In terms of the battle between manufacturers and retailers for shelf space and promotion of their brand, retailers have the advantage because they know consumers better than manufacturers since the consumer purchases the product at the retail store.

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Retailers have substantial bargaining power in this battle. They control the shelf space and manage it much like real estate, promoting their own brands by placing them side-by-side with competing national brands to stress the price difference and offering consumers the option to purchase the product at a lower price. They have central displays with their own brands, creating convenience for consumers looking for that particular product category.

In Terms of the Battle Between Manufacturers and Retailers for Shelf