Review”…a must-read for special line of work merchants who sells goods at retail of any size.” — The Gourmet Retailer, January 1, 2007
“…essential reading for any manufacturer, retailer, or policy maker mesmerized in the significations of the rise of private labels.” — Laura Tyson, Professor of Business Administration and Economics, UC Berkeley; former Dean, London Business School and Hass School of Business; former Chair, Council of Economic Advisers for President Clinton
“A well-researched and timely study of the challenges that private labels pose for brands.” — Vindi Banga, President Foods, Unilever
“Kumar and Steenkamp have written a most analytical and perceptive treatment of private labels…” — Philip Kotler, S. C. Johnson & Son Distinguished Professor of International Marketing, Kellogg School of Management
“Private Label Strategy offers interesting clear or deep perception and an illuminating perspective on the role of and prospects for brand manufacturers.” — Peter Brabeck-Letmathe, Chairman and CEO, Nestlé S.A.
Like the syndication experts they are, the writers have set out to fill a gap on the business bookshelves. — The Financial Times, March 14, 2007
From the Back Cover
Move over Chips Ahoy; there’s a new President’s Choice in town. The old days of packaging generic brands in plain white wrapper and black lettering are long gone. As merchants who sells goods at retail have grabbed power around the globe, they’ve transformed private labels from price purchases into powerful brands with their own cachet. As a result, once-powerful brand makers like Nestle and Proctor & Gamble now find themselves competing for shelf space with their greatest customers, like Tesco and Wal Mart.
With merchants who sells goods at retail and private labels continuing to gobble up worthful market share, you might think that brand makers are already implementing competitory strategies. But rather they are still creating schemes based on outdated myths and assumptions when it comes to private labels. A dissimilar approach is now necessary if brand formulating wants to stay in the game.
In Private Label Strategy writers Nirmalya Kumar and Jan-Benedict E.M. Steenkamp debunk the long-standing myths with regards to private labels, describe the new multilayered systems that merchants who sells goods at retail are using for private labels, and alter brand manufacturers to fabricate and effective response. But these esteemed writers don’t just tell a story and offer a challenge. They support you meet this challenge head on!
Based on international case studies and an unexampled survey of client insights, Private Label Strategy offers actionable schemes that you may invent today. The writers provide the tools you’ll need to compete against—or collaborate with—private label purveyors, and explain why you must consider private labels when telling your brand’s story.
Private Label Strategy is the basi book to deal with a radically modified landscape where brand manufacturers compete directly with their retail customers. Some people say, “Brands are dead.” Now is the time to prove them wrong.
About the AuthorNirmalya Kumar is Professor of Marketing at London Business School where he is also Faculty Director for Executive Education, Director of the Centre for Marketing, and Codirector of Aditya Birla India Centre. He serves as an independent conductor on the boards of ACC, BP Ergo, Gujarat Ambuja, and Zensar Technologies. Jan-Benedict E.M. Steenkamp is the C. Knox Massey Professor of Marketing and Marketing Area Chair, University of North Carolina at Chapel Hill, and Executive Director of AiMark, a global exploration center.
Private Label
As merchants who sells goods at retail have become more powerful and global, they have more and more concentered on their own brands at the expense of manufacturer brands. Rather than merely selling on price, merchants who sells goods at retail have transformed private labels into brands. Consequently, makers such as Johnson & Johnson, Nestle, and Procter & Gamble now compete with their greatest customers: major selling chains like Carrefour, CVS, Tesco, and Wal-Mart. The growth in private labels has big significations for managing directors on both sides. Yet, brand makers still cling to their outdated assumptions with regards to private labels. In “Private Labels: Competing With and Against Store Brands”, Nirmalya Kumar and Jan-Benedict E.M. Steenkamp describe the new systems for private labels that merchants who sells goods at retail are using, and challenge brand makers to formulate an effective response. Most important, they lay out actionable systems for competing versus – or collaborating with – private label purveyors. Packed with elaborated international case studies, priceless visuals, and hands-on tools, “Private Labels” enables managing directors to navigate fruitfully in this radically altered landscape.
In a quickly growing tea industry, a potpourri of companies are looking to exaggerate their product base by adding a line of private label teas. Though this choice may seem comparatively simple as there are a growing list of companies that may supply a line of private label teas, as the number of companies grow, so to does the difficulty. More choices, options, colors and kinds may make any decision difficult.
Though in the first place the choice was private label loose teas, now a great deal of companies are looking to add a line of private label tea bags. It was only a year or two ago when private label tea bags was a choice easy to move past as the quality of these tea bags was far lower than the private label loose teas. But now with the rise of Gourmet tea bags, where a high quality loose tea is included in the tea bags, all of the sudden this is a very real, and potentially better option.
An industry such as tea is quickly growing, which means the number of challengers is also, speedily growing; a barrier to entry. One of the reasons that the market is growing so fast however, is the almost endless number of possibilities; differentiation. For those looking to enter into the tea industry, and have done their exploration have found that there are a vast number of “standard” teas on the market. Either high quality loose teas that are green tea, black tea or oolong tea, or regular tea bags with low quality green tea and black teas in them. This is where a tremendous majority of contest is.
But now, we may look at the options. If a company is mesmerized adding Private Label Loose Teas to their product base, the best option would be to have loose Organic Herbal Teas, and Organic Herbal Tea Blends. This is where a high percentage of growth in the tea industry may be found. The reason is due to a significantly lower number of contenders and a potentially endless number of herbal blend options. Also high health gains of the herbal teas and smooth taste makes them a favored among tea drinkers as well as chunk of the population, non-tea drinkers. And as non tea drinkers are looking to improve their health, but have been turned away by the bitter taste of green teas, your Private Label Herbal Teas will be their to save them.
But for any tea drinker, and peculiarly non tea drinker, who lives in the innovative day reality of a hustling and bustling business world, loose tea may not be the best option. Loose tea takes more time to make, particular tea utensils, all of which may not work well in this each day reality. This is huge reason why mercantile tea bags have become so ordinary in spite of their usual low quality. So if we could mix the two, High quality Loose Tea (either herbal or standard) and the easy use of a tea bag, then this would concede the company to distinguish their product whether using “Standard” teas or distinguishable herbal blends, rather of with loose teas where only the distinguishable herbal mixes will concede your Private Label Tea to genuinely stand out.
This is a very indispensable share of the decision tree when looking to either add a new product to your already conventional company, or looking to commence a company from scratch. Which part of the industry do you see the most growth and most potential? Which portion of the industry do you see fits with not only today’s market, but also tomorrow’s ? And overall, which is best for you ?
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Most helpful client reviews
8 of 10 people found the following review helpful.
 Made my Saturday morning buying goods trip a lot more interesting…
By Thomas Duff
I always thought that store brands were just manufacturer brands that had dissimilar labels on them. But Private Label Strategy: How to Meet the Store Brand Challenge by Nirmalya Kumar and Jan-Benedict E. M. Steenkamp opened my eyes to what precisely goes on in the world of private label branding. And it unquestionably made my Saturday morning buying goods trip more interesting today…
3 of 4 people found the following review helpful.
Private Label Strategy
By Wanwisa Clawutinun
I genuinely look forward to see Private Label Strategy because I work in syndication business & just launched Private label paints & tools in October 2006. I want to recognise what is the right system I must go ,how to manage formulating brands , & how to deal with constructing company. Private Label Strategy answers all of my question.
Part one Retailer Strategies makes me not only thinking with regards to dumping price to compete with developing brands but also quality .Page 58 is very helpful how to success with premium store brands.Retail brand portfolios is a ought to I must do. Page 107 give me the summary of successful retailer private label strategies.At the bottom line, every one wants profit. Chapter 7 maximizing retailer profitability using private label make me not mislead by looking only at gross margin . I have to do profitability analysis other than as supposed or expected I will go bankrupt.
Part two Manufacturer schemes . Like chinese old words said ” knowing oneself & knowing the opponent. This part makes me know what formulating companies thinking, what systems & how to make use of those companies.
I would say that Private Label Strategy is the book you can’t miss indeed.
2 of 3 persons found the following review helpful.
 Private Label Strategy
By C. Parker
The book helps to address and valuate the choices a manufacturer has in competiting versus retailer’s private label program. By understanding the drivers of the merchants who sells goods at retail (profit vs. brand building), you are better capable to create your own stratgy. This is the original book that I have come all over that addresses these key items.
See all 12 client reviews…
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