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Brands vs. private labels group 7
The document discusses private label brands in India across various retail categories like food, apparel, and ecommerce. It provides background on private labels globally and their growth in Europe. In India, private labels have a small market share compared to Southeast Asian countries due to low modern trade penetration. Some strategies discussed for growth of private labels in India include increasing store presence, improving product quality, offering variety, and focusing on in-store promotions. Online retailers are able to generate higher margins of up to 40% from private labels, which comprise 20-35% of their sales.
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Brands vs. private labels group 7
- 2. PGP30148 Nadeem PGP30292 Tushita PGP30151 Nandita PGP30135 Garima Under the guidanceof: Brand Management August, 2015 Section B, Group 7
- 3. Brands Versus PrivateLabels: Fighting to Win
- 4. PRIVATE LABEL BRANDSARE THOSE MANUFACTURED OR PROVIDED BY ONE COMPANY FOR OFFER UNDER ANOTHER COMPANY'S BRAND
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- 8. CONSUMER INSIGHTS INCREASE IN INFLUENCE FOR PRODUCT CATEGORY USEEXCESS PRODUCTION CAPACITY
- 12. Private label audit Impact of private labels on national brands Profitability -full cost and marginal cost basis
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- 14. Brands Versus PrivateLabels: Fighting to Win GLOBAL CONTEXT
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- 19. Asia Growth -> Whyso slow? • Asian shoppers – brand loyal • Retailers have not invested in marketing; virtually copy-and- pasted the European model
- 21. Brands Versus PrivateLabels: Fighting to Win INDIAN CONTEXT FOOD APPAREL E-COMMERCE
- 22. India • Least developed privatelabel market in South-east Asia • Modern trade penetration – 5% • 50% for most Southeast Asian markets
- 23. Private brands in foodretail
- 24. Major Brands ABG Feasters Kitchen’s Promise Best ofIndia Reliance Reliance Select, Reliance value, Healthy Life, Good life and Dairy Pure Future’s Group Tasty Treat, Fresh & Pure, Clean Mate, Ektaa, Premium Harvest, Sach V-Mart V-Fresh V-Needs Spencer’s Smart Choice
- 26. What could make privatelabels in India click?
- 27. •Private label catersto a segment that wants to participate in the modern trade experience but is not as brand savvy •Growing levels of disposable income •Rise of modern trade •For decades, we have been purchasing open stuff from local grocery stores
- 28. INR 600INR 350 WHAT’SWRONG HERE?
- 29. Basic Positioning Competitive Frame ofReference Super Market Packaged food brands POPs Expected product with basic product features PODs Lower price
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- 31. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Pantaloon Westside Shoppers Stop LifeStyleReliance Trendz Vishal Store Composition across retail outlets Private Labels National Brands
- 32. Started in 1991 Owned byK Raheja Group 74 Stores Pioneered launch of private labels in India First Private Label- STOP in 1994 Private Labels contribute 20% of sales
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- 35. No explicit mentionof Private Label Brands
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- 37. Factors influencing theconsumer purchase decision
- 38. Apparel Category BrandsPrivate Labels Family & friends Endorsements Sales Personnel Opinion Past Experience with Brand Advertising In Store Promotion Sales or Display
- 39. Apparel Category BrandsPrivate Labels Brand Loyalty Durability Comfort Brand Image Fabric Quality Price
- 40. Apparel Category BrandsPrivate Labels Packaging Store Display Credibility Variety Seeking Behaviour Price & Quality
- 41. Brand Equity Brand Awareness Parent Brand: Good; Private Label itself : Low Brand Recall Low. On the spot purchase
- 42. MEN’S FORMAL WEAR PrivateLabel Shirts Trousers STOP ₹999-1799 ₹1299-1699 Acropolis ₹799-899 - Austin Reed ₹1299-2099 ₹1700-1900 National Brand Shirts Trousers Wills Lifestyle ₹1499-2300 ₹1699-1799 Arrow ₹1599-2599 ₹1399-2199 Van Heusen ₹1499-2000 ₹1599-2000
- 43. WOMEN’S WESTERN WEAR Private LabelTops Dresses STOP ₹299-1099 ₹999 Incense ₹899-1199 ₹1299-1499 Latin Quarters ₹999-1690 ₹1800-2490 National Brand Tops Dresses Wills Lifestyle ₹600-1500 ₹900-2500 UCB ₹500-4000 ₹2000-8000 Levis ₹400-2000 ₹800-3500
- 44. PRICE Reduce Prices PRODUCT Fabric Quality IncreaseVariety PLACE Increase Number of Stores PROMOTION Focus on In- House Promotion Product Display Strategies for Growth of Private Labels
- 46. Online Private Labelslook beyond price…
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- 48. PRIVATE LABELS BOOSTING SALESOF ONLINE RETAILERS
- 49. 40% margins on private labels 35% sales fromprivate labels 20% sales (₹1500 cr) from private labels 25-30% of digital accessories sales
- 50. Summary HBR Article Overview GlobalContext Indian examples of Private labels in food, apparel & ecommerce Application of Brand Positioning & Brand Resonance Models
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