Other retailers now use a tiered branding system to identify the quality levels of private label products. For example, cheaper products at opening prices use muted branding because they don’t want customers to overestimate their quality – they only exist because of the price and they don’t question it. The next level, which is the national brand equivalent, uses a more upscale, eye-catching visual and verbal appearance to compete with leading brands. Finally, the premium tier is typically black and gold and uses terms like “select” and “signature.” There is no right or wrong way for a private label manufacturer to market their products – they simply need to understand their customers and develop meaningful products that meet their needs.

(RELATED: 5 takeaways from PLMA’s private label trade fair)

Emphasize innovation to create differentiation and loyalty

Brands like ALDI and Trader Joe’s have already shown that store brands can not only go mainstream, but even replace national brands entirely. These successful companies continually innovate, developing new products and refining existing ones to meet changing customer expectations and attract customers just like national brands – in some cases even better than the national brands. This focus on meeting or exceeding expectations creates emotional connections with audiences and strengthens not only retail brand loyalty, but loyalty across the store. Most consumers don’t even think of Trader Joe’s products as “private label” – they’re just products they love.

It is ALDI, as is Trader Joe’s 80% private label and consistently develops products that compete in quality with national brands, but in a mainstream way. By investing in product development, ALDI has managed to capture a significant market share in the U.S. and reduce the stigma of private label brands, despite limited assortment and poor in-store service. Brands with sufficient financial resources could go a step further and invest in innovative private label products that become market leaders in their own right, such as: Everything except Trader Joe’s bagel seasoning.

Remember: To beat the big name brands, you have to act like one

This is especially true now that the retail landscape is more fragmented than ever. Drug stores are now trying to become convenience stores, while club stores like Sam’s Club, BJ’s and Costco are investing in prepared foods and c-stores are investing heavily in fresh foods. Channels are blurring and online shopping and delivery services are reducing foot traffic in physical stores.

Ultimately, there is no single, right way to position a retail brand. All you need to do is set up strong processes for brand building, product development, innovation, team structure and marketing. The central theme of all successful private label strategies is that they use brands that meet the needs of their target audience – how you articulate your needs depends on how you want to go to market.

If your retail brands are currently experiencing growth, all of this effort might feel unnecessary. The hard truth, however, is that this growth is being driven in part by other forces. It may However, you have full control when you divert the consumer mindset from purchasing your private label because they have to buy it because they are want To.

The future of private label success lies in changing the way customers think by competing with national brands for innovation, branding and emotional engagement. In a world where retail is constantly evolving, the companies that will come out on top are those that view private labels as marketing tools for growth rather than cost-cutting options.