Types Of Products Flashcards
(18 cards)
What are white label products?
Products sold by retailers with their own branding but manufactured by a third party
White labeling allows the end product to appear as though it was produced by the purchaser.
What is the primary advantage of white label branding?
Saves time, energy, and money in production and marketing costs
Who benefits from white label products?
Large retailers, electronics manufacturers, beauty brands, health and wellness companies, food and beverage brands, and service companies
What is the difference between white label products and private label products?
White label products are generic and sold to multiple retailers, while private label products are made exclusively for a specific retailer
What are some benefits of using white label products?
- Expanded product lines
- Large contracts
- Discounted sales
- Quality comparable to national brands
- Reduced time to market
- Cost savings
- Brand expansion
What are some disadvantages of white label products?
- Copycatting
- Monopsony
- Barriers to entry
- Quality control issues
- Market saturation
- Dependence on suppliers
What is a tangible product?
A product that you can touch and see before purchasing
What type of companies utilize white label products?
Retailers, electronics manufacturers, beauty brands, health and wellness companies, food and beverage brands, and service companies
Fill in the blank: White label products are manufactured by a _______.
third party
What are some costs involved in white labeling products?
- Product development fees
- Sample costs
- Packaging design costs
- Manufacturing costs
- Packaging expenses
- Labeling expenses
True or False: White label branding is a worldwide phenomenon that has been declining since the late 1990s.
False
What is an example of a service that can be white labeled?
Credit card processing services used by banks
How do white label products help retailers control branding?
Retailers maintain control over branding, packaging, and pricing while offering exclusive products
What is the impact of white labeling on market competition?
It could reduce overall competition and create barriers for new firms trying to enter the market
Fill in the blank: White label products allow companies to quickly introduce new products to the _______.
market
What is one reason retailers might offer white label products at a discount?
To boost revenue relative to national brands
What is the role of third-party producers in white labeling?
They manufacture the products, often receiving large contracts and guaranteed sales
What is a potential risk of relying on external manufacturers for white label products?
Production issues or delays from suppliers can impact product availability and sales
