Determining the Influence of Private Labels on Sales of National Brands: A Qualitative Approach

2020 ◽  
pp. 231971452096870
Author(s):  
Sheikh Basharul Islam ◽  
Suhail Ahmad Bhat ◽  
Mushtaq Ahmad Darzi

Private-label brands (PLBs) are spreading their operations in all product categories and have marked their presence in almost all types of retail formats. They are posing stringent competition to national brands (NBs), be it offline (organized and unorganized) retail or online retail. Besides being favourites of value-conscious Indian consumers, PLBs are becoming a key focus of channel partners as well. In this context, the present research article is aimed at providing insights about how PLBs are able to garner the profit-centric interests of channel partners and how they are affecting the distribution of NBs in the unorganized retail sector. The study is based on information collected through semi-structured interviews with distributors and retailers from Haryana and Punjab. A thematic analysis was performed to draw meaningful inferences from the responses collected through the semi-structured interviews. The results reveal that channel partners’ interest in the high margins of private labels and their interest in maintaining long-term relationships with the latter make NBs vulnerable on parameters such as sales effort investment, in-store visibility, ordering quantity and frequency and numeric distribution. This study provides bases for understanding private label operations in the unorganized retail sector in India.

2015 ◽  
Vol 13 (2) ◽  
pp. 123 ◽  
Author(s):  
Elias G. Rizkallah ◽  
Heather Miller

Motivated by profits and their growing power in the marketplace, retailers have been expanding their private-label brands to include more categories of consumer products and differentiation on quality to reach different consumer segments. This global phenomenon is adversely impacting the performance of national brands, thus creating a conflict between two powerful parties manufacturers of national brands and their large retailers who are supposed to be their helping hands in the marketplace. In this paper, the authors develop a conceptual framework, which captures the complexity and multidimensionality of the situation the stakeholders involved, the interest and power of each, the relationships among them, various strategies they employ, and the outcomes of the conflict. Several hypotheses were examined and tested through the empirical part of this study; for example, would the powers of these parties determine who is the loser and who is the winner or will the verdict be in the hands of the consumers? The study surveyed 281 consumers to assess their attitudes toward and preferences of store brands versus national brands across product categories and the underlying motivations. The paper concludes with recommendations for retailers and national brand manufacturers to win the hearts of consumers rather than exhaust their resources in the conflict.


2009 ◽  
Vol 34 (2) ◽  
pp. 259-273
Author(s):  
Sudhanshu Sekhar Kar ◽  
Rohit Prashar

The recent booming of organised retail sector in India has also opened up vast scope for private label players in the market. As retail players are quick to grab a bigger and bigger slice of the retail pie, a new challenge in the shape of private label brands are raising their heads to upturn the applecart of the manufacturer brands. These private label players are no longer seen as cheap me-too products. Rather they are increasingly seen as competitors to the established brands as they lure the random buyers and toss-ups to their fold. Hence it is no wonder that the private label players are playing an increasing role from day to day in the market. They offer less priced products, satisfy local tastes even sometimes their products are of superior quality as compared to established brands. This article therefore, tries to look into the role of private labels in retail market outlining their growth, market share, problems and perspectives.


2011 ◽  
Vol 10 (2) ◽  
Author(s):  
Maria Patricia Gautama ◽  
Jony Oktavian Haryanto

Nowadays the development of Private Label Brands (PLBs) is increasing; this is proven by the increasing number of PLBs products in various product categories that we can found in several types of stores such as a supermarket, hypermarket format or in convenience store. PLBs have a very good opportunity in the market, considering many consumers are realizing that the price of PLBs which tend to be cheaper and with good qualities when compared with the price of national brands or product manufacturer. It also becomes interesting when it is known that the opportunities are widely open and it is proven with more and more retailers which aggressively producing PLBs. They give consumers more choices with a more affordable price but still provide good quality, especially in this world economy condition that tends to go down which of course also affect consumer purchasing power. By these reasons, the aim of the study is to determine whether the consumer and store image factors have a significant relationship in encouraging consumers to make PLB purchases, especially when it is moderated by PLB Image. The results showed that there are significant effect from consumer factors and stores image toward PLB purchase intention and its getting increase with the moderation of the PLB image.


Author(s):  
Álvaro Garrido-Morgado ◽  
Óscar González-Benito ◽  
Mercedes Martos-Partal

This chapter aims to be the starting point to encourage the study of how retailer may improve the private labels performance within the store. In this line, authors present an analysis of the use of the two more common in-store stimuli –price promotions and displays- by explaining the advantages and disadvantages that their use has on different private labels tiers (economy private labels and standard private labels) in comparison with national brands. Then, authors use data of eighteen product categories during a full year from one top ten retailer in the food sector to check if retailers follow the expected use of promotions and displays on private labels. Finally, recommendations and conclusions about how retailers may optimize the use of analyzed in-store stimuli are presented.


2016 ◽  
Vol 8 (6) ◽  
pp. 63 ◽  
Author(s):  
Rainer Olbrich ◽  
Michael Hundt ◽  
Hans Christian Jansen

<p>This article provides an overview of private-label research by focusing on the food retailing sector. To explain the proliferation of private labels, we identify key drivers by reviewing the determinants discussed in prior literature. This article identifies the conditions that support the proliferation of private labels—retailer concentration and retailer pricing autonomy—and describes the nature of competition between private labels and national brands. It also highlights the drivers of private-label purchases by providing an overview of brand-related determinants, price and risk-related determinants, quality aspects, sociodemographics, and consumer purchasing behavior. The article concludes by proposing three areas for future private-label research.</p>


Author(s):  
S. Shyam Prasad ◽  
Shampa Nandi

In India the private label brands (PLBs) are growing at a faster pace than retail. This supposes that PLBs should have brand equity. Although brand equity is one of the most important aspects of a brand in creating competitive advantage, earlier studies have not paid much attention to measuring and conceptualising the factors influencing the brand equity of private label brands. Many researches have looked into the consumer based brand equity (CBBE) of national brands only and hence this study was taken up to examine the dimensions of consumer based brand equity for private label brands including the impact of store image on brand equity.An empirical study was done considering survey instrument from previous study of Girard et al. (2017). The data was collected during December 2016 – January 2017 and SPSS and AMOS were used for analysing data.This study found that <strong>Brand Awareness, Brand Loyalty, Perceived Image, Perceived Value, Perceived Risk, Store Image and Price</strong> are the seven dimensions that build into the brand equity of the private label brands.


Author(s):  
Natalia Rubio ◽  
Nieves Villaseñor ◽  
Maria Jesús Yague

This chapter develops a comprehensive analysis of the self-perception of value that the customer brings to the different retail chains present in the Spanish consumer goods retail sector. The authors incorporate a metric to determine the value that costumers have for the retail chains included in the study, and the brand equity of their store brands. The value supplied by their customers is defined as the perception of their loyal behavior and profitability on a long-term context. The measurement of this concept is based on personal judgments on repurchase intention and recommendation at present (named actual value), as well as their intention to acquire different products and brands sold by the company in the future (named potential value). Also, the chapter develops an analysis of the components that generate the brand equity of private label brands and their contribution to building customer value for the chains.


2015 ◽  
Vol 24 (6) ◽  
pp. 646-659 ◽  
Author(s):  
Rita Coelho do Vale ◽  
Pedro Verga Matos

Purpose – This paper aims to analyze the impact of copycat packaging strategies on consumers’ product choices, assessing to what extent the adoption of this type of packaging increases the likelihood of purchase of private labels (PLs). Design/methodology/approach – Data were collected in a preliminary field study (1,032 observations), followed by two experimental studies. Study 1 analyzed to what extent PLs’ packaging similarity influences consumers perceptions regarding product quality and production origin across six product categories. Study 2 analyzed, in a simulated real retail setting, to what extent copycat packaging strategies influence consumers’ choice across 22 product categories. Findings – Results indicate that the higher the level of package similarity between PLs and national brands (NBs) (copycat strategy), the higher the likelihood that PLs’ products are perceived as being produced by one of the NBs’ manufacturers, leading to enhanced perceptions of quality of the PL products, and that the higher the level of package similarity, the higher the likelihood of consumption of PLs, especially when consumers are choosing products of utilitarian versus hedonic nature. Research limitations/implications – Data were collected in a south-western European country, which will aid the development of further studies in different retail settings. Originality/value – This paper analyzes the impact of copycat packaging adoption by retailers on consumers’ perceptions and preferences about PLs. To the authors’ knowledge, this study is the first to assess, across multiple product categories and use market copycats, the potential effects of PLs packaging strategies on consumers’ purchase behavior.


Author(s):  
Zeynep Genel

Globalization and developing communication technologies have shaped the approach and expectations of consumers towards brands, and this has necessitated the transformation of communication practices into widening approaches in marketing rules. There are many studies on marketing communications; most of them are based on the marketing perspective. This chapter explains marketing communications practices in the scope of the fundamental communication discipline. In this scope, the branding communications efforts of two leading Turkish private labels retail as brands as examined as a case study with the light of field research. The chapter is a contribution to the studies in the marketing communications field with the perspective of the communication discipline.


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