Key Success Factors of Perrigo Company

Critical success factor (CSF), term was first used in business and data analysis world; it is also known as Key success factor (KSF). Key success factors are the combination of features that are important for a project or company to achieve its objectives or mission and progressing towards the vision. These are critical activities or factors required for ensuring the success of an organization or a company. These critical factors must be needed the continual and special attention of the manager or organization to ensure success and to bring high performance.

Low Cost

Private label goods offered customers saving of anywhere from 10 to 40 percent over national brands. Spending on the items such as national brands Advil (OTC) typical retail price is $ 7.88 and profit is $1.55, comparable store brand retail price is $4.49 and retail profit is $2.76 and consumer saving is 43%. Popularity of line with higher profit up to approximately, 10 to 20% for national brands versus 30 % for store brands, because of lower marketing and promotional costs.

Decline in Brand Loyalty

                                                       

Brand loyalty is almost dead. Consumers want quality products, they want value for their money, but they have found extremely good value in private labels. They have gotten smarter.

Product Quality

The major shift in consumers toward private labels was because,  a 1991 Gallup poll indicated greater acceptance of store brands, primarily because retailer had improved the quality and merchandising of these products. Competition was driven primarily by cost and quality, as Perrigo's executive constantly emphasized customer service as a key success factor.

Internationalization or Retailing

Many major US supermarkets were owned by European companies, where store brands have been accepted for a long time; 1991 market share for private labels in Great Britain was around 29 percent, 24 percent in France, 20 percent in Holland and Belgium.