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100 Store Brand A Success Story

"100% Store Brand - A Success Story"



France's Leader Price offers 2,800 food products and every one is a Leader Price brand. How does this discount food chain meet the challenge of a private label-only concept



Alan L. Klein, of The Marketing Agency continues his exploration of Europe to identify innovations that offer insights for the American marketplace.

    


The Evolution of Leader Price



A supermarket in an upscale Paris suburb near Versailles seems to defy a whole range of French shopping traditions: Store brands (private label) only, a stripped-down ambiance, emphasis on deep discounts. You even supply your own bags to check out.



In this neighborhood, it seems distinctly out of place. Yet sales in this Leader Price supermarket are booming, and it is evolving as a regular food store for all shoppers, at all income levels.



This is not a single store phenomenon. Leader Price is rocking the retail food industry across France and challenging the dominance of the hypermarkets, including global powerhouse, Carrefour.



How does Leader Price succeed with a "100% Store Brand" strategy Our current newsletter identifies 6 reasons for its success:



The Key Difference: 100% Store Brand



Leader Price is one of a number of "deep discounters" in France (Germany's Lidl was the first).



But Leader Price is distinct from other discounters by exclusively offering its own brands. With few exceptions (beer & wine), every one of over 2,800 food products, from dairy & coffee to pet foods & snack foods; from cookies & chocolate to cereals & prepared meals; frozen and shelf-stable . . .



6 Factors of Success for Leader Price



The significance of Leader Price's progress goes beyond discounting in a tight economy: It is the degree to which consumers will accept the concept of an exclusive store brand, especially in a country which prides itself on a history of culinary seriousness.



Our analysis suggests there are 6 factors that underpin Leader Price's success.



1. Confidence in the overall integrity of the chain; that the management is committed to serving the community with high quality foods at lower prices while giving smaller producers a chance to compete.



2. Perception that the store brands are really the same quality as the more expensive national brands.



3. Belief that lower prices are the result of astute chain purchasing policies and reduced overhead; not a function of inferior quality or compromises products, but by creating opportunities for smaller companies who are shut out of the hypermarkets by mega-sized corporate suppliers.



4. An extensive range of products (2800+) that covers most or all needs of consumers for foods, so that Leader Price becomes the store for daily shopping, not just for selected items.



5. Packaging that reinforces the imagery of the Leader Price products:



inspired by familiar national brands (but without being direct copies)



the Leader Price logotype as a subordinate package design element.



6. Consistently lower prices (averagely 30% below the national brands on all products), with the absence of sales, promotions and loyalty programs (which Leader Price describes as misleading) . . .



. . . this is the ultimate expression of "Everyday Low Price"



Where We Can Help



The Marketing Agency continues its exploration of Europe to identify innovations that offer insights for the American marketplace.



Global business development is one example of The Marketing Agency in action.



For every marketing challenge, we find creative, imaginative solutions and ideas; ideally in collaboration with you and your team.



And as marketers, we can help turn ideas to action.



Do you have a new product, or package, a line extension, or a mature brand restaging that needs an infusion of ideas and insights Or can we help discover innovations for you in Europe

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