Professional Documents
Culture Documents
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Table of Contents
Topic Pg No
Executive Summary 04
Introduction 05
Research 07
Limitations 08
Findings 09
Conclusion 12
Bibliography 13
Questionnaire 14
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ACKNOWLEDGEMENT
We would like to thank Prof: Mr. Bhattacharya for giving us this opportunity to work
on a topic which would reflect latest trend, working on such a current issues was a
good learning experience.
We also like to thank all the respondents for their valuable time, and in helping us
with their responses without which the project would not have been possible.
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EXECUTIVE SUMMARY
In India the growth of private labels have been phenomenon and is slowly gaining
more store space. According to a FICCI-Ernst & Young 2007 report, as quoted in
The Marketing Whitebook 2009-10, the retail sector in India was worth $280 billion,
of which organized retail comprised 5% at $14 billion.
This study focuses on Consumer Beliefs, Attitude and motivation towards Private
Labels. The study gives an insight into the different attributes and parameters
considered by consumer for evaluating a in store brand.
To accomplish the task, a survey was carried in and around Mumbai city (retail
outlets) with a sample of 20 respondents taken on a random basis approaching the
customers who walked in retail outlets. A structured questionnaire was prepared
and administered and the data so collected was analyzed both by percentages and
statistical methods.
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INTRODUCTION
Private label certainly is the talk about town these days. Private label, after all, is no
new kid on the block. Retailer brands after all, have been hanging around national
name brands for more than a couple of decades. The question was never a matter
of if as much as when private label would evolve to seriously threaten national name
brand dominance and primary share of shelf space.
Private label brands constitute 10-12% of organized retail in India, Of this, the
highest penetration of private label brands is by Trent at 90%, followed by Reliance
at 80% and Pantaloons at 75% .Big retailers such as Shoppers Stop and Spencer's
have a penetration of 20% and 10% respectively.
Nearly 40-50% of the store space are dedicated to store brands,these products
share the shelf space with other branded products.For example, in the Reliance
store its curd brand Dairy Life was placed next to the other brands, such as Amul.
This is especially true for apparel, Shoppers Stop has several in-house brands.
Women's wear category itself it has STOP, Kashish, Remika etc Similarly, in the
mens wear category, it has STOP, Life, Vettorio Fratini, and so on .These products
are not differentiated from the other brands in terms of store space. These products
are priced substantially lower than the other brands.
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Consumers today acknowledge that private labels have the ability of creating
unique, resonant benefit propositions for consumers.
The question is whether private label brands have come far enough in the minds of
consumers for these brands to compete as legitimate brands in their own right.
From the consumer perspective, private labels have closed the gap with national
brands. Consumers believe private labels are “identical” to national name brands
and almost 50% see them as “close” but not yet on par with name brands.
About one in 10 consumers believe private labels are “better” or “superior” to
national brands. Only 5 percent of consumers perceive private labels to be “inferior”
to national brands.
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RESEARCH
PROBLEM STATEMENT
The retailer desires to understand consumers approach their beliefs and attitude
towards In Store brands which can help them in better positioning and designing
marketing strategies to accelerate sales of their consumer attitudes, beliefs about
private labels what are the key aspects that motivates customers to go for Private
labels visa vis Brands.
To understand Consumer attitudes, beliefs about private labels what are the key
aspect that motivates customers to go for Private labels visa vis Brands.
Besides understanding Customers views on private labels and what are aspects
they consider before purchasing private labels we also came to know about the
threats or competition faced by Brands due to increasing private labels.
METHODOLOGY
SAMPLE DESIGN
The customers’ study was conducted only in Mumbai city. The results
therefore are confined to this area only and need not necessarily be applicable
to other areas.
The sample size of the customers was small, so it was not able to convey the
attitude of the customers
Respondents might have some biased views and this could have affected the
findings to a certain extent
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FINDINGS
• Demographic:
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• Preference towards the brand available
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• Factors that can help induce in-house brand
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CONCLUSIONS
"For most consumers, a private label is just another brand”, Hence, there has been
a steady growth especially in the categories where consumers have less loyalty to
better-known or promoted brands are the categories where In store brands are
picking up.
Private label brands have come far enough in the minds of consumers for these
brands to compete as legitimate brands in their own right. From the consumer
perspective, private labels have closed the gap with national brands. Consumers
believe private labels are “identical” to national name brands and almost 50% see
them as “close” but not yet on par with name brands.
Private labels matter for higher gross margins to retailers and also help in
differentiating them against other retail outlets. Hence retailers are adopting different
marketing strategies to maximize sales and are giving a direct competition to
established manufacturing brands.
It could be concluded that Private labels are here to stay, and will be dominate 50%
of the retail market.
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BIBLIOGRAPHY
Website:
www.business.in.com
www.dare.co.in
www.ibef.org
www.knowledge.wharton.upenn.edu
www.naturalproductsinsider.com
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Consumer’s approach towards ‘Private Labels’
1. Name
2. Gender
Male
Female
3. Age
20yrs- 25 yrs
25yrs-35yrs
35-50 yrs
Above 50yrs
4. Marital Status
Married
Single
5. Occupation
Housewife
Service
Business
Profession
Below Rs 25000
Rs 25000-50000
Above Rs 50000
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7. What do you shop, how often?
Daily Weekly Bimonthly Monthly Occassional
Vegetables
Grocery
FMCG (Toiletries,
Detergents etc.)
Garments
Electronics
Yes No At times
Yes No
excellent quality
value-for-money
are fresh
excellent packaging
are healthy
are prestigious
an excellent image
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11. Rate the below attributes on the scale of 1 – 5. (5 - Very important & 1 - Not Important).
Brand Image
Prestiguous
Healthy
Packaging
Fresh
Risk-Free
Quality
12. Which among the below factor can help induce trial for an In House Brand.
13. In case you were to try an ‘In’ store brand which category you would prefer among the
below and Why?
_______________________________________________________________________
14. Give any other experience or factor that makes you prefer private label products
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