Description
A local supermarket would like to introduce their own brand of paper goods (e.g. paper towels, toilet paper, etc.) to sell alongside their current inventory. The company has hired you to generate a report outlining the advantages and disadvantages of pursuing a private label strategy vs. a captive brand strategy.
My location is Saginaw, MI
Explanation & Answer
Attached.
Private Label Strategy Vs. Captive Brand Strategy- Outline
Thesis statement: There is an upcoming trend in the retail industry where supermarkets have
come up with a strategy of producing and selling products with their brand alongside with those
of other manufacturers.
I.
Introduction
A. The concept of private label strategy
II.
Advantages
A. High margin
B. Loyal customers
C. Low advertising cost
D. Less risky
E. Boost brand energy
F. Market capitalization
G. Exclusive rights
III.
Disadvantages
A. Competition
B. Selfish motives
C. Notion of poor quality products
D. Linked demand
IV.
Captive brand strategy
V.
Advantages
A. Wide range of customers
B. Notion
C. More revenue
VI.
Disadvantages
A. It can be expensive
B. No fully exclusivity
C. Profit oriented than consumer oriented
Running head: PRIVATE LABEL STRATEGY VS. CAPTIVE BRAND STRATEGY
Private Label Strategy Vs. Captive Brand Strategy
Name
Institution
1
PRIVATE LABEL STRATEGY VS. CAPTIVE BRAND STRATEGY
2
Private Label Strategy Vs. Captive Brand Strategy
Private Label Strategy
The current world of business is becoming very competitive especially in retail industries
where there are many firms entering in the industry due to increase in the level of population
which increases demand of the consumer goods. Due to this increase in the level of competition
different organizations use various marketing techniques to enable them to counter the
competition, among the marketing techniques us...
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