My husband uses Zyrtec on a regular basis for allergies. There's an interesting statement on the package that I haven't seen before. Maybe it's been there - maybe it's on other packages as well - but I have never noticed until now.

"The makers of ZYRTEC® do not make store brand products."

That's interesting to me. When I started my career at P&G, we could have made the same statement. But we didn't. Private label was another world at that time.

Today, private label products are pervasive. The trend is definitely up. When McNeil Consumer Healthcare makes that statement, there's a lot to think about, because that statement is intended for consumer information. And since they don't make store brand products, they're making a point that most likely is in direct opposition to the store brand alternative: it's not "exactly the same thing". All the innovation that McNeil can muster is devoted to their branded products. Clean and simple. Just like P&G.

As I have worked in several other businesses where we actually did make both branded and private label products, the issue there is much more complex. Serving two masters requires a much more thoughtful strategic and operational approach to customers and consumers. It's difficult to get it right. I have found that the key - as in most things - is understanding the consumer. It's essential to forge a partnership with a retailer that is working to meet consumer needs. If it's a pure profitability play things can get dicey.

When consumers shop private label they're normally looking for a more economical alternative to branded products. (Although it's true that in some situations they actually begin to prefer private label offerings - but that's a topic for another day.) For the manufacturer, getting beyond the price differential to figure out what the value proposition is can be difficult. How do you make the products different? What do you do when you launch new innovations? How do the manufacturer and retailer respect each other as competitors?

Probably a branded package won't carry a label about store brands when the manufacturer makes both. But it's worth thinking about what that label would say. Your organization needs everyone on the same page.