Private labels are great assets for retail firms, as they help attract customers, build loyalty and generate large sales margins. Though private labels have evolved worldwide from being cheap substitutes for manufacturers’ brands to strong contenders for them over the years, their role in the Indian market at present is limited. Many Indian retail firms have launched their private labels, but several of them have not been very successful.
Private labels like Food Bazaar’s Fresh-n-Pure, Reliance fresh’s Select and TATA-Trent’s Westside are very popular among Indian consumers. Indian consumers have begun to acknowledge the modern form of retailing as a better option for purchasing their requirements due to the shopping convenience that it provides
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These research works include study by (Deepali Gala, Ramchandra, D. Patil, May 2013) on consumer attitude towards private label and national brand and their behavior towards various retail outlets and Kirana stores available in the Sangli district, Maharashtra India. Deepali Gala, Ramchandra, D. Patil, May 2013 revealed that the customers see private label as a local product which is not been considered same as the national brand. The majority of respondents prefer both national and private label as compared to individual specific brand, but has changed along with change in demographic profile. Product wise preferences shows that, majority customers prefer national brands for purchasing Electronic, Luxury, Sanitary and Clothing items whereas they prefer private label for Food and other miscellaneous items. Private labels purchase is influenced by positive world of mouth. On other hand, poor quality is a major reason for people do not prefer to buy private label products. The major reasons of purchasing private labels are quality followed by price and then availability in the retail outlet. J. Joshua Selvakumar and P. Varadharajan, March 2013 studied similar study in Coimbatore, India and revealed that preference pattern changes with respect to demographic profile of respondents for Private Label brand and national brand. They examined three categories of private labels, namely food and non food FMCG, apparel and consumer durables and found that freshness is the most important factor that contributes the sales growth of private labels. Respondents prefer excellent packaging towards brand and value for money towards Private Labels. It is inferred that quality and price of national brand products are high when compare to private label products, Packaging of national brand products are attractive when compare to the private label products, Risk of buying national brand products are less
Only 10% of Dick’s revenues are attributable to their sales through private brands (Dick’s Annual Report, 5). While that is a relatively low percetange of revenues, Dick’s makes a much larger margin on their private brands than they do on selling the products of other companies, despite charging lower prices than Nike, Under Armour and LuluLemon. Pursuing further development within the private label sphere, Dick’s could reduce the dependence on national brands and establish a stable revenue stream for long term profitability. The private label brands could also gain more control over other products especially in terms of size, package design, and distribution. Moreover, with fast trend cycles and changes in customer preferences, it is easier to adjust product assortment to these cycles when dealing with private
According to Aaker (1990), two-thirds of the food product found on store shelves, are brand extension, which suggest the competitiveness of the business. It becomes imperative that marketers stay abreast of the shifts: who purchase the products; focus on the ideal target or segments; involve band loyalties on planning,
Department stores have traditionally used private labels on the selling floor as a way to provide a low-cost alternative to consumers. However, they may be expanding and developing more private labels to replace those national brands that have been falling behind.
The concept of Supermarkets is not new to Indian consumers. In the past few years there has been a significant rise in the number of supermarkets, especially in the metropolitans. Supermarkets in India, houses varied shops selling different types of essential commodities along with luxury items. These Supermarkets are mainly concentrated in urban areas or semi-urban areas. Supermarkets operating in India typically have a heterogeneous mixture of large and small individual retailers. Most of these Supermarkets sell branded products of both, domestic and international manufacturers. Supermarkets of India offer products with different price bands for each and every sections of urban society. All these supermarkets claim to work on the principle that “the consumers must have the freedom of choice”. The customer is supposed to feel daunted-bewildered, at the large number of choices that he is offered. It is no wonder that most of these supermarkets look the same. Breathtaking amount of research have gone into designing these places. A customer is forced to go past thousands of other products in order to search for what he needs. The concern of the supermarkets in to increase their sales and in order to do so they manipulate the customers and their purchasing prowess into making them purchase items that they want to sell. This is where Point-of-Purchase advertising comes into effect. Point-of-purchase advertising or P-O-P is a generic term for display units (e.g. retail display stands, showcases, interactive displays, literature dispensers, poster holders, sign holders etc.) used to merchandise specific goods and services, or as a vehicle for presenting point-of-sale advertising such as printed leaflets, posters, or audio-visual media. ...
Retailers have the options to offer products which carry another company’s brand, developing private-label products or selling a combination of branded and private-label products
The term 'food retailers' is becoming ever more inappropriate as the operators of the largest stores increase their non-food offer. But food remains the core of the offer and the main reason that people visit the stores.
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
... brands and reducing their reliance on the larger brands. In addition, retailers such as Wal-Mart and Target are increasingly offering private label premium goods at affordable prices. A huge advantage with private label brands is that they can be positioned as a lower cost alternative for national and international brands. Increase in demand for the private label products provides better margin and would generate more business for the group.
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
Umer, Shehzad; Salman, Ahmad; Kashif, Iqbal; Muhammad, Nawaz; Saqib, Usman.(2014). Influence of brand names on consumer choice and decision. Journal of Business and Management, 16(6), 72-76.
India is a nation that is on the move towards becoming one of the leaders in the global economy. While the country still has a long way to go, it is making significant strides towards competition with nations such as the United States and England. Indian leaders have been moving towards "a five-point agenda that includes improving the investment climate; developing a comprehensive WTO strategy; reforming agriculture, food processing, and small-scale industry; eliminating red tape; and instituting better corporate governance" (Cateora & Graham p. 56, 2007). These steps are geared to begin India's transformation from a third world nation into a global economic leader. The current marketing environment in India is in transition, with both similarities and differences in comparison to the marketing environment in the US.
Once in a while they would prefer not to take a risk by attempting to go for another brand. Perceived quality of a brand impacts the decision making process of a consumer. It also straightforwardly impacts the brand dedication of the purchasers. Perceived quality has a more prominent impact in a customer’s buying procedure and in brand loyalty. This impact is essential when customers are in a condition, which makes them not able to make an investigation of the quality. Perceived quality can be utilized as a helping tool when organization plans to use a valuing system with premium cost and further amplify a brand in a few markets. All customers are conscious about the item
Overall impact of brand on consumer behavior is moderate Brand name, brand loyalty, after purchase service, verification of the product; symbolic mean...
The article discusses how the international fast food chains once blazed the trail in India when they arrived about “15 years ago” (Rana). During this time, the big global brands such as Domino’s Pizza, McDonald’s, and Yum Brands that includes Pizza Hut and KFC built too many stores due to the anticipation of a larger growth. Now, the market growth has slowed for these original global brands in India. Growth is sluggish because