Answer:
Safeway has chosen to build and expand its own in-store brand label for the following reasons:
1. Exclusivity and differentiation: Safeway knows that the in-store brand label makes the product exclusive to Safeway stores only. Therefore, these products are differentiated from other products and can only be found in Safeway stores.
2. Competitive pricing: Safeway is facing increasing competition from rivals, especially in the area of pricing. To ward off price competition, it may decide to build its own in-store brands.
3. Improved quality: Safeway can detect the highest quality for its own in-store brands, which it could not do, assuming that it stores the manufacturers' brand labels.
Explanation:
In-store brand labels are private label products manufactured by one company but are branded for and sold in another company's brand labels. Many retailers have found the use of in-store brand labels attractive in recent years, given the increasing competition of brand products.
