Branded or Private Label Manufacturer
Branded vs. Private Label Manufacturer
When creating a new company, one of the most important decisions one can make is whether to market products under a private label or become a branded manufacturer. If one sells as a private label retailer, his or her company would be making the product and selling directly to consumers under the company's own label (Vakratsas & Ambler, 1999). A branded manufacturer would sell through retailers that are already established, and would not need to focus on selling directly to consumers. Instead, only selling to the stores that would carry the product would be necessary, which would mean that the company would not need to consider the work it would take to sell its products specifically to consumers (Stuart, Shimp, & Engel, 1987; Vakratsas & Ambler, 1999). Among the main concerns when it comes to which way a retailer is going to market is brand recognition (Stuart, Shimp, & Engel, 1987).
If a new company sells its garments to a retailer, that retailer already has brand recognition in the community. By selling directly to consumers, a company has to build brand recognition - and that is not always the easiest thing to do when it comes to new products. Still, some companies want more control over what they offer to consumers and how those offerings are made. If that is the case...
" (Sinha and Batra, 1999) Sinha and Batra state that "most researchers now content that a generalized price -- quality relationship does not exist" although the "degree to which a higher price implies higher quality" has been examined and as well has been the "topic of considerable research in marketing." (1999) Therefore for the purpose of this study this antecedent relating to price consciousness will not be a variable in understanding
The basic explanation for this is that they rely on always offering the lowest prices, which makes them cut back on other costs. However, the future might bring about more pretentious and harder to satisfy customers and strategies will then have to be developed. 3. Internet Retailing The best selling strategy is that of combining multiple channels. This is similar to the financial sector, where the investor is advised to diversify
Then soon other players came such as Pepsi who also tried to penetrate the market. With the introduction of Pepsi into the market, the market share was divided, sales volume for both commodities went low and the prices also lowered. The product life cycle of some of these products may go far beyond the expected limit, and this is attributed to the brand equity they have. Use of Interactive television
One's experience with a product builds that attitude, and trial samples become more effective than advertising itself, especially in the early stages of building a strong brand. Brand name recognition is important especially when a company is using varying brand strategies for multiple products. NetMBA.com points out that there are several strategies when multiple products are being branded. First, single brand identity means attaching a separate brand to each product; Procter
Wegmans store brand food items vs. well-Known brands Lunchmeat Wegmans hickory-smoked turkey lunchmeat vs. Hillshire Farms hickory-smoked turkey lunchmeat Review placement on shelf: Both products are positioned side-by-side on a hanging rack in the dairy section Cost of brand vs. cost of private label: Wegmans $2.99; Hillshire Farms $3.39 for the same amount in ounces Ingredients same or different?: Virtually identical Is private label made by brand manufacturer: Yes Dairy Wegmans shredded cheddar vs. Kraft shredded cheese Review placement
Marketing and Branding Discuss the history of brand and ways brands have evolve over time. The history of brand has quickly evolved from a relatively simple approach taken by companies to differentiate their products and services by name or graphical representation alone to highly targeted, effective, emotive approaches to communicating value. Brands have evolved from fairly generic approaches to communicating the functional value of a product or service to evoking emotions customers
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