Branding - How To Succeed 5

Brand Management

Private Label

Private label products and services refer to those that are manufactured or made available by one particular company for use by another company using its own brand name. Private label products and services are, in fact, available across an extensive range of categories, from food, through to cosmetics and even as far as web hosting. It is quite common for them to be positioned at a price lower than alternative regional, national and even international brands. However, there have been recent moves to position certain private label brands as premium brands in order to compete with the existing named brands.

Types of Private Label

Products with Private Label Rights – This is a concept similar to reselling in which the buyer is allowed to alter the product in order to fit their requirements. Characteristic PLR products include articles, reports, eBooks, and autoresponders. The nature of the content allows numerous buyers to purchase the product with freedom to make whatever changes they required and use it whilst, at the same time, claiming authorship for it. A popular use is in online affiliate marketing.

Store Brands – In this case, the name of the retailer is clearly visible on the product packaging.

Store sub-Brands – In such products, the name of the retailer is far less prominent on the product packaging.

Umbrella Branding – Also known as family branding, it is a single brand which embraces a multitude of related products which can be effectively promoted using a single advertisement or campaign. Umbrella branding facilitates the launch of new products by way of a familiar brand name, which in turn can give rise to trial purchases, easier product acceptance, etc.

Generic Brands – This refers to consumer products, such as supermarket goods, which can be easily identified by the fact that they have no brand name. A definitive example is that of a product simple called “Cola”. It would be incorrect to define these products as "having no brand name" since they are actually branded, albeit with either the name of the store in which they are on display or a lesser-known brand name which may not be aggressively advertised to the public. The main selling features are, in fact, their product characteristics.

Individual Brands – They refer to brands in which each product within a product portfolio is given a distinctive brand name and identity.

Exclusive Brands – A brand name used in one category, such as perfumes, whose role is to promote “added value” products within that category.

Distributor Brands - Small wholesale grocers as well as foodservice distributors (that provide food and non-food products to restaurants, cafeterias, caterers, and hospitals) quite often have their own private labels. Examples include the Parade brand from Federated Foodservice, as well as the huge selection of private brands from the giant food service supplier Sysco. Such brands may often be found in non-chain independent restaurants together with those stores that are unable to afford their own private labeling.

Copycat Private Labels – This refers to brands that are owned by a retailer but whose style of packaging mimics that of a leading national brand.

Branding – How To Succeed