ANALYSIS OF BRANDS vs MANUFACTURES: Fighting to win HBR case study

1. Brands Versus Private Labels
Fighting to Win

2. Who is private label?

3. What are private labels?

4. WHY ARE PRIVATE LABELS
PREFERED BY RETAILERS?

5. WHY ARE PRIVATE LABELS
PREFERED BY RETAILERS?
LET’S LOOK AT ADVANTAGES

6. HIGHER PROFIT MARGINS

7. REDUCED DELIVERY COST

8. ELIMINATE MIDDLE MAN

9. DIFFERNTIATE RETAILERS

10. SET YOUR OWN PRICE

11. SET YOUR OWN PRICE

12. Private Label Brands in
Indian Retail Industry
COMPANY NAME DEGREE OF PENETRATION
TRENT 90%
RELIANCE RETAIL 80%
PANTALOON 75%
NILGIRIS 38%
PIRAMYD 30%
FOOD WORLD 22%

14. IMPROVED QUALITY PRODUCTS

15. IMPROVED QUALITY PRODUCTS

16. EUROPEAN PRIVATE LABEL SUCCESS

17. ENTRY INTO NEW PRODUCT CATEGORY

18. WHAT
HAPPENS TO
NATIONAL
BRANDS?

19. WHAT
HAPPENS TO
NATIONAL
BRANDS?
NO

20. PEOPLE STILL LOVE BRANDS

21. BRANDS ARE ESTABLISHED

22. STRONG ECONOMY BUILDS STRONG
BRAND

23. BRANDS ATTRACT CUSTOMERS TO STORES

24. SHOULD BRANDS
MANUFACTURE
FOR PRIVATE-
LABELS THEN?
LET’S LOOK AT ADVANTAGES

25. USE OF
EXCESS
MANUFA-
CTURING
CAPACITY

26. BETTER CONTROL OVER MARKET

27. COMPETITIVE ADVANTAGE

28. LET’S LOOK AT THE DISADVANTAGE

29. INCREASED MANUFACTURING
COMPLEXITIES

30. BAD RELATIONS WITH RETAILERS

31. CAN HURT YOUR BRAND

32. CAN HURT YOUR BRAND

33. •Do Private Label
Audit
•Evaluate
Business on Full
costs Rather than
Incremental cost
•Examine the Side
Effects
•Close the Excess
Capacity

34. DEFENSE STRATEGY?
LET’S LOOK AT THEM

35. MAKE BRAND STRONG
INVEST IN EQUITY

36. INNOVATE CAUTIOUSLY

37. BUILD RELATIONSHIP

38. MANAGE EACH CATEGORY
KNOW YOUR PRODUCT

39. CAPTURE THE RETAIL SPACE

40. DON’T UNDERESTIMATE PRIVATE LABELS

41. RECAP
 THREAT BY PRIVATE LABELS
 BRANDS v/s MANUFACTURERS
 SHOULD BRAND MANUFACTURE
PRIVATE LABELS?
 EVALUATE PRIVATE LABELS
 DEFENSE STRATEGIES

42. THIS SLIDES WERE CREATED BY
SANKET. SHAH VJTI,MUMBAI
DURING AN INTERNSHIP BY
PROF. SAMEER MATHUR,IIM-LUCKNOW
www.IIMInternship.com