Jaco Jooste, National Client Service Manager

From shelf placement to packaging design, merchandising plays a key role in shaping customer perception. That’s why big brands continue to dominate the retail space, making it difficult for private-label products to break through.

But, with smarter merchandising strategies, even the newest private-label brand can become a household name. Let’s dive into how big brands retain customer loyalty and what private-label products can learn from their merchandising strategies to become contending challengers.

Why Big Brands Still Dominate Merchandising

Despite a rise in private labels, big brands continue to dominate key FMCG categories. Their historical footprint and ability to invest in product innovation give them a significant competitive edge. Here’s why consumers remain loyal to these brands:

Brand trust and loyalty

Big brands have spent multiple years building trust and reliability, making them a go-to choice. Categories like baby products, pharmaceuticals, and beverages often see strong brand loyalty because shoppers feel safer choosing a familiar, well-established brand.

Emotional connections

Branding isn’t just about recognition, it’s about creating emotional connections with consumers. Many big brands have successfully built strong, emotional associations that drive repeat purchases.

Product innovation

Big brands have the resources to invest in research and development, helping them stay ahead of trends and consumer demands. Whether it’s new flavours, improved packaging, or healthier alternatives, national brands have the capability to update their offerings to stay relevant and keep consumers interested.

Stronger advertising presence

Big brands dominate the marketing landscape, ensuring they stay top-of-mind for consumers. Their budget allows for multi-channel advertising, large in-store promotions, and even sponsorships that reinforce brand credibility.

How Merchandising Can Influence Shopper Loyalty

Price comparison

Shoppers often compare private labels to big brands, especially in cost-sensitive categories. Merchandising can highlight cost savings while reinforcing perceived value by:

• Placing products side-by-side for a direct comparison.
• Using signage to highlight private label affordability.
• Emphasising premium ingredients to justify higher prices.

For example, private-label cereals can be placed next to well-known brands to highlight price differences and nudge budget-conscious shoppers towards the smaller brand.

Product placement

Brands that secure premium shelf space stay top-of-mind. While big brands often pay for prime shelf placement, private labels positioned next to them can benefit from comparison shopping.

If this isn’t possible, impulse-driven categories are the next best thing. Products placed near registers increase last-minute purchases, even when it’s a private label brand.

Brand storytelling

Emotional branding drives loyalty and repeat purchases. Merchandising helps communicate a brand’s story, mission, or values.

For example, sustainability claims can attract eco-conscious shoppers while in-store digital screens and QR codes allow brands to share their stories.

Exclusive offers and impulse purchases

Promotions, discounts, and limited-time offers can increase on-the-spot decisions which can contribute to repeat purchases in the future. Offers merchandisers can consider:

• Loyalty programs.
• Flash promotions and bundle deals.
• Limited seasonal flavours or retail partnerships.

Packaging design

Packaging influences first impressions, perceived quality, and brand recognition. Research shows that over 70% of consumers agree that packaging and product materials often influence purchasing decisions.

Ensuring that your product has a recognisable design that conveys premium quality is key to driving sales.

How Can Private Labels Benefit From Effective Merchandising?

Private labels have evolved from being seen as budget-friendly alternatives to becoming trusted high-quality brands that can hold their own. Their continued success? How well they are merchandised in-store!

Increased sales

Shoppers make purchasing decisions in seconds, and smart merchandising can nudge them towards private labels through strategies like:

• Strategic shelf placement.
• Prominent end-cap displays.
• In-store promotions.

With these strategies, private labels can drive brand visibility and boost sales.

Customer retention

If shoppers try and love a private-label product, they are more likely to repeat that purchase—but only if they can easily find it again. Here’s how brands can make that happen:

• Consistent shelf placement.
• Retailer loyalty programs offering points for private-label product purchases.
• Sampling stations close to where the product is displayed.

When your product is visible to consumers, it stays top of mind and can help you retain more customers.

Brand differentiation

Private labels can compete on more than just price. With premium branding and smart marketing efforts, they can be positioned as a high-quality alternative to big brands.

With distinct branding, private labels can build the brand perception they want, helping to turn them into a contending challenger.

Create a Brand That Thrives with Meridian

Success in retail is all about how effectively your products are merchandised. Whether it’s catching shoppers’ attention, driving sales, or building long-term loyalty, our team understands the power of impactful merchandising.

Get in touch with us today to hear how we can help you turn your brand into a challenging contender.