Private Label and Manufacturer Brand Research Execution

PurposeThis exploratory research paper aims to contribute to the international marketing and brand development literature by demonstrating that significant cross‐national differences exist between Chinese and US university students regarding beliefs and perceptions of private label branding.Design/methodology/approachA total of 1,070 usable surveys were collected in the USA and 252 in China. Data analysis was conducted using SPSS data analysis software. The US student sample was collected from a comprehensive university located in the western USA. The Chinese sample was collected from a large university in Hefei. Hefei is the capital city of Anhui Province and a center for higher education.FindingsThe researchers compared US and Chinese university students in four areas: important attributes when purchasing food‐related products; beliefs about private label brands and price loyalty; perceptions about private label brands; and recognition of private label brands. US and Chinese respondents had statistically significant differences when addressing beliefs and perceptions concerning private label brands. Most notable is the difference concerning product pricing: US consumers indicate that price has a greater effect on the decision to purchase when compared with Chinese consumers. The data seem to indicate that Chinese consumers believe that private label food products may be of inferior quality compared to manufacture brands. Additionally, the data indicate indirectly that Chinese respondents either do not have an understanding of private label products, or that private label names are not recognized as such.Research limitations/implicationsOne limitation of this paper is that the data may indicate the non‐availability of private label products to Chinese consumers, rather than a perception that private label products are of lower quality. Additionally, this study documents perceptions regarding private label products, not why respondents perceive private label products in a certain way. A final limitation is that respondents are university students that, while they are excellent candidates, they probably do not currently hold the role of main food purchaser for their families. Future research would benefit from a broader demographic that includes non‐students as well as a larger number of private label categories. Comparing how marketers educated consumers regarding private label products in western markets, and how private label products are integrated into western markets could be used as a template for a successful rollout in Asian markets.Originality/valueWhile this study was exploratory in nature, and narrow in scope, the possibilities of long‐term research in private label branding in emerging market economies is quite exciting. Will the Chinese adopt private label products, as US consumers have done? To this end, a proverb from Deng Xiaoping seems appropriate: “Black cat or white cat: If it can catch mice, it's a good cat.” Whether a private label brand or a manufacture brand, it is up to marketers to help the Chinese consumers see value in both types of brand offerings.

Trust transfer from manufacturer to private label brand: The moderating role of grocery store format

Subject area The subject area is marketing strategy. Study level/applicability The case is well suited for MBA and executive MBA class on retailing management, strategic management, marketing strategy and brand management. Case overview Retailers see private label as a strategic weapon against brand manufacturer to increase store profitability, but looking at the private label from brand manufacturer’s perspective, determinants and strategic choices are even more complex than that of a retailer. The case is about MegaTex Ltd.’s strategic call for private label production opportunity by Maximus Fashion and Retail Limited. The case discusses the dilemma of MegaTex for manufacturing private label in spite of having their own brand in competition. The case compels to drive strategic questions such as in what circumstances brand manufacturers should concentrate on manufacturing their own brand or should they concentrate on both private label and their brand? Or, as an alternative, should they purely dedicate themselves in manufacturing private label and stop manufacturing their own brand? Expected learning outcomes Participants will be able to understand the concept and economics of private label. Participants will be able to understand the determinants and strategic choices for private label from retailer’s and manufacturer’s perspective. Participants will be able to understand the rationale for which brand manufacturer opts for manufacturing private label in spite of having its own brand in competition. Participants will be able to identify the situations under which a brand manufacturer should concentrate on manufacturing his/her own brand or both private label and his/her brand. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy.

Offering value and capturing surplus: A strategy for private label sales in a new customer loyalty building scenario

The Indian retail era is witnessing the migration of trade activities from the national brand to phantom brand in the past decade. In spite of economical and political fluctuations, the Indian retail has emerged with promising sign of growth in Private label branding. The current study tries to correlate the economic theory with private labeling as the customer preference of private label is the secret of level success in Indian retail. The initial chapter provides fundamental information about private labeling. Chapter two enlists the literature review. Chapter three endorses the application of revealed preference theory of consumer behavior for private labeling. Chapter four envisages the mechanism of private labeling and the last chapter concludes with the road map of private labeling in Indian retail.

This paper attempts to understand and highlight the buying behaviour of the consumers towards the Private Label (PL) products in Home Hygiene Products (HHP) in Belagavi. The growth of retail sector post globalization encouraged retailers to come out with their own multiple forms of products which are marketed by them but not manufactured. The resultant was the emergence of Private Label products in variety of segments. This paper tends to bring up the attributes of the consumers towards buying these PL products and tries to emphasize their buying behaviour. The current study aims to identify factors of PLs which have an impact on the consumers purchase intentions. The cleaning products and the products with chemical composition which are not for personal use are considered for the study. Consumers buying behaviour was analyzed with their intensions which influenced the purchase. The main motives behind the introduction of PLs were to fulfill customer needs and increase retailers profit share. The research attempts to examine the different factors that influence consumers' purchasing intentions of private label products among the residents at Belagavi area. Five important factors were identified; they are collectivist culture, perceived risk, price, quality and store loyalty. Collectivist culture and perceived risk were found out to be important background factors which affect the other three factors. Furthermore, the result shows that price and quality of private label brands are highly related as most of the target consumers tend to associate expensiveness with high quality and vice-versa. However, it was also seen that the store image has some effect towards the consumers being loyal (Belagavi residents) in purchasing the Private Labels.Key words Private label brands, manufacturer brands, collectivist culture, perceived risk, price and quality, store loyalty, store image.

The value of private label brands to U.S. consumers: An objective and subjective assessment

Synopsis Cara Pils is the private label beer brand of Colruyt, the biggest supermarket retailer in Belgium. As a true private label brand, Cara Pils has never been advertised. In 2015, Colruyt undertook an initiative to reposition its numerous private label brands under two larger private label brands. Unexpectedly, customers were incensed by this initiative, came out in droves and took the matter to social media hoping to lament the demise of their beloved brand. This case study investigates the roots of this strong brand attachment and the consequences for its brand management. Research methodology This case is built on primary (one in-depth interview and two focus group) as well as secondary data sources (previous research and web information). Relevant courses and levels This case is designed to be used in a marketing management or brand strategy course for students that already followed an introduction to marketing course or for students at a master level. Theoretical bases This case should provide the basis of discussions on the topics of brand management, private-label brands, repositioning strategy, brand portfolio management, brand architecture, brand equity, brand elements, brand nostalgia, and consumers’ relationships with brands.

The research aimed to find out instore marketing strategies that can influence consumer attitudes towards private label brands based on “cue utilization theory”. The research belonged to the category of explanatory research since it uses primary data with the population of consumers who have shopped for private label products in Hypermart Tanjungpinang, and sample as many as 174 respondents with convenience sampling techniques. The analysis approach uses partial least square-structural equation modeling (PLS-SEM). The results show that private label marketing has a positive and significant effect on private label attitudes; private label marketing and store environment positively and significantly influence private label attitudes through the mediation role of perceived quality variants; product related attributes have a positive and significant influence on private label attitudes; the national brand promotion attitudes does not moderate the relationship between private label marketing and perceived quality variants on private label attitude; and price consciousness does not moderate the relationship between private label marketing and perceived quality variants on private label attitudes.

Amongst brand types, none has a closer link to stores than private labels, which are usually produced by an outsourced supplier, but are conceived, controlled and distributed exclusively by the company that owns it, bearing or not its name on the packaging. Studies on private labels have emerged significantly in the first half of the 1990s and have maintained steady growth due to the increasing consumption of these products. However, according to a bibliometric research developed in this study, supported by Piato, Silva and Paula (2014) and Arenhardt, Batistella and Grohmann (2015), most of the studies on private labels focus on the consumer and distributor relationship, with the manufacturer being approached in a secondary way. Literature also recognizes that the origin of the product impacts its evaluation, mainly in relation to private labels. It is also added that this strategy generates greater proximity between distributors and manufacturers in the distribution channel than it does in manufacturer brands. Based on this scenario, the present study aims to verify the points of consonance and dissonance between the opinion and operation of a private label manufacturer and the distributors. Interviews were conducted with members of strategic and tactical level, observations in both the manufacturer and in the stores and documentary analyzes of the organizations, with the data collection and analysis developed according to the content analysis fundamentals proposed by Bardin (2011). Among the main results, both links believe that quality, a well structured launch strategy and efficient distribution are the essential requirements for the success of the private label, and believe that it strengthens the relationship between the two in the distribution channel when compared to a simple supply of manufacturer's brands. Most of the interviewees also believe that the perception of private labels in Brazil still lags behind the most developed markets in the world, but it is evolving and creates opportunities for those who decide to invest in this strategy. Among the main advantages of private labels, cost-benefit; increased sales volume; store image promotion; profitability and credibility were mentioned. Regarding the main dissonant results, some of the strategic managers of the distributors cite that the store operations should be shared, however, the observational analysis showed the opposite and supported the interviewees who mentioned that the operation is the responsibility of the brand owner. The opinion about the consumer's curiosity regarding the origin of the private label items was also a divergent point among the interviewees. The strategic manager of the manufacturer and tactical managers of the distributor believe that the consumer pays more attention to this information and looks at the product label in a more detailed way, which is supported by observational analysis; however, the other interviewees do not believe in this curiosity.

Purpose – There is increasing managerial and academic interest in understanding behavioural loyalty to private label (PL) brands. A widely used behavioural loyalty measure is share of category requirements, or “SCR”. This study aims to examine why some PLs enjoy higher levels of SCR compared to others. Design/methodology/approach – The study models consumer purchase data using the well-accepted NBD-Dirichlet model to identify the circumstances in which PL brands exhibit higher (“excess”) or lower SCR than expected. Findings – The study finds four factors linked to excess SCR for PLs. They are: higher share of overall category sales accounted for by the PL within the retailer's stores, higher penetration of the category by the retailer, low relative price of the PL, and lastly, lower average purchase frequency for the category overall. Research limitations/implications – While the study uses 13 product categories, its geographic scope is limited to the UK. Further research could examine how the findings generalize to other markets. Originality/value – The study is original in that it identifies factors that are linked to behavioural loyalty toward specific PL brands. The findings will help marketers in brand management and retailing to understand and contextualize brand performance metrics for PL brands.

Consumer perceptions of private label quality: the role of product category characteristics and consumer use of heuristics

Consumer Perception of Private Label Brand in Apparel Retail Industry

This study explores the strategic development of private label (PL) brands in the Ukrainian retail sector through a case analysis of Eldorado, a leading electronics and appliance retailer, during the period 2016–2019. Utilizing a qualitative case study methodology supported by internal company data, GfK market analytics, and in-depth interviews with procurement and category managers, the research investigates the operational, financial, and risk management dimensions of PL implementation in an emerging market context. The findings reveal that robust category prioritization, supplier diversification, and real-time analytics were critical in enhancing profitability, improving inventory turnover, and mitigating supply chain volatility. Despite significant external shocks, including currency fluctuations and import disruptions, Eldorado’s PL strategy contributed to resilience and competitive differentiation. The study identifies key challenges such as quality control, consumer skepticism, and cross-functional coordination, and proposes a set of actionable recommendations for retailers operating under similar macroeconomic conditions in Central and Eastern Europe. By positioning PL as both a margin enhancement and risk management tool, this case provides transferable insights into adaptive retail strategy during periods of crisis.

The ways we perceive: A comparative analysis of manufacturer brands and private labels using implicit and explicit measures