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How to Brand Your Private Labels
Private labels have become ever-more important and are slowly turning into brands of their own. Retailers increasingly offer three-level 'good, better, best' private-label programs that include economy, standard, and premium private-label tier goods. For each of these tiers, retailers must decide under what name to brand their private label. They can either assign their store banner name to a private-label tier or go for a unique brand name that is separate from the retailer banner. The purpose of this article is to outline the advantages and limitations of these two branding strategies: store-banner branding versus stand-alone branding. Herein, we also provide a series of recommendations regarding when to use each brand strategy, based on characteristics of the retailer and the environment in which it operates. -
Who Benefits from Price Promotions?
A temporary discount can generate a lot of customer excitement, but the revenue effects can be short lived. Price promotions commonly increase manufacturer revenue and depress retailer revenue in the short term but have no persistent effect. Promotions are tactical, not strategic, and they need to be managed that way.