Private Label vs National Brands: a Comparative Study

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Table of contents
• Executive Summary……………………………………..………………………………………08
Section I
• Introduction to Private Labels………………………………………………………………09
• Background: Evolution and Emergence of Private Label………..…………….11
• Review of Literature…………………………………………………………………………….13
Section II
• Research Methodology………………………………………………………………………..18
i. Objectives of Research……………………………………………………………….18 ii. Research Problem……………………………………………………….…………….18 iii. Research Question……………………………………………………….……………19 iv. Research Hypothesis………………………………………………………………….19
v. Research Method………………………………………………………………………20 vi. Limitations…………………………………………………………………………………20
Section III
• Data Analysis……………………………………………………………………………………….21
i. Demographics……………………………………………………………………………21
ii.
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The second aspect of the primary research involves scaling the consumer attitude of the private labels in comparison with the national brands on the factors that influence purchase decision. While consumers responded favourably to its convenience and value for money aspects they rated it low on quality and brand imagery. However the significant portions of the shoppers are duly aware of the private labels and have shown positive intention of buying it more frequently in the future. These findings completely support the projected future growth of private labels in the organized retail sector. Section I
INTRODUCTION: PRIVATE LABELS

Private Labels
Private labels i.e, retailer’s own brands are nurtured by the retailers. A private label is a retailer’s strategic tool while negotiating with manufacturers of national brand. Differentiation and innovation strategies applied to private labels hold the key to success. A private label is characterised by being a product produced, improved, processed, packed or distributed exclusively by the organization that has the brand control. It can carry the company’s name or use other brands not associated by the company’s name. Still due to these characteristics and their appeals, the market for the private label has grown in the last few years (A C Nielsen 2004). 4
Facts
• There is currently a $65 Billion market for private label products.

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