A product’s brand and brand image are important aspects of its marketing strategy. The usage of derivative brands in a parent brand or daughter brand relationship is motivated by the same considerations as the use of an umbrella brand in that relationship. When the parent brand is included on the packaging, it is common to utilize a derivative brand in addition to the parent brand.
Brand name of the store
A private label is a brand that is developed and controlled by a distributor and that is used for goods that are produced on demand by manufacturers, who are often small and medium-sized enterprises (SMEs), but who are also occasionally national brand manufacturers, for this same distributor. Choosing the top branding agency Malaysia is most essential here.
Since 2001, the Consumer Code has specified what constitutes a private label product. According to industry standards, the private label is often offered at a discount of 20 to 35 percent off the national reference brand. According to panel statistics, private labels had a market share of about 35% of the total revenue of large-scale distribution in 2010, with a stronger representation in the food sector.
The private label may be based on an existing brand (such as the Carrefour brand) or it can be entirely new. Some companies have even used private label multiplication techniques, including core-range private labels, first-price private labels, and private labels organised by product family, among others.
A product’s brand and brand image are important aspects of its marketing strategy
The private label achieves sales volumes and, more importantly, general profitability due to the virtual lack of direct promotional expenditure in the product, the trust capital possessed by the brand, and the special position designated for it. students. Another factor contributing to this situation is the fact that, despite the fact that they are offered at a lower price, private label products often produce higher profit margins for distributors.
Private label at a competitive price
First and foremost, a private label first price is a private label that is positioned in the area of first pricing, as the name implies.
First-price private labels are often created in order to compete against hard-discounts.
A product’s brand and brand image are important aspects of its marketing strategy.
If its qualitative positioning in relation to the main private label is not well managed, its success may represent a challenge for the brand in terms of cannibalizing sales and decreasing profits for the brand.
Private labeling of the core range
Private labels that compete with national brands are known as core-range private labels. A core-range private label is a private label that competes with national brands in a certain product universe.
The core-range private label is often offered at a discount of 20 to 30% compared to the national brand it is intended to compete against, while maintaining a high degree of product quality via the standards placed on producers.
In many cases, the core-range private label is in the form of a private-label range that has been rejected and is signed with the signature of the core-range private label that is unique to the brand.