Abstract
ABSTRACT The present study approaches the advantages and risks related to private labels under a retailers’ perspective, as well as the private label strategies and its growth in the Brazilian market. The paper analyses the strategies used by a large Brazilian supermarket chain with regards to its private labels’ management, using the case study method. The results showed the existence of two private label lines of products, with different strategies: one line of light products (proprietary brand) and another line of products that carry the name of the supermarket under study (retail brand endorsement), both classified as using the fantasy positioning strategy.
Highlights
O presente estudo aborda as vantagens e riscos relacionados às marcas próprias, a partir da perspectiva dos varejistas, assim como as estratégias para marca própria e o crescimento no mercado brasileiro
The retail sector, according to Stern, El-Ansary, and Coughlan (1996), refers to the business activities related to selling products and services to consumers for their personal, familiar or home use
According to Fitzell (1992), retailers can choose different strategies for working with private labels: generic brand, rubber stamp brand, retail brand endorsement and proprietary brand. These different theoretical options are empirically investigated in the present study, by means of a case study with a large Brazilian retailer
Summary
O presente estudo aborda as vantagens e riscos relacionados às marcas próprias, a partir da perspectiva dos varejistas, assim como as estratégias para marca própria e o crescimento no mercado brasileiro. The present paper represents a continuation of Giraldi and Scandiuzzi’s (2003) paper, which studied the private label’s situation in Europe and in Brazil, considering aspects such as: growth figures, strategies pursued by retailers and manufacturers, trends and perceived differences between these two regions In their paper, these authors performed a case study in a multinational manufacturer, in order to illustrate how a manufacturer deals with the private label issue, and to better understand the differences between the European and the Brazilian markets. Sainsbury in the UK, Loblaw International Merchants in Canada, and Wal-Mart in the U.S.A are good examples of the strategy retailers use to obtain more competitive strength Another explanation, probably the most important one, for the private label growth is the price: private-label products are usually priced from 15 percent to 40 percent lower than branded products (STERN; EL-ANSARY; COUGHLAN, 1996). As a retailer begins to put more investment on new product development and innovation of a private label product, it must get prepared to take risks at the same time if that product turns out to be a failure (EUROMONITOR, 1998)
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