Keyword

Private Labels, Food and Non Food FMCG, Apparel, Consumer Durables

Abstract

Private labels gained an increased market penetration and are growing at a rapid rate. Retailers’ brands are to be found next to national brands in most product categories. The purpose of this study is to analyze the comparative perception of retailers for factors affecting sales growth of private labels in India. Factors taken are After sales service, Promotion, Price, Perceived Risk, Packaging and Brand Image of Store. The study comprised three categories of private labels namely Food and Non Food FMCG, Apparel and Consumer Durables. Multistage random sampling was used to collect responses from 200 store managers. A significant difference is found in perception of retailers for after sales service and perceived risk while no significant difference is found for Promotion, Price, Packaging and Brand Image of Store in the categories considered. Further study presents implications for retailers in terms of chalking out effective strategy on the basis of category of private labels. Manufacturers of national brands need to aware of gaining acceptance of private labels in various categories. This research opens up new areas of investigation for private labels in India.


Full Text : PDF

References
  1. ACNielsen (2006). Asia Pacific Retail and Shopper trend. accessed, February 2009, retrieved from http://au.nielsen.com/site/documents/AP_2006_ShopperTrends.pdf
  2. Ailawadi, K.L. & Keller, K.L. (2004). Understanding retail branding: conceptual insights and research priorities. Journal of Retailing. 80 (3), 331-342.
  3. Baltas, G., & Doyle, P. (1998). An empirical analysis of private brand demand recognising heterogeneous preferences and choice dynamics. Journal of the Operational Research Society.  49(8), 790-798. 
  4. Batra, R., & Sinha, I. (2000).  Consumer-level factors moderating the success of private label brands. Journal of Retailing. 76, 175-191.
  5. d'Astous, A., & Saint-Louis, O. (2005).  National versus store brand effects on consumer evaluation of a garment. Journal of Fashion Marketing and Management. 9(3), 306-317
  6. Dhar, S.K., & Hoch, S.J. (1997). Why store brand penetration varies by retailer. Marketing Science. 16(3), 208-227. 
  7. Dick, A., Jain, A., & Richardson, P. (1995). Correlates of store brand proneness: some empirical observations. Journal of Product & Brand Management. 4 (4), 15-22. 
  8. Dunn, M.G., Murphy, P.E., & Skelly, G.U. (1986), "Research note: the influence of perceived risk on brand preference for supermarket products. Journal of Retailing. 62 (2), 204-216. 
  9. Glynn, M. S., & Chen, S. (2009).Consumer-factors moderating private label brand success: further empirical results. International Journal of Retail & Distribution Management. 37(11), 896-914.
  10. Hoch, S.J., & Banerji, S. (1993). When do store brands succeed. Sloan Management Review. 34(1), 57-67.
  11. Hoch, S.J. & Shumeet, B. (1993). When do private labels succeed?. Sloan Management Review. 34(4), 57-67. 
  12. Jin,B., Suh, & Gu, Y. ( 2005). Integrating effect of consumer perception factors in predicting private brand purchase in a Korean discount store context.  Journal of Consumer Marketing. 22(2), 62-71.
  13. Kyoung-Nan, K. (2008).  The effect of perceived product characteristics on private brand purchases.  Journal of Consumer Marketing. 25 (2), 105-114. 
  14. Labeaga, J.M., Lado, N.,  & Martos, M. (2007). Behavioural loyalty towards store brands.  Journal of Retailing and Consumer Services.  14(5), 347-356.
  15. Narasimhan, C., &  Ronald, T.W. (1998). Private-labels: fighting to win. Harvard Business Review. 74 (1), 99-111. 
  16. Narasimhan, C., & Wilcox, R.T. (1998). Private labels and the channel relationship: a cross-category analysis.  The Journal of Business. 71 (4), 573-600. 
  17. Putsis, W.P., & Dhar, R. (2001). An empirical analysis of the determinants of category expenditure.  Journal of Business Research.  52, (3), 277-291.
  18. Raju, J., Sethuraman, R., & Dhar, S.K. (1995). The introduction and performance of store brands. Management Science.  41(6), 957-978. 
  19. Sayman, S., & Raju, J.S. (2004). Investigating the cross-category effects of store brands. Review of Industrial Organization. 24 (2), 129-141. 
  20. Sethuraman, R. (1992). Understanding Cross-category Differences in Private Label Shares of Grocery Products. Marketing Science Institute. Cambridge. MA, Report, 92-108. 
  21. Underwood, R.L., Klein, N. M., & Burke, R. R. (2001). Packaging communication: attentional effects of product imagery.  Journal of Product & Brand Management. 10(7), 403-422.