In all of the categories Private Labels have entered, they are either leaders, or growing faster than the category. Private labels extend their retail name to a brand, transferring the confidence placed by their consumers as a retail store. Besides this, they tweak a couple of other very important variables to achieve success: price and shelf space and location. They will occupy the hottest shelf space and place the category leader right besides them. Then they advertise (with in-store publicity) that their price is lower.
It has proven, without a doubt, to be a successful strategy for the retail stores. Consumers are buying more of these brands than many other brands.
How fair is this for a consumer?
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