Finance

Financial Management WAC Thornton Corporation 3/5/2011 individual(prenominal) get by assiduity The individualisedized boot assiduity is a major industry in the US, with 2007 gross 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 distribute products are available end-to-end the US via five important categories of retailers including mass merchants, club stores, supermarkets, drug stores and dollar stores. It is worth mentioning present that retailers exhibit a ken of muscle when it comes to sales of the personal care products, thus manufacturers of personal care products depend firmly on the retailers. A preposterous attribute of the personal care industry is the substantial front man of closed-door says. These secret lab els feed been introduced by these very retailers, who take in the production, forwarding and promotion of the products. Some retailers have vertically interconnected and get the manufacturing of the products, while some retailers purchase their goods from third-company manufacturers (e.g T Corp) and re-sell chthonian their possess brand names.

The primary reason why private labels operate in the presence of heavyweight branded labels is to tornado consumers with lower-priced alternatives to the much expensive branded goods. Acceptance levels of the private labels has been on the rebellion due to good qual ity of products, and in 2007 private label p! roduct 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 stooge 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 large-mouthed essay, order it on our website: OrderCustomPaper.com

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