Page 203 - DMGT554_RETAIL_BUYING

Retail Buying Pavitar Parkash Singh, Lovely Professional University

Notes Unit 13: Private Label Brands

CONTENTS
Objectives
Introduction

13.1 Historical Marketplace Dynamics
13.2 Shift in the Private Label Paradigm
13.3 Brands Take a New Approach to Private Label Branding

13.3.1 New Approach to Private Label Branding
13.3.2 Implications for Retail Marketers
13.4 Advantages of Private Label Branding
13.5 Buying Private Labels
13.5.1 New Paradigm of Private Label

13.6 Summary
13.7 Keywords
13.8 Review Questions

13.9 Further Readings
Objectives

After studying this unit, you will be able to:
 Determine the Historical Marketplace Dynamics
 Explain the Shift in the Private Label Paradigm

 Elaborate on the New Approach to Private Label Branding
 Discuss the advantages of Private Label Branding

Introduction

The definition of private label branding has evolved significantly over time. Some would argue
the term “private label” is a misnomer of great proportions. There is no question that the words
“private label” acknowledges the birth, history and existence of generic and store brands. Yet,
the term does not adequately capture the extent to which private label has progressed. Today’s
retail marketers are managing their proprietary brands with the same combination of care and
innovation as manufacturers of national brands.
In recent years, retailers have been liberating themselves from the traditional definition of
private label marketing as being the poor relative of national brand consumer goods, and, in
doing so, opening up huge opportunities for private label branding. These opportunities require
the adoption of a different set of marketing and branding practices to support and propel the
retailer’s business and marketing ideals for its private label brands.

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