Being a new kid on the block poses a number of challanges and is never easy. You have to prove yourself to the scrutinizing, distrustful sometimes cynical residents. They will challange you. In the world of retail, the inadvertent challenge is how to make them buy your stuff. You need to make it easy for them to make the leap of faith and abandon their former preferences and allegiance with well-know global brand names to spend their hard-earned cash on your offering.
One simple solution that Walmart has implemented to promote Great Value, which is its PL line of grocery products in India is an old sales trick to show that many people are buying this product. The store signage and packaging of this line of product emphasizes that the product is popular in other countries and cements this clam with the country fags and a slogan “Trusted by millions like you the world over”. Given that the price of Great Value is cheaper and the promise that quality is as good as in other products, there is no reason why a customer would not give Great Value a try.
It is not difficult to imagine that Walmart will try to push its PL in every product category all over the world. With juicy profit margins and the opportunity to capture customer loyalty, the customers may witness a marketing battle of the national brands and Walmart PL's. What is it going to take Walmart to win?
The original article can be found here:
http://blog.emap.com/Rob_Gregory/2012/10/31/building-private-label-trust-in-emerging-markets/
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