To Compare Private-Label Brands and Manufacturer Brands for Overall Effectiveness for Retailers

Powerful Essays
Topics: Marketing, Brand
GRADUATE DIPLOMA FOR BUSINESS
RESEARCH SKILLS
August 2010

‘To compare private-label brands and manufacturer brands for overall effectiveness for retailers’

DATE OF SUBMISSION: 6 AUG 2010

TABLE OF CONTENTS
Heading Page 1) Introduction 3

2) Literature Review 4

3) Main body 7

4) Conclusion 16

5) Bibliography 17

1.0) Introduction
Over the last fifteen years, there has been much debate regarding different effectiveness of private-label brands and manufacturer brands. More and more companies all over the world are willing to devote finances to building strong brands. However, can brand power truly lead a retailer to success?
1.1) Aim of the research
The aim of this research is to analyze manufacturer and private-label brands, comparing their benefits and drawbacks to identify the overall effectiveness which lead to retailer success in the market. Since the priorities of private-label products have been increasing during the last 10 years, the retailers have often experienced how difficult it is to balance the overall benefits between manufacturer brands and private-labels products in their stores. It is general thesis that private-labels and manufacturer brands have both advantages and disadvantages. This paper concentrates around this area and is illustrated and explained with different case studies with different examples to identify overall effectiveness for retailers.
This paper is limited to the retailers perspective and is covered through a literature review in particular about the reasons for retailers to get involved in private-labels and manufacturer brands which illustrated by examples and case studies
1.3) Background
Nowadays, some effective retailers have also developed their own private brands which are now in UK and many countries



Bibliography: 1. ACNielsen. (2005). The Power of Private Label. Company Presentation. 2. Amanda S. (2009) Private label benefit to retailers. http://www.articlesbase.com/business-articles/private-label-benefits-to-retailers-1284061.html [Accessed 9/7/10]. 3. Amir G. (2006) Advantages of private label. http://www.articlealley.com/article_109116_15.html [Accessed 15/7/10]. 4. Borden, N.(1942) The Economic Effects of Advertising, Chicago: Richard D. Irwin. 5. Deng Jun, Switzerland. For own-brand retailers, the study. Enterprise technology development, 2005, (8). 6 7. Ezrachi, A. and Bernitz, U. (2009), Private Labels, Brands, and Competition Policy, Oxford University Press, Chapter 2 8 9. Fernandez, A., Gomez, M., 1999. Estrategias de las marcas de distribuidor en alimentacion y droguera-perfumera. Distribucioด n y Consumo 45, Abril/Mayo, pp. 30–49. 10. Gomez, M., Mendez, J., Yague, M.J., 1999. The Impact of the Regulation in the Spanish Retailers’ Concentration and Performance. Eunip, Dublin. 11. Grönroos, C. (1991), “The marketing strategy continuum: towards a marketing concept of the 1990s”, Marketing Decision, Vol. 29 No. 1, pp. 7-13. 12. Hoch, S.J. Montgomery, A.L. and Y-H Park (2002) ‘Why the Private Label is one of the Few Brands to Show Consistent Long Term’ Paper presented at Allied Social Sciences Association annual meeting, Atlanta, GA. Jan. 5, 2000. 13. Hosh S.J. and Benerji S. (1993) “When do private label succeed?”, Sloan management review, Vol.34, No.4 pp.57-67. 14. Hooley, Saunders and Piercy, ‘Marketing Strategy and Competitive Positioning’, 3rd Ed., Prenhall, 2004 15 16. Lim, A., Zhan, Q., Rodrigues, B., 2002. A heuristic for shelf-space decision support in the retail industry. SMU Conference Papers Series, August, Paper no. 6. 17. McMaster, D. (1987), “Own Brands and the Cookware Market”, European Journal of Marketing, 1, (1), pp.83-94 18 19. Randall, G. (1997), Branding, Kogan Page, London. 20. Private Label Magazine (2000) November-December, ‘A.C. Nielsen Report’. 22, #4. 21. Simmons, M. and Meredith, B. (1984), “Own Label Profile and Purpose”, Journal of the Marketing Research Society, 6, (1), pp.3-27 22 23. Nielsen, A.C., 2002. Anuario Evolucion de Mercados de Gran Consumo. 24. Nirmalyan, K. and Jan-Benedict, E.M. S. (2007) Private label strategy. Harvard Way: Harvard Business School Publishing. 25. Private Label Magazine (2000) November-December, ‘A.C. Nielsen Report’. 22, #4. 26. Peter, J.P., & Olson, J.C., (2005). Consumer behavior and marketing strategy. Chicago: Irwin. 27. Quelch, J.A. and Harding, D. (1996), “Brands Versus Private Labels”, Harvard Business Review, January-February, pp.73-81 28. Robert L.Steiner(2002) “The Nature and Benefits of National Brand/Private Label Competition” Paper presented at the American Economic Association annual meeting, Atlanta, GA. Jan. 5, 2002. 29. Stuart D. (1983) Private labels vs. national brands http://www.heritage-coffee.com/PrivateLabelvs.NationalBrands.htm [Accessed 17/7/10]. 30. Tai-hong. Consumer Behavior - domestic consumer perspective. Beijing: Higher Education Press, 2005.

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