Manager at Richelieu Foods
Richelieu Foods represents a private label food producing company. The organization’s headquarters is located in Braintree, Massachusetts, originally owned by the investment group Brynwood Partners. Our company focuses on frozen pizza, salad dressing, marinades, sauces, and deli salads marketed by other organizations. Irrespective of the company’s dominance in the market, there are problems that the company faces in its profits compared to Branded companies. The first one is that most of the company’s products are considered cheap and lack the quality that Branded products have. Therefore, the company needs to understand ways to bridge the company’s sales margin and improve how consumers perceive these products.
This analysis’s main goal is to ensure that customers across all generations have a positive perception of the brand. Research shows that private labels are the primary reason why shoppers pick specific retailers. This is why it is critical to have a strong label awareness and marketing that supports increased loyalty to the private label’s products. This evaluation aims for awareness and digital marketing for the company. Many individuals believe that the term brand is only limited to large organizations with international and nationwide recognition. The marketing efforts of private label companies have increased effect when added with organizational profile listing.
A private label company’s success depends on elements such as the nation’s retail structure, the advertising rate of manufacture brands, imagination, the level of retailer concentration, and economies of scale. Generally, more young customers appeal more towards private label brands than older generations. This is because older adults are more loyal to a brand and are likely to prefer brands they are more familiar with. Based on their relatively lower prices, customer quality perceptions are negatively influenced.
Thus, private label brands are considered lower quality substitutes. Most consumers perceive manufacturing brands to be more superior quality than private label brands. However, this perceptual gap between manufacturing brands and private labels is reducing. While there is a present debate in the literature concerning the trends in customer perception of private label brands, these brands represent value to the hard-pressed customers. The share of private labels is in reverse associated with economic strength. Therefore, in a thriving economy, less private label brand products are bought. Some of the aspects that need to be considered include; brand awareness and consumer perception.
To deal with this problem, the company should fuse its brick-and-mortar stores with online shopping since this is a critical part of its growth. Since more customers are obsessing over health and the origin of the product, the company will need to create a strong and innovative packaging for the products to ensure the product stands out. With new technologies to establish high-quality products for the company, the company needs to focus on its branding. Richelieu Foods should maintain the quality of its products and the positive images which warrant uniqueness. The brand needs to establish a separate entity from similar companies using protected packages and unique designs and portions. Promotion should be done globally, with expectations for future increase in price, sales, and international competition.