This is the idea, I think.
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PL private label

Trade in: the number of shoppers your idea brings into the category
PL is a great alternative for some shoppers. But who’s bringing shoppers into the category? Your brand has to. Through marketing, which PL doesn’t do, your initiative has to create category awareness and need. The best example of this would be any brand in a low-penetration category, like packaged meats, or Swiffer in quick-cleaning.
Swiffer’s key shopper barrier was that consumers didn’t see it in the aisle because they couldn’t recognize the “broom” that was packed in the starter kit. Swiffer worked with the retailer to reinvent the aisle and hang brooms fully assembled and out of the box. Now there’s no missing the quick-cleaning aisle. Retailers benefited with PL sales, but Swiffer has grown disproportionately (upwards of 20%) and the retailer would never have grown the category without Swiffer’s innovation.

Trade up: the number of shoppers your idea trades up to premium
This is the classic innovation strategy. In any category, there are consumers who want multiple benefits and are willing to pay a premium: anti-bacterial and moisturizing hand soap; low-fat and organic salad dressing. The bonus here is that your base lineup now plays a critical role in taking the consumers who traded in and trading them up. It’s unlikely the retailer will play this strategy and carry a base and premium offering in the same label, but if PL does copy innovation in your category, then your job is tougher, and you need to stay ahead.
In the surface cleaning category, Flash, a U.K. brand that sold wipes, took a portfolio approach to grow the category while keeping PL at bay. It restaged its wipes business into a super-premium tier with additional scents (from 3x pricing to 3.7x vs. PL) to trade up loyal shoppers, and launched low-tier wipes, matching PL shelf price within 10% (via down-counting but still with a 2.5x pricing cost/wipe). This launch increased sales by 20%.

Trade across: the number of shoppers your idea trades into adjacencies
Everybody’s talking about scale and multi-brand ideas. The beauty of these is that they serve consumers with a one-stop shop; “all you need to look glamorous on a Friday night” in one display. One idea, multiple category purchases.
But why invent a big idea when your retailer already has events they want to drive? In the U.K., Asda has an annual in-store charity program called Tickled Pink, with proceeds going to breast cancer research. By simply designing a promotional pink SKU across a portfolio of products, you create a meaningful lineup for the retailer and secure prime-time in-store display, driving cross-category purchase

http://strategyonline.ca/2011/10/05/getting-along-with-priva...