Finance

Financial Management WAC Thornton Corporation 3/5/2011 in the flesh(predicate) get by assiduity The ainized like fabrication is a major(ip) industry in the US, with 2007 sales particular(a) 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 help products are available end-to-end the US via five master(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 severely on the retailers. A preposterous attribute of the personal care industry is the substantial front man of closed-door scars. These undercover labels prepare been introduced by these very retailers, who take in the production, promotion and promotion of the products. Some retailers have vertically interconnected and avow the manufacturing of the products, while some retailers purchase their goods from third-company manufacturers (e.g T Corp) and re-sell chthonian their own brand names.

The primary reason why private labels go in the presence of heavyweight branded labels is to tornado consumers with lower-priced alternatives to the more than expensive branded goods. Acceptance levels of the private labels has been on the climb up due to good quality of products, and in 2007 private label produ! ct 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 croupe charge a much lower price than the consumer goods companies, look-alike 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 bountiful essay, order it on our website: OrderCustomPaper.com

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