Private Brand Products at Migros Turk



Private Brand Products at Migros Turk

Q. 1. Role of Private Brands

These products are sold in supermarkets and are characterized by wearing a different name than the self, but are managed as national brands. “Ten years ago there was a very noticeable difference in the quality of products brand of private label products. Today that gap has narrowed; the quality of private label products is higher than ever and is more consistent, especially in product categories that have historically been characterized by low capacity for innovation. Distributors who contract production for private labels have perfected their procurement processes and monitor quality more thoroughly (Applbaum, 2004).

It is expected that the development of private labels generate the following benefits for producers:

Strengthening the relationship with business partners' supermarket chain.

Increased use of installed capacity.

Increased sales of the company as a result of additional units of brand.

The resources originally intended to gain more shelf space self-service are not necessary, since the fact of being a business partner label gives advantages in terms of location on the shelves and participation in self-promotional events.

Though, it can be said that private brands can earn more profits for the retailers, but a retailer should never make a direct attempt to make the customers buy these private brands. In this regard, it can be stated that Migros can try to promote the private brands through different activities, in order for the customers to buy the private brands.In the end, it can be said that Migros should simply stock brands that customers would prefer to buy. This is said because of the fact that if Migros makes a hard attempt to make the customers into buying the private brands than it might strat loosing customers that are loyal to national brands. As a result of this, Migros will have to serve losses in this manner.

Q. 2. Lower Private Brand Sale Line

The slogan of low prices of supermarket chains is less consistent than it seems. The current scenario with pockets of consumers hit by the economic crisis is ideal for private label products gain ground in retailing. However, after a year of economic difficulties and unemployment rising sales of its participation in this sector remains stable 6%.

Products with brand owned supermarket chains cost up to 30% less than their brand name, because they do not require investments in advertising, promotions and colorful and sophisticated packaging. In markets where these items are more accepted by consumers, their contribution to total sales revenue chains can represent up to 50% (Belk, 2003).

In Migros case, the sale of the private Brand Line is low. This lower Private Brand sale can be attributed to the fact that the higher prestige national brand names and the loyality of the customer attached to these national brands.

Q. 3. Food lines for Migros

If we see the importance of some of the major categories, we have preserved an industry that represents about 1,700 million dollars, salted snacks around 1,200 million, meats estimate around 1,000 million, a thousand cheeses, ...