Question

Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would Walgreens be introducing? Multiple Choice a) private-label brand b) counterfeit brand c) premium brand d) national brand e) manufacturer's brand.

Answer 1

Answer:

Letter a is correct. Private-label brand.

Explanation:

Private label brand occurs when a company manufactures and supplies a product to another company that only labels it with its brand.

This strategy is used by companies for a number of added benefits, such as increasing revenue streams and increasing the degree to which consumers perceive their brand. In addition to being a cheap strategy for the company, it pays the supplier for the product and not for the value of a brand added to a product. There is also greater control over the possibility of changing price, product and other variables that help gain competitive and economic advantages.