Branding and its consequences for German agribusiness

Today there is a clear consensus that customer orientation is a competitive necessity in order to survive in a market. In this article, the authors will analyze questions addressing brand management, especially the activities of retailers who are developing their own brands. As evidenced by the steady increase in market share for retail brands, nowadays consumers see little significant difference between retail brands and processor brands. Being the trustee of credence characteristics of food items, brands have to guarantee the correctness of their products throughout the whole food supply chain. In order to ensure this, vertical coordination mechanisms have to be installed. This is leading to competition among retail chains in the area of vertical coordination to ensure quality and to build brand equity. [EconLit citations: L220, L660, Q130.]