Customer Quote by Greg Thain
““Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an ideal category for private label to take the lion’s share, has seen private label share decline. The top-five leaders, Danone, Yoplait/Sodiaal, Yakult Honsha, Nestlé and Müller, represent half of all yogurt sales. Their innovation has been developing premium products, like pro-biotic yogurt and yogurt enhanced with fruit, and they launch continually; between 2006 and 2010 Danone introduced nine new products. Although retailers have developed brands, Aldi has Fit & Active non-fat yogurt and Kroger has Carb Master Yogurt, they haven’t won over consumers, owing to their lack of innovation. Both are seeing sales decline.””
About This Quote
Source Article: Dairy Market Analysis, 2011
Innovation is the decisive factor for manufacturers to stay ahead, while private label lacks it and loses market share.
In simple terms: Innovation drives success; lack of it leads to decline.
Key Takeaway
Focus on continuous product innovation.
Themes
competition
market competition
product development
brand loyalty
consumer trends
Mood
analytical
critical
Type
business
industry
When to use this quote
- launching new yogurt lines
- strategic brand partnerships
- consumer research
- marketing campaigns
Key Concepts
premium positioning
product differentiation
R&D investment
Questions to Reflect On
- How can private label brands innovate effectively?
- What barriers prevent retailers from investing in R&D?
A Different Perspective
Private label may succeed with strong branding despite limited innovation.
