Private Label Goods Research Articles

A Study on OTC Products in India and Europe: Market Prospective

India has a growing market for pharmaceutical over-the-counter medications, which indicates that the pharmaceutical industry in this nation is expanding rapidly. In the past ten years, the Indian pharmaceutical business has experienced a significant change in marketing tactics. Companies actively publicize their over-the-counter products to promote them. In contrast to Europeans who rely on their local chemist to treat small ailments, North Americans place a greater emphasis on seeking medical guidance for treating minor ailments. Only ongoing public education with a broad perspective on the good health and wellbeing of society may raise awareness of rational drug use. Compared to other consumer commodities, OTC medications have significant brand loyalty. But going forward, it is also expected that merchants with strong sales capacities will be able to boost the market presence of their own private-label goods. The government and several pharmaceutical firms are undertaking a number of programmes to raise awareness about various medications and shift Rx to OTC.

Examining Customer Perception towards Private Label Brands within the grocery retail Sector in Ghaziabad City

The world’s fastest-growing retail sector is the Indian retail industry, and it stands at the fourth position in the world. Among various segments of the retail sector, grocery is one of India’s most significant retail segments. In addition, by concentrating on their exclusive brands, most grocery retailers have grown stronger and experienced success focusing on their private brands. Thus, the research article examines “customers’ perceptions” of “private label brands” in the retail sector concerning grocery items. Survey-based research is conducted to attain the research aims and objectives. 96 respondents out of 100 replied to questionnaire, hence the sample size of the study is 96 respondents. The data is analysed by frequency distribution technique using Microsoft Excel. The research findings indicated that most consumers have a favourable opinion towards private label goods and believe these brands are cheaper, offer higher quality, and provide attractive packaging than national brands. The research study also investigated that customers’ perceptions of private label products are influenced mainly by low pricing, better and nearly equal quality, and easy availability.

The Effect of Perceived Quality and Perceived Risk on Buying Interest in Alfamidi Private Label Products

A businessman or entrepreneur must be able to read the target market deeply and accurately to maximize sales volume because consumer perception is very influential on the continuity of the business or business and is very difficult to assess. Increased sales volume can greatly benefit from perception, especially if customer testimonials are included. Consumers will assess the quality and danger of private label goods before making a purchase choice. Customers will choose to buy it if they believe their impression of its quality is high. Conversely, people will decide not to buy an item if they feel that the item has more harm than good. This study was conducted with the aim of knowing how much influence perceived quality and perceived risk have on purchase intention in alfamidi private label products. The number of samples used was 50 respondents. The sampling technique used is non-probability sampling, with incidental sampling method. Data collection using a questionnaire. The data analysis technique in this study was to use Partial Least Square with WrapPls 7.0 software. The results of this study indicate that: (a) perceived quality (X1) has a positive and significant effect on Purchase Intention (Y). (b) perceived risk (X2) has a negative and significant effect on Purchase Intention (Y).

How Korean Retailers Expand Private Label Markets Abroad: Evidence from the Chinese Fresh Food Market

Purpose - The increasing share of Korean private label products (PLPs) in the domestic market helped generate lucrative revenue. In recent years, major South Korean retailers have begun to cast their sights on overseas markets and actively export their PLPs. In China, the proportion of private label fresh food (PLFF) is gradually expanding amid the development of the new retailing model. A profound understanding of the relationship between private label fresh produce and purchase intention may be the answer to helping Chinese retailer private labels expand supply chains in Korea. This study, taking Chinese retailers as an example, examines the impacts of selection factors of private label fresh food and perceived value on purchase intention. Apart from that, the relationship between the selection factors and purchase intention will be analyzed with perceived value as a mediator.
 Design/methodology - This work aims to empirically analyze the purchase intention of private label fresh food using statistical analysis. In this study, a hypothetical causal model consisting of 6 latent variables and 24 measured variables is developed based on the literature review. To validate the research hypotheses and the research model, SPSS23.0/AMOS23.0 is used to analyze factors such as validity and reliability, as well as structural equation modeling.
 Findings - The hypothetical model established in this study is of general applicability. In respect to PLFF, perceived value, while significantly influencing purchase intention in combination with four selection factors (perceived quality, perceived price, brand trust, and store image), mediates partially between the first three factors and purchase intention, which rules out the impact and mediating effect of store image on purchase intention.
 Originality/value - These research results, as helpful insights into the present circumstances of Chinese PLFF in the domestic market, provide useful information and guidance for Korean retailers and service providers to innovate production and service, as well as develop marketing and promotion strategies, so that they can shift private label goods with advantages from domestic demand to export, thus increasing overseas profitability. Further, this work will also contribute to relevant research.

УПРАВЛІННЯ БРЕНДАМИ ЯК ЧИННИК ПІДВИЩЕННЯ КОНКУРЕНТОСПРОМОЖНОСТІ ПІДПРИЄМСТВ КОНДИТЕРСЬКОЇ ГАЛУЗІ

Problem’s setting. Many experts are increasingly inclined to conclude that the main factor for the success of most enterprises is the commitment and loyalty of consumers. A higher degree of consumer loyalty is an almost fanatical appreciation of the brand. Any product while entering the market creates some impression - positive or negative. These associations and consumer perception of the product are called the brand. This is some impression of a product in the minds of consumers or a label that is thoughtfully attached to the product. However, branding is not always a sure guarantee of success for the company . Analysis of recent studies. The issues of brand formation were explored by authors such as D. Aaker, T. Ambler, B. Bruns, J. Burnett, A. Bontour, F. Kotler, E. Rice, J. Rossiter, V. Domnin, K. Bazherin, L. Buk , O. Zozuliov, V. Pustotin, E. Romat and others. Researchers expose the essence of a brand, offer methodological approaches to its formation, analyse the essence of branding and brand management. Objective of the research is to analyse the modern scientific understanding of the brand management system as a factor of increasing the competitiveness of enterprises, to consider the process of forming and using brand management system by the enterprises of the confectionery industry, as well as to diagnose the socio-economic efficiency of brand management of one of the most successful companies in Ukraine and to develop a strategy for its improvement. The main part. A brand management system is a complex of interconnected elements: goals, principles, functions, methods, organizational structure that embodies the management relationships that together allow to fulfil the main mission of the enterprise - meeting the needs of consumers. It is worth noting that the brand management model has a strategic orientation, which includes a block of goal-setting, analytical block and formation of strategic alternatives of brand development, which is a crucial part for today's changing conditions of the environment . Therefore, the main stages of the process of brand formation and using are comprehensive market research, brand creation, alignment of the brand concept with other components of the marketing complex, the formation of a marketing communications system, implementation of branding proposals, evaluation of brand efficiency, rebranding. Market analysis of consumer goods in Ukraine over the past 5 years has shown a significant decline in production and consumption of virtually all categories of consumer goods. Cheap products are the exception: instead of chocolate, consumers buy cookies and gingerbread, instead of wine from Italy and Chile - domestic wine. In addition, the Ukrainian confectionery sector is one of the most highly competitive areas in our country. It is quite multi-vector, as it develops differently in each segment. Consider the structure of the Ukrainian confectionery market by manufacturers. The biggest players during 2016-2019 are Roshen Confectionery Corporation, Malbi Foods LLC, Ferrero SpA, Mars, Inc., Nestlé S.A. and Mondelēz International, Inc. They occupy 19.3%, 8.3%, 8.0%, 7.6%, 7.0% and 6.2% respectively. In addition, the share of Private Label goods sales has increased significantly - up to 13% as of 2018. Confectionery is an area that needs creativity and ingenuity. The Western market requires simple and bright packaging, which stands out on the shelves and is as interesting to the audience as possible. Often, manufacturers add a game element that attracts not only the infant audience but also adult consumers. High value of the Nestlé brand management system in Ukraine is the high corporate image as well as the image of individual brands. The analysis of the brand management system of Lviv-based Ukrainian confectionery manufacturer Svitoch made it possible to identify the key elements of the strategy for improving the brand management of confectionery enterprises: · event marketing; · team building (carrying out various activities for employees); · professional development of employees; · production of limited edition products with updated design and taste; · issue of seasonal novelties, gifts and holiday sets; · new packaging design; · high availability of goods at the outlets; · placing products only on branded shelves; · using of various positioning methods; · creating a digital strategy and publishing online announcements. In addition, these elements of brand management strategy will help coordinate employee engagement for achieving a common goal. Conclusions. In general, it can be argued that the Ukrainian confectionery sector is one of the most highly competitive areas in our country. Therefore, by adhering to the above strategy of improving the brand management of confectionery enterprises, it is possible to increase the competitiveness of the company. In our opinion, the findings and suggestions will help increase the efficiency of the brand management system at domestic enterprises.

Do Retailers Manipulate Prices to Favour Private Label Over Brands?

Retailers act as both customers and competitors for brand manufacturers when selling private label in direct competition with brands. This paper considers whether retailers exploit this double-agent position to practice switch marketing, manipulating elements of the retail marketing mix to encourage shoppers to switch from buying brands to private label. Such manipulation can be blatant in nature, such as comparative advertising, brand delisting trials, copycat packaging, and biased shelf allocation. However, the key interest in this paper concerns whether retailers use a more subtle means through strategic pricing to favour private label over brands. The paper reveals very different price treatments of brands and matching private label goods. However, the identified pricing patterns are more indicative of retailers manipulating prices for the sake of segmenting consumers rather than displacing brands.

Market Structure and Cost Pass-Through in Retail

We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through. To answer this question, we use scanner data from a large U.S. retailer to estimate product level pass-through for three vertical structures: national brands, private label goods not manufactured by the retailer, and private label goods manufactured by the retailer. Our approach circumvents issues associated with internal firm prices and demonstrates that accounting for horizontal market structure is important for measuring the effects of vertical integration and reduced double marginalization on pass-through.

Branded Promotion and Private Label Share: A Test of Kashyap’s Hypothesis

This provides a test of Kashyap’s speculation that branded goods are discounted less often when private label goods have a high market share. This was tested by (1) looking at a cross section across a large set of packaged goods categories and (2) looking at twelve product categories cross-sectionally across markets. The promotion measure used is the proportion of dollar (or volume) sales sold on merchandising (feature, display, price reduction). The evidence is weak if we look at branded promotion relative to private label share without considering private label promotion. However, it is strong for a revised hypothesis that as the level of private label share increases, there is less reason to offer discounts on the branded products and more reason to offer discounts on the private label products. As private label share increases, the proportion of branded dollars on promotion decreases relative to the proportion of private label dollars on promotion. In many categories, this means that the proportion of branded sales on promotion is lower than the proportion of private label sales on promotion.

The private label grocery choice: consumer drivers to purchase

Private label products have increased in quality and range in recent years and now make up 17% of grocery sales in New Zealand. These changes mean that private label goods are no longer seen as a ‘budget’ alternative to branded goods, but a legitimate choice for consumers in the supermarket environment. Consumer motivations for private label grocery purchases are examined in this article, with findings suggesting that product category is the most important factor in determining choice between a private label and a branded good, with different levels of purchase risk attributed to different categories of product. The study documents a two-level decision process for consumers of grocery products – pre-purchase and in-store, finding that rational drivers tend to promote pre-purchase preferences and emotional drivers are more active in the store environment.

Do Digital Video Recorders Influence Sales?

The authors analyze a multimillion dollar, three-year field study sponsored by five firms to assess whether enabling skipping of advertisements using digital video recorders (DVRs) affects consumers’ shopping behavior for advertised and private label goods. A large sample of households received an offer for a free DVR and service, and close to 20% accepted. Each household's shopping history is observed for 48 consumer packaged goods categories during the 13 months before and the 26 months after the DVR offer. The authors fail to reject the null hypothesis of no DVR treatment effect on household spending on advertised branded or private label goods, either one or two years after the DVRs are shipped. The predicted DVR effect is tightly centered around 0, suggesting that the data have sufficient power to identify a true null effect. Using advertising exposure information for seven of the brands in the study, the authors offer suggestive evidence that ad skipping occurs for a relatively small fraction of the total television content viewed. The authors also discuss other potential explanations for the lack of a DVR effect.

The Effect of Wal-Mart Supercenters on Grocery Prices in New England

This study examines the competitive price effect of Wal-Mart Supercenters on national brand and private label grocery prices in New England. For this purpose, we use primary price data collected on a basket of identical products from six Supercenters in Massachusetts, Connecticut, and Rhode Island as well as a sample of conventional supermarkets. Taking into account demographics, store characteristics, and market conditions, we estimate the average prices charged by (1) Supercenters, (2) supermarkets competing directly with Supercenters, and by (3) supermarkets geographically distant from Supercenters. By comparing prices at competing stores and at distant stores, we show that the effect of Wal-Mart Supercenters is to decrease prices by 6 to 7 percent for national brand goods and 3 to 7 percent for private label goods. Price decreases are most significant in the dry grocery and dairy departments. Moreover, WalMart sets prices significantly lower than its competitors in the food industry.

Effect of Wal-Mart Supercenters on Grocery Prices in New England

This study examines the competitive price effect of Wal-Mart Supercenters on national brand and private label grocery prices in New England. For this purpose, we use primary price data collected on a basket of identical products from six Supercenters in Massachusetts, Connecticut, and Rhode Island as well as a sample of conventional supermarkets. Taking into account demographics, store characteristics, and market conditions, we estimate the average prices charged by (1) Supercenters, (2) supermarkets competing directly with Supercenters, and by (3) supermarkets geographically distant from Supercenters. By comparing prices at competing stores and at distant stores, we show that the effect of Wal-Mart Supercenters is to decrease prices by 6 to 7 percent for national brand goods and 3 to 7 percent for private label goods. Price decreases are most significant in the dry grocery and dairy departments. Moreover, Wal-Mart sets prices significantly lower than its competitors in the food industry.

Private Label Products as Experience Goods

In Europe, food retailing has become more concentrated and private label goods have spread over the last 40 years. They are now a key element of retailers' shelf offer. Using a model in which consumers become informed about the good's quality only in period two, we examine what determines the presence or absence of private label experience goods in supermarkets, taking into account the retailer's reputation commitment involved. Our most novel result is that for products purchased infrequently, introducing a reputable private label is unsustainable. However, more retailer bargaining power increases the likelihood of a private label good being marketed.

Adapting production for private label goods

Linear Programming (LP) is a valuable tool of operational research and has been applied successfully to problems of production scheduling, particularly in the process industries. It is dependent to a large degree on forecasts of demand for the products: when demand is erratic, production scheduling suffers, whatever the technique employed. LP is sometimes adopted, however, in situations which do not necessarily warrant its use. Such a case arose when considering the production difficulties of private label goods in the food industry. The problem was eventually modified with the full cooperation of management, despite initial opposition. The solution found was to adapt as a company to market conditions, instead of forcing the production function to operate within artificial constraints.