--- title: "Meaning & Key Takeaway of: This is because the quality and…" description: "\"“This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technolo..." image: "https://sms4smile.com/quotes/i/506/greg-thain-1820_marketing_this-is-because-the-quality-and-innovati_2204272.jpg" --- # This is because the quality and innovation of retailer… ![“This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically sophisticated, like detergents and coffee, there are few top-quality suppliers willing to entertain private label, hence manufacturer brands…” quote by Greg Thain](https://sms4smile.com/quotes/i/506/greg-thain-1820_marketing_this-is-because-the-quality-and-innovati_2204272.jpg) [Download](https://sms4smile.com/quotes/i/506/greg-thain-1820_marketing_this-is-because-the-quality-and-innovati_2204272.jpg) [Open image](https://sms4smile.com/quotes/i/506/greg-thain-1820_marketing_this-is-because-the-quality-and-innovati_2204272.jpg) > ““This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically sophisticated, like detergents and coffee, there are few top-quality suppliers willing to entertain private label, hence manufacturer brands are in the driver’s seat. For example, Procter & Gamble, Unilever, Henkel and Colgate hold all but the cheapest segment of the washing-powder market, and Nestlé, Kraft and Unilever hold onto the instant-coffee market. Their technological leads, backed by communication focused on the functional and taste superiority, has kept private label share below average in most countries. It is tempting for”” [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Private label brands lag because manufacturers control technology and brand power. **In simple terms:** Manufacturers dominate high‑tech product categories. Key Takeaway Leverage unique value to compete with manufacturers. Themes competition brand power innovation Mood critical strategic Type analysis business When to use this quote - product development - branding strategy - market entry Key Concepts supply chain private label technology Questions to Reflect On - How can private labels differentiate on quality? - What partnerships could level the playing field? A Different Perspective Consumer loyalty may shift despite manufacturer dominance. ★ ★ ★ ★ ★ No ratings yet [Brands Limited](https://sms4smile.com/quotes/about/brands-limited-4855152/) [Customer](https://sms4smile.com/quotes/about/customer/) [Manufacturer Brands](https://sms4smile.com/quotes/about/manufacturer-brands-2199214/) [Manufacturers](https://sms4smile.com/quotes/about/manufacturers/) [Marketing](https://sms4smile.com/quotes/about/marketing/) [Private Label](https://sms4smile.com/quotes/about/private-label-903804/) [Retailer Brands](https://sms4smile.com/quotes/about/retailer-brands-2199213/) ## Related quotes > [“This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically…](https://sms4smile.com/quotes/greg-thain/this-is-because-the-quality-and-innovation-of-retailer-brands-is-2/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Owing to the ever-increasing pressure on space, as retailers continue to extend private label ranges, there is a risk of branded products being moved…](https://sms4smile.com/quotes/greg-thain/owing-to-the-ever-increasing-pressure-on-space-as-retailers-continue/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate advertising spending…](https://sms4smile.com/quotes/greg-thain/as-retailers-have-become-competitors-of-manufacturers-in-many-product/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“PRIVATE LABEL IS booming. In Europe and the United States during the period 2000–2010, private label was responsible for the majority of the growth…](https://sms4smile.com/quotes/greg-thain/private-label-is-booming-in-europe-and-the-united-states-during-the/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“No matter how large and enlightened retailers become, they remain generalists, and there are things that are difficult for them to do as well…](https://sms4smile.com/quotes/greg-thain/no-matter-how-large-and-enlightened-retailers-become-they-remain/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“No brand is totally safe from private labels. Manufacturer brands can only survive by being unique, well branded and backed with real, fast innovations.”](https://sms4smile.com/quotes/greg-thain/no-brand-is-totally-safe-from-private-labels-manufacturer-brands-can/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“P&G, Mars, Kellogg’s, Gillette and Coca-Cola all refuse private label contracts, while, on the other hand, Unilever, PepsiCo, Nestlé, Heinz, Playtex, Ralston Purina, Hershey,…](https://sms4smile.com/quotes/greg-thain/p-g-mars-kellogg-s-gillette-and-coca-cola-all-refuse-private-label/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“The premium private label strategy is only possible when manufacturers have allowed a quality–value gap to open. This happens when manufacturers’ either price their…](https://sms4smile.com/quotes/greg-thain/the-premium-private-label-strategy-is-only-possible-when/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an ideal…](https://sms4smile.com/quotes/greg-thain/manufacturers-have-one-advantage-that-can-never-be-overcome-if-used/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Although private label shoppers benefit from not having to pay for flashy advertising, private labels miss out on a key brand role: being vehicles…](https://sms4smile.com/quotes/greg-thain/although-private-label-shoppers-benefit-from-not-having-to-pay-for/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Cullen’s model of selling top brands at cost then morphed into their being sold as loss-leaders, owing to the inexorable need to attract shoppers…](https://sms4smile.com/quotes/greg-thain/cullen-s-model-of-selling-top-brands-at-cost-then-morphed-into-their/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Of the Top Most Valued Brands in 2011, Coca-Cola and Marlboro were 6th and 8th, with their brands valued at $73.8 billion and $67.5…](https://sms4smile.com/quotes/greg-thain/of-the-top-most-valued-brands-in-2011-coca-cola-and-marlboro-were-6th/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“retailers are developing their own brand equities via impressive private label strategies (see Chapter 9) and will begin seeing brand premiums being factored into…](https://sms4smile.com/quotes/greg-thain/retailers-are-developing-their-own-brand-equities-via-impressive/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“While much has changed over time in the relationship between retailers and manufacturers, one thing that has not changed is that they are very…](https://sms4smile.com/quotes/greg-thain/while-much-has-changed-over-time-in-the-relationship-between/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“manufacturers do play a role in category planning because they can synthesise their experiences across the different chains they serve, both nationally and internationally.…](https://sms4smile.com/quotes/greg-thain/manufacturers-do-play-a-role-in-category-planning-because-they-can/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) ## More by Greg Thain > [“Marketing aims/image: A retailer that has positioning aims (e.g. trying to improve its image with respect to healthy food or trying to upstage wholesaler…](https://sms4smile.com/quotes/greg-thain/marketing-aims-image-a-retailer-that-has-positioning-aims-e-g-trying/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Every dominant brand (such as those listed in Table 5.1) has had to reinvest in mindspace every year to keep its position. However, things…](https://sms4smile.com/quotes/greg-thain/every-dominant-brand-such-as-those-listed-in-table-5-1-has-had-to/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“consolidation, coupled with a desire among the survivors to restore normal profit levels, helps to usher in an era of orderly competition based on…](https://sms4smile.com/quotes/greg-thain/consolidation-coupled-with-a-desire-among-the-survivors-to-restore/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“If the manufacturer can convince the retailer that delisting will hurt consumer satisfaction and possibly lead to store switching, then that will be second…](https://sms4smile.com/quotes/greg-thain/if-the-manufacturer-can-convince-the-retailer-that-delisting-will/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate advertising spending…](https://sms4smile.com/quotes/greg-thain/as-retailers-have-become-competitors-of-manufacturers-in-many-product/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“High fixed costs mean that high volumes are an ever-essential objective. 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