PERRY SEELERT Co-Founder & Strategic Partner
COLUMN
EMERGE
CONVERTING THE “EXPERIMENTERS” Why COVID is providing a unique opportunity for Private Brands
THIS or THAT?
From a shopping point of view, COVID has forced many consumers’ hands. They are buying many categories based upon “availability”, without the usual abundance of choice, often finding their regular, goto brand is simply not there. This has happened throughout the store as we know, in paper, meats, frozen, home care and many more. And, none of us know what the impact of a COVID phase 2 could be, with winter coming, university holiday breaks and more consumers spending time indoors. Within many categories private brands has been the only game in town and there’s been a captive audience. The questions for the Private Brand industry, is what is the “stickiness” of these forced decisions, are there certain categories where consumers are more likely to revert back to the brands they regularly buy, and what is our role in converting the “experimenters”? Do You Know Your New Users? There is a saying that “ignorance is bliss”, and my greatest fear is that Private Brand marketers will succumb to the bliss of the moment. We are all cheering the success of greater own brand sales, but we still don’t really know how loyal and long-lasting these consumers will be. Don’t be too blissful. Take this time to invest, and explore who your new users are exactly. Use
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the retailer’s own data to zero in on these new experimenters, utilize omni consumer panels, use credit card data, employ digital media tracking tools and find out who they are. Here’s a practical example. Kroger launched an incredible and innovative line of Jerky under their Private Selection brand, and some of their flavors/types like their 24 HourMarinated Carne Asada traverse into other categories like cooking sauces. There has been a tangible bump in the Protein Snacks segment since the onset of COVID-19, so for the Carne Asada experimenters who are trying it for the first time: • Who are these first-time users? • D id they come from another CPG brand like Krave or are they incremental? • D id they come from a different channel/retailer? For instance, Costco too, was one of the first
innovators in this category with their Kirkland Signature Premium Steak Strips. Another key question for Kroger is if I can lock these experimenters into Carne Asada jerky, can I extend this love into other Private Brand categories? Reinforcing Good Experiences So if I actually know who these Private Brand experimenters are and can pinpoint them, then what do I actually do with that information? Well, it is every marketer’s dream to know who is buying your product, but now the goal is to ensure that this is not just a “one off”, a one-time flirtation with the brand. It is your job to reinforce the experience, and what is hopefully a “good” experience. Providing a well-timed follow-up coupon is the most blatant way to reinforce a first-time user, but experiences are always better if they
