A BrAnd Point
tHe neW MAnUFActUrer/
the time is right for the marriage of cPgs’ new product development expertise and retailers’
access to shoppers and ability to execute. today there are constant questions about traditional
media’s effectiveness, a segmented customer base, and a vast majority of purchase decisions
being made at the store shelf. in this light, who can justify the traditional brand or new
product development cycle? something more insightful, more collaborative and – above all –
more agile is called for. this is manutailing.
MANUTAILING: A BrAnd Point MAnAgeMent PersPective
ThE hISToRY of PRIVATE LAbEL
For over a century, consumer packaged goods manufacturers
have dominated brand innovation, formulating products and
driving consumer motivation for purchase, while retailers
have served as the real estate managers governing where
these new products are sold. essentially, cPgs invented
and retailers stocked the shelf. this approach became so
integrated that through the concept of category champions,
cPgs took control of retailers’ merchandising strategies – and
in some cases drove store layout. But as this model evolved,
the more progressive retailers began packing products under
their own brands and the industry of “private label” was born.
Private label was initially successful due to the simple
proposition of value alternative. For individuals shopping on
a budget or for higher income shoppers in low involvement
categories, private label provided an attractive price point.
this concept flourished, as it not only provided incremental
revenue for the retailer via better margins, but it also
positioned the competing cPg offerings as more innovative
and of higher quality, thereby substantiating the price
premium at which they still operate today.
Private label has grown more sophisticated over the years.
noticing the margin opportunity in converting cPg sales
to PL sales, retailers began creating d