Grocery Giant H-E-B Launches New Brand: How They Diversified Using Top Retail Trajectories
H-E-B’s latest brand launch might be the new fore-front of customer loyalty. Building customer loyalty has never been so easy – so long as you know what you’re doing. For one supermarket chain, the answer to customer loyalty is built into their latest brand launch. H-E-B, a chain based in San Antonio, Texas but operating stores across the state and across the border, has encapsulated three top retail trajectories to help drive diversification in the marketplace.
What are they doing differently? For one, H-E-B is stepping up their brand recognition by putting their name all over their merchandise and while private brand development helps increase diversification and boost profits, its’ not all the supermarket aficionado is doing.
So, which other branding tactics is the grocery giant employing to help them stay future-focused and how do these actions help tip the margin needle? Carol Spieckerman, retail speaker and President of Spieckerman Retail, gives her insight on H-E-B’s new brand launch and the brand’s top three retail trajectories.
Carol’s Thoughts:
H-E-B’s latest brand launch might just seem like a simple stretch, but it exemplifies three of my top retail trajectories. First of all, the private brand palooza, retailers are doubling down on private brands again because they drive differentiation and they pump up profits. H-E-B branded products really could be seen as the ultimate in private branding because their name’s right there on the front of the merchandise.
So this is a great way for H-E-B to monetize customer loyalty and keep the brand recognition going. Secondly, diversify or die really is retail’s new mantra, in this case, H-E-B’s diversifying into new products and new categories with a new brand, all with one launch. And finally, discretionary dreams, grocery is a notoriously low margin category, and that’s why you’re seeing more grocers go into apparel and home and other categories that are simply more profitable. So H-E-B is really firing on all three cylinders here. They’re creating private brands that drive differentiation and diversification into categories that really move the margin needle.
