BRANDS VERSUSPRIVATE LABELS
FIGHTING TO WIN
1. Due To Higher Profit Margin
Reduce The Cost OF Delivery
Eliminates The Middle Man
Increases Supply Chain Efficiencies
2. Easy to differentiate retailers
3. Set Your Own Price
4. saves from economy fall
Major Private label retailers in India
1. Improved product Quality of Private Labels
2. Development of Premium Private Labels
3. European retailer success
4. Entry In New product categories
So, Is This The End Of National Brand ?
PEOPLE DIE FOR BRANDS !
Brands are established
Strong Economy leads to strong brand
Brands attract people to visit stores
Should
BRANDS
then
Manufacture
For Private
labels ?
ADVANTAGES
Use of excess manufacturing
capacity
ADVANTAGES
Better Control over Market
ADVANTAGES
Competitive Advantage
Disadvantages
Bad Relation between retailer
and manufacturer
Disadvantages
Increased manufacturing and
distribution Complexities
Disadvantages
Can be a cause to hurt your own
brand !
Evaluate Private-label Business
•Do private label audit
•Evaluate Business on full costs rather than incremental cost
•Examine the effect on your brand
•Close the excess capacity
Make The brand strong: Invest In brand equity !
Innovate: With Caution !
Using fighting brands
Build relationships
UNDERSTAND YOUR CUSTOMER
TEACH YOUR RETAILER
Manage each category; know your product
exploit sales-promotion tactics: capture that retail space
Don’t underestimate the private brands
>> DISCLAIMER
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DURING AN INTERNSHIP BY PROF. SAMEER MATHUR,
IIM LUCKNOW
CREATED BY :
NAGARJUN KS
SIT,TUMKUR