Facing private label competition : four case studies on Swedish branded goods manufacturers’ responses to private labels

The aim of this thesis is to gain a deeper understanding of how branded goods manufacturers (BGMs) respond to the increased usage of private labels. The study explores, describes, and starts to explain how BGMs perceive private label activity, respond to private labels in terms of adopted strategies, and perceive the benefits and drawbacks of the strategies they adopt. A contrasting multiple case study has been conducted through interviews with four Swedish companies in the fast moving consumer goods industry, operating in the chemical consumer products-, and consumer food products category respectively. This thesis’ main findings are: first, that private labels are perceived to be growing and the perceived advantages of private labels are connected to their overall control, whereas BGMs’ advantages are seen to be linked to product development and brand reputation. Second, BGMs respond to private labels by taking them seriously, and striving for an increased distance. Finally, the overall perceived benefit of the adopted strategies is a preparedness for increased private label competition, while the drawbacks vary between companies.Validerat; 20101217 (root