Impacts of Own Brands Strategy on Manufacturer – Retailer Relationship: Case Studies in Large Size Companies

Abstract

The study of marketing and production strategy of own brand products requires an understanding of both the benefits gained by retailers and manufacturers involved in this activity and also the effects of this strategy on the relationship between these companies. According to this idea, a qualitative and descriptive work was conducted, based on six case studies, three of them on large product manufacturers and three on large retailers. The aim of this study is defined is threefold: (1) to analyze the expectations of manufacturers and retailers with their own brands’ current operations, (2) to analyze the expectations of manufacturers and retailers with their own brands’ future operations, and (3) to analyze the influence of the own brands adoption on the relationship between manufacturers and retailers. The results indicate that (a) current operations are primarily based on economic reasons (market share, and use of spare capacity), (b) future operations are perceived from a marketing perspective (survival), and (c) the adoption of own brand strategy does not harm the relationship between the parties – both manufacturers and retailers –, unlike the earlier studies indicated.