What are the advantages and disadvantages of manufacturer's brands versus sto...
What are the advantages and disadvantages of manufacturer's brands versus store brands? Consider both the retailer's and customers perspective.Expert Solution
arrow_forwardStep 1 of 2
Manufacturer's brands are those brands which are sponsored by the manufacturer of the product. The responsibility of marketing a manufacturer's brand lies entirely with the manufacturer and not the intermediary who sells it. This is a good branding strategy for companies which are large in size and serve a large geographical area.On the other hand, a store brand or a private label brand is one who contacts a third-party manufacturer to produce goods in his behalf which are then sold in the store under the name of the store. Both branding strategies have their own pros and cons when it comes to being in the market.
arrow_forwardStep 2 of 2
Advantages of manufacturer's brands versus store brands:
[*]Manufacturer's brand are trusted by the customers because they have established their names in the market.
[*]The cost of marketing is incurred by the manufacturer, so the retailer has to make to expenses for selling manufacturer brand.
[*]Manufacturers' brand enjoy a lot of customer loyalty.
[*]Store-brands are easily available when the supply of manufacturer's brand is less.
[*]The cost of manufacturing store-brand is less.
The disadvantages of manufacturer's brands versus store brands:
[*]The brandeditems that come from big companies are often very costly.
[*]The store-brands are not very well known; thus, need to spend more on marketing.
[*]The sales of the store-brands are not very consistent.
[*]Manufacturer's brands often experience a lot of demand and supply gap.
页:
[1]