private label brands l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Private Label Brands PowerPoint Presentation
Download Presentation
Private Label Brands

Loading in 2 Seconds...

play fullscreen
1 / 9

Private Label Brands - PowerPoint PPT Presentation


  • 243 Views
  • Uploaded on

Professor Carl Mela BA 460 Product Management Fuqua School of Business. Brand Management System On Building A Brand Managing Across Brands. Private Label Brands. Agenda. Extent of problem. How to combat private label threats. Private Labels. Until 1950’s more common than national brands

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Private Label Brands' - robbin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
private label brands
Professor Carl Mela

BA 460 Product Management

Fuqua School of Business

Brand Management System

On Building A Brand

Managing Across Brands

Private Label Brands
agenda
Agenda
  • Extent of problem.
  • How to combat private label threats.
private labels
Private Labels
  • Until 1950’s more common than national brands
  • About 20% of grocery sales (Hoch paper)
  • Problem exacerbated in weak economy
  • More common in categories where risk is not a factor (as opposed to shampoo)
strategies for combating private labels
Strategies for Combating Private Labels

Provide More for

the Money

Innovate

NATIONAL BRAND

Reduce Price Gap

Quality

Do Nothing

Introduce Value Flanker

Make Premium Private Label

PRIVATE LABEL

1/Price

Source: Stephen Hoch

strategies for combating private labels5
Strategies for Combating Private Labels
  • Do nothing
    • Wait for economy to improve
    • Retailers are sufficiently diffuse, their power is low
    • In small categories with little potential return, retailers not likely to invest in private label
    • However, share loss may occur
strategies for combating private labels6
Strategies for Combating Private Labels
  • Differentiate
    • More for the money
    • New and improved
    • Advertise
    • Eliminate weak brands and focus on strong
  • Better retail support
strategies for combating private labels7
Strategies for Combating Private Labels
  • Reduce price gap
    • Lower costs
    • It is often not profitable for retailer to close price gap (mfr brand loses high margin, store brand loses volume)
  • Me too strategy
    • Fighting brands (Kodak Funtime Film)
    • Protects brand (+)
    • Cannabalization (-); Revenues do not cover product introduction costs (e.g., advertising and slotting fees)
strategies for combating private labels8
Strategies for Combating Private Labels
  • Make a private label (Dunne and Narasimhan)
    • Can test formulations as a P.L.
    • Can increase price on premium brand w/P.L. entry
    • Can formulate to target competitor, not self
    • Can obtain cooperation on shelf positions (P.L. to right hand side of competitor - as 90% right handed)
    • Key threat: retailer owns customer, threatens to drop you without price concessions
summary
Summary
  • Solutions to the private label problem
    • Do nothing
    • Better retail support
    • Differentiate
    • Reduce price gap
    • Fighter brands
    • Can’t beat ‘em, join ‘em (source the private label)