Brand versus private labels Download Now Download Download to read offline. Aamir chouhan Follow. Private Label 2. Brands Versus Private labels : Fighting to win. Brands versus private labels : Fighting to win.
Brands vs private labels. Trading area analysis. Strategic management, cg, sr, and ethics. Site selection. Knowledge management strategies. Identifying and understanding consumers. Dea analysis. Related Books Free with a 30 day trial from Scribd.
Dry: A Memoir Augusten Burroughs. Related Audiobooks Free with a 30 day trial from Scribd. Empath Up! Tahira Memi. Sreemayee Ghosh Paul. Lavanya Gunabalan. Show More. Views Total views. Private label penetration in food has been increasing. The Private Label Manufacturers Association performed a pricing study that compared a basket of brand name products to a basket of private label products.
So, for basically the same basic product at a lower price, why would anyone buy the branded alternative? One reason, is brand loyalty. Also, the top brand manufacturers are typically very good at coming out with new, innovative products.
Finally, many cultures use branded products as status symbols. This has been a relatively new development for emerging markets as certain socioeconomic groups improve their wealth.
This is positive for the branded manufacturers as they continue to push into countries such as China, Russia, and India. Exhibit 4 shows the price gap widened from through During this period of time private label market share was increasing at a steady rate. This was due to a combination of three things: lower prices versus brand products, improved quality of private label products, and falling consumer confidence.
As we exited the recession toward the end of , consumer confidence started to come back. Exhibit 5 shows the price gap closing from through As a result, branded goods regained volume market share. As shown in Exhibit 6 and 7, the battle seems to have come to a stalemate as the price gap has shrunk and consumer confidence has waned. For the latest four weeks ending September 3, , branded prices have increased 6.
Private label prices increased by 9. We carefully consider the threat of private label when assessing the fundamental strength of a credit.
In general, those companies that have focused on growing their private label presence have benefited with better profitability. A company with a narrow product focus and weak market position is at greater credit risk. Adaptability - Smaller retailers have the ability to move quickly to get a private label product in production in response to rising market demand for a new feature, while larger companies might not be interested in a niche product.
Control over branding - Private label products bear the brand name and packaging design created by the retailer. Control over profitability - Thanks to control over production costs and pricing, retailers therefore control the level of profitability its products provide.
Disadvantages The disadvantages of adding a private label line are few, as long as you have the financial resources to invest in developing such a product. Otherwise, you could miss out on opportunities if your manufacturer runs into problems. Difficulty building loyalty - Established household brands have the upper hand and can often be found in a variety of retail outlets.
Your product will only be sold in your stores, limiting customer access to it. Of course, limited availability could also be an advantage, giving customers a reason to come back and buy from you. Join , entrepreneurs who already have a head start. Email address Get updates. Thanks for subscribing. This gives a third party increased flexibility in what kinds of products they sell and in what ways. Private label companies are typically not in close contact with people other than the businesses working with them, or individuals who love industry research and reading eCommerce books.
Private label brands are developed and managed by retailers. A retail office is composed of various team member specialties that ensure private label goods achieve maximum ROI. Supply chain specialists are responsible for managing how raw goods are transformed into ready-made products for selling, and every step in between.
These professionals oversee the stages of private label goods in order to become successful in-store brands. Supply chains are complex and involve numerous moving parts on any given day. There are material suppliers, manufacturers, distributors, government agencies, wholesalers, retailers, and more. Supply chain experts ensure each element is in cooperation with the others, including wholesalers. Information products are private label products that aren't managed by supply chain specialists.
Information products, like eBooks, courses, and audio downloads, are used by many types of eCommerce businesses. These products answer a specific question or multiple for the person who bought them.
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