MC4304 Class 4 Private Label _ Buyers

MC4304 Class 4 Private Label _ Buyers - Agenda Questions or...

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Agenda • Questions or Comments? • Private Label • Buyer Behavior • Brands in the News • Wrap Up
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Private Label
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Private Label Private label (store brand) products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries. They are often positioned as lower cost alternatives to regional, national or international brands. “Brand” is owned by the retailer.
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Controlled Label • Closely related to private label. • “Brand” is owned by the manufacturer. • Has no direct/individual store association. • Often made for a consortium of retailers. For example, co-ops or independent retail associations.
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Private vs. Controlled Label AquaCulture Aqua-Tech
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Generic • The genesis of private label packaging. • Sharp focus on price. • Private label products were displayed in their own separate aisle & kept apart from the mainstream brands.
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Private Label Next generation. Retailers start to copy the look of national brands. Retailers recognized the potential for generating additional profits & creating loyalty. Quality improved. Private label products moved in-line to start competing directly against national brands.
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Private Brand Retailers develop original brand & design strategies to compete directly with the national brands. Often utilize a “premium” private label strategy. Go beyond “private label” & create a proprietary brand with exquisite packaging that may not even reference the chain by name.
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Wal-Mart’s Great Value Brand
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Kroger Brand
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Target’s Up & Up Brand
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7/11’s 7 Select Brand
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Food Lion On The Go Bistro Brand
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A&P’s Via Roma Line
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Private Label Business • Private label brands now account for 20- 25% of US supermarkets, drug chains & mass merchandisers sales (40-45% in international markets). • Represent more than $83 billion in current retail business. • Private label business is increasing at 3-4% per month while national brands business is increasing at 2-3% per month.
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Private Label Business • Private label brands have become a threat to national brands. – Retailers are hiring away top marketing and
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MC4304 Class 4 Private Label _ Buyers - Agenda Questions or...

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