What are the
advantages and disadvantages of manufacturer’s brands versus
private-label or store brands? Consider both the retailer’s and
customer’s perspectives.
Advantages of
manufacturer’s brands versus private-label or store
brands
- manufacturer’s brands are well known and trusted by
customers
- manufacturer’s brands enjoy brand loyalty
- manufacturer’s brands are proven for their quality
- private-label or store brands are less costly alternative to
manufacturer’s brands
- private-label or store brands are easily available in absence
of manufacturer’s brands
- private-label or store brands can be entrusted in a
locality
Disadvantages of
manufacturer’s brands versus private-label or store
brands
- ?manufacturer’s brands suffer from supply and demand
irregularities
- manufacturer’s brands have a lot at stake
- private-label or store brands are not so well known in
market
- private-label or store brands do not enjoy high sales due to
quality issues