Brands vs private labels;david vs goliath
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Transcript of Brands vs private labels;david vs goliath
Creation of New
Categories.• Milk• Canned Peas• Toilet Paper• Floor Cleaner• Detergent• Clothing• Other Paper Products..
etc
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
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 brand
4.Finally, close excess capacity!
Use fighting brands
sparingly.
Fighting brand gives the price-sensitive consumer a low-cost alternative!
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
Most profitable entities:
Disposable plates/cups
paper napkins
other paper products
wheat+flour
pulses
spices
dairy products
beauty products
0 10 20 30 40 50 60 70 80 90100
%age of people choosing label over brand
%age of people choosing label over brand
Created by Raminder Singh, Thapar University during an Internship by Prof. Sameer Mathur, IIM Lucknow.
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