- Nielsen survey: Price most persuasive when incentivizing brand switch; improved features least influential
- Promo Watch: Creating a balanced approach to store brands
- Understanding point of diminishing return
- Major trend for 2014: Personalization
- ‘Out of this world’ display takes top nod in annual Design of the Times awards
MARIETTA, Ga. — Competitive Promotion Report on Friday unveiled the National Brands and Store Brand advanced analytics tool to help health, beauty and wellness manufacturers and retailers optimize the balance of national brands and store brands to maximize retailers' profit, encourage category growth and improve marketshare.
CPR created the new tool, part of its Integrated Data Management database, to leverage their proprietary national brands and private label trade pricing and promotional data with other client-provided syndicated data. The combined data is used to build a National Brands and Store Brand Profit & Loss Statement, CPR noted.
Each model is designed for the manufacturer or retailer based on the specific questions that need to be addressed, CPR added. "With the continued growth of store brands, manufacturers and retailers are both struggling to understand how to balance the two," noted Glen Davis, CPR president and CEO. "The growth of store brands continues to outpace national brands; however there is a role for both at retail," he explained. "Although margin precent is very important, the National Brands and Store Brand analysis focuses on understanding how total margin dollars can be maximized for the retailer. Gross margin percent has to be weighed against total margin dollars and then correlated with other key metrics for an accurate understanding of where the balance lies."
Retailer margin for national brands and store brand is calculated at the UPC and brand level in four- or five-week periods over two or more years. When the retailer margin is evaluated in context with corresponding changes in category growth and market share, CPR is able to help both suppliers and retailers refine their inventory levels and satisfy their customers' preferences, CPR added.