Tr ime st er Pr oje ct Pr es ent at ion o n

“Th e imp ac t o f ret ai ler s' br an ds ov er

the pro du cer s' br an ds wi th sp eci al
refe re nce
t o s ta ple s”

Present ed By :
Karishm a Set h (PG DM0702 8)
Nisht ha Si ngh(P GDM070 50)
 In trodu ction of I ndustr y
 Retailing has been defined as business activities involved in
selling goods and services to consumers for their personal, family
or household use.
 Retail is the second-largest industry in the United States both in
number of establishments and number of employees.
 Wal-Mart is the world’s largest retailer.
 Retailing in India
 Retailing in India is currently estimated to be USD 200 billion.
 Organized retail is expected to grow at 25-30 percent p.a.,
and is projected to attain US $ 23 billion by 2010.
 The corner grocer or the ‘ kirana’ store is a key element in the
retail in India due to the housewife’s unwillingness to go long
distances for purchasing daily needs.
 Convenience and merchandise are the two most important
reasons for choosing an organised retail store, the choice
criteria varied across product categories.
 Factors facilitating the spread of chains are the availability of
quality products at lower prices, improved shopping
standards, convenient shopping and display.
Con ti nued..
 The modernization in retail has led to the decline of
independent mom & pop stores.
 INT RODU CT ION OF T HE TOPIC
 Product brand:Meaning of the product brand is connected to:
 the products developed by the (national) manufacturers
(manufacturer product brand or industrial brand).
 the products developed by the retailers (private label, store
brand, distributor brand, own brand, or house brand).
 Retail brand:Meaning of the retail brand:
 linked to the points of sale, understood as “retail products” of
the retailers.
 which incorporate the “personality” of the retail store.
In ter acti on processe s betw een
product brand an d r etail br an d

Vertical Brand
Product brand Retail brand

Mutual influence between product brand and retail brand.

Interaction between product loyalty and store loyalty.
What dr ives th e pen etrati on of
private lab els?
 The Manufacturer
 The Retailer
 The Shopper
 What Works Agai nst Pr ivate
Label Pen etr ati on ?
 Two factors seem to drive this situation: relative cost and risk.
 In the case of baby food and cosmetics, the relative risk seems
high even if the price differential is large.
 The degree of commoditization of the product is also an important
factor. The closer an item is to a commodity, the greater the
opportunity it has to be matched or pre-empted by private labels.
 In large part this is why refrigerated foods (e.g., dairy products
and meat) have large private label shares, while highly
sophisticated electronics products have virtually none (though
Wal-Mart does offer its own TV brand).
 Objec tives o f th e Stu dy
 To identify the various private brands of the retailers in the
“staples” category.
 To study the various promotions of the private retailers of their
own brands in comparison to the manufacturers’ brands.
 To study the price differentials between the retailers’ private
brands and the manufacturers’ brands and their impact on the
consumer behavior.
 To determine the variables that consumer foresees prior to
subscribe retailers’ brands.
Scop e
The scope of the study is to:
 Promote the private brands of retailers by demarketing
the manufacturers’ brands.
 Penetration of the private brands in the national brands’
markets.
 Developing of a better image in consumer’s mind.
 Res ear ch Meth odolog y
 Universe: Consumers of the retail sector.
 Sample Unit: Consumers of the organized retail-sector.
 Sample Size: 50
 Sample Type: Random sampling
 Research Design: Exploratory
 Sources of Data: Primary (Questionnaire)
Secondary (Retail blogs, journals,
newspaper)
Dat a analysi s
 From where do you buy your
grocery items?
 Da ta an al ysi s
How much is the budget reserved for spending on grocery by the
consumer?
 Dat a analysi s
What matters most to the consumers in the case of purchasing of grocery
items?
 Da ta an al ysi s
Do you prefer the same brand everytime?
 Da ta an al ysi s
How much the promotion of the product influence your purchasing?
 Dat a analysi s
Who is responsible in your family to buy the monthly grocery items?
Da ta an al ysi s
Do you but grocery items from big retailers?
Da ta an al ysi s
If Yes, from which retailer do you buy frequently?
Da ta an al ysi s
What appeals you more in such retail stores?
 Da ta an al ysi s
Which type of product do you purchase while shopping from an
organized retail store?
 Dat a analysi s
If the retailer’s own brands are available at a shop next door, then will you
buy it?
 Rec ommen dati ons
 If the organized retailers promote their products at the
mom-pop stores, then the consumers would consider them
in their buying decision making.
 Since the survey shows that there is no significant
difference between the customers of organized retailers
and unorganized retailers, hence the organized retailers
should launch and promote their brand at the same grand
level as the manufacturers’ brand .
 The survey shows that Quality plays a major role in
consumer’s buying decision. Therefore the retailer should
not compromise on this factor beside the price of its brand.
 Con clusi on
 The consumers prefer to buy the product brand rather
than the retailers brand but they give preference to the
factor of Quality the highest in their buying decisions.
Hence, in order to compete with the products’ brand , the
retailers brand should play upon quality and not price or
promotion.