Comparing private label and manufacturer brand innovation projects in a Dutch Food processing company

Abstract

The time when private labels consisted only of low-priced, low-quality products has long gone. A new type of cooperative innovation project has emerged in which food processors and retailers work closely together to target consumers with new and innovative products. These so-called high-end private label innovation projects can be typified as Early Customer Integration (ECI) projects. ECI projects may show a higher level of market orientation than manufacturer brand innovation projects, which companies carry out entirely in-house. However, ECI might lead to more incremental innovation because of the path dependency of the customer input. The present paper aims to fill this gap by investigating these assumptions by analysing the innovation portfolio of a leading Dutch producer and exporter of processed food products that produces manufacturer brand, high-end private label as well as traditional low-end tendered private label products. Twenty innovation projects, 10 manufacturer brand, 7 high-end private la...