L4

Question 1

Brand options

Answer 1

1. National Brand/ manufacturers brands
2. store brands/ private label brands, house brands
3. generic brands (underrated or no name brands)
4. premium brands ( luxury high quality)
5. ethical or sustainable brands
6. exclusive collaboration brands (H&M)

Question 2

National vs Store brands for retailers

Answer 2

when deciding how much to stock national versus store brands, retailers think about HOW it will affecct their product range, profit and flexibility

Question 3

Benefits and challenges of national brands

Answer 3

benefits :
- helps build strong image and attract customers
-reduce selling and promotional cost for retailers

challenges :
- lower profit margind bc the brand vendor covers design, manufacturing, distribution and promotion costs
- intense competition as these brands are sold by manyy retailers , leading to proce comparisons by customers
- less flexibility since strong brand vendors can dictate product display, advertising and pricing

Question 4

benefits of store brands

Answer 4

• allows retailers to offer unique or better value products that national brands might not provide
• can enhance product assortment and cater to specific customer needs
• higher profit margin as the retailer has more controln over costs
• flexibility in pricing , display an dadvertising

Question 5

managerial issues associated with global sourcing decisions ( QAVRIE)

Answer 5

1. quality control
2. accountability and traceability
3. vendor buyer relationship
4. risk management
5. intellectual property protection
6. environmental and social compliance

Question 6

Legal, ethical and social responsibility issues of buying merchandise (CCETS)

Answer 6

1. counterfeit merchandise : goods made and sold without permission from the trademark or copyright owner
2. commercial bribery : when a vendor or buyer offers or asks if something of value to influence purchase decisions
3. exclusive dealing agreements : manufacturer or wholesaler restricts a retailer to only carry its products
4. tying contracts : agreement where a retailer must take an undesired product to buy a desired one
5. supplier practices : lying about sustainability,human rights , sourcing raw materials and adherence to environmental standards may mislead other parties