Branding snacks as a Target opportunity

Target has identified snacks as an opportunity as it has sought to brand its assortment both in supercenters and discount stores. While supercenters have a larger array, in some ways, the retailer has a unique and perhaps more significant opportunity to brand snacks in discount stores.

It has more discount stores, for one thing. For another, snacks can be more prominently presented to discount store customers who might not shop food at Target supercenters. The retailer associates itself with an upscale sensibility in the snack category, although it also attempts to reach the shopper who might splurge occaisionally on the upscale end, but looks for bargains otherwise.

A study by market research firm The Hartman Group suggests that consumers want to incorporate what otherwise might be indulgence products on an occasional basis, but still are more cost-conscious every day. Target incorporates bargains and sophisticated indulgence on its store shelves. It offers an item such as cashews in pieces and halves under its value private label Market Pantry next to Planters 11-ounce canisters at $3.49 versus $5.39, respectively, even as Target’s Archer Farms premium products in jars lurk close by.

In this case, price isn’t the point. Flavor is, and often in novel examples. Besides flavors that might be anticipated, such as salt and pepper, are the more unique varieties, including Dill Pickle.

The snack category has been significant to Target as it renovates its store base from the early part of the decade. Within that effort, private label in snacks and other critical categories is an ongoing consideration as a branding factor, as well as for other reasons.

In a May conference call, ceo Gregg Steinhafel said Target maintains an “emphasis to build our own brands both in food and nonfood categories.” The reason is plain to see. “They hold or carry significantly higher margins than the national brands and our food brand penetration continues to grow,” he said.

By using categories familiar to the public to shift attention toward impulse segments at a value and with a clear Target identification, the retailer hopes to establish its brand message in categories that consumers shop more frequently than is true for general merchandise.