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Mkt4007 W6
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    Mkt4007 W6 Mkt4007 W6 Presentation Transcript

    • Private Brands, Retailers and Category Management MKT4007
    • Private Brands
      • “ Own label” products
      • Can be - Same Name as retailer Waitrose - Named different to retailer St. Michael - Differentiated Tesco Value/Tesco*Finest
    • Common ideas
      • “ value” products
      • Same quality? Different quality?
      • Made by the same company (?)
      • Public “self-branding” a potential issue
      • Some people unaware they are buying own brands (Matsui)
    • Some figures
      • 53% Switzerland (highest)
      • 43% of sales in the UK
      • 40% Germany
      • 35% Spain
      • 34% France
      • 28% Sweden
      • 27% Denmark
      • Approx 20% Eastern Europe (rising fast!)
      (PLMA 2007)
    • Where
      • Overall: Massive increases in market share in recent years, especially in food retail, but also in other areas:
      • 50% Frozen goods
      • 8.75% Beauty products
      (ACNielsen, 2004)
    • Strategic Retail Position Stuck in the Middle High End Low End Service Fixtures/Feel Prices Consumer preference Fortnum& Mason Marks & Spencer Aldi Waitrose Sainsbury Tesco Mostly House Brand Only House Brand House of Brands
    • The power! Retailer Producer Consumer mass-communications promotional support Concrete Experience Environment Price Service Sales Promo Adverts Other Brand vs Own Brand Experience Customer & Competitor
    • Potentially...
      • Brand damage through Private Label brands
      • Choice restrictions
      • Non-comparability of price/quality of Private Labels
      • Potential for category price distortion
    • Typology of Brands (Dobson, 2005) Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
    • Typology of Brands (Dobson, 2005) Consumer & Retailer Nightmare Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
    • Typology of Brands (Dobson, 2005) Consumer Champion Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
    • Typology of Brands (Dobson, 2005) Consumer Champion Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
    • Typology of Brands (Dobson, 2005) Branding Horror Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
      • Brands:
        • Guaranteed quality and reliability
        • Price/value comparability
        • Distinct variants to suit different tastes
        • Regular improvement and innovation
      • Private Labels:
        • Genuine value (avoiding “marketing surcharge”)
        • Genuine choice (offering alternatives)
        • Genuine variety (filling gaps)
        • Genuine innovation (catering for latent demand)
      (Dobson, 2005)
    • Category Management
      • Six stage model:
      • Category Definition
      • Assessment
      • Strategy
      • Tactics
      • Implementation
      • Review
    • Advantages
      • Access to Direct Consumer Data
      • Shared Workings
      • Improved range & less out-of-stock
      • Category Management = Business Relationship as one unit