Private Label and Manufacturing Strategies: A Case Study of Brazilian Suppliers From the Food Industry

Abstract

The private label strategy has been adopted by retailers who seek a competitive advantage through the commercialization of products sold under their brand names. This strategy has created a new demand for suppliers, who need to reevaluate their manufacturing structures in order to decide whether or not they should produce such goods. Aiming to analyze the manufacturing strategy adopted by suppliers of private labels, we conducted a qualitative research based on six case studies with private label manufacturers and classified them according to their reported competitive priorities. All the companies considered quality as their top priority, but diverged between flexibility, cost and service as their secondary and third priorities. We highlight the fact that private label strategies do not determine, but rather influence decisions on manufacturing strategy

    Similar works