Facing private label competition: four case studies on
Swedish branded goods manufacturers’ responses to private
labels

Abstract: The aim of this thesis is to gain a deeper understanding of how branded
goods manufacturers (BGMs) respond to the increased usage of private labels.
The study explores, describes, and starts to explain how BGMs perceive
private label activity, respond to private labels in terms of adopted
strategies, and perceive the benefits and drawbacks of the strategies they
adopt. A contrasting multiple case study has been conducted through
interviews with four Swedish companies in the fast moving consumer goods
industry, operating in the chemical consumer products-, and consumer food
products category respectively. This thesis’ main findings are: first, that
private labels are perceived to be growing and the perceived advantages of
private labels are connected to their overall control, whereas BGMs’
advantages are seen to be linked to product development and brand
reputation. Second, BGMs respond to private labels by taking them seriously,
and striving for an increased distance. Finally, the overall perceived
benefit of the adopted strategies is a preparedness for increased private
label competition, while the drawbacks vary between companies.