Innovation in eco-packaging in private labels

Abstract

The marketing power of private labels (PLs) is a consequence of the design of successful strategies by retailers. Such strategies have allowed retailers to differentiate their own items by generating a greater consumer brand loyalty. Innovation in the design of sustainable packaging or eco-packaging has been one of these strategies. In these ways, retailers have managed – in addition to their ability to adapt to the needs of consumers in terms of convenience – to strengthen their commitment to food security and environmental protection. This paper analyses the role of eco-packaging strategies as a tool for differentiating PLs in terms of creating higher levels of consumer preference.

Keywords:

• Eco-packaging
• private labels
• innovation

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Addendum

Notes

1. According to the Sustainable Packaging Coalition (2006), sustainable packaging must meet the following characteristics: (a) It must be beneficial, safe & healthy for individuals and communities throughout its life cycle; (b) It must meet the market criteria for both performance and cost; (c) It must be sourced, manufactured, transported, and recycled using renewable energy; (d) It must optimize the use of renewable or recycled source materials; (e) It must be manufactured using clean production technologies and best practices; (f) It must use healthy materials throughout its life cycle; (g) It must be designed to optimize materials and energy; (h) It must be effectively recoverable and capable of being used in closed biological and/or industrial loop cycles.

2. Target's Archer Farms line, for example, is rarely identified by many consumers as a private label thanks to its distinctive label and color scheme. In the United Kingdom, the supermarket chain Tesco launched Venture Brands in 2011 to compete directly with national brands. Originally the products were not labeled as Tesco's, though in some cases the supermarket name has been reintroduced. The branding was so successful that some of the Venture products were eventually sold outside of Tesco stores; the store's Chokablok ice cream, for example, was a hit in parks, zoos and other venues. In another successful example, the German supermarket chain Aldi sells its Moser-Roth chocolate private label without the Aldi logo, and successfully competes as a high-quality chocolate brand. The packaging includes shining gold lettering and golden borders (see Henkes et al., 2013).