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To Brand, Not to Brand or Both? Consequences for Dual-Brand Firms

In: National Brands and Private Labels in Retailing

Author

Listed:
  • Nicolas Ochoa

    (Carlos III University)

  • Julio Cerviño

    (Carlos III University)

Abstract

In addition to produce their own brands, dual-brand firms also supply private labels for particular retailers. Some leading Spanish brands such as Don Simón, Mahou and Carbonell, have been involved in this practice. Are these firms digging their own graves? The purpose of this study is to understand some reasons behind this phenomenon on Spanish retail market. We explored economical and relational motives of supplying store brands (SBs) by national brand (NB) manufacturers. Our results suggest that dual-brand firms obtain: (1) better treat from retailers, (2) superior economies of scale and, (3) greater negotiation power.

Suggested Citation

  • Nicolas Ochoa & Julio Cerviño, 2014. "To Brand, Not to Brand or Both? Consequences for Dual-Brand Firms," Springer Proceedings in Business and Economics, in: Juan Carlos Gázquez-Abad & Francisco J. Martínez-López & Irene Esteban-Millat & Juan Antonio Mondéja (ed.), National Brands and Private Labels in Retailing, edition 127, pages 41-51, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-07194-7_4
    DOI: 10.1007/978-3-319-07194-7_4
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