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great detail) ? Ensure there is no customer confusion between private label offering and branded product ? Seek partnering agreements with retailers ? Joint advertising and promotions ? Explore deals with mass merchandisers to enter private labels (remember, mass merchandisers presently sell no private label) If the threat is seen as low, the likely remendation is for your client to stay with branded cookies only. The candidate should recognize that in peting in the branded segment the basis of petition is one of differentiation. Additionally, your client should do all it can to halt or reverse the momentum of the private label segment. The following tactics might prove useful: ? Pursue a maximum differentiation strategy ? Invest in brand image to support premium price ? Make it difficult to copy product: innovate wisely through product advances, smart product line extensions, frequent changes to the product ? Manage price gap: explore price increases where appropriate ( Again, any of these points could be discussed in great detail) ? Explore exclusive partnering with mass merchandisers ? Consider alternative distribution channels ? Seek partnering agreements with grocers regarding branded products ? Educate grocers as available ? Customers who buy private labels are the most price sensitive. They also tend to be the least loyal customers and spend less per store visit. ? Grocers financial stake in private label products extends beyond the product margins. There is lost profit from branded products that could occupy the same shelf space, advertising costs of the private label products, etc. Key takeaways: This case has no right or wrong answer. It forces the candidate to take a stand in a “grey” situation and defend it. It also provides a large amount of data upfront which the candidate must quickly sort through and determine what is important and what is not. The key is to understand the story behind the data. How did the private label segment emerge? What is driving it? How has it affected manufacturers, retailers and consumers?