Brand leverage, of which consumer awareness is an element, remains a key for vendors who feel themselves vulnerable to the growing percentage of private label skus that home center chain retailers are putting on their shelves. For example, longtime MSI client InSinkErator has done little consumer advertising over the years, but appears firmly ensconced on the shelves of THD and Lowe’s because, among other things, it is the overwhelming favorite of plumbing contractors. Klein Tools, which has relatively low consumer awareness, but is a favorite of electrical contractors, has a growing position at THD.
Honeywell has both consumer awareness with its line of thermostats and is a favorite of HVAC contractors, although longtime MSI client White-Rodgers has overtaken Honeywell in the trade. Nonetheless, Honeywell remains established on retail shelves primarily because of its strong consumer awareness and the residue of its trade preference. Pella has strong preference among trade contractors, but like Honeywell also has high consumer awareness, so it is ensconced at Lowe’s. Consumer awareness plus trade preference is the perfect combination.
In a nutshell, vendors with brands with strong trade preferences need to nurture that preference among their trade channels, not only to strengthen their professional sales, but to create leverage with the home center chains.
P.S. Vendor positioning at Menards is another story we’ll cover in the next blog post.
