StudentShare solutions
Triangle menu
  • Home
  • Subjects
  • Marketing
  • Brand Management ,Some of the major brands supply products to be used for private labels in addition to their own products. This approach is often labelled as if you cant beat them, join them strategy. This strategy, however, is heavily criticize

Brand Management ,Some of the major brands supply products to be used for private labels in addition to their own products. This approach is often labelled as if you cant beat them, join them strategy. This strategy, however, is heavily criticize - Essay Example

Not dowloaded yet

Extract of sample
Brand Management ,Some of the major brands supply products to be used for private labels in addition to their own products. This approach is often labelled as if you cant beat them, join them strategy. This strategy, however, is heavily criticize

the world’s largest supermarkets, witnessed a 100 percent increase in consumer demand for private label products between 1982 and 2004 (Coriolis Research, 2004). Hamstra (2009) asserts that growth in private label consumption is outpacing major brands by a factor of 300 percent. Furthermore, the post-recession consumer, today, has adopted behaviours related to frugality and thrift which is creating a situation where consumers are willing to trade major brands for lesser-cost private label alternatives (McDougall 2011; Flatters and Willmott 2009). Hence, the socio-economic environment appears to be viable for dual-producing companies wishing to supplement revenue growth by distributing private label products. Hormel Foods sells many successful private label products including desserts, salt substitutes, and canned meats (Ashley, 2014) that compete with its own Dinty Moore, SPAM and Jennie-O major brands. Dual-producing companies believe that because they utilise comparable production equipment in private label production, use similar quality ingredients, and abide by the same stringent regulations, their private label products can achieve consumer loyalty and profitability.
However, when a major brand producer is making private label products, it potentially creates a situation where the producer is competing with itself. Private label brands usually carry a lower price tag, which makes them enticing and relevant for price-sensitive consumers with only moderate consumption resources. For a company with major brands, some with premium prices that are justified through decades of effective marketing promotion, having lower-cost alternatives available in an established market poses considerable potential risk. It is estimated that private labels are generally, on average, priced at a rate 21 percent less than comparable major brands (Batra and Indrajit 2000). Hence, marketing experts could be correct that this dual-producing strategy could be detrimental to ...Show more

Summary

Companies that produce major, recognised brands often adopt the if you can’t beat them, join them philosophy which underpins the production of private label products for distribution in conjunction with sale of their own name-brand products. There is considerable debate…
Author : christiansenreb
Brand Management ,Some of the major brands supply products to be used for private labels in addition to their own products. This approach is often labelled as if you cant beat them, join them strategy. This strategy, however, is heavily criticize essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Brand Management ,Some of the major brands supply products to be used for private labels in addition to their own products. This approach is often labelled as if you cant beat them, join them strategy. This strategy, however, is heavily criticize"
with a personal 20% discount.
Grab the best paper

Related Essays

Zaras Supply Chain Management Strategy

The main of globalization process is to enable large-scale companies to take advantage of the services and low-cost products that are readily available in the Asian countries. Despite the fact that the labour costs in Asian countries are cheap, Zara refuses to enter into sub-contracting agreements with other garment manufacturing companies in Asian countries.

6 pages (1500 words) Essay
The Marketing Mix: Products and Brands
Fournier suggests that the four core conditions that qualify relationships in the interpersonal domain are also manifest in the relationship between people and brands. Fournier goes on to show that brands possess characteristics that are human-like such that they are able to interact with people and that they also have the ability to evolve and change over a serious of interactions and in response to fluctuations in the contextual environment (Fournier, 1998, p.
3 pages (750 words) Essay
Marketing Strategy for Products
In order to come up with a competitive and successful product a company must take into consideration winning product characteristics (Juran & De Fao, 2010). The operating system must take into control the key characteristics of the product in order to meet the customers’ needs.
5 pages (1250 words) Essay
International delivery of Coke products(supply chain management)
Firm suppliers usually aim to develop and implement the most efficient and economical supply chains covering everything from production, to product development, to the information systems that help firms in the direction of these undertakings. Supply chain management aims to link the aspects of firms namely, production, shipment and distribution of a firm’ products for optimum firm performance; supply chain management is very essential to the success of firms because nearly all firm products reaching end users in the markets results from the efforts of various organizations called the supply chain.
4 pages (1000 words) Essay
Brand Management Strategy
Technically speaking, then, whenever a marketer creates a new name logo, or symbol for a new product, he or she has created a brand. It is important to contrast a brand and a product. According to Phillip Kotler (1984), a well regarded marketing academic, a product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
11 pages (2750 words) Essay
Identify three new products or services (introduced to the consumer and/or business markets within the last year within your own country or market region) and classify them as either: a new-to-the-world product, a new product line, an addition to the exis
In general, Bank Audi as the firm offering the three products, apparently has segmentized its market, as can be gleaned from how it has created or innovated its products, the marketing messages used by
3 pages (750 words) Essay
Products, Brands & Their Distribution
People prefer branded products because firstly these companies understand the customers’ requirements well and secondly they provide high quality products. In case of Jewelry, consumers do have a good relationship with the jewelry
2 pages (500 words) Essay
Choose two TV commercials and explain how conditioning methods were used in each one of them so the audiences would buy their products
The model says that whether or not the ladies’ men look like him, they can at least smell like him if they use Old Spice. Operant conditioning encourages the display of a specific behavior by tying it with reward and
2 pages (500 words) Essay
You are asked to write an individual essay on how you believe companies have used an understanding of consumer emotions to attract customers and persuade them to buy their products and services; apply it to real-life examples
It attempts to examine the behavior processes behind decision making of buyers at groups and individual level (Arora 2013, 53). In addition, it studies the characters of
8 pages (2000 words) Essay
Discuss whether producing and selling private labels could be a viable strategy for manufacturers of branded products
Selling of private brand by manufacturers has been extensively debated in the existing literature. Many major brand manufacturers in both the U.S.A. and Europe have launched their own private brands since the late eighties with the primary objective of
6 pages (1500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation