The risks of private label products
François Bazini, the Chief Marketing and Innovation Officer at Suntory Beverage and Food Europe, has issued a warning to FMCG brands about the potential threats posed by private label products in today’s challenging economic climate. Well-known brands face the risk of being “consumed” by their private label counterparts if they fail to invest in innovation and adapt to the competition. Bazini highlights that consumers are becoming more receptive to trying private label alternatives due to the ongoing economic impact of the pandemic, urging established brands to continue innovating and differentiating themselves in order to maintain their market share and consumer loyalty.
Suntory’s strategic shifts
In response to the growing threat of private label products, Suntory, the parent company of popular UK brands Ribena and Lucozade, is undertaking strategic changes. Ribena, a brand with an 81-year history, is undergoing a repositioning to focus on its legacy and target an older demographic, addressing the issue of declining sales. The company also has plans to launch marketing campaigns that emphasize the brand’s heritage and natural ingredients. This strategy aims to attract consumers seeking quality and nostalgia in their beverage choices and differentiate Ribena from its competitors.
Nostalgia-driven marketing
Other brands, such as Morrisons, Tango, and Branston, have taken a similar approach, reviving past slogans to connect with consumers. By tapping into the nostalgia of previous advertising campaigns, these companies aim to reignite the emotional connection between customers and the brand, fostering renewed interest in their products. This throwback strategy has proven effective in strengthening customer loyalty and engaging new audiences.
Striking a balance in marketing strategies
As marketing experts strive to develop groundbreaking concepts, there is an increasing need for maintaining a balanced approach to growth, efficacy, and cost-cutting measures. To achieve this, businesses are adopting strategic and data-driven frameworks that combine innovative methods with tried-and-tested techniques to achieve optimal results. Companies are additionally cultivating a culture of adaptability and resilience, enabling them to promptly respond to the ever-changing market dynamics while prioritizing long-term sustainability and profitability.
Targeted marketing in the automotive sector
This trend is particularly evident in the automotive industry, where marketing expenditures are rising in an effort to attract younger and female clients. Companies are investing heavily in advertisement campaigns that feature targeted messaging and imagery, aiming to resonate with these specific demographics. This shift in marketing tactics highlights the industry’s intention to broaden its consumer base and address the evolving needs and preferences of potential buyers.
Cadbury’s successful diverse approach
Cadbury provides an excellent example of a successful implementation of a diverse marketing strategy during Christmas 2023. The confectionery brand launched a range of festive-themed products and advertisements catering to various demographics, religious affiliations, and cultural backgrounds, promoting inclusivity and broadening their consumer base. This approach not only boosted Cadbury’s sales during the holiday season but also significantly bolstered their reputation as a diverse and inclusive organization.
Multi-platform marketing impact
Cadbury skillfully employed a range of marketing platforms, including interactive outdoor billboards, television, social media, and experiential retail, leading to a 5.3% increase in sales. This multi-platform approach enabled the brand to engage with a wide audience and tailor their messaging to different demographics. Furthermore, this innovative strategy resulted in increased brand awareness and customer loyalty, reinforcing its positive impact on sales growth.
First Reported on: marketingweek.com
FAQs
What are the risks posed by private label products to FMCG brands?
Private label products can pose a threat to well-known FMCG brands as they can gain market share if established brands fail to invest in innovation and adapt to competition. Consumers are becoming more receptive to trying private label alternatives due to the ongoing economic impact of the pandemic. To maintain market share and consumer loyalty, established brands need to continue innovating and differentiating themselves.
How is Suntory responding to the growing threat of private label products?
Suntory, the parent company of popular UK brands Ribena and Lucozade, is undertaking strategic changes in response to the threat of private label products. Ribena is undergoing a repositioning focusing on its legacy and targeting an older demographic to address declining sales. Suntory also plans to launch marketing campaigns that emphasize the brand’s heritage and natural ingredients, aiming to differentiate Ribena from its competitors.
What is the role of nostalgia-driven marketing in the current scenario?
Nostalgia-driven marketing helps brands establish an emotional connection with customers by reviving past slogans and advertising. This throwback strategy has proven effective in strengthening customer loyalty and engaging new audiences. Brands like Morrisons, Tango, and Branston have already adopted this approach to reconnect with consumers.
How can businesses maintain a balanced approach to marketing strategies?
To achieve a balanced approach in marketing strategies, businesses can adopt strategic and data-driven frameworks that combine innovation with tried-and-tested techniques for optimum results. Companies should also cultivate a culture of adaptability and resilience to promptly respond to ever-changing market dynamics while prioritizing long-term sustainability and profitability.
How is targeted marketing being employed in the automotive sector?
In the automotive sector, companies are investing in advertisement campaigns with targeted messaging and imagery to resonate with specific demographics like younger and female clients. This shift in marketing tactics aims to broaden the industry’s consumer base and address the evolving needs and preferences of potential buyers.
What is an example of a successful diverse marketing strategy?
Cadbury’s diverse marketing strategy during Christmas 2023 serves as an excellent example of success. The brand launched festive-themed products and advertisements catering to various demographics, religious affiliations, and cultural backgrounds, promoting inclusivity and broadening its consumer base. This approach helped boost sales and significantly bolstered Cadbury’s reputation as a diverse and inclusive organization.
What is the potential impact of utilizing multi-platform marketing?
Multi-platform marketing can lead to increased sales, brand awareness, and customer loyalty. Cadbury utilized multiple platforms, including interactive outdoor billboards, television, social media, and experiential retail, resulting in a 5.3% increase in sales. This multi-platform approach enabled the brand to engage with a wide audience, tailoring their messaging according to different demographics, and ultimately creating a positive impact on sales growth.
