If you can?t beat them, join them
En studie rörande producenters påverkan av egna märkesvaror inom dagligvaruhandeln
Recently, retailers within the Swedish grocery retail sector have launched lines of products under its own brand, quite often produced by manufactures within the same category of products. The common term of this phenomenon is called private labels. Therefore, private labels could be seen as competitors against branded goods, despite the fact that it is, in several cases, the same manufacturer who produces each of the products.The main purpose of this study is to provide understanding of how the manufacturers choose to position themselves, formulate their strategies and compete on the market among private labels, also to examine the motive behind the manufacturer's choice to produce private labels. The study intends to provide a broader view of how the interaction between manufacturers, retailers, private labels and branded goods appears on the Swedish market. We decided to use a qualitative research method and personal interviews to approach the study. After having identified the manufacturers that produces private labels, five semi-structured interviews were held with key people representing each manufacturer.The survey showed that manufacturers are largely interested in the production of private label. It has mainly to do with the excess capacity in the manufacturer?s factories. The retailer?s procurement methods in negotiations have led the manufacturers to produce private labels at the limit of what is profitable. The investigation concluded that the producers must be innovative marketers to meet the competition of private labels.