1. OWN LABEL
Private Label Brands
Helping Consumers To Compete To Get What They Want
By Dean Crutchfield Associates
OWN GROWTH
2. Misconduct by big brand names and shifting consumer behavior
has changed the perceived value exchange between brands and
consumers. In a rapidly changing market, how do you separate
value from commodity, especially when the nature of competition
has changed dramatically; it’s no longer your obvious competitor?
Dean Crutchfield Associates
3. Today
It’s about the power of fickle customers, suppliers, potential substitutes
and the threat of new entrants: if you can’t build an advantage on what
you sell, create a brand advantage on how you sell.
The focus for retailers is to differentiate their products and brands, but
that has been vitiated with conflicting pressures to finding growth in this
deleveraging recession.
Dean Crutchfield Associates
Dean Crutchfield Associates
4. Today
By taking a sweeping
glance across the media, you get a
sense of the important issues:
1. Attracting and retaining loyal
customers
2. Improving productivity
3. Cutting costs
4. Speed to market
5. Increasing market share
Evidently top line growth is a priority,
but the second and third issues of
improving productivity and cutting costs
reflect that businesses remain under
immediate pressure to improve the
bottom line. So what’s the best way
forward?
Dean Crutchfield Associates
5. 1. Attracting and retaining
loyal customers
Great customer experience is good.
Great customer experience that helps
you make more money is better. And
what really matters to your customers
is how you engage with them - through
products, people, environments and
communications.
In a time where consumers are trading
down and pundits are employing
phrases such as “austerity chic” and
“luxury shame” and the only businesses
that seem to be enjoying this
vituperative parsimony are McDonald’s
and Wal-Mart: What’s your best strategy
for growth?
Dean Crutchfield Associates
6. Further compounding the torment,
we have consumers bombarded
with an array of choices 247, where
winning ideas are replicated and
brought to market in a matter of
weeks by nimble competitors.
And winners are more focused on
how to move out of a competitive
environment to a differentiated one.
Therefore, differentiation and
innovation is essential and much of
this is can be driven and created by
a reallocation of resources to
innovative operational models,
Private Label brands or both.
Dean Crutchfield Associates
7. The challenge is how to successfully develop and facilitate their
implementation to provide a sustainable, uncopyable, competitive
advantage in the market that results in creating a unique position
for the retailer with high visibility, boldness, clarity, consistency
and customer appeal.
That requires developing a strategy - driven by improved cost
effectiveness and streamlining of NPD - that has appropriateness
to product and target customer, harmonization with advertising,
promotions and POS that can ultimately generate increased brand
equity.
Dean Crutchfield Associates
8. 2. Improving Productivity performance management and
The key focus now is in talent management.
removing non-value added
activities, steps, processes Needless to say, offshore Full
Service Manufacturers (FSM’s)
and entities, such as moving
are prevalent across all major
to point-to-point, right first verticals with India and China
time (Six Sigma) and lean leading the way and other
manufacturing principles regions like South East Asia
including moving in fast.
The efficiencies and savings are
substantial – recent studies
indicate more than 85% of
outsourced transactions have
achieved savings greater than
30%, a boon for manufacturers
and beneficial for retailers.
Dean Crutchfield Associates
9. However, there is also an
accelerating trend with offshore
FSM’s buying EU and US based
brands and importers in addition
to creating new brands.
These are primarily focused at the
new and emerging markets (as well
as the more traditional US and
European markets) and represent
a paradigm shift: As new entrants
they represent both a challenge and
an opportunity to the “competition”
status quo re: suppliers and
potential substitute brands.
Dean Crutchfield Associates
10. 3. Cutting Costs
Outsourcing to low cost locations is
a no-brainer. So too is reducing
COGS, that tried and tested initiative
to continue to reduce the cost of the
product and so increase initial mark
up.
The road less travelled is brand
rationalization. Believe it or not, many
brands don’t make money for
companies and it’s amazing to know
that most companies don’t know
which of their brands make money for
them or how many are profitable and
in some extreme cases, especially
with Private Label/ Own Brands, do
not know how many brands they have!
11. 3. Cutting Costs their equities and attributed
awareness, the strategic priorities
The key is to have all
for each product category, success
involved in the process so metrics with regards to the
that you can identify performance for each category and
potential opportunities in the the benefits and costs for brand
market. Encompassing your rationalization as a growth strategy?
customer needs and how
Evidently companies can boost
they’re satisfied, the number profits by deleting loss-making
of brands in the portfolio, brands as the freeing up of
resources can be invested in making
the remaining brands better.
However, there is always pressure
from executives, brand and category
managers who keenly retain sub-
optimal brands for emotional or
historical reasons and job security
that can literally paralyze any
rationalization occurring, no matter
how well planned out.
12. 4. Speed To Market Therefore, the business
All successful strategies are priorities of senior executives
destined to fail at some point are more than likely to change
and retailers must bestow from strategic to more tactical
adaptability and flexibility to as the economic situation
change by building a responsive improves.
Private Label business, more
adaptive to the changing Therefore, the drive to remove
business environment. time from the supply chain and
so improve a businesses ability
to respond to the new trends,
the known sales data and
basket analysis is paramount.
This is a top line profitable
sales driver: the more products
sold at full price the lower
discounted goods and
“trading down” are prevalent.
13. For this to be achievable it cannot be done in isolation as it counts on
understanding a number of interrelated factors:
The shared values with the customer, the PL portfolio good, better,
best brand strategy, ROI expectations, retail style and the skill and
personnel requirements.
Dean Crutchfield Associates
14. 5. Increasing Market Share
Good, Better, Best is a
tremendously useful framework,
but it’s tough to win by design
against brands that have originality
and years of heritage: a simple
solution to a complex problem is
often simple, straightforward and
wrong.
We need to assess what is the
future of private label and what is
the brand opportunity for US
retailers to ramp up their portfolios
to levels enjoyed in Europe.
Dean Crutchfield Associates
15. 5. Increasing Market Share
Additionally, understand what the growth and proliferation of private
label brands mean for the role of the retailer brand?
And what is the right brand architecture framework for all retail brands
(Own and Private Label brands, Contract brands, Partner and Licensed
brands, Category and Service brands) and how can they work better
together?
Dean Crutchfield Associates
16. Profligate amounts of money Eighty percent are stillborn: All
and resources are spent on in the attempt to capture market
either launching, acquiring or share and build multi-brand
maintaining brands. From line strategies to capture the hearts
extensions, brand extensions and wallets of customers.
through to sub-brands and
channel extensions, desperately, P&G’s former CEO, Mr. AG Lafley
some marketers strew 12,000 would tell you “When times are
new products across the tough, you build share.” The time
shelves in a single year. is now for calibrated boldness
from retailers with Private Label
as the platform for growth, but
it’s best tackled as a Brand.
Especially as the consumer
movement from a "we" to "me"
culture enables Private Label
brands to help consumers
compete (to get what they want).
18. Seize More Opportunity
Brand Strategy
Team Building
Personal Branding
Brand Building
Business Activation
Sell More Services
Selling
Presentation Skills
Ambition Planning
Pitch Forum
Win More Business
Sharpen Offers
New Business 101
Pitch Boot Camp
Growing Clients
Pitch Doctoring
Dean Crutchfield Associates
20. In the pursuit of opportunity
without regard to resources
held, Dean Crutchfield has
targeted and won millions in
new fees from the world’s
leading brands.
By convincing senior executives
at Fortune 500 companies on
brand architecture, portfolio
rationalization, go-to-market
brand strategies, product and
business innovation, Dean
Crutchfield has directly helped
clients generate billions in new
business growth.
Dean Crutchfield Associates
21. Armed
with rich content, deep
knowledge, 2x2 matrices
and a white board, we rapidly
create targeted, multi-channel
growth programs that
generate immediate
Impact
Dean Crutchfield Associates
22. What DCA Delivers
Achieving growth
For ambitious leaders who are driven to grow fast
Creating new business
Orchestrating and activating accelerated outreach programs
Building efficiencies
Rapidly sourcing the best talent for the business
Improving margins
Rallying teams behind the brand and go-to-market strategy
Boosting win rates
Delivering your best case and winning face forward
Dean Crutchfield Associates
23. Working with DCA
Catalyzing top line growth for clients is what we
thrive on: delivering your best case and winning face,
encourage your people to move the needle north and
sharpen the product offering. DCA (Dean Crutchfield
Associates) achieve growth for clients by tailoring
brand-led techniques that are uniquely participant
centered. We guarantee results. Whether it’s a better
pitch, winning new mandates, a better team or more
fees, you will find our fee in your business within
weeks.
DCA programs have been thoroughly tested and
proven with start-ups and the world’s greatest
brands, uniquely adding immediate value.
When you hire DCA, you get results. If you have the
right people attend the sessions and complete all of
your committed decisions and pilot initiatives and are
still not satisfied or seeing results by the agreed time
frame, we will coach and advise you free until you do!
Dean Crutchfield Associates
24. Working with DCA
By deploying real world strategies and hands-on
collaboration to inspire teams we create content
backed by actions that will assure you of seizing
every good opportunity, selling more services and
winning new business.
For 20 years Dean Crutchfield has advised the
world's most iconic brands, built businesses, created
new companies, opened international offices and
spoken about the role of brands at Duke, Kellogg,
Wharton and the Google Speaker Series. He has
made appearances on all major TV news networks,
commentary in the global press, editorials in major
business publications and is a Contributor to Forbes.
With a proven ability to inspire and push the
boundaries beyond the notion of what was thought
possible, DCA excel with clients who are looking to
run fast, led by CEOs, CMOs, entrepreneurs and
executive teams eager to capture dominant levels
of success.
Dean Crutchfield Associates
25. Global Client Experience
Aviva* McKinsey
BP Metsä Serla*
BT* Nomura*
BSkyB* PepsiCo
Camper & Nicholson PG&E
Carter’s Pitney Bowes
Cellcom* RBS*
CITI Scanfinest*
Comcast Shell
“Dean always cuts to the core of what needs General Electric Smirnoff
to be done and said. He helps bring clarity and Kraft Staples
provides value by being an outsider with no
agenda, so he can help you stand back and see Fila Sunglass Hut
things from different perspectives. Frito-Lay Target
Dean helped us think through solutions and Littlewood’s* Tower of London*
then form the best way to present those McDonald’s Warburg Pincus
solutions in a persuasive and compelling way.”
M50 WGM
*References upon request
* Overseas Project
Dean Crutchfield Associates