Private Label brands, future of private label brands.

1. What are private label Brands?

2. Contents:
1) What are private label brands
2) Intermediaries sponsoring their own brand
3) Brands vs private label brands
4) Advantage of private label brands
5) Demand for private label brands
6) Future of these brands

3. Private Label Brands
A private label brand (also called as reseller,
store, house, or distributor brand)is a brand that
retailers and wholesalers develop.
Walmart’s “great
value” is an
example.

4. Private Label Brands
Some More Examples: (Pantaloons Retail)

5. Why do Intermediaries sponsor their
own brand?
Having their own brand can be profitable.
Intermediaries search for manufactures with
excess capacity that will produce private label
goods at low cost.

6. Intermediaries own Brand
Other costs such as research and development
advertising, sales promotion, and physical
distribution, are also much lower, so private
labels can generate higher profit margin.

7. Brands vs Private Label brands
Branded(Johnsons) Private Label (Walmart)

8. Brands vs Private Label Brands

9. Brand Label of Big Bazaar

11. Advantages of Private Label Brands
There are various advantages for the retailers to
go for private label brands;
Control over pricing of the product/service.
Put forth own idea’s on marketing plans.
Create personalized image which in turn leads
to higher customer loyalty.

12. Advantages of Private Label Brands
Higher control on production, marketing,
distribution and profits, give their own inputs,
additional materials, logos, tags etc.
Customers changing preference- drive towards
private label products.

14. Future of Private Label Brand
National results were analysed in comparison to
worldwide trends, which indicate that over 68%
of the world believe private label to be a good
alternative to branded products.

15. Future of Private Label Brand
Global Studies also point to the fact that certain
regions have reached saturation in their Private
label reach. 75% of categories worldwide
include private label offerings. these product
hold an average value share of 15%.

16. Disclaimer:
Prepared by: Sitanshu Gandhi, SIT Pune.
During an Internship by Prof. Mathur, IIM
Lucknow.
www.IIMInternship.com