Once thought of as the last item to be considered in product marketing , product labeling is now a key factor in encouraging growth in sales. Research shows that the product label is highly influential in determining the level of consumer interest in a Point of Sale product and in integrated marketing communications programmes. This refers to nationally known labels, and it is much more relevant in initiatives with private label products. Private brands typically rely heavily on the packaging and label of the product at the Point of Sale to market the products. see this here
Retailers are incorporating more technology in a fiercely competitive industry to track products, increase sales and cut costs. The most productive businesses are implementing customer-centered strategies to promote growth. Consumer centering helps retail chains to design their store layouts dependent on each particular location’s consumer demographics. RFID marking facilitates consumer centering by allowing retailers to retain inventory and selling status details in real-time. With this technology, retailers may transfer items that do not sell to less attractive shop sites, or fully discontinue the object. As a result, suppliers are challenged to package and label their products to meet the needs of their customers as well as their retailers, in order to keep their product in sight of the consumer. Efficient retailers embracing costumer-centered values include Wal-Mart, Home Depot, Best Buy and several others. Suppliers will effectively bundle and mark their goods with the best merchandising approach to meet their buyers and retailers’ desires and increase profits.
To establish a effective selling strategy for product marketing it is necessary to examine several market research points:
Successful tactics from the supplier ‘s top sales channel retailers.
Requirements for labeling and packaging specific to retailers and their customers.
Creation of a customer-centric package and label design.
Using technology to maximize data about consumers and minimize costs.
Follow the example of requirements for successful labeling campaigns.
Retail and Wholesale Channels Success
Among the first to insist that their vendors use RFID tags on pallets, Wal-Mart has an IT approach and a costumer-centered philosophy that has held the company among the nation’s most profitable. Its IT strategy creates an efficient system across its network. By incorporating a consistent system, error is minimized and the focus on product turnover and customer satisfaction is allowed for more time. First and foremost, the quality is taken into consideration anytime Wal-Mart wants to partner with a manufacturer.
Labeling and Customer Centricity
The slogan of Wal-Mart to its vendors is, “If it works for our customers, it works for us.” When it comes to food packaging and marking, their philosophy is that within 3 seconds from 15 feet away from the store, the consumer will “get it” If the company meets these criteria, the item needs to attract the consumer’s eye. The average consumer wants to be blinded and so it is imperative that packages and labels are created with the needs of the consumer in mind.
In addition to appealing to a target market, packaging and labeling must also address the specific demographics of the retail store selling that package. When a customer wants a commodity, their first buying choice is more probable to be which store to shop at instead of which commodity to purchase. A supplier must therefore maintain a solid relationship with its retailers, who are acting as gatekeepers to their consumers. Retailers strive to offer their customers a comfortable, convenient shopping experience. Suppliers must adhere to what is important to each retailer as much as to what is important to their end customers in order to keep their product alive and in the sight of the consumers.