How to Effectively Compete Against Private-Label Brands

Susan R Ashley

The authors present the results of studies that explore the effects of pricing, television media spending and advertising effectiveness on both private-label share and total category volume.

How to Effectively Compete Against Private-Label Brands

Susan R Ashley Director General, Europe, RSC: The Quality Measurement Company

April 2, 1993 was a historic day in the US private-label 'scare.' On 'Marlboro Friday', Philip Morris decreased the price on Marlboro cigarettes by 40 cents a pack in response to the increasing popularity of cheaper cigarettes. In one day, the company lost $13.4 billion in stock-market value. Ten days later, an article in Advertising Age magazine described this occurrence:

Philip Morris Cos cried, 'Enough.'

Wal-Mart Stores cried, 'Charge.'...

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