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A presentation prepared as a part of Retail Mangement subject. The presentation deals with the past, present & future of private labels globally as well as the current scenario in India
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A presentation prepared as a part of Retail Mangement subject. The presentation deals with the past, present & future of private labels globally as well as the current scenario in India
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This presentation throws some light on the ongoing war between National Brands and Private Labels. The pros and cons of Private Labels are stated and finally the Indian scenario is discussed.
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How retail business - small, large and online - can benefit from private label brands and products. From developing a niche to the legal requirement of partnerships, discover how to make private label work for your retail business. A great piece of content I made for ASD Market Week as part of our lead generation efforts.
this ppt is related with branding decision which involve brand name selection, brand positioning and brand extension and various types of brand extension
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Social development club is a leading course content provider of India with a key focus on skilling courseware development. We deliver complete package required to deliver the Skill development program effectively. We develop NCVT and SSC aligned courses of all the domains and for all the schemes.
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2. “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.”
4. 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
product.
Exchange
19. CORPORATE RETAILING AND
FRANCHISING
1. Consumer Cooperative:
Owned by customers
Members contribute money to open their own store
Vote on its policies
Elect a group
Manage it
Receive dividends
21. CORPORATE RETAILING AND
FRANCHISING
3. Merchandising Conglomerate: Diversified retailing lines and formed
under central leadership, with some integration of distribution and
management.
23. What Has Triggered the
CHANGE….
•Fast changing Macro and Micro
Environment
•Growing consumer expectations.
•Exhaustive Competitive pressure.
•Growth of Urbanization.
•High disposable income.
24. NEW RETAIL FORMS &
COMBINATIONS
•Bookstores featuring Coffee
Shops.
•Gas stations including food
stores.
•Shopping malls and stations
having peddlers’ carts in their
aisles.
25. Store Based & Non Store
Based Retailing.
•Increased offerings through mails,
cell phones and internet.
•Non store based retailers enjoy
convenience leverage.
•Store based retailers coming online
to compete.
•More and more experiential touch
being given to the physical stores.
26. GROWTH OF GIANT RETAILERS..
•Inherit superior information systems, logistical systems
and buying power.
•Crowding out small manufacturers.
•Suggest even companies for improvement and
innovations.
•Includes huge market share.
27. Growing Investment In
Technology..
•Improved ways of forecasting, inventory control
and order processing.
•In store programming on LED’s, electronic shelf
labeling and smart shopping carts getting
common.
•Digital advertising and different payment methods
creating further space.
28. •Global Retailers snatching grounds.
•Growth of Shopper Marketing.
Influencing customers at the
point of purchase.
32. The collection of goods or services that
a business provides to consumers. The
main characteristics of a company's product
assortment are:
(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
retail environment.
Product Assortment
37. Location
Central Business Districts
Regional Shopping Centers
Community Shopping centers
Shopping strips
A Location with a larger Store
Stand-alone stores
38. PRIVATE LABELS
I DON’T WANT TO TALK IN TERMS OF MARKET SHARE.
I DON’T WANT TO SHARE MY MARKET WITH ANYONE.
-LARRY LIGHT, CEO
WALLMART
39. Definition
Private labels are retailer brands.
Brands owned & sold by retailer & distributed by retailer.
41. Background of PLB
Earlier referred as Cheaper & Low quality alternatives for national
brands.
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.
42. 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.
43. 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
only
Consumers get an assurance that they can directly interact with the
owner of the brand
44. Would You Prefer A PLB Over A
National Brand?
Yes
43%
May Be
44%
No
13%
Yes May Be No
45. If Yes, Then Why?
Quality
42%
Trust on that retail store
24%
Cheaper Price
25%
No, I wouldn't prefer
9%
Quality Trust on that retail store Cheaper Price No, I wouldn't prefer
46. If No, Then Why?
Don’t want to change
brand preference
30%
No trust on quality
18%
I can give it a try
52%
Don’t want to change brand preference No trust on quality I can give it a try
47. How Was Your PLB Buying
Experience?
Average
22%
Awesome
6%
Good
63%
Not Tried
9%
Average Awesome Good Not Tried
48. Would You Like To Repeat Your PLB
Experience
Yes
89%
No
11%
Yes No
49. Food Dominates India’s Private
Label Market
According to Nielsen’s Survey “Food”
captures 76% of the India’s Private label
Market
54. 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
retailer
55. 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
priced products
Retailers can directly pass on the price benefits to the customer
56. Strong Customer Positioning
Develops Customer Loyalty
Uniqueness of Private Labels, helps to build brand loyalty
Customer Loyalty has significant advantage over its competitors
58. JOHN MILLER – AN ILLUSTRATION OF
SUCCESS
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.
59. 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
61. DISADVANTAGES
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
62. CONCLUSION
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
63. Contd.
Huge growth potential
Deeper Market penetration required
Innovative Marketing and promotions are the need of the hour