(A)The consumption of private labels of big retailers is growing. What are the solutions for established producers?

ADVERTORIAL by Fair Value

The consumer goods produced under the brand of big retailers are becoming a growing presence in the baskets of Romanian shoppers. They have won the battle with small local producers and are preparing for the great confrontation with famous brands.

Romanians are becoming more aware on spending, so they are giving up their favorite brands in favor the private labels of the big supermarket chains. Despite being rolled out on the market for those on a low income, the leveling effect of the economy made them extremely popular.

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The growing supply and sales of the private label products is forcing the rest of the producers to reduce prices of their products, thus risking to lose market share and contracts with big retailers. How can the producers of well-known brands face the competition with big retailers and avoid a price and promotion war such as pay two get one free (2+1 gratis)?

The answer lays in winning the online battle and making the customers of famous brands loyal. This online battle means personalized and permanent interaction with the brand’s customer through mobile applications. In Romania, the number of mobile phones in use exceeds that of the population.

Again, the main target of these producers has to be the customer, with the intent of earning his or her loyalty by increasing his or her satisfaction, through product offering, personalized offers and relevant offers in real time.

With the help of applications for the smart phones of customers, the marketing departments of FMCG companies can access information about the profile, shopping history, and their preferences, gaining information about the current context of shopping. They will be able to send personalized information in real time to consumers, through these mobile devices.

SAP AG, the worldwide leader of business software solutions, has implemented over 15,000 mobile applications globally. SAP’s mobile applications for smart phone offer FMCG suppliers details about consumption patterns and the performance of offers at any moment and in every detail, so that promotional campaigns can be updated in real time.

Such a direct interaction with the customer will convince him or her of the brand’s added value and determine him or her to look for it in the store due to various reasons: either attractive and personalized offers, the bonuses and coupons granted for every purchase, or the simple fact that this brand is keeping up with the new trends and offers a unique shopping experience.

The SAP Mobile solutions for customer loyalty have been presented this week by Fair Value, during a seminar, to a large audience, comprising marketing experts that are enthusiastic about this topic. For more information about the event and SAP’s solutions for producers you can visit www.fairvalue.ro or start a conversation with our consultants.