Marketing Channels Assignment #3

Due Wednesday December 2nd, at 7pm in class

Answer Both Questions

Question

Randy Body Care Company manufacturers and markets several well known premium body care product brands, across a variety of product categories, like shampoo, body wash, and moisturizer. Recently, a retailer of Randy's products has begun to sell a private-label brand that is designed to look like Randy's brands. Randy has decided to take the retailer to court to stop the sale of the "copycat" products and is seeking damages for lost sales.

Can you explain why Randy thought it needed to take its channel member to court to stop the sale of this private label brand, and whether you agree or disagree with this decision?

Question

Private label brands (aka retailer brands) usually sell for about 20-25% less than national brands (aka manufacturer brands), but they usually are 10-15% more profitable. Recently, some supermarkets have started to go "up-market" with "premium" private-label brands that compete more directly with the national brands.

Explain why you agree or disagree with the decision of some supermarkets to sell "premium" private-label brands?