(Kotler, Chap. 15-4) What Are Private Label Brands?

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(Kotler, Chap. 15-4) What Are Private Label Brands?

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(Kotler, Chap. 15-4) What Are Private Label Brands?

  1. 1. What Are Private Label Brands? Kotler, Chapter 15 Prof. Sameer Mathur, Ph.D. Prof. Prem P. Dewani, Ph.D.
  2. 2. Sameer Mathur BuddingMarkets.com IIM, Lucknow, Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 BTech, Indian Institute of Technology, Roorkee 1995 – 1999 2 Prem Prakash Dewani IIM, Lucknow, Marketing Professor 2013 – Ph.D. (Marketing) 2007 – 2013
  3. 3. Marketing Management | Kotler and Keller
  4. 4. Contents 1)What are private label brands 2)Intermediaries sponsoring their own brands 3)Brands vs private label brands 4)Advantages of private label brands 5)Demand for private label brands 6)Future of these brands 7)Image Credits 8)References Prof. Mathur & Prof. Dewani, www.BuddingMarkets.com
  5. 5. Private Label Brands A private label brand (also called a reseller, store, house, or distributor brand) is a brand that retailers and wholesalers develop. Walmart’s “great value” is an example. Marketing Management | Kotler and Keller
  6. 6. Private label brands Some More Examples:- Source: Harvest public media
  7. 7. Why Do Intermediaries Sponsor Their Own Brands? Having their own brands can be more profitable. Intermediaries search for manufacturers with excess capacity that will produce private label goods at low cost. Source: Harvest public media
  8. 8. Intermediaries Own Brands Other costs, such as research and development advertising, sales promotion, and physical distribution, are also much lower, so private labels can generate a higher profit margin. Source: Harvest public media
  9. 9. Brands vs Private Label Brands Source: Brands vs private labels-youtube
  10. 10. Brands vs Private Label Brands Source: Aaramshoppro
  11. 11. Brands vs Private Label Brands Source: Yahoo news
  12. 12. Advantages Of Private Label Brands There are various advantages for the retailers to go for private label brands,  Control over pricing of the product/service,  Put forth own ideas on marketing plans,  Create personalized image which in turn leads to higher customer loyalty, Source: Wikipedia
  13. 13. Advantages Of Private Label Brands  Higher control on production, marketing, distribution and profits, give their own inputs, additional materials, logos, tag lines, etc.  Customer's changing preference - drive towards private label products. Source: Wikipedia
  14. 14. Demand Of Private Label Brands Source: USDA Economic research service
  15. 15. Demand Of Private Label Brands Source: Hartmen group
  16. 16. Future For Private Label Brands National results were analysed in comparison to worldwide trends, which indicate that over 68% of the world believe Private Label to be a good alternative to branded products. Source: WordPress
  17. 17. Future For Private Label Brands Global studies also point to the fact that certain regions have reached saturation state in their Private Label reach. 75% of categories worldwide include Private Label offerings, these products holding an average value share of 15%. Source: WordPress
  18. 18. Image Credits http://www.mbaskool.com/business-articles/marketing/422-private-labels-are-they-good-enough-.html http://harvestpublicmedia.org/article/seeking-profits-private-labels http://www.instoretrends.com/index.php/2012/05/04/fmi2012-highlights-key-challenges-for-retail-future/ http://www.yadig.com/business/dubai/united-colours-of-benetton/17347/ http://www.ers.usda.gov/amber-waves/2010-june/recession-brings-record-number-of-new-store-brand-food- offerings.aspx#.U3cFUoaQZnA http://www.aaramshoppro.com/2012/02/cpg-brands-are-angel-investors-in.html http://hartbeat.hartman-group.com/article/317/Today-s-Private-Label-is-a-Lesson-in-Branding http://www.goodscare.com/brands/goods-divers/private-label/ http://espaces.wordpress.com/2007/05/10/is-there-a-future-for-private-lable-brands/ https://www.youtube.com/watch?v=RTmHUDRrV8c http://en.wikipedia.org/wiki/Private_label#Private_label_as_a_marketing_and_business_tool Marketing Management | Kotler and Keller
  19. 19. Image Credits http://www.mbaskool.com/business-articles/marketing/422-private-labels-are-they-good-enough-.html http://harvestpublicmedia.org/article/seeking-profits-private-labels http://www.instoretrends.com/index.php/2012/05/04/fmi2012-highlights-key-challenges-for-retail-future/ http://www.yadig.com/business/dubai/united-colours-of-benetton/17347/ http://www.ers.usda.gov/amber-waves/2010-june/recession-brings-record-number-of-new-store-brand-food- offerings.aspx#.U3cFUoaQZnA http://www.aaramshoppro.com/2012/02/cpg-brands-are-angel-investors-in.html http://hartbeat.hartman-group.com/article/317/Today-s-Private-Label-is-a-Lesson-in-Branding http://www.goodscare.com/brands/goods-divers/private-label/ http://www.sterling-coaching.com/events/ Prof. Mathur & Prof. Dewani, www.BuddingMarkets.com
  20. 20. Sameer Mathur BuddingMarkets.com IIM, Lucknow, Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 BTech, Indian Institute of Technology, Roorkee 1995 – 1999 2 0 Prem Prakash Dewani IIM, Lucknow, Marketing Professor 2013 – Ph.D. (Marketing) 2007 – 2013
  21. 21. Over 1 Million views from more than 100 countries Top 1% most viewed www.BuddingMarkets.com Prof. Sameer Mathur Over 250 presentations on Marketing

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