week 12 buying merchandise Flashcards
(23 cards)
Retailers and their buyer face a strategic decision about
the mix of national and private brands sold exclusively by
the retailer.
Brand Alternatives
So different factors are discussed about-
1. National brands
2. Private label brands.
Brand Alternatives
2 types of brand alternatives
National brands
Private label brands
known as manufacturer brands, designed, produced and
marketed the product to retailers.
National brands
Vendors are responsible for developing quality products
consistently.
National brands
- Sometimes they create UMBRELLA or FAMILY brand with sub
brands.
National brands
example: Marico (family brand) produces Parachute coconut oil,
Saffola cooking oil, Hair and care shampoo, Nihar hair oil (all sub
brands)
National brands
ALSO CALLED STORE BRANDS, HOUSE BRANDS OR OWN
BRANDS.
PRIVATE LABEL BRANDS
private label brands also called _____________
store brands
house brands
own brands
- retailers develop design and speciation, contract with manufacturers.
PRIVATE LABEL BRANDS
- sometimes national brands work with retailers to make special version sold exclusively by particular retailers.
PRIVATE LABEL BRANDS
- In past national brands had more resource to do aggressive marketing than private brands.
PRIVATE LABEL BRANDS
- but at present ___________________are investing in private merchandise to create their own their identity.
PRIVATE LABEL BRANDS
Categories of Private label brands
There are four types of private label brands.
- premium brands.
- copycat brands.
- exclusive brands.
- generic brands.
- offer consumer a private label comparable to manufacturers quality with little price savings. SUCH AS- Tesco’s finest “the men’s collection”.
Premium brands
- a subcategory of private label brand is environmentally sensitive or organic.
Premium Brands
imitate the manufacturers brand in appearance and packaging but in low quality with lower price. Generally provided in drug and grocery industry.
COPYCAT BRANDS
- SUCH AS – CVS or Walgreens are look like manufacturers.
COPYCAT BRANDS
- developed by a national brand often added with a retailer and sold by that particular retailer.________________ has different model numbers for different retailers to sold.
EXCLUSIVE BRANDS
- SUCH AS- Canon digital camera sold at both Best Buy and Walmart of similar features has different model number.
EXCLUSIVE BRANDS
- targets a price sensitive segments by offering non-frills products at a discount price.
Generic Brands
Typically used for commodities like milk, egg at grocerystores and underwear at discount stores.
Generic Brands
When the __________ products sales
declines, labelled with the name of commodity. So it has no distinguishing brand name.
Generic Brands
