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Ilyukha Sergey Guild of Marketers
Article first published in PROD&PROD Food Promotion magazine No. 2, 2014

Private label (PTM) is a brand owned by the entity that sells it. They can be created both by individual retailers and by cooperatives and purchasing unions of chains, regional associations of wholesale and distribution companies, large importers.

Abroad, private labels have emerged as a result of the struggle between large retailers and manufacturers of well-known brands. In the case when the market positions of both parties became approximately equal, the chains had to sell "promoted" products, overpaying the manufacturer for a big name and actually shifting advertising costs onto the shoulders of buyers. In the markets of different European countries, private labels account for a different share of the turnover, but the trend towards its increase is observed everywhere.

Pricing and popularity among the consumer audience of these products are largely determined by national characteristics, quality of life, consumer culture, the development of national brands and many other reasons. In Europe, private label penetration is highest in Switzerland, the UK, Germany, Spain and the Netherlands, where the market share of such products in value terms exceeds 30% (Figure 1). At the same time, in terms of volume, their share is even higher, since the difference in price between private labels and analogues of well-known brands in the Western market is 30-40%.

Despite the fact that Russian retail chains from year to year declare the development of private labels as one of their priority tasks, today, as can be seen from Figure 1, the share of these goods in the revenue of domestic retailers is an order of magnitude lower than in European countries. There are many reasons for this: from solving such a difficult task as the production of high-quality products at a low price, and ending with the no less complexity of its promotion. In addition, minimum lot restrictions make such products available mainly to federal chains, purchasing unions, or regional associations of small retail chain stores.

According to the InfoLine agency, in Metro C&C the share of private labels in the turnover is 11.2%, in Dixy - 10%, in Magnit for 9 months of 2013 the sale of goods under its own brand amounted to 13.1% of the company's retail revenue .

Partially, the low penetration of such products in Russia is due to the fact that private labels here are cheaper than branded goods by only 10-20% on average, while in Europe the advantage of private labels in price is on average 25-30%, and in the non-food category the difference can reach 40-50%. This fact significantly reduces their attractiveness for the retailer.

Benefits of working with STM

When deciding to bring goods under its own brand to the market, the retail network pursues the following goals:

1. Increasing loyalty to the network.

In this case, a private label product is designed to better meet the needs of price-sensitive buyers. All economy class brands are focused on this. Image products are designed to fill niches in the assortment and maintain the loyalty of regular customers. As a rule, the name of such brands is consonant with the name of the chain store. Innovative products are produced in accordance with the latest market trends and trends and are intended for those who like to experiment, try the unusual.

2. Growth of profitability.

As mentioned above, most of the goods produced under their own brands, regardless of the price segment, positioning and tasks, allow the network to increase profits. This goal is achieved through high sales volume and optimization of the production process and logistics on the way from the factory to the end user.

3. Guaranteed quality.

As a rule, federal retail chains pay great attention to the quality control of products manufactured under private labels, starting with the formation of technical specifications for the product and packaging and throughout the entire period of manufacture and sale. Compliance with all the required measures is a laborious and rather costly process. At the stage of establishing the production of "own" goods, retailers assigned the responsibility for quality control to the employees of the private label development department, which most often turned out to be ineffective due to the workload and low competence of managers in purely technical matters. Recently, federal and even some regional networks and associations are paying more and more attention to the quality factor of their products, creating special services for this or attracting highly qualified specialists for outsourcing.

Guaranteed product availability.

Control of all stages of the production process allows you to optimally draw up a schedule for the release of products and ensure its sufficient quantity, taking into account the seasonality of sales and planned promotional activities. This protects the network from possible interruptions that could occur when working with the manufacturer's brand.

It would seem that the advantages are obvious. However, there are a number of additional costs for the retailer to create an economic model for working with private label products and compare it with the sale of branded goods of the manufacturer. In order to estimate these costs, let's consider the full cycle of work with private labels, from the development of an idea, naming and ending with the disposal of unused packaging.

production costs

When working with a manufacturer’s brand, the supplier comes to the retailer’s office, agrees on a price and a promotional plan, provides a deferred payment (commodity credit), delivers goods to retail outlets, assists in merchandising, conducts marketing campaigns at his own expense and on his own, pays a trade premium . One minus - the products are presented in all competing networks, and the retailer is forced to keep a low margin.

In the case of private labels, the markup can be 15 or even 30 percent higher. But they are successfully “compensated” by additional costs.

The algorithm for working with a private label is shown in Fig. 2.

The entire process of launching a new private label product takes six months to a year and includes the following steps:

Determination of private label strategy, name, logo Formation of a concept, strategy, creation of a private label logo is an important and expensive task that a retailer usually entrusts to a marketing agency. The cost of developing the brand of the network is transferred to all products released under private label.
Selecting a product category for a product release. As mentioned above, private labels are designed to best meet any of the needs of the potential audience. Be that as it may, in order to form an optimal price offer for a non-unique product, it is necessary to obtain the lowest cost from the manufacturer, and this is possible only if the product has large sales volumes and the buyer is not sensitive to the brand. In addition, it is desirable that there is no clear leader in the product category. According to research conducted by Nielsen and private label analysis of leading retail chains, the most attractive sectors in this regard are dairy products, groceries, confectionery, juices, water, beer, alcoholic beverages, as well as paper products, personal care products and household chemicals.
According to a study by PwC in Russia conducted in 2010, more than 90% of private label sales in the Russian Federation account for generic trademarks (whose names are not associated with the network or manufacturer's brand) and imitators (umbrella brands). At the same time, a large share of private labels is concentrated in the economy class. In recent years, they have begun to actively develop in the middle and high price segments, but their level of penetration is still insufficient.
Development of a strategy for bringing the product to market. To date, experts identify three main strategies for developing private labels:
- Dumping. The most common strategy, since in the conditions of market stagnation and the expectation of a recession, most consumers remain quite sensitive to the price of goods with acceptable quality.
- Replacement of a competitor. A more sophisticated approach that focuses on the tastes and established preferences of the buyer. The challenge is to replace leading products in categories where brand habit is not an important choice. As a rule, this strategy is implemented in stages or in case of significant disagreements during negotiations with the sector leader. The path is quite risky, since it is not possible to avoid a decrease in the level of sales in quantitative terms and a certain loss of loyalty even when reaching a complete replacement of a competitor in terms of profitability.
- Brand extension. The strategy, the essence of which is that the loyalty of the buyer to the name of the retail chain is transferred to products under their own brands. In this case, private label becomes a full-fledged brand, which allows it to be positioned as a direct competitor to a popular manufacturer in the same price segment, and over time it may go beyond the network.
Based on the chosen strategy, the remaining requirements for the product are formed.
Development of specifications and packaging design. Certain costs are associated with the involvement of specialists in the establishment of the technical conditions of the product and the design of its appearance.
Conducting a tender for production. In principle, this stage does not require special costs. Various retail chains hold open or closed tenders. But after agreeing on the conditions on price and production volumes, it is necessary to conduct a study of the production capabilities and reliability of the supplier, and this is already associated with business trips, the involvement of specialists and, as a result, with additional costs.
Purchase of raw materials and components. As a rule, after agreeing on commercial terms of production, the supplier can only compensate for the money spent. In this case, the costs of purchasing raw materials and packaging are borne by the retailer. The main problem of the production of goods under private label is that in order to obtain a competitive price, it is necessary to purchase raw materials and components in large quantities, which leads to large advance payments, storage of containers, and sometimes products manufactured in large quantities, payment of credit funds (instead of a commodity loan in case of work according to the manufacturer's TM).
Next come the costs associated with product promotion, merchandising, regular quality control, and possible disposal of leftovers.
Another significant cost item is logistics. In the production of goods under private label, the retailer takes over the entire logistics chain from the factory to the store counter, and this, depending on the product category, can be very costly.

Let's estimate the total costs:

trading premium - up to 10%;
advertising, placement on the spot for additional display, price promotions - up to 15%;
logistics costs and merchandising - 2-5%;
funds for the launch of the project, the purchase of raw materials, quality control, disposal of residues - 2-5%.

As you can see, the additional costs of the network can be up to 35%. And this is provided that a difference in price on the shelf of 10-15% is also needed. Apparently, the manufacturer should give a fifty percent discount from the cost of the main line when releasing private labels...

Hopes and fears

What does the manufacturer expect and what does he fear when releasing goods under a private label?

There are several logical explanations for which a company can start producing goods under a private label of a retail chain:

gaining network loyalty in order to introduce or expand the product line under their own brands;
advertising their trademarks and themselves as a manufacturer by associating in the minds of the consumer with the name of the retail network;
optimization of logistics for the supply of its products by increasing supplies to the Customs Union;
obtaining guaranteed and timely payment for the goods;
additional income.

The main concerns of the manufacturer are related to the possibility of losses. They are due to the fact that the economic model of Russian enterprises is significantly different from the Western one.

In Europe private labels are produced by companies that initially built their business on the principle of exclusively working with private labels of the network and were thus spared from organizing an extensive sales and distribution system, which we see in Russia. They do not need marketing and sales departments - by the way, they are quite expensive - otherwise these costs are included in the cost of goods. Thus, a European manufacturer can ensure the supply of products with acceptable quality at a reasonable cost.

Manufacturer's risks are as follows:

Get a loss from cooperation due to the need to provide the retailer with a price below the full cost of production.
To become dependent on the seller due to the fact that when reorienting production to the production of private labels, it will be necessary to reduce commercial divisions and the active sales department, as well as abandon the client base that has been accumulated over the years. In the event of termination or termination of the contract with the network, it will be impossible to quickly restore sales volume, which will inevitably entail serious financial losses.
If a retail chain insists on launching an "umbrella brand" similar to the TOP positions of its own range, there is a danger of substitution and crowding out of their products.

Win-win move

A huge number of manufacturers seek to supply retailers with goods under private labels. How to get the desired contract? There is a simple and effective rule: you need to understand what guides the retail chain's private label manager when making a decision, and make him an offer that you yourself would accept if you were in his place.

Assess the needs of the retailer:
- analyze the market and assortment of the network;
- evaluate the network strategy when working with private labels;
- formulate the requirements for the product needed for the network.
Weigh your own strengths and capabilities:
- check if you can sell a product with the required characteristics at the required price;
- objectively assess your production capabilities: will you be able to supply products in the required quantity without compromising the existing sales volume;
- identify the need for project financing and identify sources of fundraising;
- identify suppliers of raw materials and components and make sure of their reliability and readiness to provide everything necessary for the production of private labels;
- calculate the cost of production before and after launching a private label project. Track how the increase in volume affected the cost price. Develop a cost reduction program;
- compare the economics of a contract when cooperating on your own brand and private label network;
- formulate what goal you are pursuing;
- evaluate your risks and, if they are significant, draw up a program to reduce them.
Make an offer that will benefit both the retailer and you, and make it without waiting for a tender to be announced. Your offer will become much more attractive if you:
- do your own research;
- simplify the quality control procedure or take on part of the costs;
- minimize network costs for the purchase of raw materials and packaging and storage of finished products;
- Distribute a package of additional services provided to your trademarks and private label networks.

The proposed work algorithm can be quite effectively implemented by both domestic manufacturers and importers. The weakening of the ruble at the beginning of the year reduced the competitiveness of foreign goods. Nevertheless, the emerging trends towards a depreciation of the EURO, an increase in food imports from European countries, and the focus of a number of Western enterprises on the manufacture of private labels for European retailers make cooperation with Russian retail chains in the production of private labels and their own imports promising.

Everyone who visits supermarkets from time to time has noticed that on almost every shelf (be it confectionery, drinking water or household chemicals), next to the products of "ordinary" brands, there are goods decorated in the store's corporate colors and costing less than their own. "branded" analogues. These are supermarket own brand products. Representatives of large retailers operating in Russia spoke about why retail chains need such products, how they develop them and who buys them the most.

Elena Savchenko, Director of Development of Private Labels, DIXY

- When did your company start developing its own brand?

- DIXY has been producing goods under its own trademarks for the past ten years. In 2005, the development of products was non-systematic: the first in that period were pasta, glazed curds and, oddly enough, a branded shoe spoon with the logo of the network. Over the past years, the direction of STM in "DIXY" has undergone many changes. Today it is one of the strategic directions. Trademarks have a clear positioning to control the quality of products, a multi-stage audit system has been developed, where each of the products is regularly evaluated for effectiveness and demand among buyers.

Private label for DIXY is a competitive advantage. Private labels are unique because they are not universally represented. They are an important tool for building the loyalty of customers who go to the convenience store for daily purchases. In addition, by organizing the production of such goods on our own, we get the opportunity to both restrain price inflation and ensure the uninterrupted filling of the shelves with products of daily necessity. All this helps to retain customers even during periods of economic instability.

- How does the company feel about investments in private label development in 2016?

- In 2016, DIXY will continue to work not only in the field of improving the efficiency of existing projects under its own trademarks, but also in the development of new ones. Retail chains are a lever to curb inflation, and the release of basic ration products is an important tool. Quality products at the best price under their own brands have always been and will be attractive to buyers.

- In what categories are buyers most inclined to buy private labels?

- Our private labels show high sales figures. For example, the share of own brands in the turnover of dairy gastronomy is more than 22%, and in grocery - more than 35%. We do not limit ourselves to categories for the release of new projects. DIXY also produces goods in brand-dependent groups - such as coffee, strong alcohol, beer, children's products. Such products show the greatest demand in the middle price segment, which is about 9% of the total share of private labels in the turnover.

As of the end of 2015, the DIXY assortment included about 600 items of goods under its own trademarks. Market lines have already been formed, so we do not expect their significant expansion. Among the promising areas for ourselves, we can point out soft drinks and confectionery.

We are not interested in crowding out well-known brands. Our task is to offer a balanced assortment that would meet the needs of customers in various price categories. Private label products are designed to complement the shopping basket and act as an economical alternative.

- Do you choose Russian or foreign suppliers?

- Goods under their own trademarks "DIXY" are produced mainly by Russian enterprises: more than 90% of all private label goods in the network are domestic products. The remaining units of percent fall on imported goods, the production of which traditionally takes place in foreign countries. These are products such as olives, olives, olive oil, wines, fruit preserves, etc.

Russian enterprises produce for DIXY goods from traffic generating categories. These are dairy and meat gastronomy, cereals, flour, bread, canned vegetables and confectionery. Also in the assortment are domestic alcoholic drinks: wine, cognac, etc.

Sylvan Rishon, project manager for the development of his own brand "Leroy Merlin"

- What categories are the most difficult for private label development?

- Firstly, these are categories in which there are already strong brands. Secondly, those that present technical difficulties in production, namely chemical products. These directions reveal difficulties for the development of private label products. We must invest more in order to gain popularity. I can say that our company started this process a few months ago, and the first results will be visible already in 2017.

- In which private label category do you see potential?

- Here it is important to point out two vectors of potential development. First of all, the current economic situation encourages the development of private labels: buyers choose cheaper goods, but still prefer high-quality ones. Secondly, if we talk about the potential for the future, we see the middle premium segment, where we want to make products more "democratic" for consumers. This means maintaining the same level of quality and design as well-known brands, but without the use of marketing techniques so that the client pays only for quality.

- Are there any examples of success among your private labels that have been able to occupy a significant share on the shelf and displace well-known brands?

- Yes, we are successfully gaining momentum and winning market share in the development of private labels in the areas of "Decor" and "Instruments". They show good sales results. For example, we invest heavily in the quality of the Dexter brand, which is becoming increasingly popular with buyers in France, Italy, Spain, and Russia. Thus, we are in direct competition with well-known brands.

Marina Rozhdestvenskaya, director of marketing department "BILLA"

- How do you control the quality of private label goods? Are there any specifics in the selection of suppliers supplying private labels?

- In the current economic situation, buyers have become more loyal to private label products. Customers start saving and looking for products at lower prices. "BILLA" pays great attention to the development of lines of its own brands - Clever (goods with the lowest price on the shelf and proven quality) and BILLA (high quality products at a bargain price).

The maximum share of private labels in "BILLA" is achieved in such categories as dairy gastronomy and bakery products.

The buyer's interest in private labels depends not only on the economic situation that forces them to save money, but also on the choice of the consumers themselves, who trust the quality of such goods and are ready to switch to their purchase. This confirms the annual increase in the share of its own brand.

In 2016, the BILLA chain plans to increase the share of private labels by 50%. Today, the market pays great attention to the development of private labels as a competitive advantage of the network. This is, of course, related to the economic situation. After all, if the buyer has less money, he will switch to a cheaper non-brand analogue, but not of the worst quality. Thus, in 2015, the total growth of the private label share amounted to 70%, and in 2016 the company plans to increase it by 50%. Particular attention will be paid to fresh categories.

Speakers - participants of the exhibition "Own Trade Mark" dedicated to the creation of trade marks.

Today, many entrepreneurs are thinking about creating a line of their own brand. But how not to get lost in this market and what are the prospects for developing the share of private labels (PL)? How to increase customer loyalty with the help of private labels? Find out more in our article.

Private Label in the Russian Market: Development and Promotion Strategies

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Own trade mark or private label – in the simplest sense, today it is a trademark owned by a rather large retail chain, in which products under this trademark are sold.

The biggest “plus” for manufacturers-owners of private labels is that they have the ability to fully control the production of their products, monitor their quality, as well as set their own prices and competently distribute products among their chain stores.

So, private label – is a brand that is manufactured to a retailer's specifications, owned and sold through the retailer's distribution network.

Today, consumer goods are produced, labeled and sold under private labels. – food and non-food, household chemicals, food products.

Of course, today the buyer is more willing to spend his money on goods of own brands of large chains and all this is due to the high quality of goods and the always affordable price for them.

As a rule, products manufactured by stores' own brands are much cheaper than similar products from other brands. – the price difference can be up to 30-40%.

Such cheapness is achieved primarily due to the reduction in the cost of goods: there are no intermediaries, there are no costs for delivery, advertising and marketing, since the goods are promoted at the point of sale.

A manufacturer of goods under his own brand invariably and guaranteed to receive sales of his products, which were manufactured under the contract.

As you know, private label products are produced using the capacities of independent factories. – large retail chains sell various goods produced to their order, but under their own brand, but at the same time they themselves do not take part in the production of goods.

As for the prospects for private label in Russia, experts are unequivocal in this regard: the owners of their own retail chains have more than enough prospects.

For comparison, the sale of private label goods in the Pyaterochka chain today accounts for almost 20% of the total turnover, in other hypermarkets the level is slightly lower, but remains consistently high.

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Private labels are manufacturer's risks. Video

Types of private labels

Studies show that the number of own brands in large retail chains in our country is much lower than in America and Europe.

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So far, the leader in this segment is the X5 Retail Group (which manages the stores of such retail chains under the brands Pyaterochka, Perekrestok, Karusel and Perekrestok Express).

The next company in terms of sales of goods under its own brand is Magnit, and then – retail outlets owned by the French retail chain Auchan.

Private labels are:

specific;
own trade marks-analogues;
unique private labels;
joint brands.

Each of us has met specific private labels: for example, these are products under the brand name "Each Day", which are sold in Auchan stores, or products "Red Price", which is actively sold in Karusel and Perekrestok.

Often, a private label is named after the retail chain where it is sold (for example, Metro C&C), but most often a private label is developed for goods of all categories: food, personal care products, and household chemicals.

Private labels-analogues are characterized by a lower price than similar products of other brands. As for the quality of such goods, as a rule, it loses a little to the quality of more "promoted" brands, but on the whole remains at the industry average level.

When releasing their own brand names, retailers must assess all the risks associated, among other things, with the costs of entering the market for such products.

For example, a private brand-analogue of baby food is doomed to "failure", since the vast majority of parents will buy their little children only food from proven and reliable brands and companies.

But the production of wet wipes or toilet paper under its own brand name is likely to be profitable, since these products – it is simply a consumable and rarely anyone thinks about their quality, paying more attention to cheapness.

Unique own brands, as a rule, have no analogues, direct competitors among other brands, and sell them, as a rule, to innovative consumers.

A striking example in this regard is the X5 Retail Group, which today continues to develop its own brands in various price segments. – low (designed for buyers with low income) and medium (for consumers with average incomes).

Joint brands of private labels and other well-known product manufacturers are less common, but also have a place to be. In this partnership, all manufactured products are produced for sale under the retailer's own brand.

For store owners, the Business.Ru team has developed a special program that allows you to collect all the information about the buyer in one place: the history of interactions, meetings, phone calls.

Goods under own brand: prospects for development in Russia

Today, every manufacturer is fighting for consumers' wallets, and huge competition in the market forces entrepreneurs to look for new solutions, one of which is private label.

Today there is a huge layer of consumers who almost always purchase products in retail chains under their own brand of these chains.

People are quite satisfied with such "expendable" products, everyday goods of precisely this quality.

This does not mean that consumers have begun to buy less well-known world brands, the level of sales here will never be reduced to nothing.

Many consumers admit that some psychological factor prevents them from buying large volumes of private label products in large stores. – they are simply afraid to look too economical in the eyes of others.

This means that for a festive table or, for example, for work, the same Rich juice will be bought, and not cheaper juice of “non-brands”.

But the “progress” in this segment is also evident: more and more families prefer private label products to all other analogues.

This state of affairs only means that this segment will steadily develop in our country, which means – expand the market and types of goods.

A vivid example of the huge field of private label prospects in our country is the experience of France, Holland, and Germany. It is not the first time that these countries have been holding rather large exhibitions of goods of their own brands, where participants talk about their productions.

The contagious example of American and European colleagues strongly motivated Russian entrepreneurs, who have begun to develop this sector no less actively in the past few years.

Business in this area is promising, attractive, it can be diversified in various directions: for example, buying production or ordering packaging of products under your own brand from other manufacturers.

Every year, the largest retail chains are actively increasing the share of their own brands. And on this path, they are not afraid of the economic crisis: retailers consider this period a period of new opportunities and an incentive for development, which means that every entrepreneur, with some effort, will be able to take his place in this really promising area of trade.

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Any modern company that respects itself and its customers cannot do without a special corporate identity and, therefore, without a trademark that makes it stand out from other similar companies.

Definition

A trademark is understood as a combination of a company name, a brief text of information and graphic details. This sign allows the manufacturer to show his individuality and uniqueness.

A private trademark is recognized by law as the intellectual property of an individual or legal entity and is protected by the Law on Intellectual Property. It is assigned a certain value on the balance sheet of the firm (organization). refers to intangible assets. The rights to it can be sold or transferred, as well as create a franchise or pledge to a bank.

Types of trademarks

Today they are classified as follows:

verbal. Usually this is a name with a combination of fonts. More than 80% of all trademarks fall into this category. As an example, we can cite VTB, Honda, Adidas, etc. There are also famous slogans here, which are also registered and protected by law. For example, Apple: "Think different".
Fine. This includes symbols or graphic pictures that do not contain word or letter elements. For example, the well-known Lacoste crocodile or Nike flourish.
Combined. This is a combination of the first and second. They are called logos in everyday life. For example, the payment system familiar to many is MasterCard (a verbal name enclosed in two circles).

By the way, you can register the shape of the package and the color scheme.

Small clarification

The stable combination of "trademark" in everyday life is used extremely rarely. It is much more common to hear "logo", "brand" or "trade mark". And if the meaning of these expressions is similar, then the concepts differ.

The word "brand" comes from marketing. It implies the image of a product (service, firm, organization) and its philosophy. "Logo" - a unique image that is applied to the product. And only the word "trademark" carries a semantic load similar to the expression "trademark".

None of the expressions described above has been officially adopted in Russian legislation. There is only the concept of "trademark". It is referred to in Article 1477 of the Civil Code of the Russian Federation. And the creation of your own trademark consists precisely in issuing a certificate for a trademark.

Registration takes place in several stages. On some of them, to facilitate the process and save money, it is recommended to contact specialists.

Stage one

The developed sign must be checked for uniqueness. And even before the application for registration is submitted. You can do it yourself. On the Internet, there are freely available databases of Rospatent (in our country, it is understood as the Federal Institute of Industrial Property - FIPS). But there are also organizations that specialize in checking the uniqueness of a registered mark.

This stage is quite responsible. Since the detected repetition will entail a refusal to register and the loss of the paid amounts of state duties.

However, the absence of repetitions is not yet a guarantee that Rospatent will pass the trademark. Department officials very often “meet” similar symbols or graphic images, and the applicant has to prove the uniqueness of the presented sign.

Companies that have undergone a similar procedure recommend that beginners turn to professionals. Firms specializing in evaluating the uniqueness of a manufacturer's trademark promptly conduct a reconciliation and issue a conclusion. They were enshrined at the legislative level in the early 90s of the last century.

Patent Attorneys

That is, the institution of intermediaries has officially appeared, whose duties include protecting property in the field of intellectual property. These are patent attorneys. It is they who represent the interests of the applicant for trademark registration in Rospatent. A patent attorney requires only details and an image of a trademark for his work. No further participation of the applicant is required. Naturally, this is more expensive, but the period for obtaining a certificate is reduced significantly.

The help of attorneys significantly reduces the time of registration and confirmation of uniqueness, which, in turn, reduces financial costs.

Today there are about 2,000 active patent attorneys in Russia. Their activities are regulated by civil law and the law of December 30, 2008 No. 316-FZ “On Patent Attorneys”. The fees and other payments of patent attorneys are regulated by Government regulations.

Stage two

The proprietary mark is always used unchanged. Therefore, special attention must be paid to the choice of the class of goods (services). For this, there is an international classifier (MKTU). In it, goods (services) are divided into 45 classes. Ten of them are devoted to services, the rest - to goods. Working with the catalog requires certain skills and knowledge. For example, the same name of a product (service) may belong to different classes, and you will have to search for it first by purpose, then by the material of manufacture, etc. To work with the classifier, Rospatent has developed methodological recommendations. It is advisable to start your work at this stage with them.

Stage three

If the preparatory work is completed, you can file an application for your own trademark (its form is determined by the order of Rospatent dated March 5, 2003 No. 32). This will require a package of documents. It includes:

Application for registration, which will indicate the data of the individual (legal) person representing the trademark;

Documents confirming the payment of fees;

Image of the future brand (8 copies) with a mandatory application with a description of the logo and a list of goods from the international classifier;

Certificate of state registration of an individual entrepreneur or legal entity.

If a patent attorney was involved in the registration of a trademark, then a notarized power of attorney is required.

Stage four

Submission of prepared documents to Rospatent. There are several ways:

In person at any branch of the department,

Russian Post (with notification),

Fax (but originals are still required),

Electronic application on the official FIPS website (for this you need to install special software and get a key),

With the help of a patent intermediary.

On the day of receipt of the application with the attached documents, the secretary of Rospatent draws up it and informs the applicant of the registration number.

Stage five

It consists in tracking the status of submitted documents for registration of your own trademark. Documents accepted by the department undergo a formal examination. That is, the application is checked for the correctness of the compilation and content, the availability of the necessary documents and their copies, etc. The whole process takes about two months. If there are no comments, Rospatent takes it to work.

Further, a substantial examination begins, which can last up to six months. At this time, there is an active verification with the trademarks of Russia and the world, which is accompanied by correspondence with the applicant. Usually experts require something to be clarified or supplemented. It is at this stage that unprepared (see stages one and two) applicants are “cut off”. If there are no comments and there is no need to defend one's innocence, the department makes a decision on the registration of the trademark. In this case, the applicant receives an official letter from Rospatent.

It is possible to shorten the application deadline. To do this, you must provide weighty arguments for the speedy receipt of a certificate of uniqueness. For example, you can specify that the products are shipped abroad.

Stage six

Obtaining a coveted certificate. After notification of a positive decision, the applicant must pay the state fee for obtaining a certificate and submit a payment document to Rospatent. Two months are given by law for the issuance of the certificate. During this time, the patented mark is entered into the state register and published in the monthly official bulletin "Trademarks". The resulting document must be renewed every ten years.

Having received it, the owner can sue and demand compensation for material and moral damage for the unlawful use of the trademark by third parties.

It is not that simple

A trademark in the modern world of consumption has its pros and cons. The benefits of private labeling include:

Reducing the influence of competitors on the sale of goods (services), as well as advertising and marketing costs;

Establishing your own pricing system,

Margin increase,

Unconditional control over the distribution of goods (services) and its quality.

At the same time, the manufacturer faces some problems. For example, when releasing a product or producing high quality services, one should not overprice. For competitors will immediately occupy the vacated niche. For this reason, for example, well-known retailers do not allow similar product lines of competitors in their stores. In addition, the brand must be constantly promoted. And this is almost the main problem.

Possible mistakes

Most often they occur:

If the applicant tried to independently determine the classes according to the International Classifier;

The trademark was not unique;

The designation is described incorrectly or inaccurately (for example, color scheme);

There are inaccuracies in the details for paying the state duty;

The trademark contains elements of state symbols or images of famous people (without their permission). A list of all prohibited signs is given in the Civil Code, article 1483.

The exclusive offers the trade mark "Metro". Focusing on the needs of their customers, whether they are small points of sale or professionals in the hotel or restaurant business, the company's experts develop their own Metro brands. These are practical, modern and affordable (for the cost) proposals. For some, this is a line of basic products (services), and for some, complete sets for serving tomorrow at a hotel at the lowest price.

Metro's portfolio already includes six active focus brands designed for professionals, as well as a number of additional offerings.

How to position a private label product

According to marketers, positioning is the art of creating a brand image in the mind of the target audience. That is, it should carry information about its advantageous difference from competitors. This is caused by combinations of such characteristics as distribution channels, touch, price, level of service, image (advertising impression, PR), etc. In a global sense, positioning is a company's activity aimed at convincing consumers that their products (services) are significantly different competitors.