Paper Outline

Professor Walls, one of my key concerns is that I am writing a paper more focused on private label products and not on insights and experiences. If you would provide feedback on this it would be great. Also, I have not formed all my recommendations yet so I can leave room to be open to additional ideas. I plan to visit several stores this weekend, such as Wal-Mart, HEB and Whole Foods to try to gain insights that I can use in my paper.


I. Introduction

Private label brands provide customers with excellent savings compared to leading national brands, but often do not connect with the customer and achieve the same level of loyalty as leading brands. Lower pricing is the underlying reason most consumers purchase private label products, but past this point the brand/product does not offer the consume the same benefits as a leading brand, such as using Crest with its strong reputation compared to a store brand toothpaste. Gaining insights about how and when customers will use a private label product will benefit both the retailer and the consumer.

Topics to be discussed in the Body are:

i. Article Review
ii. Price Comparisons
iii. Packaging
iv. Risk Reduction in Product Choice
v. Image of Store and Product Association
vi. Loyalty Programs
vii. Successful Private Label Extensions
viii. Personal Opinion and Insights Gained

Body:

Article Review

-In this section I will review articles that I have found; publications include AC Nielsen, Journal of Retailing, Private Label Buyer, and Retail Merchandiser. By beginning with an article review the base of the report can be set up to give the reader a better understanding of some underlying themes the paper will include. Main themes in the paper are listed below and expanded on.

-Price Comparisons: Price comparisons of private label products by category will be expanded on from the AC Nielsen article and Private Label Buyer. Since price is the underlying factor in the purchase of private label brands it is important to begin my article review with this topic.

-The Categories Private Labels are Most Successful: The AC Nielsen article does a great job of breaking down product categories where some private labels even lead the market. An analysis of market share will also be included. Packaging of products can be included in this review too since the packaging of private label products are often associated with the category.

-Risk Reduction: The article in the Journal of Retailing breaks down the role of risk reduction in the purchase of private label products. This is an interesting topic and can lead to insights that will be discussed in my opinion section. Customers will often avoid the purchase of private label products that are highly visible to others and that may receive negative reactions from their peers. Consumers also try to minimize the chance of making a mistake in their purchase by sticking with well-known national brands instead of opting for the less expensive private label.

-Image of the store and associated private label products: Different types of stores choose what products they will produce as private label to be consistent with their image (e.g. Wal-Mart vs. Whole Foods). This topic will also be discussed more in my opinion section.

Personal Opinion Section and Primary Research

In this section I will expand on my secondary research and add my own professional opinion. I will include data that I collect from stores, such as packaging images and prices, for a point of comparison.

-Loyalty Programs: Stores could implement a loyalty program that promotes the continual use of private label products. If a customer is satisfied with the private label products they would be more likely to try other products produced by the store. This type of program could help build a relationship between the company and customer that could lead to other insights. Also, information could be gained on purchase habits and frequencies if a loyalty card is used.

-Private Label Packaging: I would like to include images of private label products that I think the packaging either successful or unsuccessful. Insights could be drawn on patterns and recurring trends in packaging that customers like or dislike. Proper packaging is important for a private label brand to compete with strong national brands.

-Analysis of Product/Store Image: An analysis of the relationship between private label products and the store that produces them can lead to different strategies that can improve the customer-product relationship and lead to insights. I think Whole Foods does a good job at this and would like to expand on their strategies that I think other private label producers could benefit from.

-Refund Policies: Since customers perceive risk when trying a new product that is not a national brand a refund policy if a customer is not fully satisfied could help reduce this risk. An analysis of major private label producers’ policies will be a main source for this section. HEB’s refund policy has encouraged me to try their private label products.

-Open Section: After I conduct my primary research I believe I will gain more insights about the private label consumer. I would like to keep an open mind so that I can add to what I have already learned. I am leaving a section open here so that I feel comfortable adding on to the outline and to encourage additional insights too.

Conclusion:

Private label brands provide an excellent value to consumers, but they usually stop marketing at this point. Gaining more insights about their main consumers and the consumers’ behavior can not only benefit the companies, but the consumer as well.

-Revisit both secondary and primary research
-Emphasize key insights that can be easily implemented
-Closing thoughts