K-Favourites Archive - UNICconsult Strategieentwicklung GmbH

The food retailer Kaufland has now expanded its private label offering. The new value-added brand “K-Favourites” offers around 160 items. It is aimed at all people who want to “treat themselves to something special in everyday life.”
The quality brand complements the price spectrum between entry-level and premium.

The brand is intended to offer clear added value, such as extraordinary ingredients, a special place of production or
a long maturation period. The range extends from pasta and meat to chips and chocolate to dairy products and delicatessen. It is supplemented by products from the pet food and hygiene sectors. “Private labels are more than just a remake of A-brands today. With the top products from K-Favourites, we are going our own, confident way”, explains Stefan Hüttemeister, Managing Director Brand Management International at Kaufland.

Pricing for private labels: Kaufland occupies not only the entry-level price ranges

Dr. Hans-Christian Riekhof, Professor of International Marketing at the Private University of Göttingen, sees private labels as an increasingly important, strategic component of the retail assortment. “They contribute – if done correctly and especially in the long term – disproportionately to the company’s results. In addition, they help to create a price architecture in the assortment in which the entry-level price ranges are also adequately represented.” For the pricing expert, they are both “assortment and price strategically an extremely important response of the trade to
the price pressure in the market”.

What is remarkable about the Kaufland strategy, which other retailers also strive for, is that with the private labels not only the entry-level price ranges are occupied, says Riekhof. “Such an assortment and price strategy will have to be worked on in the long term in order for it to fully pay off. The brand manufacturers in the middle price ranges will be the first to notice when they are delisted.”

Photo: © Kaufland