jerryking + private_labels   39

Brands Invent New Lines for Only Amazon to Sell WSJ
Jan. 25, 2019 | WSJ | By Annie Gasparro and Laura Stevens.

Amazon gets exclusive products, while brands receive faster customer feedback, marketing support and increased sales.......To build a big line of exclusive products on its site, Amazon.com Inc. AMZN 0.95% is pushing other brand manufacturers to do most of the work.

The online retail giant is asking consumer-goods companies to create brands exclusively for Amazon after finding that developing them on its own is too costly and time-consuming.....Amazon’s initiative is the latest example of the e-commerce giant flexing its muscles in order to offer the lowest prices and widest selection, as it seeks to cut into the market share of big-brand manufacturers.....Manufacturers generally benefit from selling their products through a range of retailers. Also, they risk cannibalizing higher-margin sales of their main brands by offering comparable products under different labels. But those entering deals with Amazon view the arrangement as a golden opportunity.

In exchange for creating exclusive products, the brands get help launching their products on Amazon.com, faster customer feedback when testing new products, marketing support, and, of course, revenue from the sales. They also can appear at the top of search results—a big draw given that Amazon’s platform lists an estimated 550 million items......Speed was paramount. “We had to take what would normally be 12 to 24 months of development to 90 days,”....Amazon, on its own, has been quietly adding to its in-house brands in recent years. Analysts estimate the site now offers more than 100. ....Amazon sometimes promotes its own brands higher in search results on its site, like “Amazon’s Choice” and sponsored items, or as default results in voice searches using Amazon’s Alexa virtual assistant.

In-house brands often generate a higher profit margin for retailers, including Amazon, and can draw in customers because they can’t find those brands elsewhere. But developing a new brand and formulating products takes time..... the program offers manufacturers a way to “launch brands and products directly to Amazon customers.”

Amazon is increasingly important for consumer-product manufacturers. It now accounts for roughly half of all sales online,.....Amazon’s program also can be used for “orphan brands” that manufacturers have stopped selling or that never made it to market.....Amazon has no issue going full-court press on private label, and pursuing all these brands. If the quality and pricing architecture don’t fit and they have to pivot, they’ll do so,” said Todd Mitchell, president of Compass Marketing Inc., which works with Amazon. “They’re not limited to the constructs of shelf space.”
accelerated_lifecycles  Amazon  brands  cannibalization  CPG  e-commerce  exclusivity  fast-paced  in-house  manufacturers  new_products  orphan_brands  private_labels  product_development  product_launches  shelf_space  speed 
january 2019 by jerryking
‘You’re Stupid If You Don’t Get Scared’: When Amazon Goes From Partner to Rival - WSJ
By Jay Greene and Laura Stevens
June 1, 2018

The data weapon
One Amazon weapon is data. In retail, Amazon gathered consumer data to learn what sold well, which helped it create its own branded goods while making tailored sales pitches with its familiar “you may also like” offer. Data helped Amazon know where to start its own delivery services to cut costs, an alternative to using United Parcel Service Inc. and FedEx Corp.

“In many ways, Amazon is nothing except a data company,” said James Thomson, a former Amazon manager who advises brands that work with the company. “And they use that data to inform all the decisions they make.”

In web services, data across the broader platform, along with customer requests, inform the company’s decisions to move into new businesses, said former Amazon executives.

That gives Amazon a valuable window into changes in how corporations in the 21st century are using cloud computing to replace their own data centers. Today’s corporations frequently want a one-stop shop for services rather than trying to stitch them together. A food-services firm, say, might want to better track data it collects from its restaurants, so it would rent computing space from Amazon and use a data service offered by a software company on Amazon’s platform to better analyze what customers order. A small business might use an Amazon partner’s online services for password and sign-on functions, along with other business-management programs.
21st._century  Amazon  AWS  brands  cloud_computing  contra-Amazon  coopetition  data  data_centers  data_collection  data_driven  delivery_services  fear  new_businesses  one-stop_shop  partnerships  platforms  private_labels  rivalries  small_business  strengths  tools  unfair_advantages 
june 2018 by jerryking
Big Prize in Amazon-Whole Foods Deal: Data - WSJ
By Laura Stevens and Heather Haddon
June 20, 2017

The deal for Whole Foods Market Inc., which people familiar with the matter said came together quickly, presents Amazon with several potential gains. It could use the stores as distribution hubs to build out its online grocery-delivery business. Amazon also could stock gadgets such as its Kindle e-readers and Echo speakers, as well as goods from its burgeoning private label.

The bigger opportunity, though, is data.

Amazon for years has been looking for more ways to gather information about how consumers shop. It has long been rumored to be on the prowl for a breakthrough deal, even as it set up its own much smaller Amazon Go and AmazonFresh Pickup stores as experiments.

If the deal goes through, the combination likely will be powerful. Amazon and Whole Foods can join their online and in-store knowledge to better predict what goods to carry in each store, said James Thomson, a former senior manager in business development at Amazon and now partner at the brand consultancy Buy Box Experts.....One enticing aspect of a deal between Amazon and Whole Foods is the significant overlap, analysts say, between the companies’ traditionally loyal customer bases.

A Morgan Stanley survey shows about 62% of Whole Foods shoppers are members of Amazon’s Prime service, opening the door for cross-sell promotions to entice customers who shop at both to spend more.

Amazon, though, doesn’t know how those customers shop in stores—a gaping hole in data about its more than 300 million shoppers.....Amazon has had a more difficult experiment with Amazon Go, its convenience-style store in which customers scan their phones as they walk in, pick up items to purchase and exit without a traditional checkout. The public opening has been delayed, in part because of technological hurdles and Amazon’s limited experience in managing the flow of customers and products in a physical space....

.......The data Amazon collects will likely help it decide which of its growing roster of private-label brands to expand and which new ones to launch, especially when it comes to consumables and food. Whole Foods already has a large private-label business...Bringing together online and offline data can help Amazon learn how to entice customers to make more impulse purchases online, according to analysts and retail consultants.
data  omnichannel  Amazon  Whole_Foods  physical_space  private_labels  impulse_purchasing  Amazon_Go  AmazonFresh  experimentation  cashierless  Amazon_Prime  cross-selling  in-store 
june 2017 by jerryking
The High-Speed Trading Behind Your Amazon Purchase - WSJ
By CHRISTOPHER MIMS
Updated March 27, 2017

Beneath the placid surface of product pages lies an unseen world of bots, algorithms, flash crashes and fierce competition......Just beneath the placid surface of a typical product page on Amazon lies an unseen world, a system where third-party vendors can sell products alongside Amazon’s own goods. It’s like a stock market, complete with day traders, code-slinging quants, artificial-intelligence algorithms and, yes, flash crashes.

Amazon gave people and companies the ability to sell on Amazon.com in 2000, and it has since grown into a juggernaut, representing 49% of the goods Amazon ships. Amazon doesn’t break out numbers for the portion of its business driven by independent sellers, but that translates to tens of billions in revenue a year. Out of more than 2 million registered sellers, 100,000 each sold more than $100,000 in goods in the past year....It’s clear, after talking to sellers and the software companies that empower them, that the biggest of these vendors are growing into sophisticated retailers in their own right. The top few hundred use pricing algorithms to battle with one another for the coveted “Buy Box,” which designates the default seller of an item. It’s the Amazon equivalent of a No. 1 ranking on Google search, and a tremendous driver of sales.
fulfillment  Amazon  pricing  back-office  third-party  bots  algorithms  flash_crashes  competition  retailers  e-commerce  product_category  private_labels  stockmarkets  eBay  Wal-Mart  Jet  Christopher_Mims 
march 2017 by jerryking
Umbra struggles with copycats worldwide - The Globe and Mail
SUSAN SMITH
Special to The Globe and Mail
Published Tuesday, Jun. 09, 2015

Umbra sends cease-and-desist orders to manufacturers and vendors around the world who are copying or selling copies of its' designs for household products such as garbage cans, storage devices, kitchen utensils, picture frames and chairs....Protecting intellectual property has always been a concern for companies such as Toronto-based Umbra, but the problem has grown exponentially since manufacturers began making goods overseas to take advantage of lower labour costs. ... By the mid-1990s, half of its production was being done in contract factories in Asia, and some of these factories were copying its leading-edge designs and selling the products on their own.... Umbra's first line of defence is making sure products are made as efficiently as possible and offered at a competitive price. Another way Umbra seeks to remove temptation is to manufacture goods for private labels so that copiers don’t get that business. It has also designed products specifically to serve the discount market, such as the Umbra Loft line sold by Target.
Umbra  design  copycats  households  fast_followers  household_products  patents  intellectual_property  China  retailers  e-commerce  private_labels 
june 2015 by jerryking
Sweet salvation: Can stevia be food producers' Holy Grail? - The Globe and Mail
SUSAN KRASHINSKY - MARKETING REPORTER
The Globe and Mail
Published Friday, Aug. 08 2014
Susan_Krashinsky  stevia  sugar  Loblaws  private_labels 
august 2014 by jerryking
Market Trends and Retailers’ Strategies in Fresh Produce
26-27 April 2007 | Dr. Marian Garcia, Kent Business School, University of Kent.

Suppliers of fresh produce are less able to differentiate their products at the consumer level
==> They are in a weak bargaining position as price differentiation is almost the only available strategy.

Impact on Fresh Produce Suppliers
* Despite increasing rationalization of the supply base, retailers are still able to switch volumes between suppliers of fresh produce.
* As a result, suppliers of fresh produce are often forced to accept low prices in order to get volume growth, which does little to improve their immediate and long-term financial performance.
* In response to consumer trends and marketing demands, innovative growers of fresh produce have increased their cooperation and involvement with buyers and other members of the supply chain to ensure their produce meet consumer expectations.
* Closer relationships between the various members in the supply chain, ensure information is shared and can be used to improve the competitive position of all members in that supply chain.
fresh_produce  marketing  trends  consolidation  information_flows  grocery  supermarkets  OPMA  strategies  retailers  Tesco  Sainsbury's  ASDA  supply_chains  private_labels  relationships 
january 2014 by jerryking
Dave Nichol: The man who revolutionized branding, and made simple exotic
Sep. 26 2013, | The Globe and Mail |SUSAN KRASHINSKY And MARINA STRAUSS

The Globe and Mail

Published Thursday,
obituaries  marketing  private_labels  Loblaws  retailers  Marina_Strauss  Susan_Krashinsky  branding  supermarkets  grocery 
september 2013 by jerryking
Salad Dressings Are Getting Squeezed - WSJ.com
August 12, 2013 | WSJ |By ANNIE GASPARRO.

Pinnacle Foods said the portfolio it is buying—salad dressing flavors under the Western and Wish-Bone brands—have combined annual sales of about $190 million. It said the brands have "attractive margins" and strong cash flow. Pinnacle said it is looking at efficiencies on the production line that will allow it to boost profit margins, as well as a tax benefit of about $125 million it expects from the acquisition.

Pinnacle said it specializes in "reinvigorating iconic brands." It also owns Aunt Jemima syrup and Duncan Hines baked goods—as well as older brands found in the shrinking center aisles of grocery stores that are putting more focus on fresh items such as produce and meats.
salads  salad_dressings  private_labels  Kraft  Unilever  brands 
august 2013 by jerryking
The US private label food market - forecasts to 2013: 2009 edition: Market overview
Packaged fresh produce
In contrast, private labels account for less than 2% of sales within convenience stores, although this represents a possible area of future growth. Not only are larger retail g...
fresh_produce  private_labels  convenience_stores  market_sizing  from notes
april 2013 by jerryking
Trends in the Marketing of Fresh Produce and Fresh-cut Products
September 2008 | | by DR. ROBERTA COOK,Dept. of Ag and Resource Economics, University of California Davis
fresh_produce  trends  private_labels  foodservice  statistics  Roberta_Cook  food  supermarkets  grocery  fruits  vegetables  U.S.  barriers_to_adoption  surveys  slides 
february 2013 by jerryking
Marketers develop a taste for aspiring foodies
Dec. 27 2012 | The Globe and Mail | SUSAN KRASHINSKY - MARKETING REPORTER.

Loblaw's President’s Choice Black Label Collection targets a growing consumer population: foodies.

The Black Label products launched late last year, but in limited distribution at first in select parts of Ontario. With the nationwide rollout now complete, there has been a bigger push to advertise the products this holiday season.
marketing  grocery  Loblaws  private_labels  brands  branding  gourmands  gourmet  food  foodies  market_segmentation  product_launches  rollouts 
december 2012 by jerryking
Private Matters
October 2003 | Dairy Field | by Lynn Petrak
private_labels  Safeway  Kroger  Trader_Joe's  dairy 
august 2012 by jerryking
Innovation in Private-Label Branding
Spring 2005 | Design Management Review | by Charlie Conn, Director of Branding, Proteus, Boston.

Success in private-label branding boils down to a retailer’s ability to build a brand and control and manage it on a local level to create relationships with consumers....others see innovation coming from the
private-label brands. By creating unique brand experiences for consumers, such retailers as Starbucks, Whole Foods Market, and Trader Joe’s have created truly innovative brands that encourage repeat purchases. From a private-labeling perspective, Starbucks is innovative because it provides exclusive,exclusive, private-label products that are in line with the lifestyle experience it has created. Starbucks reached the pinnacle of success in this area when
one of its exclusive private-label music CDs, “Ray Charles: Genius Loves Company,” won Album of the Year at the 2005 Grammy Awards,
after being nominated in 10 categories. This and other exclusive products contribute to the emotional benefits experienced by Starbucks’ customers, and as a result they contribute to the
bottom line. Private-label branding has been most prevalent
in supermarkets and drug chains. According to the Private Label Manufacturers Association, supermarkets rang in $42.9 billion in sales of store brands in 2003, representing 16.3 percent of overall sales.2 Drug chains reached an all-time high of $3.8 billion in store brand revenues that same year.3 In both sectors, growth of private label brands exceeded the growth of manufacturer brands....

“I’m not sanguine about the major supermarkets,” says Richard J. George, professor of food marketing at the Haub School of Business, Saint Joseph’s University, Philadelphia. “To be successful, supermarkets need to look to customers to determine the set of needs that can be uniquely satisfied. Brands are more than products on the shelf (national brand or private label.) Retailers are brands and need to focus on what the customer wants and how the retailer can positively differentiate the brand. It’s all about customers, not products. Retailers need to think like a brand and act like a retailer.”...A brand is more than just a name and logo. It’s a set of associations that lives in the consumer’s mind—the sum total of everything the brand represents for that consumer. To fully understand what a brand stands for—private-label or otherwise—retailers need to ask themselves:
• How appropriate is the brand?
• What makes it unique?
• Who are the target consumers?
• What functional, rational, and emotional
benefits does it offer consumers?
• How adaptable is it?
• Is it protectable?
Based on understanding these brand attributes, retailers can put some definitions around their positioning statements.
innovation  private_labels  branding  design  retailers  Starbucks  Whole_Foods  supermarkets  Trader_Joe's  brands  strategic_thinking  positioning 
august 2012 by jerryking
Partnering with private label
March 1998 | Frozen Food Age | by Dan Harrison.

Deals with issues concerning private label marketing in the frozen foods market. Challenges of private label marketing; Perception of the emerging swing shoppers toward private label products; Key to success in private labeling; Idea behind the as good as the next one strategy in private labeling; Other proven strategies for private labeling.
frozen_foods  private_labels  partnerships 
august 2012 by jerryking
Form and function
September 1, 2006 | Progressive Grocer |Jeff Motley is the v.p., marketing & sales for Forbes Medi-Tech
Tesco  retailers  innovation  private_labels  branding  United_Kingdom  grocery  supermarkets  cholesterol 
july 2012 by jerryking
The Growing Cachet of the Store Brand - New York Times
By ELIZABETH OLSON
Published: November 27, 2005

Store brands now account for 16.1 percent of total supermarket purchases, worth $40.5 billion annually, up from 14.9 percent, worth $31.2 billion, in 1995, according to Information Resources of Chicago, which collects supermarket scanning data.

But Mr. Sharoff of the private-label association says the market shares of store brands could be twice that 16 percent figure because big-box retailers like Costco and Wal-Mart and specialty stores like Trader Joe's and Whole Foods did not report sales totals for their own labels. Some chains are offering more than one in-house brand. Safeway, for example, has created a signature brand of beef, Rancher's Reserve, and has been heavily promoting the brand to compete with higher-priced national brands.
private_labels  supermarkets  Whole_Foods  Trader_Joe's  big-box  retailers 
july 2012 by jerryking
Strategic Innovation: Dr. David Dunne Outlines the Potential of "Disruptive" Technologies
June 2004 | GFTC-Newsletter | David Dunne.

“Innovation is essential, and must be a central mission in any firm which hopes to succeed,” says Dr. Dunne. “And it’s easier for some, like food retailers, than for others,like food manufacturers. It makes sense for manufacturers to see what it is that retailers are doing, and learn from that example.”.....It takes about 3000
new ideas to generate only four reasonably viable products, only one of which will be truly innovative --and generating those 3000
new ideas requires constant effort.”....."Examining product experiments to see what was supposed to happen and what actually did happen can also provide a wealth of knowledge and new ideas. Finding inadequacies in underlying processes and finding ways to address those inadequacies can be fruitful, as can taking advantage of demographic changes, new knowledge, and changes in perception, mood, and fashion.”
disruption  innovation  private_labels  experimentation  new_products  CPG  manufacturers  food  agribusiness  Rotman  grocery  supermarkets  change  ideas  lessons_learned  retailers 
july 2012 by jerryking
New Food, New Look
November 21, 2005 | WSJ | By JANET ADAMY - Staff Reporter of THE WALL STREET JOURNAL.

Store-branded products continue to take up more shelf space and gain cachet. Over the seven years ended in 2004, sales of private-label goods grew at more than twice the rate of branded goods, according to ACNielsen, and now account for 15% of supermarkets' packaged-goods revenue. Grocers like to stock private-label products because they have wider profit margins. Milk, cheese, paper products and eggs are among the largest private-label categories.
grocery  Wal-Mart  trends  supermarkets  private_labels  Winn-Dixie 
july 2012 by jerryking
The New Appeal of Private Labels - Harvard Business Review
May 1999 | HBR | by David Dunne and Chakravarthi Narasimhan
HBR  private_labels 
july 2012 by jerryking
TreeHouse dips into soup
March 13, 2006 | Crain's Chicago Business |By: Julie Jargon
private_labels  soups  fast_followers  TreeHouse  foodservice 
july 2012 by jerryking
Wal-Mart Spices Up Private Label
2/6/2010 | Wall Street Journal Vol. 255 Issue 30, pB16,| John
Jannarone.
The article deals with the strategy of Wal-Mart Stores to consider
shifting to private-label spices by offering generics in some stores in
replacement of McCormick products in the U.S. in 2010.
Wal-Mart  private_labels  spices  generics  McCormick 
august 2011 by jerryking
More Evidence for Store Brands - NYTimes.com
September 7, 2010 | New York Times | By JENNIFER SARANOW
SCHULTZ. ` Earlier this year, I wrote a Bucks post about how consumers
are increasingly opting for cheaper store-brand groceries and I shared
my own anecdotal evidence that some store-brand products are just as
good as their name-brand counterparts.

Now, Consumer Reports has confirmed my hunch. In a study released on
Tuesday, Consumer Reports concludes that some store brands are as good
as or better than some name-brand grocery items. ``
private_labels  grocery  anecdotal 
september 2010 by jerryking
Battle for consumer heats up -
Aug. 21, 2010 | The Globe and Mail | Marina Strauss Retailing Reporter.
retailers  retailing  Marina_Strauss  Loblaws  private_labels  China 
august 2010 by jerryking
Loblaw takes aim at rivals
Feb. 11, 2010 | The Globe & Mail | by Marina Strauss.
Loblaw Cos. Ltd., a trailblazer in low-cost private labels such as
President's Choice, is testing an array of new “discount” store brands
aimed at attracting more shoppers and fending off a legion of new
players in the grocery business. The strategy of promoting what some
retail experts refer to as “fighter” brands is similar to one being used
by grocery giant Tesco PLC in Britain to take on mighty Wal-Mart Stores
Inc. and other discounters. Now, Loblaw is borrowing a page from the
British private-label playbook by introducing a bevy of brands at its No
Frills discount stores, a move that could spiral into a new food fight
in Canada.

The move comes amid rising competition in the grocery sector. Retailers
ranging from Canadian Tire to Shoppers Drug Mart and Wal-Mart are adding
more food products to their shelves.
Marina_Strauss  grocery  private_labels  Loblaws  Wal-Mart  Tesco  retailers  sub-brands  product_extensions  niches  fragmentation  pre-emption  playbooks 
february 2010 by jerryking

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