One strategy that retailers are embracing more involves multiple tiers of products.
This tactic, which re-creates the store as a brand unto itself, is appearing more in C-stores, the latest being 7-Eleven’s expansion of its line of 7-Select snack-cake, pie, mini-donut, and breakfast pastry products provide a snapshot of the chain’s thinking. The chain’s private-label strategy is to be the lowest-cost selection while also offering shoppers convenience and value—with product quality that equals or surpasses that of national brands. In all, 7-Select was expected to encompass 260 SKUs by the end of 2009.
This process takes shape through a collaborative process, says Tom Gerrity, senior director, merchandising, processed foods, at 7-Eleven. Suppliers work closely with 7-Eleven’s category managers, who make the final packaging decisions with input from marketing and other in-house departments.
Private-label products are presented on multiple tiers, Gerrity adds. “Packaging is key to creating consumer awareness, especially because there is no advertising of the 7-Select brand,” he notes. “The consistent look, packaging, and logo are important to creating the brand, showing consistency, and building consumer confidence in our products.”
