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Essay text:
The consumers resented the tactics of the firms to charge high price for such a basic food item and started looking for alternatives. Private labels positioned themselves as alternative to expensive cereals.
Retailers' willingness to promote better because of better margins
Because of their low-cost structure, private labels could afford to give 3% margin more than branded cereals to retailers. Higher margins led to heavy promotions of private labels by retailer.
Coupon promotions by major manufacturers eroding brand loyalty
Branded manufacturers heavily promoted their products through frequent sale promotions and coupons, conditioning the consumers to pay less...
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Common topics in this essay:
- A CASE FOR BRAND LOYALTY
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- Brand Loyalty
- Brand Loyalty
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