Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Mkt4007 W6

857 views

Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

Mkt4007 W6

  1. 1. Private Brands, Retailers and Category Management MKT4007
  2. 2. Private Brands <ul><li>“ Own label” products </li></ul><ul><li>Can be - Same Name as retailer Waitrose - Named different to retailer St. Michael - Differentiated Tesco Value/Tesco*Finest </li></ul>
  3. 3. Common ideas <ul><li>“ value” products </li></ul><ul><li>Same quality? Different quality? </li></ul><ul><li>Made by the same company (?) </li></ul><ul><li>Public “self-branding” a potential issue </li></ul><ul><li>Some people unaware they are buying own brands (Matsui) </li></ul>
  4. 4. Some figures <ul><li>53% Switzerland (highest) </li></ul><ul><li>43% of sales in the UK </li></ul><ul><li>40% Germany </li></ul><ul><li>35% Spain </li></ul><ul><li>34% France </li></ul><ul><li>28% Sweden </li></ul><ul><li>27% Denmark </li></ul><ul><li>Approx 20% Eastern Europe (rising fast!) </li></ul>(PLMA 2007)
  5. 5. Where <ul><li>Overall: Massive increases in market share in recent years, especially in food retail, but also in other areas: </li></ul><ul><li>50% Frozen goods </li></ul><ul><li>8.75% Beauty products </li></ul>(ACNielsen, 2004)
  6. 6. Strategic Retail Position Stuck in the Middle High End Low End Service Fixtures/Feel Prices Consumer preference Fortnum& Mason Marks & Spencer Aldi Waitrose Sainsbury Tesco Mostly House Brand Only House Brand House of Brands
  7. 7. The power! Retailer Producer Consumer mass-communications promotional support Concrete Experience Environment Price Service Sales Promo Adverts Other Brand vs Own Brand Experience Customer & Competitor
  8. 8. Potentially... <ul><li>Brand damage through Private Label brands </li></ul><ul><li>Choice restrictions </li></ul><ul><li>Non-comparability of price/quality of Private Labels </li></ul><ul><li>Potential for category price distortion </li></ul>
  9. 9. Typology of Brands (Dobson, 2005) Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
  10. 10. Typology of Brands (Dobson, 2005) Consumer & Retailer Nightmare Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
  11. 11. Typology of Brands (Dobson, 2005) Consumer Champion Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
  12. 12. Typology of Brands (Dobson, 2005) Consumer Champion Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
  13. 13. Typology of Brands (Dobson, 2005) Branding Horror Revolutionary Equalizer Adventurer Pioneer Underdog Protector Heros Body Snatcher Virus Flesh Eater Giant Octopus Blood Sucker Blob Horrors Private Brands Brands
  14. 14. <ul><li>Brands: </li></ul><ul><ul><li>Guaranteed quality and reliability </li></ul></ul><ul><ul><li>Price/value comparability </li></ul></ul><ul><ul><li>Distinct variants to suit different tastes </li></ul></ul><ul><ul><li>Regular improvement and innovation </li></ul></ul><ul><li>Private Labels: </li></ul><ul><ul><li>Genuine value (avoiding “marketing surcharge”) </li></ul></ul><ul><ul><li>Genuine choice (offering alternatives) </li></ul></ul><ul><ul><li>Genuine variety (filling gaps) </li></ul></ul><ul><ul><li>Genuine innovation (catering for latent demand) </li></ul></ul>(Dobson, 2005)
  15. 15. Category Management <ul><li>Six stage model: </li></ul><ul><li>Category Definition </li></ul><ul><li>Assessment </li></ul><ul><li>Strategy </li></ul><ul><li>Tactics </li></ul><ul><li>Implementation </li></ul><ul><li>Review </li></ul>
  16. 16. Advantages <ul><li>Access to Direct Consumer Data </li></ul><ul><li>Shared Workings </li></ul><ul><li>Improved range & less out-of-stock </li></ul><ul><li>Category Management = Business Relationship as one unit </li></ul>

×