimble competitors. And winners are more focused on how to move out of a competitive environment to a differentiated one. Therefore, differentiation and innovation is essential and much of this is can be driven and created by a reallocation of resources to innovative operational models, Private Label brands or both.


The challenge is how to successfully develop and facilitate their implementation to provide a sustainable, uncopyable, competitive advantage in the market that results in creating a unique position for the retailer with high visibility, boldness, clarity, consistency

and customer appeal.

That requires developing a strategy - driven by improved cost effectiveness and streamlining of NPD - that has appropriateness to product and target customer, harmonization with advertising,

promotions and POS that can ultimately generate increased brand equity.


performance management and talent management. Needless to say, offshore Full Service Manufacturers (FSM’s) are prevalent across all major verticals with India and China leading the way and other regions like South East Asia moving in fast. The efficiencies and savings are substantial – recent studies indicate more than 85% of outsourced transactions have achieved savings greater than 30%, a boon for manufacturers and beneficial for retailers.

2. Improving Productivity The key focus now is in removing non-value added activities, steps, processes and entities, such as moving to point-to-point, right first time (Six Sigma) and lean manufacturing principles including


However, there is also an accelerating trend with offshore FSM’s buying EU and US based brands and importers in addition to creating new brands. These are primarily focused at the new and emerging markets (as well as the more traditional US and European markets) and represent a paradigm shift: As new entrants they represent both a challenge and an opportunity to the “competition” status quo re: suppliers and potential substitute brands.


3. Cutting Costs Outsourcing to low cost locations is a no-brainer. So too is reducing COGS, that tried and tested initiative to continue to reduce the cost of the product and so increase initial mark up. The road less travelled is brand rationalization. Believe it or not, many brands don’t make money for companies and it’s amazing to know that most companies don’t know which of their brands make money for them or how many are profitable and in some extreme cases, especially with Private Label/ Own Brands, do not know how many brands they have!

their equities and attributed awareness, the strategic priorities for each product category, success metrics with regards to the performance for each category and the benefits and costs for brand rationalization as a growth strategy? Evidently companies can boost profits by deleting loss-making brands as the freeing up of resources can be invested in making the remaining brands better. However, there is always pressure from executives, brand and category managers who keenly retain sub-optimal brands for emotional or historical reasons and job security that can literally paralyze any rationalization occurring, no matter how well planned out.

3. Cutting Costs The key is to have all involved in the process so that you can identify potential opportunities in the market. Encompassing your customer needs and how they’re satisfied, the number of brands in the portfolio,

Therefore, the business priorities of senior executives are more than likely to change from strategic to more tactical as the economic situation improves. Therefore, the drive to remove time from the supply chain and so improve a businesses ability to respond to the new trends, the known sales data and basket analysis is paramount. This is a top line profitable sales driver: the more products sold at full price the lower discounted goods and “trading down” are prevalent.

4. Speed To Market All successful strategies are destined to fail at some point and retailers must bestow adaptability and flexibility to change by building a responsive Private Label business, more adaptive to the changing business environment.

For this to be achievable it cannot be done in isolation as it counts on understanding a number of interrelated factors: The shared values with the customer, the PL portfolio good, better, best brand strategy, ROI expectations, retail style and the skill and personnel requirements.



5. Increasing Market Share Good, Better, Best is a tremendously useful framework, but it’s tough to win by design against brands that have originality and years of heritage: a simple solution to a complex problem is often simple, straightforward and wrong. We need to assess what is the future of private label and what is the brand opportunity for US retailers to ramp up their portfolios to levels enjoyed in Europe.

5. Increasing Market Share Additionally, understand what the growth and proliferation of private label brands mean for the role of the retailer brand? And what is the right brand architecture framework for all retail brands (Own and Private Label brands, Contract brands, Partner and Licensed brands, Category and Service brands) and how can they work better together?


Eighty percent are stillborn: All in the attempt to capture market share and build multi-brand strategies to capture the hearts and wallets of customers. P&G’s former CEO, Mr. AG Lafley would tell you “When times are tough, you build share.” The time is now for calibrated boldness from retailers with Private Label as the platform for growth, but it’s best tackled as a Brand. Especially as the consumer movement from a "we" to "me" culture enables Private Label brands to help consumers compete (to get what they want).

Profligate amounts of money and resources are spent on either launching, acquiring or maintaining brands. From line extensions, brand extensions through to sub-brands and channel extensions, desperately, some marketers strew 12,000 new products across the shelves in a single year.

Dean Crutchfield Associates Growth Advisors


Seize More Opportunity

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New Business 101 Pitch Boot Camp Growing Clients Pitch Doctoring


Delivering Your Best Case & Winning Face


In the pursuit of opportunity without regard to resources held, Dean Crutchfield has

targeted and won millions in new fees from the world’s

leading brands.

By convincing senior executives at Fortune 500 companies on brand architecture, portfolio

rationalization, go-to-market brand strategies, product and

business innovation, Dean Crutchfield has directly helped clients generate billions in new

business growth.


Armed with rich content, deep

knowledge, 2x2 matrices and a white board, we rapidly

create targeted, multi-channel growth programs that generate immediate

Impact Dean Crutchfield Associates

What DCA Delivers Achieving growth

For ambitious leaders who are driven to grow fast

Creating new business Orchestrating and activating accelerated outreach programs

Building efficiencies

Rapidly sourcing the best talent for the business

Improving margins

Rallying teams behind the brand and go-to-market strategy

Boosting win rates

Delivering your best case and winning face forward


Working with DCA

Catalyzing top line growth for clients is what we thrive on: delivering your best case and winning face, encourage your people to move the needle north and sharpen the product offering. DCA (Dean Crutchfield

Associates) achieve growth for clients by tailoring brand-led techniques that are uniquely participant

centered. We guarantee results. Whether it’s a better pitch, winning new mandates, a better team or more

fees, you will find our fee in your business within weeks.

DCA programs have been thoroughly tested and

proven with start-ups and the world’s greatest brands, uniquely adding immediate value.

When you hire DCA, you get results. If you have the

right people attend the sessions and complete all of your committed decisions and pilot initiatives and are still not satisfied or seeing results by the agreed time frame, we will coach and advise you free until you do!


Working with DCA

By deploying real world strategies and hands-on collaboration to inspire teams we create content backed by actions that will assure you of seizing

every good opportunity, selling more services and winning new business.

For 20 years Dean Crutchfield has advised the

world's most iconic brands, built businesses, created new companies, opened international offices and spoken about the role of brands at Duke, Kellogg,

Wharton and the Google Speaker Series. He has made appearances on all major TV news networks, commentary in the global press, editorials in major

business publications and is a Contributor to Forbes.

With a proven ability to inspire and push the boundaries beyond the notion of what was thought possible, DCA excel with clients who are looking to

run fast, led by CEOs, CMOs, entrepreneurs and executive teams eager to capture dominant levels

of success.


Global Client Experience

Aviva* BP BT*

BSkyB* Camper & Nicholson Carter’s Cellcom* CITI Comcast General Electric Kraft Fila Frito-Lay Littlewood’s* McDonald’s M50

McKinsey Metsä Serla* Nomura* PepsiCo PG&E Pitney Bowes RBS* Scanfinest* Shell Smirnoff Staples Sunglass Hut Target Tower of London* Warburg Pincus WGM Dean Crutchfield Associates

“Dean always cuts to the core of what needs to be done and said. He helps bring clarity and provides value by being an outsider with no agenda, so he can help you stand back and see things from different perspectives. Dean helped us think through solutions and then form the best way to present those solutions in a persuasive and compelling way.” *References upon request

* Overseas Project

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DCA Private Label Brands

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