Defending Your Brand
For Independents, brand value building is essential to differentiate themselves from the competition. Independent Distributors and Manufacturers are facing the same threat, as low-price private label products become more prevalent in the market.
The good news is this: Independents are in an excellent position to defend and grow branded products.
Value-building strategies are at the core of the performance of those Independents who are winning against private labels.
“While Nationals are selling value proposition or value-added, based on National brand scale planning and execution, Independent Distributors, for the most part, compete by providing value in the form of process cost reduction and service flexibility,” according to Chris Weiler, President/CEO, Weiler Corporation, Cresco, PA.
“Progressive Independent Distributors leverage the product and application knowledge of their Manufacturer Partners to deliver this value to their end customers,” says Weiler. “This creates a synergy that increases the collective value of both Independent Distributors and Manufacturers thereby decreasing the risk of end-users switching to low-price, private label alternatives.”
Historically, it’s true that most Independent Distributors have been very brand focused.
In fact, brands have become a key part of the identity of Independent Distributors.
“I think most independents really shy away from knock-off brands and low-value brands,” said Mike Baker, President, Quality Mill Supply Company, Franklin, IN. “Management and our sales representatives like supporting specific brands and they become part of our company culture.”
Kathleen Durbin, CEO, General Industrial Tool & Supply, Burbank, CA says, “Not only do Independents promote their stocking brands, but they become technical experts in those products to better distinguish the value they bring to their competitive markets. This dynamic helps to create more value back to the Supplier by the education to the end-user and the marketing of the Supplier’s brand, thus preserving the intrinsic relationship between Independents.”
To read the entire article from the 2013 AD Today click here.