Private brand bini.p.j

s3 MBA

PRIVATE BRANDING

Definition

A private brand is a product that is

exclusively manufactured by the large

manufacture for the small retailers. The

retailer will market the product under its

own brand name. Prices for private

brands are usually set cheaper than

competing name brands.

Other names…

Corporate branding

Store branding

Own branding

Retailer branding

Dealers branding

Examples Grocery products - canned food,

frozen food, rice, cereal, sodas, etc.

Generic medicine and health products

- pain relievers, cough syrup,

bandages, etc.

Textiles - towels, washcloths, bed

sheets, etc.

Household supplies - cleaning

products, kitchen utensils, dishes, etc.

Why Develop Private Brands?

Private brands provide retailers some good benefits.

Control. A retailer will have a much greater degree of control over quality and marketing of private products because it develops them.

Profit margin. Private product brands tend to have a higher profit margin compared to name brands.

Image. You can create a unique image for your retail establishment with your private brands.

Customer loyalty. It's possible to improve customer loyalty because of the exclusivity of private brands. If you can get consumers hooked on your private brand, then they must go to your store to get it because it is the only place they can get it. Private label branding is one way to separate yourself from competitors.

•WALMART

TARGET

COSTCO

Who benefit from increase in private label?

COCA COLA

PEPSICO

P&G

Who benefit from decrease in private label?

Challenges faced by private

labels

THANK YOU