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Brands Versus Private Labels Fighting to Win
Who is private label?
What are private labels?
WHY ARE PRIVATE LABELS PREFERED BY RETAILERS?
WHY ARE PRIVATE LABELS PREFERED BY RETAILERS? LET’S LOOK AT ADVANTAGES
HIGHER PROFIT MARGINS
REDUCED DELIVERY COST
ELIMINATE MIDDLE MAN
DIFFERNTIATE RETAILERS
SET YOUR OWN PRICE
SET YOUR OWN PRICE
Private Label Brands in Indian Retail Industry
COMPANY NAME DEGREE OF PENETRATION
TRENT 90%
RELIANCE RETAIL 80%
PANTALOON 75%
NILGIRIS 38%
PIRAMYD 30%
FOOD WORLD 22%
IMPROVED QUALITY PRODUCTS
IMPROVED QUALITY PRODUCTS
EUROPEAN PRIVATE LABEL SUCCESS
ENTRY INTO NEW PRODUCT CATEGORY
WHAT HAPPENS TO NATIONAL BRANDS?
WHAT HAPPENS TO NATIONAL BRANDS?
NO
PEOPLE STILL LOVE BRANDS
BRANDS ARE ESTABLISHED
STRONG ECONOMY BUILDS STRONG BRAND
BRANDS ATTRACT CUSTOMERS TO STORES
SHOULD BRANDS MANUFACTURE FOR PRIVATE-LABELS THEN? LET’S LOOK AT ADVANTAGES
USE OF EXCESS MANUFA-CTURING
CAPACITY
BETTER CONTROL OVER MARKET
COMPETITIVE ADVANTAGE
LET’S LOOK AT THE DISADVANTAGE
INCREASED MANUFACTURING COMPLEXITIES
BAD RELATIONS WITH RETAILERS
CAN HURT YOUR BRAND
CAN HURT YOUR BRAND
•Do Private Label Audit •Evaluate Business on Full costs Rather than Incremental cost •Examine the Side Effects •Close the Excess Capacity
DEFENSE STRATEGY?
LET’S LOOK AT THEM
MAKE BRAND STRONG INVEST IN EQUITY
INNOVATE CAUTIOUSLY
BUILD RELATIONSHIP
MANAGE EACH CATEGORY KNOW YOUR PRODUCT
CAPTURE THE RETAIL SPACE
DON’T UNDERESTIMATE PRIVATE LABELS
RECAP THREAT BY PRIVATE LABELS BRANDS v/s MANUFACTURERS SHOULD BRAND MANUFACTURE PRIVATE LABELS?
EVALUATE PRIVATE LABELS DEFENSE STRATEGIES
THIS SLIDES WERE CREATED BY SANKET. SHAH VJTI,MUMBAI DURING AN INTERNSHIP BY PROF. SAMEER MATHUR,IIM-LUCKNOW www.IIMInternship.com