Tuesday, February 27, 2007

Brands: Managing private brands

Private brands are professionalising sais Paul Moers, author of the book 'New Private Brands'.

Originally private brands competed on a mere price-value proposition. They just copied A-brands of a generic product to then distribute it to a lower price.

Now moers sais, there's a new phase in the history of private brands. He sees more and more retailers introducing topline propositions. Tesco has an Organic line, a children's line and Tesco's finest in its offering. Albert Heijn has added AH Bio for its bio conscious consumers.

Private brands are thus segmenting. By introducing topline propositions, they aim to strengthen the identity of the private label. This is creating added value by adding expressive and functional characteristics.

Private brands are being managed like A-brands.

Interesting: Moers notes that the introduction of private brands into the market led to a commoditisation. The product category's total value was being put under pressure. The introduction of topline propositions could turn around this trend and boost again the category's value. And that's new, sais Moers.

Source: Marketing Tribune

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