Private brand

Private brand

Private branding is when a large distribution channel member (usually a retailer), buys from a manufacturer in bulk and puts its own name on the product. This strategy is, with some exceptions, generally only practical when the retailer does very high levels of volume. The advantages to the retailer are:

  • more freedom and flexibility in pricing
  • more control over product attributes and quality
  • higher margins (or lower selling price)
  • eliminates much of the manufacturer's promotional costs

The advantages to the manufacturer are:

  • reduced promotional costs
  • stability of sales volume (at least while the contract is operative)

Literature

  • Kumar, Nirmalya; Steenkamp, Jan-Benedict E.M., Private Label Strategy - How to Meet the Store Brand Challenge. Harvard Business Press 2007

See also


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Look at other dictionaries:

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  • private brand — / praɪvət brænd/ noun a brand owned by a distributor rather than by a producer. Compare primary brand …   Marketing dictionary in english

  • private brand — See own brand …   Big dictionary of business and management

  • private brand — a product marketed under a private label. * * * …   Universalium

  • private brand — a product marketed under a private label …   Useful english dictionary

  • Private label — For the license, see Private label rights. Swedish grocery store where private label products (under the brands Hemköp and Eldorado, Axfood) are placed along with other brands such as Knorr (Unilever) and Blå band (Campbell Soup). Privat …   Wikipedia

  • brand — ▪ I. brand brand 1 [brænd] noun [countable] MARKETING a name given to a product by a company so that the product can easily be recognized by its name or its design: • Virgin s aim is to ensure that all its products and services match and exploit… …   Financial and business terms

  • Brand equity — refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name [Aaker, David A. (1991), Managing Brand Equity. New York: The Free… …   Wikipedia

  • Brand — Brand, n. [OE. brand, brond, AS. brand brond brand, sword, from byrnan, beornan, to burn; akin to D., Dan., Sw., & G. brand brand, Icel. brandr a brand, blade of a sword. [root]32. See {Burn}, v. t., and cf. {Brandish}.] 1. A burning piece of… …   The Collaborative International Dictionary of English

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