Produkty Pitania Company and Co-Branding
— 2007-05-10 —
Produkty Pitania Company invented a reliable approach to cooperation with retail networks. Instead of producing goods for retailers using their brands, the producer of convenience foods placed logos of retailers on packages next to its Zolotoy Petushok brand name. The idea helped bring Petushok even to IKEA.
With delivery terms tightened by retailers several years ago, many companies faced difficulties in adjusting to new industry standards. Damir Imamovic, Vice-President of Produkty Pitania Company, tells the story of adjustment from his company’s standpoint. The company took its time to elaborate its own strategy in addressing the issue and rejected traditional approaches such as production under private labels, because this method was potentially loss-generating. In 2005 the company came up with a proposal to retailers to implement joint co-branding projects. The idea was that two brands – producer’s and retailer’s brands – would be put on product packages. The method proved to economically viable and cost-reducing for both the producer and the retailer in each case.
Today Produkty Pitania is making efforts to replicate the successful experience among numerous retailers who propose private labels production to the company.