2. PRIVATE BRANDING
Definition
A private brand is a product that is
exclusively manufactured by the large
manufacture for the small retailers. The
retailer will market the product under its
own brand name. Prices for private
brands are usually set cheaper than
competing name brands.
3. Other names…
Corporate branding
Store branding
Own branding
Retailer branding
Dealers branding
4. Examples
Grocery products - canned food,
frozen food, rice, cereal, sodas, etc.
Generic medicine and health products
- pain relievers, cough syrup,
bandages, etc.
5. Textiles - towels, washcloths, bed
sheets, etc.
Household supplies - cleaning
products, kitchen utensils, dishes, etc.
6. Why Develop Private Brands?
Private brands provide retailers
some good benefits.
Control. A retailer will have a
much greater degree of control
over quality and marketing of
private products because it
develops them.
Profit margin. Private product
brands tend to have a higher
profit margin compared to name
brands.
7. Image. You can create a unique image for
your retail establishment with your private
brands.
Customer loyalty. It's possible to improve
customer loyalty because of the
exclusivity of private brands. If you can
get consumers hooked on your private
brand, then they must go to your store to
get it because it is the only place they can
get it. Private label branding is one way to
separate yourself from competitors.
