Flashcards

Number of flashcards in this category: 17.

1.
umbrella brand
- Carries store name. (Staples)
2.
Whole Foods philosophy
- positioned away from Walmart
- educated, affluent, liberal
- "Declaration of Interdependence" where offer higher margins than Walmart, which squeezes large supply and low margins (WF better suited for small organic famers)
- atmosphere, unique assortement and higher prices yield a $700 sq/ft margin.
- advantageous store-only private brands
3.
commodity
Refers to any product that is essentially undifferentiated. This means that there is no difference in the product regardless of which company you buy from. Milk is generally said to be a commodity.

Problem: when your comp is asked to supply a private label, run the risk of commoditizing it b/c you're supplying the exact same product.
4.
double marginization
Concept that at each level of supply chain, a margin is added on. Leads to higher end prices and lower gains at each level. (Private brands try to avoid this)
5.
group brand
Not a store name, by across a variety of products. (President's Choice)
6.
evolution of retailing
General stores, department stores, supermarkets, catalogs/showrooms, warehouses, home shopping, e-commerce and finally m-commerce.
7.
Walmart philosophy
Tight control of distribution channels; uses a lot of "just in time" distribution to avoid warehousing and high degree of automation.
- Squeeze highest margin from distributors (else we won't sell your product).
- Bad for Hersheys, diapers (hersheys sells 30% of product at Walmart)
8.
advantage of private label (umbrella brand)
- Reinforcement of store name throughout store (CVS, CVS, CVS...)
- Retailer absorbs mktg and inventory investments. (Heightens margin, but also a risk)
- Distribution and shelf placement guaranteed! (Best place to put to the right of eye-level)
9.
"Me Too" strategy
Generic-like, but mimics leading brand in packaging AND quality. (CVS)

- Often equally as effective, but at a much lower price. Often supplied by the same provider, except they're forced into it by retail power.
10.
exclusive brand
A private, store-created label (not the store name) for ONE type of product.
- Creates feel that it's a real brand, exclusive to store, sometimes partner with celebrities
11.
branded variants
Asking retailers to make an exclusive version for your store.

(extra tracks on CDs for Target)
12.
strengths & weaknesses of private brands
1. Can create impression of wide selection by having more brands.
2. Replace second or third leading brands in shelf space.
3. Exclusive distribution: repeat customers.
4. Can go outside your "inference realm" with a named brand.

BUT
1. People may not associate brand's quality with your store necessarily.
2. No existing brand equity (costly to start up)
3. scale: need to have enough brands to make worthwhile to put people into it
13.
retail outlets
ex: Nike stores, Apple stores

Don't always make $$ (exception, Apple), but a giant advertising billboard.
14.
disruptive pricing effect
Lowers prices 15% across the board to cause trouble for local businesses. (Could be clarified as predatory pricing?)
15.
inferior goods strategy
Provide generics, lesser quality AND lower price.

- The bad quality gets people. Out of favor now.
16.
private labels
Stores create own brands.

e.g. Trader Joe's
17.
why retailers want to be brands
1. Greater profit opportunity
2. Provide a unique offering, and only at their store
3. Allows you to bargain w/ nat'l suppliers (I'm putting my __ on the shelf, less room for you.)
4. Reduces more players in the game, which lowers your margin.

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Number of flashcards in this category: 17.
1.	umbrella brand	- Carries store name. (Staples)
2.	Whole Foods philosophy	- positioned away from Walmart - educated, affluent, liberal - "Declaration of Interdependence" where offer higher margins than Walmart, which squeezes large supply and low margins (WF better suited for small organic famers) - atmosphere, unique assortement and higher prices yield a $700 sq/ft margin. - advantageous store-only private brands
3.	commodity	Refers to any product that is essentially undifferentiated. This means that there is no difference in the product regardless of which company you buy from. Milk is generally said to be a commodity. Problem: when your comp is asked to supply a private label, run the risk of commoditizing it b/c you're supplying the exact same product.
4.	double marginization	Concept that at each level of supply chain, a margin is added on. Leads to higher end prices and lower gains at each level. (Private brands try to avoid this)
5.	group brand	Not a store name, by across a variety of products. (President's Choice)
6.	evolution of retailing	General stores, department stores, supermarkets, catalogs/showrooms, warehouses, home shopping, e-commerce and finally m-commerce.
7.	Walmart philosophy	Tight control of distribution channels; uses a lot of "just in time" distribution to avoid warehousing and high degree of automation. - Squeeze highest margin from distributors (else we won't sell your product). - Bad for Hersheys, diapers (hersheys sells 30% of product at Walmart)
8.	advantage of private label (umbrella brand)	- Reinforcement of store name throughout store (CVS, CVS, CVS...) - Retailer absorbs mktg and inventory investments. (Heightens margin, but also a risk) - Distribution and shelf placement guaranteed! (Best place to put to the right of eye-level)
9.	"Me Too" strategy	Generic-like, but mimics leading brand in packaging AND quality. (CVS) - Often equally as effective, but at a much lower price. Often supplied by the same provider, except they're forced into it by retail power.
10.	exclusive brand	A private, store-created label (not the store name) for ONE type of product. - Creates feel that it's a real brand, exclusive to store, sometimes partner with celebrities
11.	branded variants	Asking retailers to make an exclusive version for your store. (extra tracks on CDs for Target)
12.	strengths & weaknesses of private brands	1. Can create impression of wide selection by having more brands. 2. Replace second or third leading brands in shelf space. 3. Exclusive distribution: repeat customers. 4. Can go outside your "inference realm" with a named brand. BUT 1. People may not associate brand's quality with your store necessarily. 2. No existing brand equity (costly to start up) 3. scale: need to have enough brands to make worthwhile to put people into it
13.	retail outlets	ex: Nike stores, Apple stores Don't always make $$ (exception, Apple), but a giant advertising billboard.
14.	disruptive pricing effect	Lowers prices 15% across the board to cause trouble for local businesses. (Could be clarified as predatory pricing?)
15.	inferior goods strategy	Provide generics, lesser quality AND lower price. - The bad quality gets people. Out of favor now.
16.	private labels	Stores create own brands. e.g. Trader Joe's
17.	why retailers want to be brands	1. Greater profit opportunity 2. Provide a unique offering, and only at their store 3. Allows you to bargain w/ nat'l suppliers (I'm putting my __ on the shelf, less room for you.) 4. Reduces more players in the game, which lowers your margin.