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Case Studies

Innovate private-label products to meet customers’ needs

Private Label Becomes £1.2bn+ Brand And Fills Basket Holes

A global grocery retailer was aware that a segment of its customers were ‘promiscuous customers’ (meaning that they would visit different stores to complete their weekly shop, of course). The retailer approached dunnhumby to determine what it would have to do to meet the needs of those customers, build and maintain loyalty with them, and keep them from shopping at the competition.

The action

dunnhumby identified that customers were visiting competitors to purchase more premium products. So the grocer launched a private label line of goods, with varying tastes and price points, including a line for adventurous customers and a line for fine foods customers. The ranges vary by store format and location based on local customer preferences.

The results

The retailer’s private label products were a commercial success, and the brands developed a loyal following; with 700+ SKUs, the fine foods range is now a £1.2bn+ brand, and the brands are bigger than Coca-Cola in the United Kingdom.