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Trade Wars: Store Vs Store – Retailers Vs Manufacturers

It is known – especially among Manufacturers – how Retailers are more and more in the search to keep certain profitability in a more constricted economy we live now days. Wars between Supermarkets Chains in some markets are getting more sour in the pursue for Shopper Awareness and loyalty How to delete a labels in gmail.

There was a time when Retailers could build very conveniently a store in a place a little away from town or the city and get lots and lots of attention and sales. These stores had a very distinguished offer: big amount of SKUs and practically all a Shopper could need to buy. Profitability was not a problem because of the economies of scale reached by these chains.

Things have changed. Today you can find many more Big Stores open and offering almost identical benefits to Shoppers and Consumers. Differences are brought to the minimum. Low prices, big range of options, promotions and offers every one of them use those tactics. Now Shoppers have a range of options and can select the store to stop for a quick pantry refill or a long shopping Saturday morning. Strengths of the different offers available to Shoppers give them the chance to visit three of four different stores in the month selecting accordingly to their needs. This has brought Supermarket Chains to the search of some differential advantage against each other, as we said before, to offer Better Value and satisfaction as well as gain awareness and loyalty.

One of the strategies to build this loyalty is by offering Own Labels. Own Labels come from a very long time strategy known as White Labels. A White Label Product is one that has very little branding work in it, label is almost blank and marketing does not exist. Those products did not have the capacity to build loyalty for the store. Usually these products had very low quality. Stores have noticed that if are willing to be successful today they need to use those tools long used by Manufacturers: Branding and shelf space.

The war of the Retail Channel against Manufacturers (not really a war-war because of course Manufacturers and Retailers need to come to an agreement and always will) has started because Retailers own the Shelf Space that is the place where the true marketing war takes place. Retailers are claiming back their space in the shelves to give more and better facings to their Own Label Products. That combined with the development of information technology gives them all the advantages against manufacturers in their own stores.

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