Name Brand and Generic brand Competition：The Optimal Position for Store Brand under Channel’s Cooperation Strategy
Date Issued
2014
Date
2014
Author(s)
Chien, Chun-Chen
Abstract
Recently, the advantage of original equipment manufacturers won’t exist anymore.Therefore, many manufacturers try to keep their manufacture and develop their private
brands at the same time in order to find a way for surviving and compete with Name Brand. Name brand products are usually positioned with a high-quality and high-price value, while Generic Brand products are set with lower prices with lower quality.However, even the quality and the service level of generic brand products have been improving recently so that generic brand products are getting more valuable to customers, but it’s still hard to compete with name brand directly. At the same time,many retailers try to use their powerful channel to develop their own brand (Store Brand), attempt to share market profit margins. Therefore, generic brands can take these chances to compete with name brand more advantageous.
Therefore, this paper discusses the competitive strategy of generic brand. We assumed that generic brand will cooperate with retailer to develop store brand, help its
production and product positioning. According to these assumptions, first we will construct a base demand model for name brand and generic brand. Second, an optimization program is constructed for optimizing store brand’s position strategy to show the feasibility of cooperation strategy.
After analysis, we prove that the cooperation of generic brand and retailer can achieve win-win situation. When SB and GB are in weak market power, SB has to adopt a differentiation positioning strategy. When SB and GB are in stronger market power and SB is stronger than GB, SB has to adopt an NB imitation and GB differentiation positioning strategy.
Subjects
副廠品牌
零售商品牌
產品定位策略
品牌競爭
Type
thesis
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