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Store brands are a line of products "strategically branded by a "retailer within a single "brand identity. They bear a similarity to the concept of house brands, private label brands (PLBs) in the United States, own brands in the "UK, and home brands in "Australia and generic brands. They are distinct in that a store brand is managed solely by the retailer for sale in only a specific chain of store. The retailer will design the manufacturing, packaging and marketing of the goods in order to build on the relationship between the products and the store's customer base. Store-brand goods are generally cheaper than national-brand goods, because the retailer can optimize the production to suit "consumer demand and reduce "advertising costs. Goods sold under a store brand are subject to the same regulatory oversight as goods sold under a national brand. Consumer demand for store brands might be related to individual characteristics such as demographics and socioeconomic variables.[1]



Wal-Hist, store-brand antihistamine medication from "Walgreens

A Food Marketing Institute study found that store brands account for an average of 14.5 percent of in store sales with some stores projecting they will soon reach as high as 20 percent of all sales.[2] Store branding is a "mature industry; consequently, some store brands have been able to position themselves as premium brands. Sometimes store-branded goods mimic the shape, packaging, and labeling of national brands, or get premium display treatment from retailers. (For example, "Dr. Thunder" and "Mountain Lightning" are the names of the "Sam's Choice store brand equivalents of "Dr Pepper and "Mountain Dew, respectively.)

Economic assessment[edit]

Research has found that some retailers["who?] believe that, while advertising by premium national brands brings shoppers to the store, the retailer typically makes more profit by selling the shopper a store brand. This assumption has led to a spurt in the academic and trade literature on the subject of positioning the store brand as compared with the national brand.["citation needed] The "Fashion Institute of Technology publishes research on store branding and store positioning.[3]

In most cases, while store brands are usually cheaper than national (or even regional) brands, they remain more expensive than "generic brands sold at the store. (e.g. "Pittsburgh-based "Giant Eagle selling their store brands for less than national brands but more than Topco's Valu Time generic brand.)

Grocery chains such as "Aldi and "Save-A-Lot primarily sell store brands to promote overall lower prices, compared to "supermarket chains that sell several brands. "Richelieu Foods, for example, is a "private label company producing frozen pizza, salad dressing, sauces, marinades, condiments and deli salads for other companies, including "Hy-Vee, Aldi, Save-A-Lot, "Sam's Club,[4] "Hannaford Brothers Co.,[5] "BJ's Wholesale Club (Earth's Pride brand) and "Shaw's Supermarkets (Culinary Circle brand).[5]

Advantages of private branding[edit]

Private branding means a large "distribution channel member (usually a "retailer) buys from a manufacturer in bulk and puts its own name on the product. This strategy is generally only practical when the retailer does very high volume of sales. The advantages to the retailer are:

The advantages to the manufacturer are:


  1. ^ Baltas, George (2003). "A combined segmentation and demand model for store brands". European Journal of Marketing. 37 (10): 1499–1513. "doi:10.1108/03090560310487211. 
  2. ^ "Store Brands Drive Differentiation and Profit". StoreBrandsDecisions.com. 2009-06-09. 
  3. ^ Chevalier, Michel (2012). Luxury Brand Management. Singapore: John Wiley & Sons. "ISBN "978-1-118-17176-9. 
  4. ^ "Richelieu experiences hiring boom, starts expansion". WCFcourier.com, RC Balaban, August 27, 2006. 
  5. ^ a b "There's new appetite for peddlers of cheap eats". Boston Business Journal, Feb 23, 2009, Lisa van der Pool. 2009-02-23. 

External links[edit]


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