Strategic management of store brands: An analysis from the manufacturer’s perspective

Store brands have gone from being considered by retailers as profitability tools to being considered as marketing tools in the creation of value for the commercial establishment. For manufacturers, producing these brands is considered, on occasions, a source of greater economic profit or relational benefits, and on other occasions, it is considered the only alternative for entering or remaining in a channel. The objectives of manufacturers and retailers with store brands and the strategic management by both agents regarding these brands constitute aspects of special interest in the study of store brands. This work presents an empirical research performed on the business units of consumer goods manufacturers, hereby highlighting the differences between manufacturers and non-manufacturers of store brands in their competitive position and in the type of manufactured product; the consensus of both groups regarding the perception of favourable merchandising for store brands; the greater number of production and market motivations versus the relational motivations in the manufacture of store brands; the no convenience of producing store brands for leading manufacturers, and the slight differences in the manufacturing process between manufacturer and store brands, among other aspects.