Marketing (Fach) / Product (Lektion)
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private label
retailer (2 pro)
manufacturer (2 pros, 3 cons)
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UK 60%southern Europe 10%
= seller buys no-name product and sells under private label
the retailers perspective (2 main advantages)
1. Own label provides better profit margin
2. Own label strengthen the retailer's image with its customers
the manufacturers perspective
+ pro: limited resources (finfnacial&competencies) for downstream function (marketing)
+ pro: Go international (good opportunity)
- con: uncertainty (compete mainly on price)
- con: loss of control over promotion (problem if retailer works badly)
- con: private label cannibalizes own brand (if both provided)
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