Own Brands in the Retail Sector: UK⁄US Perspective

Abstract

One major change in recent years in retail management has been the development of the retailers' names as a brand rather than as a simple name over the store. We have reached a point where names of some major retailers are better known to consumers than any of the largest manufacture brand names. These brands tend to receive a higher proportion of management attention within the retail organization. Not only is the retailer typically more involved in product development or specification; the own brand also tends to receive special emphasis in all the major areas of focus, including space allocation. These retailer brands are not limited to just one type of good. They cover nearly the entire spectrum covering durable, semi-durable, and non-durable goods. This paper deals with the emergence, importance, development, positioning and rationale behind own brand development, existing market for own brand products, consumer segmentation, and the major own brand retailers in UK and US grocery supermarkets, where they have the highest market share and a very high profit. Therefore, in order to understand the importance of the topic it is also important to view these brands from perspectives of the manufacturers, the retailers, as well as the consumers. The paper concludes with some useful points relating to management of own brands.