Domaxel boosts its house brands

The approach chosen when the company began to sell private labels in 1984 was chiefly shaped by the buying side. “The goal consisted in achieving a substantial price margin with branded products and encouraging loyalty among affiliated retailers through products unique to us,” explains Marc Blanchard, who is responsible for the house-brand structure created in 2001. Over the years a dozen such brands have come into existence, including Gemo for decorative lines, Grand Air for the garden and Ironside for hand tools.
Weldom stores realise up to 30 per cent of tool sales with their orange line.
Until 1999 a variety of trading formats were in existence under the umbrella of the Domaxel group, so that a number of different house brands were decided on as well. However, when the retail business was bundled together under the Weldom name, the question of house brands arose: Whether to present one or several in the stores? “At the launch of the retail format we were not keen to blend its image with that of the products. What we wanted to avoid was giving customers the impression that they have no choice.”
Responding to consumer wants
Marketing aspects and consumer wants form the basis of the new strategy. Domaxel makes use of a market and consumer survey as the basis for examining each individual brand in minute detail. “The starting point in every product category is the customer offer. This approach differs greatly from a way of thinking that puts the spotlight on purchasing.” Generally speaking the retailer desires a level of quality geared to the market leader, a price that is 15 to 20 per cent lower, and added value for his customers.
The revamping of the Gemo line of paint for this spring demonstrates the group’s approach. It has emerged from a survey carried out in the stores by Sofrès that consumers wish for more information within a given product category to help bring them to the article they are looking for, and a broader range in respect of quality and price. Domaxel has introduced a new assortment that takes into account these wants. It is based on an improved formula, a new line in design, and more informative and attractive packaging. Marc Blanchard is satisfied that, “This range will not just be positioned at the entry level as was the case previously. The packaging gives the product an improved quality image and enhances the overall image of the Gemo brand.” He is aiming to achieve between 20 and 25 per cent of paint sales with Gemo instead of the…