Web & Social Media Analytics Previous Year Question Paper.pdf
Private label nimmy
1. P R E P A R E D B Y :
N I M M Y F R A N C I S
S 2 M B A
M A C F A S T
PRIVATE LABEL
v/s
BRANDED PRODUCTS
2. Private label
Private label are those brands owned , controlled and sold
exclusively by a retailer.
Private label are a ‘good alternative’ to other brands ,
offering the same quality and value.
Private labels are regarded as good value for money for
the retailers.
3. Need for private label
As competition is getting stiff, retailers are working on
new marketing strategies to sustain in the market, one
such strategy is the private label adopted by most of the
retailers.
There are a variety of private label in various categories
like apparel, food and groceries, health care, personal
care, consumer durables, lifestyle etc.
The major driving force behind introducing store brands
is to ensure the customer store loyalty, as that specific
brand is available only in specific stores.
4. National brands v/s Private labels
Manufacture (national)brands
designed, produced and marketed by a vendor
and sold by many retailers.
private label(store)brands
developed by retailers and only sold in retailer’s
outlets.
5. Preference of private label
Two third of the consumers considers supermarket own
or private label , brands to be a good alternative to
other brands.
for examples, I have considered few own brand available
in a near by supermarket called JAM JOM and the main
factor considered is quantity and price as value and
quality are almost similar.
Detergent powder
Sunlight (1kg) - Rs. 86
own brand: Alkar washing powder - Rs. 78
6. Packed masala powder
Eastern meat masala - Rs 32
Own brand : Jam Jom meat masala - Rs 28
Edible oil
shabari virgin coconut oil -Rs 245
Own brand:Jam Jom coconut oil -Rs 230
7. Benefits to consumers choosing private
label
From the above considered examples
Good alternatives to name brands
Quality as good as name brands
Good value of money
Good for people on tight budget who can’t afford the
best
The cost saving for typical consumer is large
8. Benefits to retailers
Significant source of additional profit
Allows more control over pricing strategy
Gives freedom for retailers to create their own
market plans
Promote stronger customer loyalty towards retail
stores.