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Developing A Private Label Brand


Private label brands are quickly becoming a force to reckon with in the business environment. Statistics indicate that close to eighty three percent of consumers have purchased store label products. Private labels have grown substantially and their rate of growth is not even comparable to the national brands. Shoppers are now turning to private labels because the country’s economy has pushed them there. The essay shall examine the introduction of a new line of product labels tailored to meet competition from branded goods. (Granato, 2008)

Why this category was chosen for creation of the private label

The category chosen for the private label is the frozen food category. However, it is not just the frozen foods in general, but low calorie frozen foods. There are a number of stores that offer private labels for frozen foods, nonetheless, none of them offer private labels on low fat foods. This is an item that has the potential to change performance within the store because statistics indicate that frozen food private labels generally yield good results. For instance, in the year 2007, supermarkets and other chain stores recorded a whooping three point seven billion in revenue as a result of frozen food sales. This was an increase from the previous year’s results thus indicating that similar results may be recorded this year. If the store under consideration taps into this market, then chances are that they will receive a positive response from the overall market.

Americans are continuously becoming health conscious. Most of them have become very selective about the kind of products they consume. Therefore, making low-calorie items a priority in the store is likely to yield results because it will be solving a specific need in the market; the need to minimize weight gain.

Ways in which the private label product could create greater value for customers than competing manufacturer’s brand

Offering private labels for low calorie frozen foods will create value for customers than manufacturer’s brand because the product line will be custom made for this very purpose. Unlike other manufacturers who simply market frozen food as tasty buys, this product line will be emphasizing the issue of healthy living. Competing manufacturer’s brands mostly consider frozen foods as fattening items and most of them have not bothered marketing this product as a healthy one. (Boyle, 2007)

The product line will offer more value to the consumer because they will be cheaper than other frozen foods in the market. This will be possible because the store will be dealing directly with manufacturers thus eliminating intermediaries. The extra costs that come out of dealing with these extra parties can be eliminated and thus lowering the costs that clients have to meet.

The quality of the products will also be the reason that makes the private labels stand out from what other branded products offer. First of all, the products will be such that they are easy to cook. Despite the fact that this is a common quality among most other branded frozen foods, this particular products will be unique in that convenience will not compromise on quality. The products will have unique flavors and ingredients to make them exceptional. For instance, most of the prior ingredients will be natural products especially the spices, instead of using dry herbs and spices, the products will be made of fresh and healthy spices with minimum amounts of preservative.

Additionally, the product is quite compatible with what the store offers. The store will be offering a good will message to the community. They will be portraying the fact their healthy products will enrich the lives of the consumer. This will improve the image of the store and will enhance client loyalty.

Development of the name and why the name was chosen

The product will be called ‘Livina’. Livina is derived from the word living. This name will be promoting the issue of healthy living. It is designed to capture health enthusiasts and people who enjoy life. The product name is also a depiction of the product function. It will be indicating to particular clients that they stand to live healthy lives through those products. Healthy living will be captured in the product through the low calorific content. Additionally the quality of the product (the nature of its ingredients) will promote healthy living by incorporating fresh and holistic ingredients. (Granato, 2008)

Additionally, the product name is also simple; it does not entail the use of some foreign names that may not relate to the store’s major clientele. Most product names fail to appeal to the masses because they are too complicated or are derived from other languages. This name only has three vowels in order to make it easy to pronounce even for young children who are just learning how to speak. Furthermore, the name is very catchy. It rings in the mind and it is likely that clients will remember it as soon as they hear about it.

The new private label product line will offer certain aspects that cannot be found in other brands. For instance, the packaging will be quite different from what others in the industry offer. While competitors normally display images of the cooked product on the package, this product line will have images of healthy looking individuals on the packing; there will be a male gym instructor holding some weights on his hand and there will also be a female gym instructor doing some sit ups. This catchy image will attract clients especially because most of them may not necessarily associate frozen foods with healthy living.

What the consumer gains by purchasing this private label item

The consumer stands to improve his health by purchasing the frozen food items. Every serving will only have a minimum of four point five grams of fat. This is a very low amount of fat compared to other similar frozen food items. The product line will consist of the following items

  • Broccoli Beef
  • Meatloaf
  • Ginger chicken
  • Chicken Pasta

Many clients are particularly interested in these items. Most of them want to enjoy the taste of these items but are afraid of gaining excess weight. The product allows them to enjoy the taste of these items without having to worry about their weight.

What the store gains by being successful in developing a private label business

Establishing a store brand accords businesses the opportunity of establishing trust between the store and the client. This is because the client can readily identify the group responsible for branding the product. Additionally, businesses get the chance of making repeat sales through this approach. This is because clients will always associate the product directly with the specific store. Furthermore, a particular business can distinguish and differentiate themselves from other competitors in the market place. (Boyle, 2007)

Statistics indicate that some brands have become a force to reckon with in the retail sector. In the year 2007, they accounted for a whooping twenty percent of all store items sold. Besides that it was reported that store brands yielded close to fifty billion dollars. As if this is not enough, the consumer stands to save a whooping sixteen billion if they purchase in store branded items over nationally branded products. It was also shown that profit margins or every store can increase by five percent if a store offers their own private labels

Whether one can create brand loyalty with a private label brand

Private labels can definitely create brand loyalty because that is the current trend. Most buyers are opting for private labels because they are ware that they can get custom made products as friendly prices. Since the country’s economy is not performing very well, then chances are that most consumers are looking for cheaper buys or ways of saving up. Additionally, Information Technology is also encouraging private label products. Through the internet, a store can market their products to a wide range of clients and thus secure their purchases. This can increase brand loyalty. (Boyle, 2007)

Statistics indicate that in 2006, The Gallup Organization found that ninety percent of all consumers are aware of the existence of store brands. Additionally, it was established that eighty three percent of consumers purchase these items. This indicates that the store can  establish brand loyalty. Another survey conducted in the same year by Hartman Group found that only fourteen percent of consumers had completed three months without purchasing a private label. It is therefore likely to find that most clients will be encouraged to stick to store labels because they will be purchasing the items frequently.


The product line under consideration is a low-calorific-frozen-food line. This product will add value to the consumer because it has additional features, has a lower price and will boost their health. The product will also be beneficial to the store because it would differentiate the store from its competitors, additionally, it will create repeat sales and establish trust between the store and the consumer.


Granato, H. (2008): Private Label lets retailers stand apart, retrieved from accessed on 15th July 2008

Boyle, M. (2007): Brand Killers Store brands aren’t for losers anymore; retrieved from accessed on 15th July 2008

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