Many national brands are supplying products to be sold by retailers under the re

Question

Many national brands are supplying products to be sold by retailers under the retailer’s own private label. For example, Purina, Borden, Heinz – have all admitted to supplying products (sometimes lower in quality) – to be sold under the retailers’ own label. The practice has been criticized by many, as it might create confusion for consumers and reinforce the perception that all brands in a category are “the same”.

What is your opinion on this matter? Should national brands manufacturers also supply private label brands? If so, should the quality be lower?

Explanation / Answer

Since it certainly leads to the confusion of being regarded as the ‘same’, the quality issue with the private labels are a matter of concern although it calls for diversity in options on the part of the consumers. In this regard, if National brands manufacturers are also supplying private label brands, then care should be taken that the emotions of the consumers are not played with. There should absolutely be no room for compromising with quality. Seeking the advantage of Consumer’s loyalty towards certain national brands and in the process, supplying certain lower quality products to them, is hence not acceptable. Therefore, if quality aspect is taken care of, then the National brands manufacturers could also supply to Private labels.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.