Private labels are one such tool to build competitive advantage through creating cost leadership. In building customer relationship, the Private labels provide a win-win solution. The retailers gain better bargaining power over their suppliers and better margins while the customers get a wider choice of prices.
Oribu Foods can organize and engage local and foreign manufacturers to take the lead in private label development and innovation, playing to their strengths of understanding the specific needs of Nigerian Retail Chain business owners and Food distributors.
Our area of expertise is Private Labels for edible oils including olive, corn and frying oils, dumpling powder mixes, deserts and cakes range of ready mixes etc.
Frequently Asked questions
Private labeling is when you put your logo and brand on a generic product. This differentiates your product from similar competitors and retailers. Private labels—or store labels—are exclusive labels that a particular store owns. They are the packaging and brand names specific to a particular store.
By selling to private labels, a Super Market can eliminate the cumbersome branding process that requires creation, testing, implementation, and distribution. When you have a business to run, these actions can be time consuming and costly. Selling to a private label can bypass much of the branding process to save time and money.
For companies that choose to produce their products under their own brand in Nigeria or West Africa, Oribu foods can handle the packaging needs.
Brand personality is incredibly important for building a customer base, creating product designs, and establishing marketing campaigns. If you run a business, however, you know how expensive and time-consuming branding can be.
Private label products use the retailer’s private label brand. It is up to the end retailer to design the manufacturing, packaging, and marketing – not up to you as the creator of the good, eliminating added costs.
You only pay the product cost without a premium for brand name or expensive marketing campaigns.
Private label products must sell themselves; they are typically items that do not necessarily need advertising campaigns to fly off the shelves. Products chosen should regularly sell at five or six times the manufacturing price. This will leave the manufacturer room to provide the price discounts required of private-label goods.
Therefore, most items chosen are cheaper to manufacture and produce in high volume. Since most private label products end up receiving large orders from major retailers, manufacturers yield the benefit of creating and shipping all products to a single customer. Both factors result in reduced operating costs.
In the past, consumers largely saw brand-name goods as superior to private labels. Today, however, store brand or private label goods have made a name for themselves in the world of high-quality goods. Private label products have attained higher quality levels and consistency, thanks to better product innovations and improved manufacturing processes.
They have transformed into “premium” private label goods. A better reputation surrounding private label products has led to better brand loyalty, with consumers staying loyal to one store because they know that is the only place they can find the private label item.