As retailers look to drive loyalty with customers while achieving profitable growth, store brands have increased in importance. Innovation typically plays a key role in store brand strategy; it’s the vehicle for developing differentiated products that address unmet customer needs. However, innovation can be difficult.
More than half of all new products fail to meet in-market objectives. Kalypso and Indiana University conducted research to identify factors that retailers should focus on if they want to drive growth in their store brands.
The statistically significant factors that had the strongest association with store brands have to do with achieving internal strategic alignment on new products, having clear roles and responsibilities for effective cross-functional teams, having the right skills and resources, and involving suppliers earlier in the process.
Addressing all of the important areas identified in this research can be a lot to accomplish. Kalypso recommends taking stock of your current situation, comparing it to where you want to be. Then you can develop a roadmap to help you on your journey to drive growth in store brands through innovation.