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Analyst: National brands need to focus on experiences

Kaleidoscope’s Dennis Furniss believes too many brands are allowing private label to make inroads by focusing on things other than what’s really important to consumers.

Far too many national brands are feeling the pinch from the increasing sales of private-label brand and, says Dennis Furniss, a partner at Kaleidoscope, they’re not doing themselves any favors by continuing to focus too much attention on innovation for innovation’s sake.

What national brands really need to be focusing on is consumer experiences, Furniss asserts in an article posted on My Private Brand.com. What is it about your brand that can create a very deep meaning with your consumers, and how can packaging support that? Then deliver on it at every touchpoint as well.

Private-label brands have become a very real threat to national brands for two other reasons that creative teams may not realize. Here are two of them:

• Retailers are hiring away top marketing and design talent from CPG companies.

• National brands’ production lines have become more idle as production needs have slowed during the recession. National brands are looking to fill the idle time with other projects to keep the lines humming, and some have begun to take on private-label work. In the process, national brands have helped private-label brands become stronger.

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