Private Label Strategy

THREE

Competing on Quality with Premium Store Brands

Price premium for Tesco Finest chocolate over Cadbury: 65 percent

RATHER THAN RESTRICTING themselves to the traditional generics and me-too copycat store brands described in the previous chapter, retailers are now becoming savvier. They are beginning to recognize that while the classic copycat branding strategy does help as a tool against manufacturer brands, it does not help differentiate the store against other retailers. It does not provide a reason for the consumer to buy at this retailer in favor of another retailer, since every major retailer has an equivalent private label (as the mouthwash example in the previous chapter demonstrated). And often the only thing separating one retailer ...