Question
Distinguish between national brands and private label brands. What are the advantages and challenges faced by private label brands
Answer :
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National brands and private label brands are two important categories in retail and merchandising, differing mainly in ownership, control, marketing, and distribution. A national brand is a product manufactured and marketed by a producer under a brand name that is recognized across a large geographical market. Examples include Nike, Coca-Cola, and Levi’s. The manufacturer is responsible for product development, quality, branding, advertising, packaging, and promotion. National brands are generally available through several retailers and compete on the basis of brand image, quality, innovation, and customer loyalty. A private label brand, also known as a store brand or retailer brand, is owned and controlled by a retailer rather than by an independent manufacturer. The retailer may manufacture the product itself or, more commonly, purchase it from a third-party manufacturer and sell it under its own brand name. Examples include retailer-owned apparel, footwear, cosmetics, grocery, and household product brands. Private labels are primarily developed to meet the specific needs and preferences of the retailer's target customers. There are several differences between the two. National brands are owned by manufacturers, whereas private labels are owned by retailers. National brands usually have wider market recognition and are distributed through many retail outlets, while private labels are generally sold through the
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