4 tools and 6 tips to create a good price strategy with distributor brands

Profit margins in the food sector are often limited. This is particularly true when it comes to habitually consumed products and distributor brands. That’s why it’s essential for retailers to design a good price strategy for these products. The increase in the costs of raw material and auxiliary materials in addition to the impact of the COVID-19 pandemic on the world economy is making it so price is again decisive when filling up shopping baskets. This is the reason why it’s the best time to launch food products under a distributor brand and implement a good plan. Here are some of the things that must be taken into consideration:


Increasing margins or achieving differentiation

If you choose a product with a distributor brand, one good strategy is to increase the profit margins. Distributor brands often occupy the low-price niche in the market. This is particularly interesting at times like now when the economic impact of the COVID-19 pandemic has again made price a decisive buying factor.

Having a distributor brand also helps with supplier negotiation as they’re forced to add a little extra when you have your own product.


Creating a brand image

There are many factors that influence brand image and price is one of them because it creates the idea among consumers that it must be in line with the brand’s objective. It is also for this reason that the price must be invariable at all points of sale located in the same geographic area. What’s more, it must be situated in the same manner as all other brands of the same product. In other words, it must always be above or below. Therefore, there’s one decisive question: What exactly is the place for this brand? In order to find the answer, you not only have to consider the costs but also study consumer behaviour.


Analyse the competition

To analyse the competition, you first have to determine what that competition is: choose the brands that actually compete with the product in question because not all are direct competitors even if they produce the same or similar products. For products that are highly sensitive to price or those that are likely to be replaced by another product from the competition, the price must be set in relation to this.



When creating a promotion with a distributor brand, the supplier will not likely offer much economic support because they’re already offering the product at a lower price. However, retailers will have full control to conduct their own promotions and align them with their own goals when there is a commitment to creating a distributor brand. It’s also easier to analyse the results and verify the profitability of each action since the entire process is under their control.


Special Offers and Sales

For retailers, lowering prices at certain times is quite the challenge. They have to choose very wisely as to when and have clear objectives as well as reasons to justify it all. This is even more true when it comes to a distributor brand because the loss must be assumed by the very retailer. To this end, artificial intelligence tools are essential to controlling the timing.


Study the data

If there are any doubts, look at the data. Data analysis is now the best ally for designing sales and marketing strategies. In fact, the endless number of tools out there make it possible to quickly redirect different strategies. Thus, retailers can detect changes in the market to adapt their prices to the evolution in consumer demand and behaviour changes or buying habits by analysing their sales data. There are many options in the market that offer useful tools for creating a good pricing strategy for distributor brands. Some of them include:

⇒ Minderest: it came about in 2012 as one of the first companies focusing on offering services centred on market pricing business intelligence. It is mostly aimed at retailers to give them data on their competitors. The company also works with manufacturers to determine whether their pricing strategy is being respected throughout the distribution chain.

⇒ NetRivals: this company specializes in offering a complete market vision through competitive price analysis to make decisions. It can help brands and manufacturers analyse the evolution of the prices of their products in different electronic commerce outlets and countries. This tool also warns of any changes in price in the distribution channels and monitors opinions of the different products.

⇒ Itelligent: for more than a decade, it has been developing different projects linked to the digital transformation. Various data platforms have been created for this purpose. They include NetRetail, which focuses on monitoring one’s own prices as well as the competition’s in the retail sector.

⇒ Omnia retail: it’s responsible for creating the very first dynamic price setting software in Europe. The two founders developed it to help their customers maintain control of their prices with automation and information.

  • Antony Ontiveroz
    Posted at 08:04h, 10 December Reply

    Howdy! I just wish to give a huge thumbs up for the nice info you’ve gotten here on this post. I will probably be coming again to your blog for extra soon.

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