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Private labels

Presented by:
Ankush kumar agrawal Danish alam Himanshu saxena Manish mayank Srikant maurya.

Definition of Private labels

A private brand label is also called a reseller,

store, house, or a distributor brand is a brand that retailers and wholesalers develop. Big bazaar and shoppers stop are offering their products under private labels.
For many manufacturers, retailers can be both

collaborators and competitors. By the reports of plma ,store brands now account for one of every five items sold in United states of America.

Some examples are Wal marts OL dog food is

topped against Nestles venerable purina brand as the top selling dog chow. Consumers Reports rated Winn-Dixie supermarkets chocolate ice cream ahead of brand name BREYERS.

Role of private labels.

Why do intermediaries bother to sponsor

their own brands ? 1. They can be more profitable. 2. Retailers develop exclusive store brands to differentiate themselves from competitors. 3. Generics are unbranded, plainly packaged, less expensive versions of common products.

Private label threat

In the competition between the maker and

private labels, retailers have many advantages and increasing market power.

Self space is scarce, super markets are now

charging a Slotting fee for accepting a new brand.

Retailers also charge for special display

space and in store advertising space.

Factors for weakening the national brand. For competing with private label companies

have reduced the budget of advertising by 30%.

For maintain their power, brands are following these:

Huge investing significantly in research

and development to bring out new products.

Investment in advertising.

Seeking partners with mass distributors.


How to compete against Stores brand?

Fight selectively; Partner effectively; Innovate brilliantly; Create winning value propositions.

Wholesaling includes all the activities involved in selling goods and services to those who buy for resale or business use.

Wholesaler deals with business

customers. Transactions are usually Larger than retailer. Differ in terms of legal regulations and taxes.


Types of Wholesaler
Merchant wholesaler;

Full service wholesalers;

Limited service wholesalers; Broker And Agents; Specialized wholesaler; Manufacturers and retailers, branches and



Wholesalers are more efficient in performing the following functions:

Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling

Trends in Wholesaleing.
Facing heavy pressure due to :

a.) Competition; b.) New technology; c.) Direct buying Program; d.) Demanding Customers.


Complains by Manufacturer
Wholesalers are not aggressive to promote

the product line.

They act like Order taker. Lack of attraction towards high caliber



Strengthen of Relationship
They sought a clear agreement.

They want a free visit to the plants meetings

and conventions of the manufacturers. Fulfillments of commitments by wholesaler. They have to give value added services to help their supplier.