Private Label Strategy: How to Meet the Store Brand Challenge

Written in 2007, "Private Label Strategy" documents an industry in the midst of upheaval. No longer are Fast Moving Consumer Goods (FMCG) manufacturers - the Cokes, Pepsis, and P&Gs of the world - the monolithic profit-machines they once were. In the past, consumers were distrustful of the quality and value of the lowly generic brands, adorned in plain labels and stacked on the bottom shelf; surely a sign of their inferiority. Today, generics have given way to exclusive private label lines in major national retail chains that have shattered the old image of the "store-brand" and given national brands a run for their money. The success of private labels has eroded market share of the FMCG brands to the extent that many are shoring up excess production capacity by secretly manufacturing private labels for the retailers. The old model of prominent national brands controlling the shelf-space in retail stores has truly been turned on its head.The authors take care to point out that while this evolving grocery business has caught FMCG manufacturers off guard, all is not lost for the prominent national brands. Rather, the authors highlight opportunities for product innovation and cultivaing better relationships with retailers and end-consumers alike. In ten years since its publication, many of the major consumer brand manufacturers have apparently taken heed of the advice in the book, trimming their brand portfolios to minimize wasted effort on lower-tier offerings. Indeed, data collected by the authors provide justification for the existence of the old national brands in the new retail environment; simply put, brand-loyalty leads to better total sales even if private labels are slightly more profitable, in some cases, relative to their national counterparts.The story of private labels is still being written more than a decade after "Private Label Strategy" took up the subject. For readers interested in the ongoing saga, this is an excellent book to start with.

It's a great read!

I am an incessant reader of business books and must say this is one of the best I've ever read. The statistics and charts and graphs in this book alone are worth the cost. WalMart's private label brands represent over 40% of Wal-Mart's overall business and they are not alone as a mass chain. As national chains develop critical mass, AG Lafley at P&G recognizes that the power is beginning to shift to the entity which owns the customer- the retailer-- and he's making major changes in P&G's business strategy to continue to compete. The private label business has become extremely competitive and requires significant analysis in how to compete and which categories to compete in- all based on market trends at the moment. The authors have done an incredible job of breaking it all down and providing an actual path to understand how market dynamics affect what type of private labeling strategy should be taken.

Excellent book to learn both basic and abstract ideas in the marketing of private label and brand businesses. Also an easy read and easy to underdtand.

Item was shipped quickly and arrived as described.

This book if you work in the industry won't tell you anything ground breaking or new, but it's good as a reminder of what you know already. The one exception to this comment is the insight that in studies done, even when private label is actively courted by manufacturers and supported alongside their brand/s there is no evidence to suggest there is a closer or longer term relationship with the retailer. Food for thought.

I think this book is very illustrative about the US retail market and maybe something about Europe.I'm a private label advisor in México and think it is relevant that the specialist in PL take a deep view in the concept of PL in my country

I have been looking for a book like this and it appears to be one of the few that take on the message of PLs in today's marketplace from the Brand's perspective and the Retailer's perspective. In my line of work and really need to balance the two so this book was perfect for me.

The take-home message is straight forward, branded products no longer wield the pricing power they once used to enjoy. Supermarkets and private label are now able to match or even exceed the quality once synonymous with branded products. Therefore the only way branded products can maintain its pricing power is through innovation and marketing but even this has its limitations as it will only work with certain types of products.The most interesting thing about this book is that it was written in 2007 and more or less describes the dilemma Kraft-Heinz faces now in 2019. I wonder if 3G and Warren Buffett would have benefited from reading this book.

Private labels have begun making quite an impact in India. I have been able to see first hand the drive behind them and the ambition that has been placed upon them.Yet, in terms of research, not a lot was available on the same. Most cases were bundled under generic marketing or branding or retail studies. A dedicated compendium was lacking.This book happens to fill that void. Though it might be a bit dated, you will be able to extrapolate and present the insights from the book into the present context. Detailed, insightful and with an enjoyable narrative, it has been quite a ride reading this book and I hope to stumble upon some more such treasures in the long run.

Well grounded conclusions with extensive research references. However in 2017, a decade later, presented views are getting slighly out of date. It would be great to see updated overview e.g. whether predictions of private label penetration were confirmed in reality. How the market developed on both sides - referring to strategies of retailers and manufacturers?This book appeared in the times when topic of private label was getting very hot. Today we know all of that views, but lack equally comprehensive summary of a present market status and forward looking opinions.