BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In most cases, private label brands are produced to maximize profit. Since these products do not have the branding cost of the national brand or the middleman fee to bring it to the retailer’s store, private label brands are more profitable, and they leave a better margin than national brands.

Detailed explanation-2: -Own-brands allow retailers to work more closely with their suppliers to source the products that consumers demand. They can also help retailers to achieve better terms and lower input prices from both own-brand and branded suppliers.

Detailed explanation-3: -(b) (i) Lower Prices: They can sell ‘own-brands’ at a cheaper price than the market leader. (ii) Repeat Customers: It can lead to customer loyalty to the retail store.

Detailed explanation-4: -One benefit is that it will allow a business to bring out new products. This will allow it to compete by having a USP. This is important in a fast-moving market where new products are being launched on a regular basis to keep up to date with changing consumer tastes.