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BRANDS VERSUS
PRIVATE LABELS
FIGHTING TO WIN
1. Due To Higher Profit Margin
Reduce The Cost OF
Delivery
Eliminates The
Middle Man
Increases Supply
Chain Efficiencies
2. Easy to differentiate
retailers
3. Set Your Own Price
4. saves from economy fall
Major Private label retailers in India
THREAT ??
1. Improved product Quality of Private Labels
2. Development of Premium Private Labels
3. European retailer success
4. Entry In New product categories
So, Is
This The
End Of
National
Brand ?
PEOPLE DIE FOR BRANDS !
Brands are established
Strong Economy leads to
strong brand
Brands attract people to
visit stores
Should
BRANDS
then
Manufacture
For Private
labels ?
ADVANTAGES
Use of excess
manufacturing
capacity
ADVANTAGES
Better Control
over Market
ADVANTAGES
Competitive
Advantage
Disadvantages
Bad Relation
between retailer
and manufacturer
Disadvantages
Increased
manufacturing and
distribution
Complexities
Disadvantages
Can be a cause to
hurt your own
brand !
Evaluate Private-label Business
•Do private label audit
•Evaluate Business on full costs rather than
incremental cost
•Examine the effect on your brand
•Close the excess capacity
Defense >>
Make The brand strong:
Invest In brand equity !
Innovate: With Caution !
Using fighting brands
Build relationships
UNDERSTAND YOUR
CUSTOMER
TEACH YOUR
RETAILER
Manage each category; know
your product
exploit sales-promotion
tactics: capture that retail
space
Don’t underestimate the
private brands
RECAP
CREDITS
THANK YOU
>> DISCLAIMER
www.IIMInternship.com
DURING AN INTERNSHIP BY
PROF. SAMEER MATHUR,
IIM LUCKNOW
CREATED BY :
NAGARJUN KS
SIT,TUMKUR

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