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

THREAT ??

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

Defense >>

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

RECAP

CREDITS

THANK YOU

>> DISCLAIMER

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IIM LUCKNOW

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NAGARJUN KS

SIT,TUMKUR