based on the hbr article: Brands vs Private Labels;fighting to win.

12. How are private labels leaving behind such established

14. • Mass Merchandisers
• Supermarkets
• Distributors

15. • Milk
• Canned Peas
• Toilet Paper
• Floor Cleaner
• Detergent
• Clothing
• Other Paper Products.. etc

16. Improved Profits!

17. Does this mean that Brand name
manufacturers should start making
private label goods?

18. If You Don’t, Don’t Start!
• Can Cannibalize the original brand
• Increases the fixed costs
• Strategy gets deformed
• Double stress on the producer
• Finally, declining cash flows & margins

19. But, If You Do..
Don’t Worry!!

20. Follow these simple steps.
1.Conduct a private label
audit.
2.Calculate profitability on
both full-cost and marginal-
cost basis.
3.Examine the impact on your

22. Invest in brand
equities.

24. Fighting brand
gives the price-
sensitive
consumer a low-

28. Take private labels
seriously!!

29. A Case Study.
Garg Super Store, located in South Delhi
sells it’s own private label named ‘GARG’.

30. Sells various commodities
under the label, such as:
• GARG sugar
• GARG rice
• GARG wheat
• GARG flour
• GARG pulses
• GARG spices
• GARG stationary
• GARG floor cleaner.. etc

31. According to the owner:

32. Most profitable entities:
0 20 40 60 80 100
Disposable plates/cups
paper napkins
other paper products
wheat+flour
pulses
spices
dairy products
beauty products
%age of people choosing label over brand
%age of people choosing
label over brand

33. Created by Raminder
Singh, Thapar
University during an
Internship by Prof.
Sameer Mathur, IIM
Lucknow.

34. Bibliography
• Kotler’s Marketing Management text book
• HBR articles
• The Economic Times
• Wikipedia
• www.nielsen.com
• Cnbc tv network
• www.araamshop.com
• www.retailrise.com
• www.business.time.com
• www.google.com