Giant Eagle has its own private label brands with lower prices available. Usually, when I shop in Giant Eagle, they always have their brand up in the top shelves next to other compatible products, and the price will be next to each other. So, usually customers will choose a cheaper brand when the same products have almost the same unnoticeable qualities. For example, last week I walked into the spaghetti aisle with tons of brands and choices and got very confused which to buy. I honestly bought the Giant Eagle spaghetti rather than others that are $2 to $3 more expensive than Giant Eagles’, because they look like they would have the same quality.
In order to non-stop expand and improve its supply network, Giant Eagle are seeking and partner with sourcing services and solution providers. In May this year, Giant Eagle chose to partner with PROACTIS, a global Spend Control and eProcurement solution provider, as its strategic sourcing partner for the company’s private brands. According to Business Wire, “It selected PROACTIS to enhance its Giant Eagle brands program by improving and extending its current supplier network communications to ensure that it continues to deliver the best in quality and value for its customers.” Hodierne, Senior Director of Own Brands, stated that “By enhancing our internal team with PROACTIS Sourcing Services, we will be able to dramatically increase the number of current and prospective suppliers we communicate with, ensuring that our customers only get the best when purchasing our Giant Eagle brand products. With PROACTIS, my team will be freed up from the tactical time-consuming activities and can focus on other key initiatives.”
Target Market: As Giant Eagle brand provides the uncompromising quality products with lower prices, I think this private label brand is for middle and lower middle class.
The strategy Giant Eagle has for Natures Basket is the dedication of the labels for organic food seeker, which satisfy the consumer interest in health and fitness issue. The line, which spans a wide array of categories including grocery, dairy, frozen, and health and beauty care, is merchandised in one area, for customer convenience. Moreover, Natures Basket’s packaging is more focused by Giant Eagle to make it more appealing and high-end. Indicated on the packaging that the products are organic is a strategy to attract the customers and to get their trust in the products. With the original Giant Eagle products compare with Nature Basket products for the same categories as food, the consumer will definitely choose Natures Basket because of the “organic” label, and the fact that there is not much difference in price. Giant Eagle often put Natures Basket on sales or offer promotion like buy one get one free or value pack only with Giant Eagle Advantage card.
The target market for this private label brand must be middle class as organic food is usually having higher price. But...