Paul Woods

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My review of the Harvard Business Review Press title "Private Label Strategy: How to Meet the Store Brand Challenge" by Nirmalya Kumar and Jan-benedict E. m. Steenkamp will be published in the AMI newsletter going out tomorrow (Friday 15 Feb).

But for all you loyal marketing tragic’s out there, here is your sneak peak of the review.  Read the book?  Leave your comments below!

Paul W

Private Label Strategy: How to Meet the Store Brand Challenge

By Nirmalya Kumar, Jan-Benedict E.M. Steenkamp. Published by Harvard Business School Press, Boston, 2007. RRP $50. 1-4221-0167-3

Reviewed by Paul Woods

Available at Amazon.com

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Have you noticed that the generic private label brands you used to see on the supermarket shelf are no longer alone. Gone are the days of “Home Brand”, or “Savings” being your only options. With the likes of Woolworths Select and other premium private labels changing the game in the supermarket, and store brands filling shelf space in retailers such as IKEA and Target, we are in the middle of a private label revolution. And there is a reason why.

Private labels are big business. In Private Label Strategy: How to Meet the Store Brand Challenge, Nirmalya Kumar and Jan-Benedict Steenkamp predict that in 2010 private labels will have a substantial 27% share of sales in the United States, and a 22% share of sales in Australasia. Can your business afford to miss this opportunity?

The book, the first to credibly focus on the private label phenomenon, looks at the issue through two lenses – the one of the Retailer where the challenge is picking the best strategy in the midst of increased manufacturer pressure, and the one of the Manufacturer where there is a need to combat the power of large retailers and their store brands.

For both retailers and manufacturers, the authors outline numerous strategies (beyond what most start with – lower price and quality) and the impact they will have not only on the private label, but the value of existing brands as well.

The book itself, like most Harvard Business Press books I have read does get a bit dry from time to time, but that is more than made up by the numerous examples of private label strategies in the real world. And it was refreshing to see a few of those examples come from our own backyard! On top of that, listing the key chapter takeaways also helps with comprehension of the key points that the authors are making.

Whilst the obvious target audience for this book is retailers and manufacturers who live in, or are thinking of moving into the private label world, it is an interesting insight for any consumer with a marketing bent (that means all of you reading this review!).

After reading this book I can’t help looking at the supermarket shelf, and particularly private labels in different way. That old can of generic baked beans isn’t what it used to be.

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Paul Woods leads the Marketing Communications team at Data#3 in Brisbane