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Private Labels

In: Business and Management

Submitted By bozboz
Words 617
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Why are private label products successful?
Private labels are successful because consumers, especially in todays economy are always searching for the best way to stretch their dollar and private labels fit into these types of budgets. Next, retailers understand that families are on a tighter budget and welcome private labels with open arms due to the fact that these products will attract more consumers to their store (Hauptman, 2009).
What are the key success factors for private label products?
The key factors pertaining to success of private labels was quite simple. For example, products must function similar to a branded product. Next, in order for a private label to succeed performance is the only way to survive and thrive in a cutthroat industry because, for private labels there is no advertising or marketing, the product must do the talking. Therefore, the majority of the leading private labelers today will take a proactive role in the production specifications of the product and will no longer place their logo on whatever comes off the conveyor belt. Therefore, attention to details has played big dividends and has helped expand the consumer base throughout several economic classes. Finally, as private labels continue to improve, the lower income shoppers can be assured that they will receive an appropriate value for their money ratio. So just like a name brand item, once a relationship has been formed, the shopper will continue to purchase it as long as it continues to perform well (Rusch, 2002).
Describe any ethical issues regarding private label packaging:
Simply offering a private label doesn’t just happen overnight, there are a lot of underlying factors that come into play. For example, dual sales teams will be required to serve both the branded labels as well as the private labels. Next, innovations will be expected to be developed on a...

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