Term
| National (Manufacturer) Brand |
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Definition
| Designed, produced and marketed by Manufacturer but sold by many retailers (WalMart, Home Depot) |
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Term
| Private Label (Store) Brand |
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Definition
| developed by retailers and only sold in that outlet (Gap, Limited, Marks and Spencer, IKEA, ALDI) |
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Term
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Definition
| When a retailers private label products all relate to the retailer (Victoria Secret, Gap) |
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Term
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Definition
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Term
| Functional Distinctiveness |
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Definition
| will focus more on the quality than the price appeal |
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Term
| Emotional Distinctiveness |
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Definition
| focuses more on the packaging, image, and positioning |
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Term
| Categories of Private Brand |
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Definition
Premium
Generic
Copycat
Exclusive Co-Brands |
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Term
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Definition
| Comparable to, or superior to, manufacturer's brand quality, with modest price savings |
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Term
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Definition
| Target a price-sensitive segment by the no-frills product at a discounted price |
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Term
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Definition
| imitate the manufacturer's brand in appearance and packaging (Dr. Thunder) |
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Term
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Definition
| Developed by a national brand vendor and sold Exclusively by the retailer. LEVI Signature at Target |
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Term
| National Brand Advantages |
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Definition
1.Help retailers build their image and traffic flow
2.Reduces selling/promotional expenses
3.More desired by customers
4.Customers patronize retailers selling the branded merch
5.Large retailers can push some of the financial risk of buying merch back onto the vendor |
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Term
| National Brand Disadvantages |
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Definition
1. Lower Margins
2. Vulnerable to competitive pressures
3. Limit retailer's flexibility |
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Term
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Definition
1.Unique merch not available at competitive outlets
2. Exclusivity boosts store loyalty
3. Difficult for customers to compare price with competitors
4. Higher margins |
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Term
| Private Label Disadvantages |
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Definition
1. Require significant investments in design, global manufacturing sourcing
2. need to develop expertise in developing and promoting brand
3. unable to sell excess merch
4. typically less desirable customers |
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Term
| National Brand Buying Process |
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Definition
1.Meet with vendors
2.Discuss performance of vendor’s merchandise during the previous season
3.Review the vendor’s offering for the coming season
4.May place orders for the coming season
5.Sometimes they do not buy at market, but review merchandise, return to their offices to discuss with the buying team before negotiating with vendors |
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Term
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Definition
| Larger retailers that will have their own divisions that specialize in private label needs |
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Term
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Definition
| Limited brands that will acquire MAST industries |
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Term
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Definition
| Partnered with many specialty retailers |
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Term
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Definition
get quality private label merch at a low price
1 buyer, multiple sellers
Price falls |
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Term
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Definition
Price and gross margin
Additional markup opportunities
Terms of purchase
Exclusivity
Advertising allowances
Transportation |
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Term
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Definition
| Funds from a vendor to a retailer to cover the gross margin markdown |
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Term
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Definition
| A charge imposed by a retailer to stock a new item |
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Term
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Definition
One purchase at a time
Short-term
Focuses on price
Win-Lose negotiations
Governed by contracts |
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Term
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Definition
Anticipate future
Long-term
Considers all elements
Win-WIn collaboration
Governed by trust |
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Term
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Definition
A retailer deducts the amount of money they will owe a vendor without their approval
-Merch isn't selling
-Vendor mistakes |
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Term
| Buybacks (Stocklifts or Lift-outs) |
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Definition
Used to get distribution in retail stores
-Retailer allows vendor to create space for its goods by buying back competitors inventory
-Retailer forces a vendor to buyback slow-moving merch |
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Term
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Definition
An agreement that requires the retailer to take a product it doesn't necessarily desire
This is illegal when they lessen competition |
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