Private branding is when a large distribution channel

Distribution (business)

Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...

 member (usually a retailer), buys from a manufacturer in bulk and puts its own name on the product. This strategy is, with some exceptions, generally only practical when the retailer does very high levels of volume. The advantages to the retailer are:

• more freedom and flexibility in pricing
  Pricing
  Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a...
  
  
• more control over product attributes and quality
• higher margins (or lower selling price)
• eliminates much of the manufacturer's promotional costs

The advantages to the manufacturer are:

• reduced promotional costs
• stability of sales volume (at least while the contract is operative)

Literature

• Kumar, Nirmalya; Steenkamp, Jan-Benedict E.M., Private Label Strategy - How to Meet the Store Brand Challenge. Harvard Business Press 2007

See also

• private label
  Private label
  Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...
  
  
• brand management
  Brand management
  Brand management is the application of marketing techniques to a specific product, product line, or brand.The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H...
  
  
• brand
  Brand
  The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
  
  
• product management
  Product management
  Product management is an organizational lifecycle function within a company dealing with the planning, forecasting, or marketing of a product or products at all stages of the product lifecycle....
  
  
• marketing
  Marketing
  Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...