Question

Walgreens includes advertisements for its store brand on its Web site, runs ads in weekly flyers, and promotes its store brand products (such as Wal-zyr, the Zyrtec alternative) onendcaps in stores. How might this affect Walgreens’ relationship with manufacturers’ brand suppliers? Do you think this increases the cost of the store brand items?

Answer 1

Advertising is quite an integral and quintessential aspect in business and organizations today because the level of competition is quite high in any industry and therefore in order to stand out in the crowd, organizations need to do something unique or creative. I believe that the primary and basic objective of advertising is to make the end users aware of the product or services and of the brand as well and in this case the relationship with the manufacturers and suppliers will improve if they see that the organization is actually making an effort to make their business better.

At present, organizations maintain a dedicated budget for marketing and advertising activities and hence this will have an impact on the prices of the commodities as well but this should not make the process rigid and too much dependent.