What kind of future can we expect of Wal-Mart's private label commodities?

What will be an ideal response?


Wal-Mart has a very powerful national brand called Great Value. They unveiled Sam's American choice detergent at
roughly half the price of P&G's Tide detergent. There are currently exist rumors that Wal-Mart plans to introduce a
second even cheaper detergent under the Great Value label. Tide still commands 4 times the shelf space of Sam's
choice, but what happened was that even Wal-Mart's most trusted suppliers turned into its direct competitors. Wal-
Mart is entering into all kinds of commodities-dog food, bleach and other foodstuffs and frequently outsells the
brand-name commodities. Wal-Mart was flexing its muscle, not just as merchandiser, but also as a marketer and this
meant that it could determine the fate of weaker brands by ousting them from the market. Even big companies like
P&G were forced to refocus on their powerhouse brands and ignore the rest. We can only expect that Wal-Mart's
private label Great Value brand will continue to grow in size and strength owing to the enormous capabilities of
Wal-Mart, and in many markets it will continue to outsell the top brands within each category and might eventually
become the category leader in many markets for the foreseeable future.

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What will be an ideal response?

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