RMG 200 Lecture Notes - Private Label, Brand Equity, Gross Margin

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Ken Wong

Document Summary

Manufacturer brands/national brands are products designed, produced and marketed by a vendor and sold to many different retailers. Manufacturer is responsible for developing the merchandise and establishing an image for the brand. Stocking national brands may increase or decrease store loyalty. Don"t need skills and people to develop and promote merchandise. Lower gross margins than private-label brands (due to the manufacturer assuming the cost of promoting the brand and increased competition among retailers selling these brands) Limit retailer"s flexibility vendors of strong brands can dictate how their products are displayed, advertised and priced. The owner of a well-known brand name (licensor) enters a contract with a licensee to develop, produce and sell the branded merchandise. The licensee may be either the retailer that contracts with a manufacturer to produce the licensed product or a third party that contracts to have the merchandise produced and then sells it to the retailer quality issue. Licensed brands" market share has grown increasingly large.