Kirkland Signature Private Label – Powering Costco
Case Code: MKTG422 Case Length: 12 Pages Period: 1995-2020 Pub Date: 2020 Teaching Note: Available |
Price: Rs.300 Organization : Costco Wholesale Corporation Industry :Wholesale Countries : United States Themes: Brand Loyalty/ Brand Strategy/ Brand Differentiation/Consumer Marketing |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background
In the US, private label products were launched in the 19th century by famous retailers and wholesalers such as Henry Sands Brooks, Rowland Hussey Macy, and John Wanamaker after they recognized the need for high-quality products that were cheaper than manufacturer brand names. (See Exhibit II for private labels sold in the 19th Century). At the beginning, private label products were developed on the same lines as brand names. As companies developed good quality products with a variety of names and protected them with trademarks, retail outlets did the same with their private label product lines. However, in the middle of the 20th century many retail outlets lowered the quality of their private label products as they were unable to withstand competition from brand names. ..
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