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New Product Label Offering: Developing a Successful Messaging & Pricing Strategy Hero Image

New Product Label Offering: Developing a Successful Messaging & Pricing Strategy

Retail & E-Commerce

Developing and rolling out a new private label offering is a major decision for any retailer with many considerations, such as current brand reputation and loyalty, shopper interest/acceptance in a private label offering, overcoming potential quality concerns, and a branding strategy. These considerations can be further complicated when there are supply chain disruptions with existing brands, as interest and motivation for purchasing a private label offering may shift over time.

Our client, a North American home improvement retailer, wanted to understand the market opportunity for a new private label offering to help mitigate supply chain challenges with existing national brands. They were specifically interested in understanding the appeal and acceptability of a new private label offering among professional contractors and heavy DIY consumers.

We implemented a research approach that included a combination of quantitative and qualitative methods. This approach allowed us to understand key metrics related to brand awareness, preference, price perceptions, and buying behavior. Through an online survey, we were  able to determine key importance factors for product development and messaging for this private label offering.

Upon completion of the online survey, summits and in-depth interviews were conducted with various segments/personas  to identify optimal messaging and determine the potential influence of professional contractor peers on each other as well as individual, uninfluenced responses.

This research allowed our client to build a business case leading to a confident decision to launch this private label offering. Results allowed for the development of an overall messaging and pricing strategy that  allowed them to differentiate this private label offering  from others in the market, successfully competing in all supply chain scenarios.