Store brand

As a trademark (also private label ) is called products and product lines (brand goods ) whose trademarks are the property of a trading company or a trade organization. They are usually discontinued only in their own operations of the brand 's owner or in the retail stores of a group of affiliated trade connected.

The more branches a retail company or the more members has a group of affiliated trade, the more likely it is worthwhile for them to design and own brands to lead. For the configuration, there are various brand types available, namely ( with increasing quality and price) generic brands ( no names ), normal ("classical " ) trademarks and premium brands. The term " premium brand " ( for trade as for manufacturer brands) is neither competitive nor legally trademarked and therefore freely accessible.

Motives

Trademarks are worthwhile for trading companies for several reasons: The trademarks are not offered by competitors, so that the own-brand leading retail companies are so far due to lack of comparability free to set their own pricing policy. Trading company to use the following factors to differentiate themselves from the competition: quality of product, packaging contents, packaging design and list price ( LVP). The landed costs for trademarks fall generally lower than for consuming advertised branded products, so their prices are lower than the retail prices of branded products even with the same calculation and can signal a special price performance of the trading company. The own-brand leading trading company can order these from various manufacturers which are in competition with each; Therefore, exclusive contracts on trade marks with the best producers can be completed. A few retail companies also have their own production facilities. Sometimes Trademarks are completely or largely identical or identical to other brand products ( branded products ). With increasing awareness of the favorable quality-price relation of trade marks also the opportunity for the trade has grown to meet the self-esteem of customers who have learned to classify the price- performance ratio for various brand goods rational.

The decisive motives for the management of trade marks are:

• Independence from the big brand goods manufacturers whose marketing pressure can escape the trading companies and groups from store brands by push or pull methods.
• The opportunity to profile their own assortment or the corporate image through distinctive products. Especially suitable for profiling trademarks are the goods in groups of retailers with high price elasticity of demand and as a "counter brands " to well-known brands. To exploit the profiling opportunity, including through affordable hotel offers high quality private brands, professional support ( Retail Management ) and psycho- strategic approach is essential.
• The strengthening of customer loyalty. Since the own-brand a company can usually be purchased only in its own sales companies, there is an incentive to visit this again with a positive product experience for customers.
• The change of supplier for the same package, or different regional suppliers in Germany far appearance the trademark of a chain.

In the scientific literature, other, less obvious reasons for managing private label and the promotion of private-label sales are called. For example, benefit companies with vertically integrated supply chain (Supply Chain) of high and stable private label sales through economies of scale in production and utilization optimization of the Group's suppliers.

In the years following the introduction of the euro (1 January 2002 ), the market share of private labels soared: he rose from 28 percent (2001) to 41.3 percent ( 2008). The perceived inflation after the euro's introduction led many consumers to change; 2008, there were probably some price increases for dairy products and other foods. Also in many workers stagnating or slightly declining real wages may be a factor.

Since then, the discounters are increasingly focusing on premium brands ( = trade marks under which premium quality is offered).

Demarcation Manufacturer Brand

Trademarks are in competition with brands. Both are brand goods, that is, with the legal protection of a trademark, brand, equipped consumer goods. "Manufacturers trademarks and brands differ in principle neither in quality nor for specific product properties, but only by the respective brand ownership and the disposition of the design of the brand."

Trademarks are an effective tool for customer loyalty to shopping facilities or retail chains. They are often located in the lower price or quality segment. Especially in Germany trademarks are however increasingly being used as an instrument for price discrimination, profiling and strategic market positioning. The differentiation has led especially among the trademarks to novel forms ( genus trademarks or no names, premium brands, assortment brands, umbrella brands ). Also arise in the context of vertical cooperation, such as the selective distribution, mixed or hybrid forms.

In independent tests by Stiftung Warentest has been found again and again for decades that there are numerous Identical characteristics of manufacturer brands and private labels and is that neither of the two categories generally superior in quality. When price-performance ratio are usually trademarks front (above-average quality at below average price).

Examples of dealers and trademarks

Special trademarks

Examples of special trade marks are:

• Mono-brand ( at Aldi Tandil )
• Product Group brands ( Bancetto ( all things Italian, for example, frozen pizza, pasta), bakery ( baking ingredients ), vegetables kitchen ( canned vegetables ) and Rio Grande (juices and canned fruits ) at Edeka )
• B brands ( Erlenhof at Rewe ) and
• Price brands ( Gut & Günstig at Edeka or yes! Rewe ).

Criticism

According to a research report from the University of Hagen in 2009 causes the proliferation of private label following:

• The action frequency of branded goods decreases, the price level rises.
• The price competition is for individual manufacturers near the compulsion to reduce product quality in favor of the production costs.
• Product innovations do not contribute to the increased price level, as private label compared to manufacturer brands rather imitation rather than innovation is to watch. Price pressure from private label is likely to lead to savings on the part of the manufacturer brands, which also relate to and often especially research and development.
• Increased use of trademarks pulls the delisting of branded products from the assortment of dealer itself. The variety of products decreases.

Overall, no positive effect from the consumer point of view is to be expected, either in terms of the price level nor to the variety of products. Furthermore, there are negative effects on the overall heels and turnover.