A retail store is an easy and convenient way to get products and services to the end user. Using retail stores, I find it easy to sell my products through private label line due to the minimum costs accrued. For my private label that I plan to produce for my ideal consumer, I target three middle-income retail stores to market and sell the products. The 3 retail shops belong to the category of food product distributors. They are namely: Wal-Mart stores Inc., Dairy Farm International Holdings and Safe Way Inc. The three retail stores are leading chain store sellers of food products with a reputation not to be underestimated.
- Wal-Mart Stores Inc.
For Wal-Mart chain store, the store brand will be the most appropriate. The products will carry the name of the chain store on it. Wal-Mart, established in 1962, has a huge consumer base covered by the 11000 stores in 27 countries worldwide. The size of the customer base covered by the retail store is one of the main characteristics that I considered in the selection of the ideal retail store for a private label. The store also offers a wide variety of products for use at home including clothing, home furniture, electronics, pharmacy, sports and fitness moves and many more. This makes the store a one-stop shopping center that is convenient for many shoppers as timely shopping is valuable. Wal-Mart stores are located on the main highways and suburbs that are the main dwelling places and shopping joints for the highest percentage of the target population. This makes it very accessible for the consumer to do their daily shopping. Simply Wal-Mart is an ideal shopping Centre for many consumers and therefore a good outlet for the store brand owing to the factors considered above.
In the stores under Wal-Mart, there are very few milk products that can be categorized as national brands. The main national brand under the milk products category is the US Milk and Nestle Milk Products. Private brands dominate the milk products domain. Some of the private brands under the roof include; Silk Very Vanilla Soymilk, Horizon Organic Chocolate Milk, Oak Farms 15 Low Fat Milk, Nesquik Chocolate Low fat Milk and Parmalat 2 % Reduced Fat Milk.
Most of these private label lines target to reach the middle-income consumer who do not own a cow due to lack of space and other factors. A town dweller is highly targeted. The private labels also target the market of the school going age and the milk loving toddlers. However, my store brand will seek its market from all whole population, starting with the kid that just stopped breast feeding to that seventy year retired public worker. This will translate to a bigger consumer base and therefore higher sales compared to the main competitors. The milk products under the stores vary from 1 dollar and 50 cents to 5 dollars and 50 cents. The smallest package is 100 milliliters while the largest volume of milk volume sold is five liters.
The color of the packages depends on the flavor of the milk product. The main flavors are strawberry, vanilla, mango, orange and passion. The color of the package is assigned in relation to the respective flavor. Purple is often associated with strawberry, yellow for the mango flavor and cream for the vanilla flavored milk.
The trending form of package for the private labels is the prism made from the normal paper that is covered in polythene paper to avoid wetting. Another common packaging includes plastic bottles.
The national brands in the store come at considerably higher prices than the private brands. The minimum price under this category is 2 dollars and 98 cents while he highest prices are 155 dollars and 4 cents. The packaging is also quite trendy. Most of the national brands are packed I metallic containers. The products are positioned at the center of the store under the same section as the private brands.
- Dairy Farm International Holdings
The use of store label is appropriate to use for Dairy Farm International Holdings. Founded in 1886, the chain store has over 5700 outlets in the main urban centers in the world. This means that the store has a huge market to satisfy. The store is also proud of offering multicultural products and therefore sources its market across the cultural and religious boundaries. This helps in the attainment of the goals set for the private brand, surpassing cultural boundaries.
The national brands in the stores include Nestle products and International Delight. The main products under the national brands are the fresh dairy milk and ready to drink coffee. Private brands here are quite many, and they include; Great Value French Vanilla, Ritter Sports Milk Chocolate, Latte Powder Coffee Creamer and Coffee-mate Hazelnut Creamer. As stated out earlier, the store seeks to exploit the market from the multi-racial urban areas. This is also the aim of the private brands under the store. My private label due to production will also seek to exploit the same market.
The prices for most of the private labels range between 2 dollars and 28 cents and 5 dollars and 98 cents, tax inclusive. The minimum size for the products under the store is 500 milliliters and a maximum of 5 liters. The packaging is mainly plastic for both national and private brands. The milk products are mainly kept in a cooler at the front of the store to ensure proper display. The packaging is mostly in the chocolate and white color for both national and private brands. The selling power of the brands can be attributed with the theme displayed in every section of the store. The chocolate color has been deeply displayed on almost every section in the stores. There are no any current promotions running for the brands.
- Safe Way Inc.
Safe Way Inc. has had a good history for the best consumer care. It was founded in 1915 and has more than 2400 retail outlets and over 250000 employees. The chain store has many of its outlets in the towns and industrial zones. It offers outside catering services and home or workplace delivery services and therefore reaching out for even bigger population. This, therefore, makes it an ideal store to sell and market my private label under the store brand.
There are no national brands in the chain store. On the other hand, there are many private brands available in the milk products category. They include; Lucerne O Organics and Jersey maid. The three brands specialize in the production of dairy milk, ice cream, cheese, yogurt and chocolate. The prices here are lower considering to level of competition. The cheapest product is worth 1 dollar and 5 cents while the most-expensive product is just worth 4 dollars and 25 cents. These brand products are kept under refrigeration at the center of the stores. The main colors used on packaging are pink and some white representing fresh milk. The lifestyle format dominates as the theme used to market products in the Safe Way stores, and it entails warm decoration and subdued lighting.
These three chain stores meet my requirements for the ideal store to market and sell my private brand. The quality of services, consumer base and reliability, are qualities of the three stores. They all have a long history in service too.