A rose by any other name
...ate labeling and wants to supply the products. Although tom is keen on implementing the branded line strategy, he is now confused because of party!’s offer. Rose’s problem is to decide whether to supply party! with private-label products or to focus on rose’s own brand to strengthen it and to stay ahead of competition. What strategy should be company chooses? Rose partyware is a successful company, a big player in the industry with great trade relations and high-end printing capabilities. It sells party ware under generic labels, thus the company’s name is hardly shown on its products. Kotler, Armstrong (1996) explains that generic products are unbranded; plainly packaged and offer price as much as 40% lower than those of national brands. The lower price is made possible by lower-cost packaging and lower advertising costs. The popularity of generics appears to have peaked in the early 1980s. Since then, the market share for generics has dropped, largely as a result of better marketing strategies by brand name manufactures. Tom has felt the trend and intends to launch its own brand. Brands are important; they are part of a competitive strategy and a good way to establish loyalty. Dolak (2001) says that a brand impress your firm’s identity upon potential customers, not necessarily to capture an immediate sale but rather to build a lasting impression of you and your products. Rose has been in the industry since the 1970s, it stands a good chance to last longer if its brand is strong. Moreover, kotle and Armstrong (1996) write that some analysts see brands as major enduring asset of a company. Brands are important; they are part of a competitive strategy and a good way to establish ...