How Retailers Promote Their Own Brands

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Transcript How Retailers Promote Their Own Brands

How Retailers Promote Their Own Brands

Review of Private Brands Promotions November, 2011

Topics Covered

• Private Brand Share of Promos Vs. Year Ago • Private Brand Ad Support Across Departments • Top Categories Promoting Private Brands • Top Retailers Promoting Private Brands • Private Brand Web Promotions

Private Brand Share of Weighted Retail Ad Support

19,0%

18,5%

19,7%

19,0% Private Brand Share of

19,7%

Promotions Vs. Year Ago 20,3%

17,3%

15,9%

Year Ago Current 15,4%

13,9%

Private brand share of ad support is down across all departments except general merchandise.

All Departments Grocery Source: ECRM, 52 Weeks Ending 10/22/2011 General Merchandise HBC Non-Food Grocery

Percent of Private Brand Promotions By Product Segment Share of Total Private Brand Weighted Ad Support

Fresh Foods 20,1% Non-Food Grocery 2,9% Dry Grocery 13,4% Grocery Perishable 10,3% Food segments represent 43.8% of all private brand promotions Health & Beauty 12,4% Other Gen Merch 13,8% Housewares 10,8% Apparel 16,3% Source: ECRM 52 Weeks Ending 10/22/2011 Excludes Unbranded Promos

Categories with the Most Private Brand Promos

Bedding

Share of Total Weighted Private Brand Circular Ads

3,40% Beef Women's Casual Apparel 3,16% 2,99% Cheese 2,22% Entrees Chicken 1,83% 1,66% Frozen Prepared Food 1,30% Men's Casual Shirts Pork Kids' Casual Apparel Frozen Seafood Internal Analgesics Breads&Rolls 1,29% 1,27% 1,18% 1,14% 1,09% 1,05% Surprise! Bedding products represent 3.4% of weighted retailer ad support.

Hand Tools&Accessories 1,03% Deli Meats 1,02% Source: ECRM, 52 Weeks Ending 10/22/2011

Excludes Ads for Unbranded Products

Categories With Over 90% of Ads Promoting Private Brands Private Brands Share of Category Ads

Latex Gloves 100,0% Alcohol/Peroxide 100,0% Kitchen/Dining Room Furniture Photo Processing Services 96,6% 99,3% Dorm Furniture Beach Furniture / Accessories Vehicle Batteries Cushions & Hammocks Picnic, Serveware, Drinkware Holiday Candles 96,1% 95,9% 95,8% 95,4% 92,1% 94,9% Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Categories Increasing Private Brand Promotions

Category Anti-Diarrheal Kids' Boots Flower Pots & Planters Allergy Liquids Inline Roller Skates & Access Shelving & Hooks Hand Vacs Eye Medication/Ointment Free Weights Doll Accessories/Clothes Trail Mixes Photo Processing Services Lighting Children's Analgesics Flashlights Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Year Ago PB Share 34.2% 55.9% 54.2% 26.2% 23.7% 1.2% 0.0% 3.7% 16.5% 7.3% 32.5% 78.4% 61.2% 44.9% 16.1% Current PB Share 76.0% 84.9% 82.8% 54.6% 51.3% 27.4% 25.6% 27.7% 37.3% 26.7% 52.0% 96.6% 79.3% 62.8% 33.8%

Share Pt Change

+41.9 pts +29.0 pts +28.6 pts +28.4 pts +27.6 pts +26.1 pts +25.6 pts +24.0 pts +20.8 pts +19.5 pts +19.4 pts +18.2 pts +18.1 pts +17.9 pts +17.7 pts

Categories Running Fewer Private Brand Promotions

Category Floor Mats Towing Accessories Poker Accessories Pressure Washers Kids' Dress Apparel Auto Battery Chargers/Cables Exercise Benches Filing Supplies/Accessories Belts Kids' Furniture Frozen Juice Year Ago PB Share 98.1% 64.0% 62.1% 61.6% 65.9% 79.1% 31.8% 51.1% 53.4% 84.7% Source: ECRM, 52 Weeks Ending 10/22/2011 39.7% Excludes Some Smaller Categories Current PB Share 67.7% 36.5% 37.4% 38.2% 43.2% 57.1% 9.9% 29.4% 32.7% 67.4% 22.6%

Share Pt Change

-30.5 pts -27.4 pts -24.7 pts -23.4 pts -22.7 pts -22.0 pts -21.9 pts -21.7 pts -20.7 pts -17.3 pts -17.1 pts

Top Supermarkets Promoting Private Brands

Aldi Fresh & Easy Wegmans Loblaws Hannaford Brothers Genuardi's Family Markets H.E.B.

Shaw's Supermarket Carrs Tom Thumb Randall's Food Markets Winn Dixie BI-LO Dominick's Finer Foods Food Basics Pavilions Vons Hilander Scott's Food & Pharmacy Hy-Vee Food Stores Pay Less Super Markets

Private Brand Share of Total Circular Ads

53,72% 65,44% 61,85% 27,39% 26,27% 25,76% 25,33% 24,37% 24,12% 23,99% 23,97% 23,60% 23,45% 23,33% 23,32% 23,21% 23,21% 23,05% 23,02% 23,01% 23,01% Aldi, Fresh & Easy, and Wegmans lead all retailers in private brand promotions.

Source: ECRM, 52 Weeks Ending 10/29/2011

Supermarkets Committed to Traditional Brands Private Brand Share of Total Circular Ads

SunMart Foods Econofoods Met Foods D'Agostino Supermarkets Hillers Marc Glassman Strack & Van Til Ultra Foods Magruder's ValuMarket 0,08% 0,09% 0,32% 0,40% 0,42% 0,54% 1,03% 1,08% 2,23% 2,64% Many smaller grocers choose promote traditional brands over their own private brands.

Source: ECRM, 52 Weeks Ending 10/29/2011

Food Categories with Highest Private Brand Share of Promotions

Dry Beans Frozen Fruit

Private Brands Share of Category Ads

87,8% 77,1% Salads Carrots Sandwich & Hot Dog Buns 65,1% 55,9% 53,1% Sugar&Substitutes Non-Dairy Creamers/Syrups Trail Mixes Eggs RTE Deli Salads Toaster Pastries Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories Milk 52,6% 52,5% 52,0% 51,4% 51,4% 50,8% 50,7%

Non-Food Grocery Categories with Highest Private Brand Share of Promotions Private Brands Share of Category Ads

Coffee Filters Picnic Tableware 50,0% 47,3% Trash Bags 38,4% Food Wraps/Bags Bleach 32,3% 28,9% Napkins Paper Towels 25,6% 19,6% Facial Tissue Toilet Tissue 15,7% 15,6% Scrubbers/Sponges Household Cleaners Fabric Softeners Detergents 8,7% 15,1% 6,8% 6,4% Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Top Retailers Promoting Private Brand Grocery

Aldi Fresh & Easy Wegmans Shoppers Drug Mart Loblaws Genuardi's Family Markets Hannaford Brothers H.E.B.

Carrs Tom Thumb Randall's Food Markets Hilander

Private Brand % of Grocery Ads

66,5% 63,9% 59,7% 34,4% 28,9% 28,0% 27,5% 26,7% 26,0% 25,8% 25,8% 25,5% Source: ECRM, 52 Weeks Ending 10/29/2011

Top Drug Chains Promoting Private Brands

Shoppers Drug Mart

Private Brand Share of Total Circular Ads

22,4% Kerr Drug 21,2% Walgreens Rite Aid Kinney Drugs Rexall Pharma Plus CVS Duane Reade Hi-School Pharmacy Thrifty White Drug Stores 10,9% 9,9% 9,3% 16,2% 15,7% 14,1% 13,0% 12,9% 12,8% Source: ECRM, 52 Weeks Ending 10/29/2011

HBC Categories with Highest Private Brand Share of Promotions Private Brands Share of Category Ads

Latex Gloves 100,0% Alcohol/Peroxide Polish Removers 100,0% 89,4% Medical Compliance Epsom Salts 87,6% 84,1% Cosmetic Applicators/Removers Anti-Diarrheal 80,3% 76,0% Reading Glass Accessories Children's Analgesics 66,0% 62,8% Motion Sickness Vaporizers/Humidifiers Allergy Liquids Hand Sanitizers 57,5% 55,9% 54,6% 53,6% Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Top Retailers Promoting Private Brand HBC

Food City Supermarkets Thrifty White Drug Stores Marsh Supermarkets Thriftway (Seattle) Adams Super Food Stores Super 1 Foods Thriftway (Kansas City) Roche Bros Sack 'N Save Top Food & Drug Foodtown BI-LO

Private Brand % of HBC Ads

33,3% 32,4% 30,8% 31,9% 30,5% 30,0% 29,8% 29,8% 29,0% 28,9% 28,6% 28,1% Source: ECRM, 52 Weeks Ending 10/29/2011

Private Brand Promotions Across Mass Merchandisers Private Brand Share of Total Circular Ads

Kmart Zellers Target Stores Meijer Walmart Canada Shopko Stores Walmart-US Pamida Big Lots 1,2% 0,1% 8,2% 17,8% 16,6% 14,8% 13,5% 12,9% 21,6% Source: ECRM, 52 Weeks Ending 10/29/2011

General Merchandise Categories with Highest Private Brand Share of Promotions Private Brands Share of Category Ads

Kitchen&Dining Room… 99,3% Photo Processing Services Dorm Furniture Beach Furniture & Accessories Vehicle Batteries 96,6% 96,1% 95,9% 95,8% Cushions&Hammocks Picnic, Serveware, Drinkware Holiday Candles Desk Accessories Braking Systems Rugs Wall Art 88,8% 92,1% 95,4% 94,9% 88,5% 88,1% 87,0% Source: ECRM, 52 Weeks Ending 10/22/2011 Excludes Some Smaller Categories

Top Retailers Promoting Private Brand General Merchandise

Aldi Food Basics Super 1 Foods Thriftway (Kansas City) Ingles Markets Lucky Supermarkets Save Mart Hornbachers Foods H.E.B.

Loblaws Kmart

Private Brand % of Gen Merch Ads

60,7% 47,5% 37,5% 36,4% 35,3% 31,7% 29,7% 28,7% 28,6% 26,8% 26,7% Source: ECRM, 52 Weeks Ending 10/29/2011

Private Brand Share of Web Promotions Across Key Retailers Supermarkets

Kroger Stores Albertson's (SV) Food Lion H.E.B.

Publix Safeway ShopRite

Drug Chains

Rite Aid Walgreens CVS

Mass Merchandisers

Kmart Target Stores Walmart-US Meijer % Private Brands Total Web Promos 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 31.6% 13.0% 7.3% 25.8% 17.6% 2.0% 0.9% 945 678 1838 862 485 3190 593 193 1258 977 814 2392 1095 216 Leading grocers run very few web promotions for private brands.

Source: ECRM 13 Weeks Ending 10/29/11 Select Retailers

Cosmetic Accessories Photo Domestics Women's Apparel Kids' Apparel Diabetes Care Shoes Diagnostics Cough/Cold

Top Categories for Private Brand Web Promotions Private Brand % of Web Promotions

60,6% 29,7% 29,2% 51,3% 44,2% 43,7% 39,0% 24,7% 22,9% Source: ECRM 13 Weeks Ending 10/29/11 Select Retailers

Methodology

• • • Retail ad support measured by number of ad blocks in retailer print circulars. Ad share is weighted by retailer size.

Ad counts include branded & private label products, but not unbranded.

Ad Circular Data Includes U.S. & Canadian Retailers

ECRM’s MarketGate Ad Comparisons

Web Site:

www.AdCompare.MarketGate.com

Studies on Retail Promotions:

www.PromotionalReflections.com

Contacts:

Scott Whalley Tom Pirovano 847-482-1793 440-528-0418 [email protected]

[email protected]