Why 

do Strategic Planning? 

  If you fail to plan, then you plan to fail – be

  proactive about the future

Strategic planning improves performance

Counter excessive inward and short-term

thinking
Solve major issues at a macro level
Communicate to everyone what is most
important
C
O
M
Strategic decision making PL & national brand
P
I
T
I
T
I
O
N
HIGH III IV
A
M
O
N
G
II
N
A LOW I
T
I
O
N
A
LOW HIGH
L
COMPITION AMONG THE PRIVET LABLES AND NATIONAL BRAND
The diagram shown above is made on the
following assumptions

• It is technically feasible for the store to

introduce its own brand

• The switching cost for the consumer is not to

high
 Low-low 1st quadrant
This quadrant represent situation in the store where
the both type of competition are low
a) high degree of commoditization
b) Low importance of the product category for the
customers
 High-low second quadrant
a) This quadrant represent high competition between
the store brand and the major national brand and
low competition among the national brand
 Third quadrant Low -High
this quadrant represent high competition among
national brands but low competition

 Fourth quadrant High-High

Co this quadrant depict an all –out competition
among the national brand and if the store introduces
its privet label
Managerial aspects of store brands
• Store brands enables the store to discriminate
consumer on price dimension
A  Good Strategic Plan  should . . .  

  Address critical performance issues

 Create the right balance between what the
    organization is capable of doing vs. what the
    organization would like to do
 Cover a sufficient time period to close the
   performance gap
 Visionary – convey a desired future end state
 Flexible – allow and accommodate change

 Guide decision making at lower levels –

   operational, tactical, individual
National Brand
Develop unique products and stay ahead as a
trend leader
Create own stores
Develop a compelling marketing strategy
Increase brand loyalty
Combine effort by offering exclusive lines.
Create one shot exclusive deliveries and SKUS
Evaluate sourcing strategy and production cost
Maintain net price (minimal promotions &
discounts)
Improve forecasting and turn around time
Managerial aspect of store brands

 Provides a greater clarity of leadership, responsibility,

and accountability

 To focus on the needs of their customers and

consumers thus reigniting growth and increasing
sales potential

  Provides the ability to leverage scale of operations

  Create a strategic platform for brand management