Pittsburgh-based General Nutrition Centers (GNC) has been synonymous with healthy living through healthful products since 1935. Its chain of retail locations extends around the globe, and its reputation...
Read More...At the end of July, the National Football League owners, players, and fans breathed a collective sigh of relief when the NFL and NFLPA finally reached a deal that ensured labor peace for the next decade....
Read More...When US Cavalry Store opened its first location 38 years ago, it did so with one goal: to fill a gap. Prior to the store’s opening, military members had two venues to purchase what they needed: government...
Read More...With brand names like Electrolux, which originated in 1909, or AEG – a global brand that was established in Germany in 1887 – Electrolux Global Brand Licensing has been offering companies brands with...
Read More...For more than 100 years, the National Cattlemen’s Beef Association (NCBA) has represented the interests of U.S. cattle breeders, producers and feeders. The organization’s goal is to create “a dynamic...
Read More...When Peter Tedeschi stepped in as president and CEO of Tedeschi Food Shops four years ago, complete unification was his first mission. The convenience store brand – with 190 stores in Massachusetts,...
Read More...Pep Boys has been in business since 1921, and it was only about two years after the first location opened that the company created its iconic logo – the caricatures of founders Manny, Moe & Jack....
Read More...It takes more than good customer service for a retail business to succeed, but a retail business surely cannot succeed without it. That is one of the keys to the success of the New Hampshire State Liquor...
Read More...The great thing about having a full line of services is that it provides companies with a diverse portfolio, giving them the ability to weather storms. When one product or service is in low demand, the...
Read More...In the beginning, there was no Walmart in town. Lynn Morris and his wife, Janet Morris, established Family Pharmacy’s first store in 1977 in a shopping center in Ozark, Mo. “Back then, that was what...
Read More...The world of products aimed at “tweens” is an ever-changing one – what’s hot one minute will inevitably become passé in short order as new characters and brands enter the marketplace. The creators...
Read More...Many of the largest entertainment studios in Hollywood take an exhaustive approach to the marketing of their properties – they will create anything and everything that relates to a television show or...
Read More...Most popular children-oriented brands start their lives as traditional entertainments with fixed production cycles such as television series, films and comic books. While new characters, settings and elements...
Read More...When some of the most iconic brands around the world come to you for help, you know you’re doing something special. Since Global Icons was established more than a decade ago as a premier brand-licensing...
Read More...For 20 years, Jillian Michaels has inspired countless people to lose weight and lead healthier, fulfilling lives through a combination of high-energy workout routines, easy-to-follow diet plans and motivational...
Read More...In any business, companies have to remained concerned about what their clients think. At B-O-F Corp., associates stay focused on this question its clients might ask themselves: “What has B-O-F done for...
Read More...When Dansko opened a new distribution facility in Pennsylvania and needed to fill orders for shipment to 2,500 premium U.S. and international retail locations, it turned to Kiva Systems Inc. to ensure...
Read More...There is a food revolution unfolding in North America, and EVOL Foods is leading the charge. The producer of frozen organic pizza, handheld and entrees has pushed the junk food out of grocers’ freezers...
Read More...Since its establishment in 1926, the Chain Drug Marketing Association (CDMA) has helped give its members an edge in a highly competitive retail marketplace. Initially founded solely to support the marketing...
Read More...During the height of the Internet boom in 1999, former database technology consultant Alan Homewood aspired to start his own web-based business, but struggled to develop a specific plan. After extensive...
Read More...
This private label sales and marketing broker reevaluated its processes and found a way to offer its customers more for less. Several years ago, Federated Group, a retail brand owner and broker representing manufacturers at retailers and wholesalers, adjusted its business model. The company uses commission it receives from manufacturers to develop and expand its customers’ brands and drive their businesses.
Although a small nuance in the grand scheme of the business, this change has enabled Federated Group to distinguish itself as a leader in the industry. “We take this approach because we’re a brand owner and developer,” said Dave LaPlante, president and CEO. “We wanted to differentiate ourselves from the rest of the competitors in the business.”
When developing a brand, retailers need someone to handle design, quality assurance, supplier relationships, and in-store execution. Rather than retailers having to hire that expertise on their own, Federated Group puts those people in place by taking those manufacturing-based commissions and investing into helping customers develop their brands.
This approach has expanded Federated Group’s customer base, as it now appeals to retailers who want to turn control of their private brands program over to a third party as well as retailers looking to have managerial control. “Rather than appointing us to negotiate with the manufacturer and come back to the retailer with a finished program, we qualify the manufacturers and prepare that information for the customer,” said LaPlante.
“The manufacturers then present their various approaches to the retailer, enabling the customer to decide whom he wants to buy from, how he wants to buy, and what he wants to spend,” he continued.
This approach not only satisfies the retailers and the manufacturers, it also produces a better product. When comparing and contrasting its business model against those of its competitors, Federated Group found value in having customers intimately involved in the process. Both parties end up being more successful because they’ve invested more into the results.
In addition, manufacturers are happier because they’ve had a chance to show their expertise about private label categories, what successful programs look like, and how to execute them. “By enhancing our business model and being the broker between the retailer and the manufacturer and bridging that direct connection, our customers are more successful and able to sell more product,” LaPlante said.
Federated Group is the holding company for four revenue-generating divisions. Federated Foods is the retail portion of the business. Within Federated Foods there are three national-brand equivalent products, Hy-Top, Parade, and Red & White, as well as an entry-level price point brand, Better Valu, that is growing exponentially as shoppers look to stretch every dollar.
Next is Federated Foodservice, a buying group that allows broad-line or supermarket foodservice distributors to access national, competitive prices. A big piece of the company’s foodservice industry deals with branded companies such as Sara Lee, Nabisco, Kraft, Otis Spunkmeyer, and Tyson.
Third on the list is SailPointe Creative, the division of the company that handles packaging, design, production, pre-press, and marketing support for Federated brands and many other retail and wholesale private brands. The fourth division is logistics supply chain company Golden Bay, through which Federated Group buys and consolidates its own products.
“We use Golden Bay as a transaction-processing group for one of the largest foodservice entities in the country,” said LaPlante. “We consolidate and manage transactions for hundreds of millions of pounds of frozen fruits and vegetables per year.”
Competitive advantages of Federated Group’s multi-pronged approach lie in its supermarket foodservice group, which makes up roughly 25% of its business, and in its pre-press capabilities. Federated Group is one of the only private brands brokers with its own foodservice group, and the company bought dedicated time at a pre-press house, which not only handles its pre-press consolidation but also its photography.
With that relationship, Federated Group now has the ability to get its pre-press done within 10 days after the die line (a completed creative piece on computer). “We are faster by 45 days on our development than we were a year ago,” said LaPlante. “We took our process from nine months to six months and from six months to four months. Our goal now is to get it in the 90-day range.”
This speed-to-market ability is key for Federated Group, which produces an average of 700 products per year through its inhouse R&D. The company doesn’t have a separate R&D department, instead approaching R&D as a collaborative process that includes its quality assurance and creative departments and its category development managers—the ones working with the customers and manufacturers to come up with the initial idea.
“We have to make sure that if we come up with a product we’ve targeted a quality level, we understand the expected level of quality from the QA people and are sure the manufacturer can produce it to that level,” said LaPlante. “The creative department then works with the category development managers to decide the look of the product.”
Five years ago, with double the number of employees, LaPlante said Federated Group struggled to develop 200 products a year. After looking at its process, taking it apart, and reinventing it, the company found efficiencies but also weaknesses that were possible to fix.
Inhouse, the company developed a project product lifecycle management system that keeps everyone involved, from the manufacturer to the printer, and on target with their due dates. The relationship with the pre-press house cut down on the manufacturing delays that often slowed the speed-to-shelf turnaround necessary for private label products to compete with name brands.
LaPlante said every process has a hidden secret to it, and in the creative design process, whether or not the pre-press plates are at the printers when the printer needs them can determine the success or failure of an entire project. Innovation, he said, has been key to Federated Group’s success in retooling its business platform and its entire process.
“We listened to our customers and to others in the industry talk about what was broken in the private label business,” he said. “They talked about speed-to-shelf and efficiency; you want it to go fast, but it will cost you more. We’ve found a way to go fast and cost our customers less.”