Private Label Strategy

FIVE

Encircling Manufacturer Brands with Retailer Brand Portfolios

Wal-Mart’s annual private label portfolio sales: $115 billion

WHILE THE INDIVIDUAL private label follows one of the four propositions of generic, copycat, premium, and value innovator, most retailers manage a brand portfolio, which incorporates multiple types of store brands. By having a portfolio of own labels, a retailer can penetrate several different segments simultaneously. Traditionally, savvy segmentation of the total market has been a domain where branded goods manufacturers excelled. Nowadays, though, retailers implement a sophisticated mix of segmentation strategies to construct their own-brand portfolios.

Portfolio Segmentation Strategies

We broadly distinguish three ...