Previous

Part - II

Different Branding Strategies

1. Integrated branding:
   Here the retailer is in direct link with the manufacturer. He is required to possess complete knowledge about the possible developments in the product in the future. The retailer is involved in process beginning from idea generation to branding the product.

2. Contract Branding:
   The retailer outsources from an existing supplier. The supplier is completely responsible for the product. The participation of the retailer is limited to the specifications regarding quantity, price and brand.

3. Independent Branding:
   Here the retailer simply procures from the supplier at the lowest possible cost and the entire branding investment is his own. The retailer is like the owner of the brand and holds complete responsibility for it's performance. Such brands are known as 'Private Labels'.

Private Labels

Today since retailer margins are falling all over the world, they are looking for alternative sources of income. Private labels are one such source due to which they are gaining prominence. In the article we have developed a checklist for what is important for successful Private Labeling.

Different Pricing Strategies for Private Labels

1. Copycat pricing: Here the retailer simply prices his brand lower than the other existing brands

2. Parallel pricing: Here the retailer prices his brand equal to the other competing brands

3. Premium pricing: Here the retailer prices his brand higher than the other competing brands since he wants the brand to have a snob value attached to it

Positioning Strategies

Retailers can adopt different positioning strategies based on product, price, experience and service. Each of the strategies has been discussed with examples in the paper.

Next

* Contributed by -
Shalu Jhunjhunwala & Shana Sood,
Xavier Institute of Management,
Bhubaneswar.