1. Product Branding

2. Types of Brands
Brands are classified by who owns them: Manufacturers, Retailers and Wholesalers
National Brands
Private Brands
Generic Brands

3. National Brands Owned and Initiated by MANUFACTURERS
-Also called Manufacturer Brands-
Examples include:
Coca-Cola products
Kellogg’s products
GM automobiles
Maytag appliances
Tylenol

4. National Brands
They generate the majority of sales for most product categories.
For Example:
70% of food products - National Brands
65% of all appliances - National Brands
80% of all gasoline - National Brands
100% of automobiles - National Brands

5. National Brands
They identify a given product AND indicate a standard quality and price.
They appeal to customers who want:
consistent quality
dependable performance
status
do not want to take risks with products

6. Types of Brands
Brands are classified by who owns them: Manufacturers, Retailers and Wholesalers
National Brands
Private Brands
Generic Brands

7. Private Brands
Owned and Initiated by Wholesalers and Retailers – NOT Manufacturers
The manufacturer’s name does NOT appear on the product.
Ex:
Meijer Brands: Meijer, Shop Force, gfm
Sears Brands: Kenmore, Craftsman, Die Hard

8. Private Brand
Appeal to customers who want quality and performance similar to national brands BUT at a lower price.
Private Brands often become so popular they rival the National Brand
-Kenmore may sell as much as GE-

9. Private Brand Popular with Retailer because they have
HIGHER GROSS MARGINS (PROFIT)
The cost for the retailer is lower than National Brands therefore they can make more profit.
EX: Washing Machine: Maytag Kenmore
Selling Price:
$1000
$900
Cost to Sears:
$700
$500
Profit to Sears:
$300
$400

10. Private Brand Product Better Controlled by Retailer.
Retailer has power NOT Manufacturer
Why is this?
No Competition.
(Kenmore only sold by Sears)
(Maytag sold by everybody)
Therefore customers become LOYAL to Sears
…Not the Manufacturer (Maytag)

11. Types of Brands
Brands are classified by who owns them: Manufacturers, Retailers and Wholesalers
National Brands
Private Brands
Generic Brands

12. Generic Brand “NO FRILLS” Product Don’t Carry a Brand Name at all
Generally these brands are sold in Supermarkets and Discount Stores
Often Priced 30-50% lower than national labels (owned by manufacturers)
and 10-15% lower than private labels (owned by retailers)

13. Generic Brand Why do they cost so much less ??? NO ADVERTISING
Typically sold in plain white box with simple lettering (no brand listed)

14. Generic Brand
Ingredients in Generic Brands are similar to National and Private Brands
MUST WAIT FOR PATENTS TO EXPIRE
Ex: Prescription and OTC Drugs
Generic Brands have same active
ingredients as “Brand Names”