Dallas Business Consultant Elijah ClarkDallas Business Consultant Elijah Clark

Private Label Brands

If providing your product to private label retailers, you may be concerned about competition and losing revenue. However, if you choose not to provide your product to private label retailers, another brand likely will. An online study consisting of 1,600 customers found that brand imitation by private labels increased a customers’ preference relative to the imitated brand. However, the study also found that if the private label retailer used its name on the imitated national brand, it did not hurt the sales or reputation of the national brand, but may have negatively affected the private labels’ brand image and reputation.[1]

Private label products account for more than 30% of global grocery sales. Although there are individuals who are cautious about their purchasing decisions, there are also many shoppers who shop based on name recognition and perceived value. Within the United Kingdom, for example, private label production rose from 21.5% in 1980 to 39.3% in 2003.[2] The success of private labels throughout the world has presented challenges to international brands concerning budgets, advertising, and sales.

An example of national and private label products are over-the-counter medicines. While a national brand may present a televised commercial or a print advertisement, the private brand offers little or no promotional efforts. In this regard, the national brand should sell fairly well based on their marketing efforts. Regarding the private brand, individuals who purchase private brands likely do so because they are not affected by marketing efforts and are attracted to the lower cost. Consequently, if your business can earn revenue by providing to private labels, you will not necessarily lose a customer or profits. Whether you lose revenue is determined by the real value of the product. Regarding working with private labels, your business would be responsible for product sourcing, advertising, warehousing, and promotional efforts. If you can generate higher profits from selling the same product under a different name, and still have your current business, what’s the harm?

The main difference between private label and national brand awareness is the brand’s marketing and advertising efforts. Marketing generates familiarity to customers, and the assumption is that the perceptual response patterns are different toward private labels than national brands. One important factor is that private labels lack outside advertising which affects product knowledge and sales. Customers are likely to purchase a national brand if they believe the private labels are of lower quality. National brands often sell more product than private labels considering customers perceive that national brands have a better quality than private labels. Wonder bread, for instance, may not use the same quality materials for private labels as it does for its national brand. Additionally, the company may use a different formula or materials that are not as fresh.

Large national brands seek customers with a higher level of knowledge than private labels. By promoting their brand, national brands enjoy customers that are loyal and who are likely to promote their products. In addition, national brand customers often purchase based on cues from their memory of the brand. For instance, if a customer were to arrive at a retail shelf to purchase a box of cereal, they are likely to purchase the box that reminds them of something they have seen or with which they have a positive perception. In this instance, the national brand is the likely choice of the customer considering the national brand generally has a larger marketing budget and will be more familiar to the shopper.


[1] Aribarg, A., Arora, N., Henderson, T., & Youngju, K. (2014). Private Label Imitation of a National Brand: Implications for Consumer Choice and Law. Journal Of Marketing Research, 51(6), 657-675. doi:10.1509/jmr.13.0420

[2] Lamey, L., Deleersnyder, B., Dekimpe, M. G., & Steenkamp, J. E. (2007). How Business Cycles Contribute to Private-Label Success: Evidence from the United States and Europe. Journal Of Marketing, 71(1), 1-15. doi:10.1509/jmkg.71.1.1

Personal Branding

Important of organizational branding
Brands are often an organization’s most valuable asset. A strong brand can generate a loyal consumer and positive sales. It is the responsibility of the marketer to create a brand that consumers view as positive and valuable. In order for the brand to be valuable to the consumer, it needs to simplify the decision making process and reduce the risk for the consumer. Positive branding can influence consumer behavior. Having a strong brand will result in better earnings and profit performance, which will generate greater shareholder value for the organization.

Personal brand in 21st century
Personal branding is important within the 21st century. Many hiring organizations research employees on the Internet and find unsettling information that could have been prevented by the individual had they monitored their personal brand. Personal branding can have a tremendous affect on how an employee, celebrity, or public figure is viewed. A negative brand can cause job loss, rejection, or public humiliation for individuals. To create a successful personal brand, individuals can research their name online to find and remove negative information associated with them. In addition, they could enhance their current online presence and create content that promotes their best assets. Furthermore, individuals could promote their brand by having peers and organizations recommend and bolster their positive skillsets to others. This can be done by networking and creating friendships with industry influencers.

Branding process
The term personal brand was first introduced in an article by author Tom Peters in 1997. The process was developed to help individual’s use critical thinking and analytical reasoning to enhance their career planning. Within brand credibility, third-party endorsements have a tremendous affect on generating credibility for individuals as well as businesses, which assist with spreading positive brand awareness. Individual branding is different in that it requires a positive attitude and relationship building. Unlike business branding, which recommends posting a social ad or banner on a webpage, billboard, and in magazines, personal branding requires networking. Networking can be done via social networks, local group meetings, and events. In addition, during these networking sessions the individual needs to be likable and must present good character.

Branding involves creating, maintaining, and enhancing brand awareness. Marketers can purchase advertising targeted at audiences based on behavioral indicators and key performance indicators. This method is often used in online social media spaces by large brands. This practice does not differ based on the type of product or if that product is a person or an intangible asset. In addition, endorsements help enhance consumers’ attitudes and behaviors toward the brand. Attitudes toward the brands message have an impact on the consumers’ purchase and behavioral intentions. To promote the brand, marketers could invest in advertising, which is a more general means of communication for promoting the brand.

A perfect example of marketing based on consumers’ brand attitude and publicity is the beats headphone brand. The brand was introduced without a large budget and focused on building credibility through celebrity and word-of-mouth. As the consumers accepted the credibility as positive, they spread word about the product as being a commodity to those interested in owning the popular brand. With the help of social promotions, celebrity credibility, industry targeted publicity, and brand messaging; the brand has developed into a multi-billion dollar company.

Marketing-oriented publicity enhances positive and negative cognitive responses of a buyer. A positive cognitive response enhances the brand messaging for the consumer, which has an impact on their purchasing decision. Consequently, a negative attitude and cognitive response toward the brand messaging reducing the likelihood of a consumer purchasing.

A personal brand is a presentation of an individuals unique skills, knowledge, experience, and expertise that make the individual memorable to other. These unique assets influence employers to hire and professionals to want to work with individuals. In order for individuals to expand their social brand and generate brand awareness, they can start by creating or cleaning up their social media pages. On social media pages individuals should not post anything that they don’t want employers to see. This includes both text and images. In addition to social media pages, individuals should create digital portfolios and personal websites. The benefits of these are that employers can easily find websites and it allows the individual to present themselves in favorable conditions.

In addition to creating and enhancing the personal brand, the individual should always monitor their brand activity. For instance, the individual can google their name and see what content shows. If the content is something unfavorable, they should contact the content poster or website and ask for it to be removed. Or remove it themselves if they have access.

Consumer and Business Markets

Consumer and Business Markets
Business markets are task focused, while consumer market buyers may have an emotional factor when making purchase decisions. Moreover, in both business and consumer markets, the purchaser often does not have the final authority to make purchase decisions. In the consumer market, marketing methods may include advertising and promotions, while business markets can include necessary meetings before the final transaction. In addition, once a business purchases, there is the possibility of generating a brand loyalty for future purchases. In a consumer market, the consumer may base their future purchase on price, availability, and those continued emotional and personal factors. Furthermore, businesses often purchase in larger volumes. Consequently, the business market will likely generate more sales per customer.

Marketing Efforts
In creating a marketing strategy, product managers should be directly involved. To build a successful marketing strategy, the marketer should understand the consumers’ daily life and target their emotional needs. Consumers often purchase based on influences such as culture, social, and personal factors.  Marketing efforts should focus on building an emotional connection with the consumer to satisfy the consumers’ needs. In addition, marketers need to be aware of the consumers’ perception of the brand. Marketers can use integrated marketing communications to help with observing the marketing process. The company could focus on marketing to consumers from home by focusing more on their online marketing efforts. Consumers enjoy a comfortable setting when shopping, including having the ability to shop from home. Businesses prefer face-to-face sales meetings. To gain more customers within the tradesmen market, the marketer can advertise in electronic media and focus on e-commerce.

Marketing Approach
Consumer market purchases are likely made by individuals. An example of a consumer market is a husband wanting to purchase a new home. In order to do so, he would need to get his wife’s approval before making the decision. His wife will likely introduce personal factors, which may hinder his decision such as kids, bills, and other priority items. Consequently, he will not be able to make the purchase immediately because of these personal reasons. The marketer should create a campaign that addresses these personal concerns. The strategy could focus on the personal and family benefits that a new home would produce. It should mention the affordability, safety, and other family oriented concerns and then provide positive solutions for those concerns. In regards to a business market, this same strategy could be used to focus on the business benefits of purchasing a new business. The business marketer could showcase a better location, statistics surrounding the local traffic, and the return on investment. Within the business market, the purchase decision is made by many individuals and groups. A marketer needs to be aware of who has the buying power within the group. Once this is determined, the marketer should address each of the individuals’ concerns.

When determining the market, the business needs to know not only who are buying and why they are buying the product or service. The market purchasing decision for a business may be easier as there is a larger need. For consumers, there are other factors in to consider such as financials, family, personal, and priority items for example. For large purchases, there often needs to be a collective decision made by the family. Business markets often focus more on sales and purchases that are sold directly to other businesses, which may use those products to re-sale directly to the consumer. Consumer markets are markets where the consumer purchases an item to use for their own use. The strategies necessary for these markets are determined based on their needs and wants of the market. In a business market, purchases may also involve a collective decision, but there may also be a larger plan ahead for the company and the purchase may be one small item on a larger scale.

Within both business and consumer markets, the market must always be aware of the service strengths and needs of the purchasing organization. The products must provide value to the target market. To target consumers, the organization could use mass marketing and advertising methods to reach a wider audience base. Businesses are likely to also purchase larger volumes of items compared to consumers. Business markets may also have purchasing agents who are responsible for buying company items. These agents may already know the price they are looking to spend. In targeting the consumer markets, marketing agents should look to move online into e-commerce as it gives consumers the opportunity to make purchases directly from home or while on the go. Businesses often use more traditional purchasing methods such as face-to-face meetings. If market agents do desire to grow their online market, they have many options, which include services from Facebook, Godaddy, Google, and thousands of tools that can assist with targeting their desired consumers.

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