Customer Demand, No Competition, Large Margins

During the second half of our trading period we focussed massively on the private label market and found our niche there. We had realized that the minimum cost of the product wins the market share so we started experimenting with S/Q Ratings and percentage of superior materials to come up with the best product with the least cost price. Adding minimum profit margin to the cost price we were able to seize a massive chunk of the private label market. Attached are a few snapshot highlighting our success in that market.

Target sells its products from the high end of the market to the low end depending on the type of product in question. In regards to Electronics items where the caption rate is small, they price their items at the high end to ensure they meet their margins. However, in regards to Target’s name brand items, they price those at the low end, keeping the company as a discounted retailer. Target also sells designer items that range from mid to high range of the market. In 2013 Targets CEO Gregg Steinhafel adopted the philosophy “a penny saved is a penny earned”. He further mentioned that they company would be a penny higher in price than their competitors Wal-Mart (Davis, M 2013). Steinhafel stated that “We want to be a penny

This left a segment open for new entrants to come with no competition from incumbents.  Private labels also did not do product proliferation and were focused on limited popular brands at low costs. This helped them save costs in R&D of new products and also save costs by not experimenting new products. They did not compete with the Big 3 on all possible niches. Also, from the table below, we see that the total costs of the private label are 40% less than the Big 3 brands, which helped them to target the price sensitive customers. They are several strategies that the private labels applied which resulted in reduced cost structure. First of all, they did not use coupons, which had accounted for 23% of the total costs for Big 3 brands. The private label also offered higher margins to retailers (15%) in comparison to Big 3(12%) in order to get premium shelf space and signage. The private labels reduced packaging costs by supplying cereals in clear plastic bags. They also used less labor intensive manufacturing process and fewer expensive fruits and nuts.

The strategy I chose for the simulation is “Niche Cost Leader." First, with the key focus being value, this strategy will challenge me to keep costs at a minimum and force me to streamline overall costs to produce a valuable commodity that, in turn, will generate financial success that can be shared with internal and external stakeholders. Second, as the success of this strategy primarily relies on the existing product line being prosperous, I will be able to practice and hone my forecasting skills based on one product. Though I eventually will produce more than one product, most of the simulation will be conducting under making the primary product as successful as it can be, and reliable forecasts are

I agree with you in regards to Hammerpress staying in a competitive market. They are in a business competing with the advances in technology, but they are in somewhat of a niche market in terms of doing things the old fashioned way. Because of the way they do things it adds to their value of proposition which in the end draws customers to their business which in turn makes them

Infringement refers to the violation of the exclusive rights that are attached to a trademark owner or any person who is its licensee. Infringement can occur when the infringer uses any trademark, which is a little identical or remotely similar to a trademark owned by some other party or person. The owner of a registered trademark may take legal action against the person who infringes with his trademark. In the United States, the Trademark Counterfeiting Act of 1984 is a criminalized.

The industry within which Hansson Private Label exists is a very competitive and volatile one. It is dominated by two types of firms, namely, Branded and Private Labels. Tucker Hansson operates as a private label firm. Private Label firms are an emerging market which is competitive based on its ability to have a lower price than its rivals. This market has experienced growth primarily because of this affordability. However this growth would be regarded as organic.

All the retail biggies like Levis, Triumph Universal, Raymond, Gucci get the stickers and marks outsourced from distinctive naming organizations who are specialists in this specific work. The organizations that do these sort of work are known as bundling and naming organizations. There are various marking organizations over the globe. These organizations have a devoted group of experts from innovative, mold, building and different fields. Do you see the tag of Levis on your pants?? Yes, that is the work of marking

Developing a Private Label Product- Making an agreement to develop a private label product with Fountain of Youth Spas modestly increased EBIT margin modestly resulting in an increase in accounts receivable and inventory balance (Harvard Business Simulation, 2013).

The Big 3 had high advertising to sales ratios of 10-14%, also deterring entry, because average first year advertising cost for a new brand was over $20 million. We can conclude that total costs related to producing private label products are lower than new branded products. Private label products can offer greater margins to grocers and still sell at lower prices. They have a considerable competitive cost advantage over the new branded products.

With this come different strategies to achieve growth such as through market penetration, product development, market development and diversification. When these all are broken down in details, it becomes a clearer picture. So when it comes to market penetration it is the objective of reaching higher number of sales and having a larger share with products already existing. Out of the four strategies this is the least risky one. However, there is still some low risk because prices which are low are being used to penetrate markets and it could lead to potentially damaging price wars that reduces the profit margins of all firms in the industry. When it comes to market development, it means to sell the products already existing in a market, but to sell them in a new market, this includes exporting goods to overseas markets or selling to a new market segment. When it is about Product development it is the progress made in current existing products and then sold or even new products being sold in existing markets. For example, the launch of red bull standard, they took a product which had already been in the market before, changed it a little bit and modified it and converted into a different version and sold it in the same market where red bull standard was sold. Product development is about creating something new or modifying product into its better self to attract consumers. Moving to Diversification- it means selling unrelated goods or new products, in new markets The

What is more important to companies is it their name value or their customers? This question is what is going to be answered and all your curiosity will be exchanged to support to one of the two sides. This week 's reading consisted of two articles that have different views, but at the same time are written in two different centuries so it is understandable that their views are completely different, a lot of things change in the world of business. I will summarize both articles and then inform you on their main view and then answer the question myself on where a business market stands.

the manufacturer without head to head pricing that would unwise for them to enter a private label agreement.

These points provide an edge over the other brands. Private label brands are available in a broad range of varieties from food to cosmetics. These brands help create a personalized and unique brand for retailers. Retailers with pretty good private label brands will be able to create better sales opportunities for themselves. They can build value and recognition from

The supply and demand of goods and services vary due to various factors. This paper will discuss the supply and demand of vacation to a theme park and the various factors which affect them.