AWG’s Convergence Initiative has three core workstreams: Assortment Optimization, AWG Brands Strategy, and Technology-Enabling Capabilities. Over a year into the Convergence work, teams have made significant progress on a variety of AWG Brands components.
Consumer Survey Guidance
The May 2021 survey of over 3,000 grocery consumers helped inform these brand positioning outlines for AWG Brands and the AWG Brands Member Council that consulted on the positioning development. Key findings outlined below influenced these final outcomes.
- Top reasons to purchase private label: 60% of consumers say lower price, 56% say quality as good as national brands.
- 68% of consumers compare private brands to national brands when shopping. 15% compare private brands to other private brands.
- If a private brand product is not available at a store, 84% of consumers purchase a different product at that same-store rather than going to a different store for a private brand product. 40% buy a different private brand product, 44% buy a national brand instead.
Brand Positioning Outlined
Taking the insights from the consumer survey and the original intent of each brand, the team realigned and defined how each AWG Brand goes to market.
How Do You Mix the 4 AWG Brands?
Positioning in Practice
Assortment Reviews
To ensure the right mix of products and competitive assortment comparisons, comprehensive category reviews are helping the team rationalize, develop, and realign by brand the products in the overall AWG Brands assortment.
Compare To National Brand Equivalent
As Best Choice items should compare to national brand equivalents, the team is using supplier-provided standards as well as category knowledge to verify national brand equivalents.
Pricing – Costs and SRPs
Sourcing teams are actively conducting requests for proposals and holding critical supplier conversations to acquire better cost of goods or engage in cost increase mitigation when possible. Base cost and suggested retail pricing are also being assessed on an ongoing basis in this turbulent inflationary environment.
All category assortment, national brand equivalent, and pricing reviews will continue consistently going forward as categories are updated and as work continues in the Assortment Optimization core initiative.
