FRAMEWORK FOR VALUE-DRIVEN PRIVATE LABEL PRODUCTS IN THE CONSUMER GOODS CATEGORY

Abstract

ABSTRACT “FRAMEWORK FOR VALUE-DRIVEN PRIVATE LABEL PRODUCTS IN THE CONSUMER GOODS CATEGORY” The present invention relates to a framework for developing value-driven private label products (PLPs) in the consumer goods category. The framework comprises four stages: (1) the match phase, where product selection aligns with target consumers' demographics and differentiates the PLP from national brands; (2) the functional value phase, focusing on integrating key attributes like quality, durability, and nutritional value; (3) the hedonic value phase, which creates emotional connections through packaging, branding, and promotional strategies; and (4) the trust-building phase, involving continuous feedback collection, functional and emotional value updates, and trust monitoring. Each stage includes specific action plans that help retail managers systematically build PLP strategies that foster consumer loyalty, enhance sustainability, and compete effectively with national brands. Figure 1

Specification

Description:TECHNICAL FIELD
[0001] The present invention relates to the field of marketing systems, and more particularly, the present invention relates to a framework for value-driven private label products in the consumer goods category.
BACKGROUND ART
[0002] The following discussion of the background of the invention is intended to facilitate an understanding of the present invention. However, it should be appreciated that the discussion is not an acknowledgment or admission that any of the material referred to was published, known, or part of the common general knowledge in any jurisdiction as of the application's priority date. The details provided herein the background if belongs to any publication is taken only as a reference for describing the problems, in general terminologies or principles or both of science and technology in the associated prior art.
[0003] In India, consumer private label products (PLPs) are a new concept, and consumer private label products (CPLPs) are the brands that a retail company sells in its stores. These brands directly compete with the national brands of consumer goods firms. These brands are primarily similar in look as compared to the national brands, cheaper than national brands, and sold beside the national brands in retail stores or online retail stores. However, according to various consumer researches, these brands are often considered low value, and there is little trust in these brands. However, in recent years, consumer PLPs has been growing significantly due to lower prices. Still, perceived value and trust are the most significant issues for retailers in generating sustainable revenue. The only economic value (Low price) cannot be sustainable in the long run due to rising operating costs and raw material costs. National brands invest a significant portion of their budget in brand building to generate aspirational value. The proposed framework highlighted four steps that help retailers rethink their value proposition building for consumer private label products, generate trust, and create a sustainable business model for the PLPs.
[0004] As per the inventors' knowledge, there is no such process invented by anyone to the framework to create a value proposition for PLPs. We reviewed the literature related to the invention, but we didn't trace any literature associated with the process of value proposition framework for PLPs. According to the literature, the framework for PLPs is theirs, but the current process is an entirely different one, and it is more practice oriented and strategic.
[0005] In light of the foregoing, there is a need for a framework for value-driven private label products in the consumer goods category that overcomes problems prevalent in the prior art associated with the traditionally available method or system, of the above-mentioned inventions that can be used with the presented disclosed technique with or without modification.
[0006] All publications herein are incorporated by reference to the same extent as if each individual publication or patent application were specifically and individually indicated to be incorporated by reference. Where a definition or use of a term in an incorporated reference is inconsistent or contrary to the definition of that term provided herein, the definition of that term provided herein applies, and the definition of that term in the reference does not apply.
OBJECTS OF THE INVENTION
[0007] The principal object of the present invention is to overcome the disadvantages of the prior art by providing A framework for value-driven private label products in the consumer goods category.
[0008] Another object of the present invention is to provide a framework for value-driven private label products in the consumer goods category that helps retail firms create a value-driven business strategy for PLPs.
[0009] Another object of the present invention is to provide a framework for value-driven private label products in the consumer goods category that allows retailers to make the right decisions and guides them in the action plans.
[0010] Another object of the present invention is to provide a framework for value-driven private label products in the consumer goods category that reduces the time spent creating value for the PLPs and builds trust for a sustainable PLP business.
[0011] Another object of the present invention is to provide a framework for value-driven private label products in the consumer goods category that helps retail firms reduce costs in irrelevant activities during strategic decisions on PLP value creation.
[0012] Another object of the present invention is to provide a framework for value-driven private label products in the consumer goods category, wherein the retailer can utilize this solution to increase the revenue of PLPs in the long run and retain customers for the PLPs.
[0013] The foregoing and other objects of the present invention will become readily apparent upon further review of the following detailed description of the embodiments as illustrated in the accompanying drawings.
SUMMARY OF THE INVENTION
[0014] The present invention relates to a framework for value-driven private label products in the consumer goods category.
[0015] This framework consists of four stages, and each stage contains action plans for the retail managers or product category managers. Stage 1 is called the match phase, where managers first decide on a product that absolutely matches their target customers and differentiates the product from the national brand in the same category. In this stage, managers thoroughly analyses the demographic and lifestyle of their consumers by doing market research, and most importantly, they need to carefully examine the national brands' data and strategy and find out gaps where they can create value for their target consumers that match with them.
[0016] Only costs or offers can't sufficiently motivate customers to buy private label brands where loyalty is strong for national brands. So, match and differentiation need to be present in PLPs. Stage 2 is the functional value of the products that need to be carefully crafted in CPLPs; the utility in CPLPs can be quality durability and nutritional value if it is food PLP. Page 2 of 5 Managers need to identify the most critical functional value that matches their customers and is slightly superior or different from national brands.
[0017] The functional value needs to be carefully designed and clearly communicated to the customers. Retailers need to identify three unique functional values that match the customers' needs. In Stage 3, managers need to think about the hedonic value that creates an emotional bond with the customers and helps customers believe the national brand on PLPs while being emotionally driven. For this, managers need to focus on two key areas: 1st one is the packaging (Color of the packaging, Logo, and brand name and Labeling), 2nd one is the in-store promotion or online visual merchandise (online retailers) for the PLPs.
[0018] In stage 4, trust building is the key for PLPs to compete with national brands. In Stage 4, the managers need to implement their functional value and hedonic values by following the action plans in Stage 2 and Stage three. Every six months, managers need to monitor and collect feedback consistent with their perceived and track consumer behavior and improve and incorporate new functional and hedonic values if required.
[0019] While the invention has been described and shown with reference to the preferred embodiment, it will be apparent that variations might be possible that would fall within the scope of the present invention.
BRIEF DESCRIPTION OF DRAWINGS
[0020] So that the manner in which the above-recited features of the present invention can be understood in detail, a more particular description of the invention, briefly summarized above, may have been referred by embodiments, some of which are illustrated in the appended drawings. It is to be noted, however, that the appended drawings illustrate only typical embodiments of this invention and are therefore not to be considered limiting of its scope, for the invention may admit to other equally effective embodiments.
[0021] These and other features, benefits, and advantages of the present invention will become apparent by reference to the following text figure, with like reference numbers referring to like structures across the views, wherein:
[0022] Figure 1: PLPs Value Driven Framework: Stage 1 helps to design the value (Functional and Hedonic) in Stage 2 and Stage 3 (Connected in arrows), then Stage 4 based on the implementation of Stage 2 and Stage 3 (Arrows are connected), and Stage 4 is connected to stage 1 for continuous feedback and research and compare with national brands (Arrows connected).
DETAILED DESCRIPTION OF THE INVENTION
[0023] While the present invention is described herein by way of example using embodiments and illustrative drawings, those skilled in the art will recognize that the invention is not limited to the embodiments of drawing or drawings described and are not intended to represent the scale of the various components. Further, some components that may form a part of the invention may not be illustrated in certain figures, for ease of illustration, and such omissions do not limit the embodiments outlined in any way. It should be understood that the drawings and the detailed description thereto are not intended to limit the invention to the particular form disclosed, but on the contrary, the invention is to cover all modifications, equivalents, and alternatives falling within the scope of the present invention as defined by the appended claim.
[0024] As used throughout this description, the word "may" is used in a permissive sense (i.e. meaning having the potential to), rather than the mandatory sense, (i.e. meaning must). Further, the words "a" or "an" mean "at least one" and the word "plurality" means "one or more" unless otherwise mentioned. Furthermore, the terminology and phraseology used herein are solely used for descriptive purposes and should not be construed as limiting in scope. Language such as "including," "comprising," "having," "containing," or "involving," and variations thereof, is intended to be broad and encompass the subject matter listed thereafter, equivalents, and additional subject matter not recited, and is not intended to exclude other additives, components, integers, or steps. Likewise, the term "comprising" is considered synonymous with the terms "including" or "containing" for applicable legal purposes. Any discussion of documents, acts, materials, devices, articles, and the like are included in the specification solely for the purpose of providing a context for the present invention. It is not suggested or represented that any or all these matters form part of the prior art base or were common general knowledge in the field relevant to the present invention.
[0025] In this disclosure, whenever a composition or an element or a group of elements is preceded with the transitional phrase "comprising", it is understood that we also contemplate the same composition, element, or group of elements with transitional phrases "consisting of", "consisting", "selected from the group of consisting of, "including", or "is" preceding the recitation of the composition, element or group of elements and vice versa.
[0026] The present invention is described hereinafter by various embodiments with reference to the accompanying drawing, wherein reference numerals used in the accompanying drawing correspond to the like elements throughout the description. This invention may, however, be embodied in many different forms and should not be construed as limited to the embodiment set forth herein. Rather, the embodiment is provided so that this disclosure will be thorough and complete and will fully convey the scope of the invention to those skilled in the art. In the following detailed description, numeric values and ranges are provided for various aspects of the implementations described. These values and ranges are to be treated as examples only and are not intended to limit the scope of the claims. In addition, several materials are identified as suitable for various facets of the implementations. These materials are to be treated as exemplary and are not intended to limit the scope of the invention.
[0027] The present invention relates to a framework for value-driven private label products in the consumer goods category.
[0028] This framework consists of four stages, and each stage contains action plans for the retail managers or product category managers. Stage 1 is called the match phase, where managers first decide on a product that absolutely matches their target customers and differentiates the product from the national brand in the same category. In this stage, managers thoroughly analyses the demographic and lifestyle of their consumers by doing market research, and most importantly, they need to carefully examine the national brands' data and strategy and find out gaps where they can create value for their target consumers that match with them.
[0029] Only costs or offers can't sufficiently motivate customers to buy private label brands where loyalty is strong for national brands. So, match and differentiation need to be present in PLPs. Stage 2 is the functional value of the products that need to be carefully crafted in CPLPs; the utility in CPLPs can be quality durability and nutritional value if it is food PLP. Page 2 of 5 Managers need to identify the most critical functional value that matches their customers and is slightly superior or different from national brands.
[0030] The functional value needs to be carefully designed and clearly communicated to the customers. Retailers need to identify three unique functional values that match the customers' needs. In Stage 3, managers need to think about the hedonic value that creates an emotional bond with the customers and helps customers believe the national brand on PLPs while being emotionally driven. For this, managers need to focus on two key areas: 1st one is the packaging (Color of the packaging, Logo, and brand name and Labeling), 2nd one is the in-store promotion or online visual merchandise (online retailers) for the PLPs.
[0031] In stage 4, trust building is the key for PLPs to compete with national brands. In Stage 4, the managers need to implement their functional value and hedonic values by following the action plans in Stage 2 and Stage three. Every six months, managers need to monitor and collect feedback consistent with their perceived and track consumer behavior and improve and incorporate new functional and hedonic values if required.
- Realistic and practically applicable
- Systematic in nature, which helps managers to make rational decision
- Include necessary aspects of creating value for PLPs
- Easy to understand and easy to implement
[0032] The current framework sufficiently covers all the strategic steps or phases that are essential for managers to create a value-driven PLP strategy. The current process divided all the necessary steps of building a value-driven PLP business in the consumer goods category into four steps. The unique feature of this framework is that all the processes are interlinked and systematic, which is extremely useful and accessible for retail managers to adopt.
[0033] This framework consists of four stages, and each stage contains action plans for the retail managers or product category managers. Stage 1 is called the match phase, where managers first decide on a product that absolutely matches their target customers and differentiates the product from the national brand in the same category. In this stage, managers thoroughly analyses the demographic and lifestyle of their consumers by doing market research, and most importantly, they need to carefully examine the national brands' data and strategy and find out gaps where they can create value for their target consumers that match with them.
[0034] Only costs or offers can't sufficiently motivate customers to buy private label brands where loyalty is strong for national brands. So, match and differentiation need to be present in PLPs. Stage 2 is the functional value of the products that need to be carefully crafted in CPLPs; the utility in CPLPs can be quality durability and nutritional value if it is food PLP. Page 2 of 5 Managers need to identify the most critical functional value that matches their customers and is slightly superior or different from national brands.
[0035] The functional value needs to be carefully designed and clearly communicated to the customers. Retailers need to identify three unique functional values that match the customers' needs. In Stage 3, managers need to think about the hedonic value that creates an emotional bond with the customers and helps customers believe the national brand on PLPs while being emotionally driven. For this, managers need to focus on two key areas: 1st one is the packaging (Color of the packaging, Logo, and brand name and Labeling), 2nd one is the in-store promotion or online visual merchandise (online retailers) for the PLPs.
[0036] In stage 4, trust building is the key for PLPs to compete with national brands. In Stage 4, the managers need to implement their functional value and hedonic values by following the action plans in Stage 2 and Stage three. Every six months, managers need to monitor and collect feedback consistent with their perceived and track consumer behavior and improve and incorporate new functional and hedonic values if required.
[0037] Various modifications to these embodiments are apparent to those skilled in the art from the description and the accompanying drawings. The principles associated with the various embodiments described herein may be applied to other embodiments. Therefore, the description is not intended to be limited to the 5 embodiments shown along with the accompanying drawings but is to be providing the broadest scope consistent with the principles and the novel and inventive features disclosed or suggested herein. Accordingly, the invention is anticipated to hold on to all other such alternatives, modifications, and variations that fall within the scope of the present invention and appended claims. , Claims:CLAIMS
We Claim:
1) A framework for developing value-driven private label products (PLPs) in the consumer goods category, comprising four stages:
- Match phase (Stage 1) where product selection is aligned with target consumers' demographics and lifestyle, differentiating the PLP from the national brand in the same category.
- Functional value phase (Stage 2) focusing on identifying and integrating key functional attributes such as quality, durability, and nutritional value that are aligned with the target consumer's needs.
- Hedonic value phase (Stage 3) to create emotional engagement through product packaging, branding, and in-store or online promotional strategies.
- Trust-building phase (Stage 4) involving continuous feedback collection, functional and hedonic value updates, and trust monitoring every six months.
2) The framework as claimed in claim 1, wherein Stage 1 involves thorough market research and competitive analysis of national brands to identify opportunities for value creation and differentiation.
3) The framework as claimed in claim 1, wherein in Stage 2, three unique functional values are identified and integrated into the PLP to enhance its perceived value compared to national brands.
4) The framework as claimed in claim 1, wherein Stage 3, hedonic value is established by enhancing packaging elements, including color, logo, brand name, and labeling, to foster emotional bonds with consumers.
5) The framework as claimed in claim 1, wherein Stage 3 includes the implementation of in-store promotional strategies or online visual merchandising to improve consumer engagement with the PLP.

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