Impact of Manufacturer Brand Innovation on Retailer Brands

Abstract

The article explores the impact of manufacturer brand innovation on retailer brands in grocery product categories,drawing on literature from category management, power and product innovation. It is argued that the consumerpackaged goods literature has largely portrayed manufacturer brand innovation in relation to retailer brands as acompetitive tool that is employed against the retailer brands. The alternative view of manufacturer brandinnovation as an enhancer of retailer brands has not been fully addressed academically. The article further arguesthat aspects of manufacturer brand innovation that enhance retailer brands have relevance for the determinationof strategic policies that govern the coexistence of the two types of brands in supermarket categories. The paperoffers a fresh perspective in explaining the coexistence of manufacturer brands and retailer brands in groceryretail categories. Aspects of manufacturer brand innovation that positively impact on the welfare of retailerbrands play a strategic role.