About pluses and minuses in cooperation with retailers on Private Label

Magazine Private Label exclusive special issue / August, 2010.

     In 2009 we have started to produce “chewing marshmallow” under PТМ "Sladko" together with network "ATB-market" for the first time. The basic stimulus to start contract production became conditions of cooperation with network segment which essentially improve. First of all it concerns delay of payments and financial discipline of retailers and in the conditions of crisis there are probably the basic requirements of the manufacturer.

     For today we produce 9 positions under others ТМ. A share in total amount production is about 12 %.Task on 2010 is to raise this indicator to 17 %. We offer an exclusive product for PL, therefore we are not afraid of competition «with ourselves». Delivering of chewing marshmallow on the market of Ukraine we have faced a problem of absence of culture of this product consumption. Therefore popularization of marshmallow in any kind is favorable for us at the given stage.

     Pluses from cooperation with network on PL are first of all, in financial discipline. Minus is that there is not always a possibility to satisfy inquiries of networks under desirable margin and difference between a brand and «private».

     For manufacturers. First of all carry out the situation analysis in the market and to be specified with price policy. And in negotiations with networks it is necessary not to forget about one of prominent aspects is margin which network undertakes to put on your product on PТМ.