FEATURE
Jeff Lotman
piggybacking on another brand’s built-in recognition, you can expedite the possibility of zooming into a consumer’s wallet. 3. Better Positioning Of Shelf Space The way supermarkets display their merchandise is anything but random. Product placement is often the direct result of negotiations and “slotting fees” paid between retailers and manufacturers. And because retailers own the stores, manufacturers typically need to press every advantage to put their products in the best positions.
The situation gets especially sticky when retailers have their own brands. Under this regime, manufacturer brands get squeezed. Nowhere is this issue more contested than shelf space, the holy grail of retail. The difference in sales between food that’s located at eye level and food you have to stoop or stretch for is well-known — not for nothing is eye level called the “buy level.” Indeed, the smallest change can have a significant effect. For example, private-label brands are often situated to the right of the comparable manufacturer brand because this space generates more sales and can have a higher margin for the retailer. Private Labels Are Big Business In Every Business It’s no secret that CPG giants face strong headwinds today. Every year, a new startup promises to disrupt the industry. There’s always another marketing medium to master. Meanwhile, shareholders constantly demand ever-higher quarterly earnings. To combat these pressures, comestible conglomerates would do well to look at retail from a macro level. Here, they’d see a distinct pattern: From Amazon to Aldi, and from Trader Joe’s to Whole Foods, today’s retailers are becoming manufacturers. The statistics are staggering: 16% of Kroger’s sales come from its private labels. For Costco, that number is 20% — and 50% if you only consider wine.
Albertsons’ O Organics portfolio hauls in a billion dollars per year, while Target’s Cat & Jack roster is on pace to generate twice that. Amazon’s opportunity is even more massive: Its panoply of private labels is estimated to rake in $25 billion over the next four years. To be sure, private labels are not a magic cash register. The products still need to be marketed, distribution and manufacturing still need to be negotiated, a sales force still needs to be educated, and so on. And that’s to say nothing of consumer preferences, which are notoriously fickle. There are no shortcuts to success.
Jeff Lotman is a well-accomplished business veteran who has led his company to the forefront of the licensing industry through his years of experience and savvy entrepreneurship. He and his team have crafted a successful formula they call Elevated Branding, which has achieved stunning results. Over the years, Global Icons has established an impressive reputation and client roster that includes Hostess, Lamborghini, Magic Chef, Fireball, Turtle Wax, USPS, Sunkist, and Vespa, among others. Jeff has been a featured guest speaker at many leading industry events including Entertainment Marketing Conference, Young Presidents’ Organization, SPLICE, Licensing Show, Restaurant Industry Conference, LA Roadshow, UCLA and others. He has also been profiled numerous times, most notably in The New York Times, The Los Angeles Times, CNBC, and FOX; and he is a distinguished member of the Licensing Industry Merchandisers’ Association (LIMA) and the Licensing Executives Society (LES).
TOTAL BRAND LICENSING
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