Private Label Strategy of Giant Eagle Brands

Giant Eagle Brands
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Giant Eagle Brands
Giant Eagle Inc. is a retail company that has opened multiple outlets to address the varying needs of the customers rather than focusing on a single brand as a one stop shop market. The private brands include the Giant Eagle, Nature's Basket, Top Care, Market District, and Valu Time. Although the private brand cates specific needs, each brand requires a different strategy from others to succeed in the market. In this paper, the market strategy of each private brand, the target market, and competition, is discussed to see the advantages of having many outlet stores.
Giant Eagle (National Brand)
The company sells a wide array of products, such as dairy goods, frozen foods, produce, general grocery, and fuel. However, the main difference is that they offer more than 10,000 private-brand products in their supermarkets (Storebrands, 2019). Using private labels, Giant Eagle can increase their sales by decreasing prices, thus, targeting the population of discount shoppers. Although they have cheap products, the quality is assured to be comparable with other national brands. Giant Eagle reinforced their commitment to giving the customers quality products by implementing the “double your money back guarantee” to gain the trust of the shoppers (Storebrands, 2013).
The main advantage of the Giant Eagle brand has is that they solidify the image of their company using their private label to increase loyalty among its customers, as well as limit the brand recognition of the competition. For instance, other retail companies, such as Wal-Mart, sell different national brands that increase the loyalty of the customers to the product rather than building loyalty to the company. Additionally, unlike other retail stores, Giant Eagle Inc. can easily change overt national product brand factors, such as price and packaging design in matching the needs of the costumers.
Nature’s Basket
Nature's Basket is another private label that offers natural and organic food products. Using this label, Giant Eagle Inc. can target the consumers that purchase natural/organic brands. Nature's Basket products include organic fruits, vegetables, oil, pasta, coffee, and salsa (Angrisani, 2004). Since a large percentage of the customers want natural/organic produce, Giant Eagle decided to add an outlet private label brand. Unlike other retail stores, Giant Eagle readily pull-out the product from their shelves if ever nature's basket did not sell well without damaging the reputation of the national brand. Additionally, Nature's basket products expanded their product range to also target vegetarians, nutrition-conscious people, and lactose-intolerant customers by including many stock-keeping units of t...