Sales of private label cereal grew 50% from 1991-1994 in the Ready-to-Eat breakfast cereal industry. Some of the factors that contributed to the entry of private label cereal manufacturers and their subsequent growth include - lower costs related to manufacturing‚ packaging‚ marketing‚ R&D compared to the Big 3 cereal companies‚ product quality approaching that of branded products‚ higher margins for grocers‚ lower priced products. Some observers blamed higher prices and elaborate expenditure on
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Private label products or services are typically those manufactured or provided by one company for offer under another company’sbrand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting. They are often positioned as lower cost alternatives to regional‚ national or international brands‚ although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands. Richelieu Foods‚ for example
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PRIVATE LABEL BRANDS AND THEIR PERCEPTION AMONG INDIAN YOUTH Dr. Ankit Mehrotra Faculty Jaipuria Institute of Management‚ Lucknow Dr. Reeti Agarwal Faculty (Marketing)‚ Jaipuria Institute of Management‚ Lucknow Article No: 180 Year:November 2009 ISSN 0974 – 9497 Volume 3‚ Issue 4/4 Abstract: Retail and real estate are the two booming sectors of India in the present times. Retail‚ one of India’s upcoming industries‚ has presently emerged as the most dynamic and fast paced industries of recent
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1)How would you describe HPL and its position within the private label personal care industry? To fairly describe Hansson Private Label (HPL) and its position in the certain industry‚ we firstly review the company’s historical performance. The company’s 5 year financial statements reveal that its growth in revenue and sales are stable. On average‚ the sales grew around 7.7% annually from 2003 to 2005‚ outperformed the market sales growth of 1.7%. Almost all indexes such as Gross Profit‚ EBITA
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Private Labels Macy’s – Bar III What categories is the label in? The label has four different categories: Women‚ Men‚ Fashion jewelry and Home. Price Points? Different categories show different price ranges‚ and in each category‚ the prices vary within the kind of product. Although‚ they are all consider middle range prices. Women – $20 to $80‚ most products are beneath the $40 to $60 price range Men – $30 to $100‚ most products are beneath the Under $50 price range Fashion
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Question 1: How would you describe HPL and its position within the private label personal care industry? HPL is a major player in private label personal care industry. Private labels hold around 19% (around $4 billion) of personal care industry (around $21.6 billion). HPL holds approximately 28% share of this private label personal care market. Even though HPL is a small player in overall private label market with the revenues of approximately $700 million compared to overall private label market of
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Reason for the high-profitability of the RTE cereal business: The "Big Three" cereal manufacturers have jointly monopolized the market and have reaped high profits from their monopoly pricing combined with the tacit co-ordination they share regarding price hikes. The "Big Three" have backed up their monopoly strategy with their strong relationships with each other and with regional and national grocers. This relationship allowed them to control or buy shelf space and ideal positioning of their product
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Case Study – Project Proposal Case Study for Hansson Private Label‚ Inc.: Evaluating an Investment and Expansion Company profile Hansson Private Label (HPL) started in 1992‚ is the manufacturer of personal care products under the brand label of its retailers. HPL was acquired though a single investment made by Hansson for $42 million ($17million debt and $25 million equity). Revenue in 2007: $681 million HPL estimated share is 28% out of wholesale sales ($2.4 billion) from all manufactures
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A brief evaluation of Hanson Private Label (HPL) will reveal signs of an excellent‚ growing‚ and well run company. There are no danger signs within the financials of HPL. The following have seen growth with every passing year: revenue‚ current assets‚ owner’s equity‚ net working capital‚ and sales (even groceries). The following categories have grown every year with the exception of 2005‚ where a higher than usual COGS caused a dip in gross margin – 15% versus a historically high teen’s percentage:
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ready-to-eat Breakfast Cereal Industry in 1994 Why RTE cereal has been such a profitable business up to the 1990s? Rivalry among existing competitors: Low. Restrained competition through effective unwritten agreements for the big three to work together on restricting – trade dealing‚ in-pack premiums‚ and vitamin fortification‚ these were viewed as powerful tools for increasing a firms market share. Bargaining power of suppliers: Low. The big three were leading the suppliers. Bargaining
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