Private Label Strategy: How to Meet the Store Brand Challenge by Nirmalya Kumar & Jan-Benedict E. M. Steenkamp

Author:Nirmalya Kumar & Jan-Benedict E. M. Steenkamp [Kumar, Nirmalya and Jan-Benedict E. M. Steenkamp]
Language: eng
Format: epub
Publisher: Harvard Business Review Press
Published: 2007-02-12T16:00:00+00:00

Unless brand manufacturer strategies are based on a completely honest understanding of the reality now on them and the reality that is about to hit them, they will fail. As it is, they have a real fight on their hands vis-à-vis private labels.

EIGHT

Produce Private Labels for Greater Profits

Buyers and sellers at Private Label Manufacturers Association trade show: 10,000

IN THE FACE of increasing private label share in the marketplace and idle capacity in their production facilities, brand manufacturers are tempted to become private label producers. There are two alternative strategies for manufacturers to pursue with respect to private label production: first, a dual strategy, where the firm manufactures both its own manufacturer brands and private labels for retailers. Alternatively, the manufacturer can become a dedicated private label producer.

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