. Relabeling: The unit pack must bear only the brand name of the particular store or anyother party the store may choose for its Private Label programme.Private labels will enhance the category profitability; increase the negotiation power of the retailer and better value creates better consumer loyalty. All retailers cannot go for the private labeling. Private labels can be introduced if and only if
The consumer is not getting the tangible value.
The retailer is not making the enough returns from the sale of the brandedgoods.Emerging issues in private labeling:
The private label strategy is effective, profitable and reality.
The retailer must understand the price, quality and willingness to pay.
The retailer must have a sufficiently large base of loyal customers in thestore before introducing the private label.
The focus must be on consumer need and not any private agenda of theretailers
There must be stringent system for the private label production. Qualitycontrol is a must since there is no else to blame.
Private label must work to fill- in gaps in the category and not target the brand leader
Smart manufacturers may take a private label initiative of the retailer seriously and avoid value gaps in the categories as an impediment to growing private labels.
(Source: Praxis- Business line)
It is the legal authorization by the trade marked brand owner to allowanother company to use its brand for a fee. For example, Hugo boss, Tommy Hilfiger,Lovable, Lacoste, and Nike are some of the textile brands those licensed their brands inthe Indian market. The major benefits of brand licensing are low cost, free publicity andrevenue from royalty fees. Brand licensing also suffers from serious limitations like lack of manufacturing control, and licensing arrangements may fail.
According to Kotler co- branding is ‘the practice of using the established brand names of two different companies on the same product’. For example, ICICI andHPCL came together to sell ICICI-HPCL petro cards to the customer. Here card is the co- branding between the two companies. Co- branding helps ICICI to utilize their financialresources well. It adds another banking facility to the bank while HPCL can lock thecustomer from buying the petroleum products from competitors. HPCL also gets the benefit of financial power which it doesn’t have. Both companies promote these products.Hence they can leverage brand image and can reduce the cost. All companies will not get benefit from co-branding. Some times company may loose the brand image if the productfails.