“There is only one boss. The customer. And he can fire
everybody in the company from the chairman on down,
simply by spending his money somewhere else.”
LABELS & THE
What is Retailing?
Sales of goods and services to the ultimate consumer for the
personal, family or household use.
Any organization selling to final consumers- whether it is
manufacturer, wholesaler or retailer.
In the channel of distribution, retailing is where customer meets the
Types of Retailers
1. Store Retailers
2. Non store Retailers
1. Speciality Store : Narrow Product line.
2. Department Stores: Several product lines
Large low cost,
Self Service store
Meets all household and food products
4. Convenience store/ Drug stores: Small store in the
residential area open 24/7
5. Discount store:
High volume store
6. Extreme value or hard discount store:
7. Off Price Retailers : Leftover goods, overruns, irregular merchandise
sold at less than retail.
8.Superstore: Huge selling space, routinely purchased food and
household items, plus services
9. Catalogue showroom:
1. Self service
2. Self selection
3. Limited service
4. Full service
CORPORATE RETAILING AND
1. Consumer Cooperative:
Owned by customers
Members contribute money to open their own store
Vote on its policies
Elect a group
CORPORATE RETAILING AND
2. Franchise Organization :
CORPORATE RETAILING AND
3. Merchandising Conglomerate: Diversified retailing lines and formed
under central leadership, with some integration of distribution and
What Has Triggered the
•Fast changing Macro and Micro
•Growing consumer expectations.
•Exhaustive Competitive pressure.
•Growth of Urbanization.
•High disposable income.
NEW RETAIL FORMS &
•Bookstores featuring Coffee
•Gas stations including food
•Shopping malls and stations
having peddlers’ carts in their
Store Based & Non Store
•Increased offerings through mails,
cell phones and internet.
•Non store based retailers enjoy
•Store based retailers coming online
•More and more experiential touch
being given to the physical stores.
GROWTH OF GIANT RETAILERS..
•Inherit superior information systems, logistical systems
and buying power.
•Crowding out small manufacturers.
•Suggest even companies for improvement and
•Includes huge market share.
Growing Investment In
•Improved ways of forecasting, inventory control
and order processing.
•In store programming on LED’s, electronic shelf
labeling and smart shopping carts getting
•Digital advertising and different payment methods
creating further space.
•Global Retailers snatching grounds.
•Growth of Shopper Marketing.
Influencing customers at the
point of purchase.
The collection of goods or services that
a business provides to consumers. The
main characteristics of a company's product
(1) its length or number of products,
(2) its breadth or number of product lines,
(3) its depth or number of product varieties
within a product line and
(4) how products relate to each other in a
Fine Specialty Stores:
Mass Merchandisers and
Discount Stores: Low-markup,
Background of PLB
Earlier referred as Cheaper & Low quality alternatives for national
Just a profit making concept which needed no marketing effort
Tescos Value Range in 1995 was the first value pay brand
Other retailers like Sainsbury etc. quickly followed the suit
In India in 2000s this concept came up & Future Brand came up with
“SACH” toothbrush & toothpaste range.
Why Did It All Begin?
Shift of power from National brand marketers
to National Retailers
High Quality & Low Price
Historical perspective of key retailers of a
strong house brand.
How does PLB work?
Winning strategy for improving store image and profitability.
Offers value for money
Increases the price competitiveness
16-23% less price for the consumers as compared to national brands
Differentiating factor as exclusively available at the particular store
Consumers get an assurance that they can directly interact with the
owner of the brand
Would You Prefer A PLB Over A
Yes May Be No
If Yes, Then Why?
Trust on that retail store
No, I wouldn't prefer
Quality Trust on that retail store Cheaper Price No, I wouldn't prefer
If No, Then Why?
Don’t want to change
No trust on quality
I can give it a try
Don’t want to change brand preference No trust on quality I can give it a try
How Was Your PLB Buying
Average Awesome Good Not Tried
Would You Like To Repeat Your PLB
Food Dominates India’s Private
According to Nielsen’s Survey “Food”
captures 76% of the India’s Private label
FREEDOM TO CREATE OWN
MARKETING PLAN Independence to retailer to use its own innovative marketing strategies
For National Brands, Poor marketing strategy by the manufacturer not only
results in the failure of the product, but also erodes the profit margin of the
FREEDOM WITH PRICING STRATEGY
Similar to the Marketing Strategy, Private Labels also give the
retailers to a chance to adopt their own pricing strategy
Shields retailers from the losses due to longer shelf life of poorly
Retailers can directly pass on the price benefits to the customer
Strong Customer Positioning
Develops Customer Loyalty
Uniqueness of Private Labels, helps to build brand loyalty
Customer Loyalty has significant advantage over its competitors
JOHN MILLER – AN ILLUSTRATION OF
Facts about John Miller
Came into existence in 1995 as an extension of Pantaloons
Ranges between Rs. 800-1500
Targeted at Premium segment customer
Over the years it has grown from a private label to a private brand.
KEY TO SUCCESS OF JOHN MILLER
One of the very first private labels in the apparel industry in India
High quality at low price
Reasonable Price Range
Attractive option for value buyers
Highly Competitive Market
High risk with reputation of the brand.
Risk of getting into a price war
Dependent on the supplier
Excess focus on private labels inside the stores
Win – Win situation for both, customer and retailer
Lower prices and Higher margins
Quality is comparable to that of National Brands
Value for money products
Extra care and detail
Huge growth potential
Deeper Market penetration required
Innovative Marketing and promotions are the need of the hour