Private Label Strategy: How to Meet the Store Brand Challenge

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9781422101674: Private Label Strategy: How to Meet the Store Brand Challenge
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As retailers have become more powerful and global, they have increasingly focused on their own brands at the expense of manufacturer brands. Rather than simply selling on price, retailers have transformed private labels into brands. Consequently, manufacturers such as Johnson & Johnson, Nestle, and Procter & Gamble now compete with their largest customers: major retail chains like Carrefour, CVS, Tesco, and Wal-Mart. The growth in private labels has huge implications for managers on both sides. Yet, brand manufacturers still cling to their outdated assumptions about private labels. In Private Label Strategy: How to Meet the Store Brand Challenge, Nirmalya Kumar and Jan-Benedict E.M. Steenkamp describe the new strategies for private labels that retailers are using, and challenge brand manufacturers to develop an effective response. Most important, they lay out actionable strategies for competing against - or collaborating with - private label purveyors. Packed with detailed international case studies, valuable visuals, and hands-on tools, Private Label Strategy enables managers to navigate profitably in this radically altered landscape.

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Review:

Comprehensive and succinct... whether you're responsible for manufacturer
or retailer brands, this book is essential ammunition for the battles
ahead.
-- Marketing, April 2007

The book shows that there is still support for major brands ...but these relationships can't be taken for granted...
-- Loyalty Online, March 2007

A concise summary of the private label versus premium brand
phenomenon [and] a thorough analysis of strategic options for players
-- Financial Times, March 14, 2007

From the Author:

Social security is sure to
be a big issue in upcoming elections. Do you expect
The New Capitalists to
reframe the debate?
Absolutely. The private pension system is collapsing as companies daily
replace traditional plans with savings plans that
shift risk to employees. Conventional politics prescribes band-aid fixes.
But The New Capitalists spells out a fresh, vote-winning agenda for
retirement security that empowers citizen owners to not only protect, but
to grow their pension nest eggs.
Didn't public policy responses to Enron fix the most glaring corporate
misbehavior?
Officials came up with three main treatments to cure the Enron problem:
compliance, compliance, compliance. New rules help stem fraud. But savvy
corporate executives--as spotlighted
in The New Capitalists--are going beyond that. They are pioneering
management techniques that find competitive advantage in new style
accountability to shareowners.
You cite a litany of accountability failures that cost citizens billions of
dollars. Yet the overall tone of the book is optimistic. Why?
As The New Capitalists documents, entrepreneurs are seizing upon being
accountable as a way to differentiate themselves; thereby making money and
fixing the system at the same time. Because it's composed of millions of
individuals making independent decisions, capitalism is dynamic and
self-adjusting.
Your thesis seems to stand apart from the bulk of academic writing and the
bulk of day-to-day press coverage. Why doesn't everyone else see what you
see?
The developments we document cut across academic disciplines, so we're not
surprised that traditional academic research has largely missed it (though
a few academics have been spot on). At the same time, the new capitalist
economy is developing over years, so is usually context for the headlines,
rather than the story itself. Perhaps another answer is that we don't think
it's an accident The New Capitalists was written by three practitioners. We
may be academically-oriented, but we make our living in the real world,
competing in the real economy; the evolution is manifest to us.

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