Strategic options of firms considering private label production

Abstract

Private labels are a growing phenomenon globally. Retailers become stronger and stronger by offering their own quality private label product for customers in all segments. Certainly they do not open factories to produce these items but rather search for dedicated private label producers or pressure branded goods manufacturers to produce it for them. The article deals with the strategic choices manufacturers can have and suggest the necessary factors that are necessary to be evaluated to decide on the winning business model –in considering whether to enter or not in the private label production – through literature and a case study on the ice cream market in Hungary.