Steps to Create Your Supermarket’s Private Label Products

As our stores and supermarket chains grow and gain importance in our communities, starting the private label project is necessary because it will give us our personality and is the only one that will not depend on direct competition. Previous research and data collection will be crucial to the success of your store’s private label launch.

We will divide preliminary research into primary and secondary. Primary information is that which we must collect with our means, such as all the consumption and preference data of our customers for the products that we will create as a private label.

In addition, we will also investigate the movements of these products with our closest competitors.

Secondary information is already researched and published data, and we will only have to know how to find it. Secondary research is the cheapest because it is already done. However, not doing primary research would be a serious mistake for our calculations and our commercial future regarding the product to be created.

Part of the primary research we will need to perform initially is to conduct surveys of our loyal customers; surveys in the aisles of the store or via our social networks. It will always be better to take more time to gather information from in-person interviews in our stores, where the customer will be more direct and sincere.

Related Article: The Future Sparkles for Private Label Wines

Retailers have been fighting for years to cut out the middleman and ensure the product reaches our customers with the best quality and the best price. This trend is even more compelling when we try to develop private labels. With all the data in our possession (actual consumption in our stores, research of competitors, customer preferences), it is time to go to the market to negotiate our new private label product with the manufacturers.

Once contacts with the manufacturer have been initiated, it is time to test the flavors (or aromas, colors) and quality. We must always focus on the taste, aroma or color of the leading brand (the one that sells the most in our stores, the global market leader), as long as it exceeds 25% of the sales penetration of the rest of the family product.

With product and quality approval, we will begin the price projection and purchasing process with the manufacturer.

In the case of private label, which will be branded or will always remain associated with our stores, a partner-supplier agreement must be signed, since all parties must be aware of the costs from the start of the manufacturing process to the end customer. . pays for the product in our stores.

The logistics and supply agreement are the last and most crucial points. The manufacturer must demonstrate in advance that the quantities we have planned can be manufactured and delivered on time. Given the problematic logistical situation in the world, this will be a big challenge.

With the product already in our stores, we will periodically evaluate the rotation and the conservation of the quality agreed since the beginning of the project; this will go through quality reviews in the production plants of our partner supplier.