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Private Label Strategy: How to Meet the Store Brand Challenge Hardcover – February 13, 2007

ISBN-13: 978-1422101674 ISBN-10: 1422101673 Edition: 1st

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Private Label Strategy: How to Meet the Store Brand Challenge + Private Label: Turning the Retail Brand Threat Into Your Biggest Opportunity + Category Killers: The Retail Revolution and Its Impact on Consumer Culture
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Product Details

  • Hardcover: 288 pages
  • Publisher: Harvard Business Review Press; 1 edition (February 13, 2007)
  • Language: English
  • ISBN-10: 1422101673
  • ISBN-13: 978-1422101674
  • Product Dimensions: 9.2 x 6.4 x 1.1 inches
  • Shipping Weight: 1.3 pounds (View shipping rates and policies)
  • Average Customer Review: 4.5 out of 5 stars  See all reviews (14 customer reviews)
  • Amazon Best Sellers Rank: #166,301 in Books (See Top 100 in Books)

Editorial Reviews

Review

"...a must-read for specialty retailers of any size." -- The Gourmet Retailer, January 1, 2007

"...essential reading for any manufacturer, retailer, or policy maker interested in the implications 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 insightful treatment of private labels..." -- Philip Kotler, S. C. Johnson & Son Distinguished Professor of International Marketing, Kellogg School of Management

"Private Label Strategy offers interesting insight and an illuminating perspective on the role of and opportunities for brand manufacturers." -- Peter Brabeck-Letmathe, Chairman and CEO, Nestlé S.A.

Like the marketing experts they are, the authors 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 retailers 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 manufacturers like Nestle and Proctor & Gamble now find themselves competing for shelf space with their biggest customers, like Tesco and Wal Mart.

With retailers and private labels continuing to gobble up valuable market share, you might think that brand manufacturers are already implementing competitive strategies. But instead they are still creating strategies based on outdated myths and assumptions about private labels. A different approach is now essential if brand manufacturing wants to stay in the game.

In Private Label Strategy authors Nirmalya Kumar and Jan-Benedict E.M. Steenkamp debunk the long-standing myths about private labels, describe the new multilayered strategies that retailers are using for private labels, and change brand manufacturers to develop and effective response. But these esteemed authors don’t just tell a story and offer a challenge. They help you meet this challenge head on!

Based on international case studies and an unprecedented survey of customer insights, Private Label Strategy offers actionable strategies that you can develop today. The authors 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 first book to deal with a radically altered landscape where brand manufacturers compete directly with their retail customers. Some people say, “Brands are dead.” Now is the time to prove them wrong.


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Customer Reviews

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An absolute "must-read" for anyone involved in branding responsibilities or branding strategy.
Midwest Book Review
I really look forward to see Private Label Strategy because I work in retail business & just launched Private label paints & tools in October 2006.
Wanwisa Clawutinun
They buttress their explanations with interesting case studies from leading merchants and manufacturers.
Rolf Dobelli

Most Helpful Customer Reviews

Format: Hardcover
I always thought that store brands were just manufacturer brands that had different 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 exactly goes on in the world of private label branding. And it definitely made my Saturday morning shopping trip more interesting today...

Contents: Brands Under Attack from Private Labels

Part 1 - Retailer Strategies Vis-a-Vis Private Labels: Competing on Price with Traditional Private Labels; Competing on Quality with Premium Store Brands; Competing for the Rational Consumer with Value Innovator Own Labels; Encircling Manufacturer Brands with Retailer Brand Portfolios; Creating Successful Private Labels Is About More Than Just Price; Maximizing Retailer Profitability Using Private Labels

Part 2 - Manufacturer Strategies Vis-a-Vis Private Labels: Produce Private Labels for Greater Profits; Partner Effectively to Craft Win-Win Relationships; Innovate Brilliantly to Beat Private Labels; Fight Selectively to Marshal Resources Against Private Labels; Create Winning Value Propositions for Manufacturer Brands; Are Brands Dead?; Retailer Facts

Notes; Index; About the Authors

As I mentioned in the opening, I never have given much thought to store brands except as a cheaper alternative of the same thing the brand name is selling. But the authors point out there's a wide diversity in private label strategies. There's the generic brand... black and white labeling, low quality, cheap pricing. Then there's the copycat brand... Made to look nearly identical to the leading brand, only at a cheaper price. It often even mentions the leading brand as a comparison point.
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5 of 6 people found the following review helpful By Wanwisa Clawutinun on February 22, 2007
Format: Hardcover
I really look forward to see Private Label Strategy because I work in retail business & just launched Private label paints & tools in October 2006. I want to know what is the right strategy I should go ,how to manage manufacturing brands , & how to deal with manufacturing company. Private Label Strategy answers all of my question.

Part one Retailer Strategies makes me not only thinking about dumping price to compete with manufacturing brands but also quality .Page 58 is very helpful how to success with premium store brands.Retail brand portfolios is a must I should do. Page 107 give me the summary of successful retailer private label strategies.At the bottom line, everybody 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 otherwise I will go bankrupt.

Part two Manufacturer strategies . Like chinese old words said " knowing oneself & knowing the opponent. This part makes me know what manufacturing companies thinking, what strategies & how to make use of those companies.

I would say that Private Label Strategy is the book you can't miss indeed.
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1 of 1 people found the following review helpful By Thriller on April 17, 2009
Format: Hardcover
This book is a good academic text, mixed with real life consulting examples from the world of big retailers and big CPG companies. But there's little prescription for the scores of companies smaller than, say, P&G, who find themselves far below #1 and #2 category leader positions. Essentially, the retail chains and the market leaders will eat your lunch...
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Format: Hardcover
Marketing professors Nirmalya Kumar and Jan-Benedict E.M. Private Label Strategy: How to Meet the Store Brand Challenge, a tell-it-like-it-is expose of how the old days of packaging generic brands in white wrapping and black lettering have passed. Today, the once-powerful brand manufacturers find themselves in direct competition for shelf space with the chains that are their biggest customers, like Tesco and Wal-Mart. Too many companies are still building their strategies around outdated myths that Private Label Strategy debunks. Chapters of Private Label Strategy cover how to compete on price with private labels, how to compete on quality with premium store brands, how to use private labels to maximize retailer profitability, how to cultivate innovation, and much more. "The financial community, of course, presses companies to be specific on the anticipated numbers because it makes the work of the analysts easier. But it may not be wise to play along with this game. For example, Nestle has a policy of not promising specific financial targets but instead articulating its strategy and letting analysts do the work of computing the expected numbers." An absolute "must-read" for anyone involved in branding responsibilities or branding strategy.
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2 of 3 people found the following review helpful By John Kenny on March 7, 2007
Format: Hardcover
There's an increasing number of books being written on how manufacturers need to wake up to the power of retailers. What makes this book one of the best I've read is its comprehensiveness and detail. Looking at both the US and Europe (where the phenomena is more developed), the authors lay out the different types of private label strategies with rich case studies and hard data. If you want your senior management/clients to start addressing private label, this book is a gold mine.
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2 of 3 people found the following review helpful By C. Parker on February 12, 2007
Format: Hardcover
The book helps to address and evaluate the options a manufacturer has in competiting against retailer's private label program. By understanding the drivers of the retailers (profit vs. brand building), you are better able to create your own stratgy. This is the first book that I have come across that addresses these key items.
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