We have analyzed how Tesco, ASDA & Sainsbury’s brands position their Private Label products against brand names. This report investigates & suggests categories that work best for this set of UK based e-tailers.

1. Exclusive Report :
UK’s Online Supermarket
Tesco, ASDA, Sainsbury’s
November 2016 – February 2017

2. Intelligence Node’s Online Supermarket Report | 01
Categories analyzed* – Home & Decor, Food & Grocery, Beauty, Pet Supplies and Office Stationery
* based on category rankings within online supermarkets.
Catalogue
Distribution
Home & Decor
Food & Grocery
Beauty
Pet Supplies
Office Stationery
13%
60%
21%
3%
3%

3. Private Labels have always been a vital part in the UK market.
Intelligence Node analyzes the top 3 players (Tesco, Sainsbury’s & ASDA) in UK’s
online supermarkets to give you this report.
Overall Private Label SKUs
November 2016 - December 2016 January 2017 - Feburary 2017
1000
2000
3000
4000
5000
6000
7000
0 ASDA
Sainsbury’s
Tesco
Intelligence Node’s Online Supermarket Report | 02

4. Intelligence Node’s Online Supermarket Report | 03
Category relevance is the key factor to identify brand
positioning against Private Label expansion across
categories.
Benefits of Private Label Brands
Better control over pricing and transperancy.
Retailers can offer product differentiation and gain customers loyalty.
Ability to fill gaps in the market.
Better control over inventory and supply chain.

5. We analyzed categories across the retail marketplace to identify category visibility
and average items in-stock across retailers online.Importance of category visibility
Incompetitor's proprietary algorithm sifts through ecommerce websites to identify products,
categories and sub-categories that are most-in-demand and trending or
being promoted the most.
Favorable positions where products are most likely to be seen by customers and thus
bought by them.
Source - Incompetitor
Intelligence Node’s Online Supermarket Report | 04

6. Intelligence Node’s Online Supermarket Report | 05
Zone SKU Count Visibility
Most competitive categories.
Private Label face higher
competition from mainstream brands.
Price War
Need for
Brand Awareness
Categories under this zone are niche.
A lot of investment & branding is required
for Private Label brands to enter this category
due to consumers trust in other brands
Innovation
Private Label brands should find ways and means
to innovate due to less competition from
other brands
Growing
the Basket
Private Label brands need to increase their
product width in order to increase basket
size in the zone.

7. Intelligence Node’s Online Supermarket Report | 06
Category Visibility & Product Count Comparison Across UK’s Online Retail Marketplaces
January 2017 - February 2017
Low SKU count
High SKU count
High
visibility
beauty
decor
food
cupboard
fresh
food
drinks
kids &
baby
baby food
& drinks
bakery
frozen
food
nutrition &
medicine
stationery
fillings &
bindings
pet
supplies
home
entertainment
women
care
home
improvement
November 2016 - December 2016
Low SKU count
Low
visibility
Low
visibility
High
visibility
High SKU count
beauty
food
cupboard
fresh
food
frozen
food
bakery
drinks
kids & baby
baby food
& drink
decor
nutrition &
medicine
pet
supplies
filings &
bindings
stationery
women
care
home
improvement
home
entertainment
Need for
Brand Awareness
Price War
Growing
the Basket
Innovation

8. Analyzing
in-stock items and
category visibility
for Private Label brands
in: Sainsbury’s,
ASDA & Tesco
Intelligence Node’s Online Supermarket Report | 07

9. Intelligence Node’s Online Supermarket Report | 08
Category & Private Label Dynamics For ASDA
The average pvt label SKU count for ASDA is high compared to Sainsbury & Tesco
There was an average increase of 70% visibility in the Kids & Baby products category.
Due to high competition from brands like Tesco & Sainsbury, ASDA has focused on growing it's basket in categories
where there are less competition from other brands.
January 2017 - February 2017
Low SKU count
High SKU count
High
visibility
November 2016 - December 2016
Low SKU count
Low
visibility
Low
visibility
High
visibility
High SKU count
food
cupboard
fresh
food
frozen
food
bakery
drinks
nutrition &
medicine
kids
& baby
pet
supplies
beauty
baby food
& drink
women
care
stationery
filings &
bindings
food
cupboard
beauty
pet
supplies
fresh
food
frozen
food
drinks
bakery
nutrition &
medicine
kids &
baby women
care baby food
& drink
stationery
filings &
bindings
Need for
Brand Awareness
Price War
Growing
the Basket
Innovation
Arrows depict
Private Label
category position
vis-à-vis overall
market position of
the categories.
(Overall category
positions across all
brands on Tesco,
Sainsbury’s, ASDA)

10. Intelligence Node’s Online Supermarket Report | 09
Category & Private Label Dynamics For TESCO
Fresh food products during december were highly visible as compared to January and February.
Tesco needs to expand it's private label brands in the non-food categories in order to have a strong market share versus competitors.
January 2017 - February 2017
Low SKU count
High SKU count
High
visibility
November 2016 - December 2016
Low SKU count
Low
visibility
Low
visibility
High
visibility
High SKU count
food
cupboard
fresh
food
fresh
food
frozen
food
drinks
bakery
women
care
kids &
baby
baby food
& drink
beauty
nutrition &
medicine pet
supplies
stationery
filings
& bindings
food
cupboard
frozen
food
bakerybeauty
stationery
nutrition
& medicine
filings &
bindings
pet
supplies
women
care
kids &
baby
baby food
& drink
Need for
Brand Awareness
Price War
Growing
the Basket
Innovation
Arrows depict
Private Label
category position
vis-à-vis overall
market position of
the categories.
(Overall category
positions across all
brands on Tesco,
Sainsbury’s, ASDA)

11. Intelligence Node’s Online Supermarket Report | 10
Category & Private Label Dynamics For SAINSBURY’S
A lot of innovation is required in order to compete with other brands.
The average visibility of Sainsbury's private label products is low compared to other brands and competitors.
November 2016 - December 2016
Low SKU count
Low
visibility
High
visibility
High SKU count
food
cupboard
fresh
food
bakery
frozen
food
drinks
beauty
kids
& baby
nutrition &
medicine
stationery
filings & bindings
women
care
pet
supplies
baby food
& drink
January 2017 - February 2017
Low SKU count
High SKU count
High
visibility
Low
visibility
drinks
frozen
food
women
care
kids
& baby
food
cupboard
fresh
food
bakery
beauty
pet
suppliesnutrition
& medicine
baby food
& drink
stationery
filings &
binding
Need for
Brand Awareness
Price War
Growing
the Basket
Innovation
Arrows depict
Private Label
category position
vis-à-vis overall
market position of
the categories.
(Overall category
positions across all
brands on Tesco,
Sainsbury’s, ASDA)

12. Category where
Private Label brands win
Fresh milk
Fresh Milk by Private Label Brands amounts to around 62% of the entire stock.
Key Factors :
Minimum Differentiation required.
Very less innovation required for products in this category.
This product sees low brand loyalty and consumers
trend to be price concious here.
Intelligence Node’s Online Supermarket Report | 11

13. Category where
brands win
Beauty products
Intelligence Node’s Online Supermarket Report | 12
Launches in this category are big and require a lot of investment so it’s difficult
for Prival Lables to compete.
Private Labels Brands contribute to only 5% of launches.
Key factors:
High product differentiation
Brand marketing

14. Top trending categories
Home &
Decor
Food &
Grocery
Beauty
Pet
Supplies
Office
Stationery
Intelligence Node’s Online Supermarket Report | 13

15. Using our proprietary SaaS tool Incompetitor we’ve further analyzed the largest
category in this market.
Food & Grocery
In-stock item comparison for the Food & Grocery Category
Intelligence Node’s Online Supermarket Report | 14
November 2016 - December 2016 January 2017 - February 2017
500
1000
1500
2000
2500
3000
3500
4000
0 ASDA
Sainsbury’s
Tesco
PrivateLabelSKUcount

16. Top trending
categories
Bakery Fresh
food
Frozen
food
Intelligence Node’s Online Supermarket Report | 15

17. Intelligence Node’s Online Supermarket Report | 16
FROZEN FOOD
Tesco Sainsbury’s ASDA Tesco Sainsbury’s ASDA
100
200
300
400
500
600
0
100
200
300
400
500
600
0
Sainsbury’s was the lowest priced retailer in December for frozen foods.
0.5
1
1.5
2
2.5
3
3.5
0
0.5
1
1.5
2
2.5
3
3.5
0
PrivateLabelSKUcount
PrivateLabelSKUcount
GBP GBP
November 2016 - December 2016 January 2017 - February 2017
Private Label SKUs
Non Private Label Brands SKUs
Average price (Non Private Label Brands)
Average price (Private Label)

18. BAKERY
50
100
150
200
250
300
350
400
450
0
1
2
3
4
5
6
0
1
2
3
4
5
6
0
50
100
150
200
250
300
350
400
450
0
Tesco Sainsbury’s ASDA Tesco Sainsbury’s ASDA
PrivateLabelSKUcount
PrivateLabelSKUcount
GBP GBP
January 2017 -February 2017 Private Labels were expensive than the overall market average.
November 2016 - December 2016 January 2017 - February 2017
Private Label SKUs
Non Private Label Brands SKUs
Average price (Non Private Label Brands)
Average price (Private Label)
Intelligence Node’s Online Supermarket Report | 17

19. Intelligence Node’s Online Supermarket Report | 18
There was an average increase in prices of fresh food products from November 2016 to February 2017.
Sainsbury’s private label brands average price in the food products categories were lower compared to other brands in their catalogue.
Private Label SKUs
Non Private Label Brands SKUs
Average price (Non Private Label Brands)
Average price (Private Label)
FRESH FOOD
200
400
600
800
1000
1200
1400
1600
1800
2000
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0
1
2
3
4
5
6
0
1
2
3
4
5
6
0
Tesco Sainsbury’s ASDA Tesco Sainsbury’s ASDA
PrivateLabelSKUcount
PrivateLabelSKUcount
GBP GBP
November 2016 - December 2016 January 2017 - February 2017
We see an increase in stock in fresh food in January 2017 -February 2017 compared to November 2016 -December 2016

20. November 2016 December 2016 January 2017 February 2017
500
1000
1500
2000
2500
3000
0
ASDA
Sainsbury’s
Tesco
A Total Number Of Unique Brands Coverage On Tesco, ASDA & Sainsbury’s
Uniquebrandcoverage
Intelligence Node’s Online Supermarket Report | 19

21. Conclusion
The primary aim of e-tailers is to create low-priced alternatives equivalent in quality to brand-name products.
Introducing private label brands has given e-tailers an opportunity to employ strategic responses to manage
costs, address customer needs and improve quality and risk management.
As a retailer, these are the questions you need to ask before introducing your own private label brand:
Are you able to identify trends in your industry?
Do you introduce Private Label products primarily to lower cost or as a way to manage cost, quality,
and quick market penetration?
Are you investing in technology for better insights?
Are you strategically positioned to react and take advantage of market pressures?
Use Intelligence Node’s proprietary SaaS tool Incompetitor to identify and capitalize on the categories
in which you can introduce your Private label products.
Intelligence Node’s Online Supermarket Report | 20

22. Intelligence Node 35
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