Private label brands

Private brands are not available for all types of products. Large-ticket items, such as cars, do not lend themselves to private labels. For private labeling to work, the goods must be substitutable and standardized. Consumers who purchase a box of cereal have an expectation as to what that cereal will look and taste like; so long as the private label is close to that expectation, the consumer will consider the private label a reasonable alternative. There is no question of warranties or having to deal directly with the manufacturer of the item after the purchase.

Food products in particular lend themselves to private labels. This is because consumers of food products are particularly price sensitive, especially during recessions, and because com

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n-Purina, the company has made good use of its production capabilities and has become stronger in the market because of its participation in private labels. Some companies set up guidelines for their entry into private labels. Campbell's Soup Company, which has traditionally resisted participation in private labels, has decided to offer most of its product lines for store brands. Its strategy requires that the company not make private label soup, its main product line, and that it not compete in categories where it has significant market share. The company is also seeking to enter into agreements with its retailers so that when the company does issue private labels, all food products in that category will belong to Campbell's, whether private label or national brand. For example, if a store carries a private brand of pickles made by Campbell's, all the pickles would be Campbell's, including the private label and its national Vlasic brand. It is unlikely that manufacturers of national brands will give their operations over to private labels completely. National brands have pricing flexibility, premium shelf space, and the best position in new retail spaces. Earlier in 1993, Philip Morris demonstrated some of the power of a
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Some common words found in the essay are:
Dibrel Brothers, , Philip Morris, Ralston Purina, Soup Company, Gamble Kimberly-Clark, Pepsi Coca-Cola, Customers Wal-Mart, Cott Corporation, Advertising Age, private label, private labels, national brand, national brands, national brand manufacturers, brand manufacturers, label brands, private label brands, market share, food products, private brands, april 12 1993, brands available, advertising age 64, age 64 april,
Approximate Word count = 1746
Approximate Pages = 7 (250 words per page)

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