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Unit 13: Private Label Brands

 In many instances, private labels have surpassed a national brand’s capacity to deliver on Notes
visibility, consumer interest, involvement and appeal.
 Retailers are beginning to recognize that they cannot simply rely on national branded
products to draw consumers into their stores and sustain loyalty.
 The visible shift to a consumer-centric brand definition gave Private label brands
believability and a point of difference that enabled it to stretch to new and different
product categories.
 In order to be truly successful, retailers must advance from the generic or store brand
mindset of the past to a new private label paradigm.

 The term “own” brands acknowledges that today’s visionary retail marketers have powerful
proprietary portfolios that they control and manage and there is potential to reap bigger
and better rewards by taking a closer look at the way they orchestrate the role and expression
of these brand offerings in the eyes of consumers in each product category.
 Strategic category management is instrumental for a retailer to realize its “own” brand
goals and aspirations.
 “Own” brands not only reinforce enduring loyalty and positive feelings for the overarching
retail brand, they often enable the retailer to capture a more significant share of the
consumers’ wallet, heart, mind and lifestyle than a national product brand.

 Product quality and innovation are a necessary functional underpinning for an “own”
brand offering.

13.7 Keywords

Brand Portfolio: It is the total collection of trademarks that a company applies to its products or
services. Each make or brand within a business’ brand portfolio might be registered under
applicable trademark laws and can represent a valuable asset to a company that is often actively
promoted to potential customers.
Collaboration: It is a recursive process where two or more people or organizations work together
to realize shared goals.
Innovation: It is the development of new values through solutions that meet new requirements,
inarticulate needs, or old customer and market needs in value adding new way.
Paradigm: A set of assumptions, concepts, values, and practices that constitutes a way of viewing
reality for the community that shares them, especially in an intellectual discipline.
Profitability: The state or condition of yielding a financial profit or gain. It is often measured by
price to earnings ratio.
Proprietary: This means belonging or controlled as property.
Quality: The standard of something as measured against other things of a similar kind; the
degree of excellence of something.
Rebranding: It is a marketing strategy in which a new name, term, symbol, design, or combination
thereof is created for an established brand with the intention of developing a new, differentiated
identity in the minds of consumers, investors, and competitors.

13.8 Review Questions

1. How private label brands were considered in past?

2. How has the approach to the private label brands have changed in recent times?
3. Elaborate on the shift in the private label paradigm.

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