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Assessing the vulnerability of private label brands

Diane Halstead (Assistant Professor of Marketing at the College of Business and Economics, University of Kentucky, Lexington, Kentucky, USA.)
Cheryl B. Ward (Assistant Professor of Marketing at Middle Tennessee State University, Murfreesboro, Tennessee, USA.)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 1 August 1995

5776

Abstract

Private label brands may be in danger as a result of recent changes in the marketing strategies used by private label firms. The primary competitive advantage of private label brands, good quality at low prices, may be lost if private label firms continue to modify and expand how their brands are marketed. Specifically, changes in private label brands′ advertising, packaging, sales promotion, and product improvement strategies indicate that private label brands are moving closer than ever to manufacturer brand status. To the extent that these changes result in higher average retail prices and/or lower gross margins for retailers, the advantages of private brands to both consumers and distributors will diminish, illustrating that the historical “wheel of retailing” hypothesis may be applicable to private label brands. Investigates the aforementioned trends and provides suggestions for manufacturers and retailers for future brand management strategies.

Keywords

Citation

Halstead, D. and Ward, C.B. (1995), "Assessing the vulnerability of private label brands", Journal of Product & Brand Management, Vol. 4 No. 3, pp. 38-48. https://doi.org/10.1108/10610429510097636

Publisher

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MCB UP Ltd

Copyright © 1995, MCB UP Limited

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