PRIVATE BRANDS LECTURE 11 - PowerPoint PPT Presentation

Loading...

PPT – PRIVATE BRANDS LECTURE 11 PowerPoint presentation | free to download - id: 5ab55-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

PRIVATE BRANDS LECTURE 11

Description:

Primary difference who owns the brand. National Brands Store Brands ... Mass Merchandiser, Drug Stores, Department Stores ~ 10% Sears and Target heavier emphasis ... – PowerPoint PPT presentation

Number of Views:47
Avg rating:3.0/5.0
Slides: 10
Provided by: dspr9
Learn more at: http://www.cbe.wsu.edu
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: PRIVATE BRANDS LECTURE 11


1
PRIVATE BRANDSLECTURE 11
2
Private Brands
  • A major distinction in brands is the national
    versus private brand category.

National Brands Store Brands -
Manufacturer - Distributor - Strong
Equity - Weak Equity - High Quality - Low
Quality - High Price - Low Price - Strong
Packaging - Weak Packaging
Primary difference ? who owns the brand.
Private Brands Slide 1
3
Private Brands
  • Based on the ownership distinction, we have the
    following definitions
  • A manufacturer or national brand is a brand
    owned and controlled by an organization whose
    primary economic commitment is manufacturing
    Schutte (1969).
  • Alternately, a private brand is a brand owned by
    an organization whose primary focus is on
    distribution.
  • From this definition, we see why private brands
    are sometimes called store brands or
    distributor brands and nationals called
    manufacturer brands.

Private Brands Slide 2
4
Private Brands
  • Some Additional Issues on Definition
  • Generic brands are products which are unbranded
    and unadvertised and are typically found in
    supermarkets.
  • Licensed brands are brands owned by a given
    organization (either distributor or manufacturer)
    and licensed to another organization (either
    distributor or manufacturer). E.g., controlled
    labels are private brands licensed to other
    retailers.
  • The term own brand is used in the UK.

Private Brands Slide 3
5
Private Brands
  • The success of private brands varies by
  • Type of Store and Nature of Retailer
  • Grocers 20
  • Mass Merchandiser, Drug Stores, Department Stores
    10
  • Sears and Target heavier emphasis
  • Country
  • Private brand share is higher in UK/Europe than
    in U.S.
  • State of the Economy
  • As disposable income increases, market share
    decreases

Private Brands Slide 4
6
Private Brands
  • Private and national brands are different
  • Nature of Promotional Activities
  • Profit Margins and Price
  • Profit margins slimmer for private brands
  • GMROI Gross Margin X Inventory Turnover
  • National ? 250 GMROI (2.5 100)
  • Private ? 352 (44 8)
  • Use of Family Branding Strategies
  • Perceptions of Quality

Private Brands Slide 5
7
Private Brands
  • Benefits of Private Brands to Retailers
  • Retail differentiation (e.g., Craftsman)
  • Enhance store loyalty
  • Additional control over promotions
  • High quality brands enhance store image
    (Nordstrom)
  • Higher profit margins
  • Benefits of National Brands to Retailers
  • Consumers want them
  • Increased store image traffic flow
  • Advertising promotion is done by mfg.

Private Brands Slide 6
8
Private Brands
  • How should national brands treat private brands?
  • Build brand equity
  • Use fighting brands appropriately
  • Build relationships with channel members
  • Manage price differential
  • Exploit sales promotions
  • Take private labels seriously

Private Brands Slide 7
9
Private Brands
  • How should private brands treat national brands?
  • Focus on quality
  • Be watchful of national brand responses
  • Decreasing NB prices
  • Increased NB advertising
  • Legal action
  • Multiple levels of quality (with different brand
    names)
  • In-store product sampling

Private Brands Slide 8
About PowerShow.com