Buy custom The Ready-to-Eat Breakfast Cereal Industry in 1994
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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 439 |
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They also did little to differentiate their products and competed solely on price. Promotion was up to the retailers, who received a higher margin. Branded cereals advertised heavily to the tune of
Packaging cost:
Distribution cost
Branded manufacturers owned regional distribution centers. However, private labels relied on wholesalers and third-party distributors by giving them 10% margin on the wholesale price paid by the retailer...
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However, private labels relied on wholesalers and third-party distributors by giving them 10% margin on the wholesale price paid by the retailer. This arrangement allowed private labels to not invest in capital intensive distribution centers.
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