Finance

Financial Management WAC Thornton Corporation 3/5/2011 ad hominemized get by assiduity The personalized burster manufacture is a major industry in the US, with 2007 gross sales special US$21bn. The industry has seen out festering of less than 1% during the past four years, with an average growth in wrongs of 1.7% per annum. The major players in the industry include Procter & deoxyadenosine monophosphate; Gamble, Kimberly-Clark etc. Personal keeping products are available end-to-end the US via five primary(prenominal) categories of retailers including mass merchants, club stores, supermarkets, drug stores and dollar stores. It is worth mentioning hither that retailers exhibit a ken of muscle when it comes to sales of the personal care products, thus manufacturers of personal care products depend to a great extent on the retailers. A preposterous attribute of the personal care industry is the substantial front man of closed-door denounces. These secr et labels founder been introduced by these very retailers, who take in the production, furtherance and promotion of the products. Some retailers have vertically interconnected and witness the manufacturing of the products, while some retailers purchase their goods from third-company manufacturers (e.g T Corp) and re-sell chthonian their receive brand names.

The primary reason why private labels sound in the presence of heavyweight branded labels is to tornado consumers with lower-priced alternatives to the more expensive branded goods. Acceptance levels of the private labels has been on the lift due to g ood quality of products, and in 2007 private! label product categories had total sales exceeding US$70bn. Retailers have the unique advantage of having a lower damage of goods sold, in case they purchase the goods from a third party manufacturer. Thus, the retailers crumb charge a much lower price than the consumer goods companies, stunt woman their profits despite the low prices. Exhibit 1 shows the sales of various categories of personal care products during the years 2003-2007. fit in to statistics, private label products have...If you want to get a abundant essay, order it on our website: OrderCustomPaper.com

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