Why CPG Companies Could Soon Be Competing With Loblaw For Good Marketers

  • You have probably already heard that the two largest CPG brands in Canada are 1) President’s Choice and 2) no name.

    Of course, these two brands compete in almost every category in the supermarket giving them an advantage over one-category wonders such as Pepsi or Lays.

    However, given that PC and “no name” are only available in about 30% of Canada’s supermarkets – their size is quite impressive.

    Private labels have a history of being low-cost knock offs of national brands and they were not really considered a threat until the economic uncertainty of the past couple of years.

    Now there is more evidence that the hard work of the Loblaw Brands teams is really paying off and shoppers are giving credit for their efforts in being unique and innovative.

    A recent survey by Ipsos Reid of over 1000 Canadians put President’s Choice in the #7 spot of their Top 10 Brands. The only other CPG brand to make the list was Coca-Cola.

    http://www.theglobeandmail.com/report-on-business/industry-news/marketing/in-pictures-consumers-pick-their-top-10-brands/article2297946/

    No doubt Loblaw’s efforts with Recipe To Riches ( www.recipetoriches.ca/ ) and the launch of PC Black Label (http://www.pc.ca/blacklabel/) played a role in getting PC into the Top 10.

    Add to that the innovation that is launched behind the iconic “Insider’s Report” and President’s Choice seems to be firing on all cylinders.

    The role of “no name” is equally important in the private brand portfolio at Loblaw. In addition to its redesigned packaging its current television campaign is completely aligned with the brand and is timed perfectly to build the price perception of Loblaw banners at a time of year when shoppers are pinching pennies after the holiday splurge.

     

    In short, the Loblaw brands team is doing a fabulous job and is miles ahead of many private and national brands.

    If I was working at a CPG company as a marketer on a brand that was trimming investment, running international creative and launching one or two new products a year – I’d have a straying eye for a job at Loblaw.

     

     

    They spend money on media throughout the year, the brands are growing, there is lots of innovation and they are the biggest brands in the land.

    Isn’t that every marketers dream?

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