Target Revamps Private Label Branding -

Target Revamps Private Label Branding

Publish date:

Target Corp is revamping its private label store brand a by giving it a new name and getting rid of the familiar bull's-eye on the package. The Target brand line, which includes sunscreen, tissues and diapers, will now be more easily recognized across store aisles with packaging marked with a big, colorful arrow on a white background that says "up & up"– the brand's new name.

"We believe that it will stand out on the shelf, and it is so distinctive that we'll get new guests that will want to try it that maybe didn't even notice the Target brand before," said Kathee Tesija, executive vice president of merchandising for Target, in an interview.
As consumers look for ways to stretch limited budgets during the recession, retailers have increased their focus on their own private brands, which typically sell for less than name-brand goods but provide better margins.

According to a study commissioned by the Private Label Manufacturers Association, three out of 10 consumers said they are "buying more store brand products" compared with a year ago.

Earlier this year, Wal-Mart Stores Inc began the relaunch of its Great Value private brand with more than 80 new products and distinctive packaging.

The Target Brand is one of the retailer's top five largest private brands, and Tesija said up & up has been about a year and a half in the making. Renamed products began landing on its shelves in March, and the line will be rolled out across 40 product categories from now until the early autumn.

Target said it will promote the brand, which tends to be priced about 30 percent less than brand-name equivalent products, in its weekly advertising circulars, online and in its stores.

The Target brand, which was first introduced in 1962 when the retailer opened its stores, had been growing at a 25 percent compound annual growth rate for the past five years, Tesija said. Up & up will likely get more space on its shelves if that growth rate persists, she said.

Target still will focus on selling brand-name products.

"That's what we do and most of what we sell," Tesija said. But name-brand items that are not the No. 1 or No. 2 product in their category could be replaced by an up & up item, she said.

Up & up includes roughly 730 items now, but it will number closer to 800 by the end of the year. Target has added baby food and laundry detergent to the up & up brand, and said it is seeing better-than-expected sales from the new up & up items that have already arrived on its shelves.


Bullseye Bodegas Target Manhattan

Target has announced the launch of its Bullseye Bodegas, four limited-time-only stores that celebrate the retailer's pioneering designer partnerships and commitment to offering amazing value through unique and differentiated merchandising programs. Since opening its first stores in 1962, Target has distinguished itself from other discount retailers by offering great designs at an incredible value. This fall, Target brings its current roster of 22 designers -- more than at any time in the company's history -- to Manhattan through this innovative initiative.

Private Label in Retail Study

Private label has been growing at twice the rate of famous household brands over the last 10 years. In fact sales of Wal-Mart’s private label brands is worth more than Unilever’s, PepsiCo’s and Coca-Cola’s put together and in more consolidated and sophisticated markets such as the UK, private label already accounts for about 50% of the shopping basket. So it’s hardly surprising that brand owners tend to view it as threat to their business, while retailers view it as an ever more important part of theirs. So who’s right? What does the future hold? Who’s going to win and who’s going to lose out with private label? In December 2006 and January 2007, Saatchi & Saatchi X in partnership with POPAI, undertook a global study as the basis for a forthcoming book on private label due to be published in November by Keith Lincoln and Lars Thomassen...

Marketing@Retail: the Demise of the Target Consumer

By: David Sommer, MEC Retail/Mediaedge:cia Advertising executives used to talk obsessively about “reaching” consumers.  “Who is our target?  How do we reach them as efficiently and effectively as possible with a differentiated and relevant message about our product?” Technology has now created a world where consumers no longer have targets painted on their foreheads and the usual marketing weapons miss the mark.

Image placeholder title

The Brand as Experience

The New Media Mix. David B. Polinchock, Chief Experience Officer, Brand Experience Lab, looks at industry-changing developments, including the impact of socialization of the retail space and the impact of online shopping on retail. Retail innovators like Starbuck’s and the Apple stores have boomed because they have created a social space rather then a retail space.