Customer Perception of Private L
A Study on Customer Perception of Private Label Brands
ABSTRACT
Retailing in India is steadily edging its way towards becoming the next boom industry. Retail industry in India is expected to rise 25% yearly owing to strong income growth, changing lifestyles, and favorable demographic patterns. One of the new things seen in the Indian retail Industry is the growth of Private Brands in the organized retail. But as companies line up to grab a bigger and bigger slice of the retail pie, another battle is likely to change the face of the industry, the one between the manufacturer brands and the retail chains private label brands, which are far from being just cheap generics. Private labels, or store brands, are those owned and sold by retailers in their stores typically at a lower price because of minimal marketing and advertising expenses. Worldwide experience shows that as retailers become more powerful, they have increasingly focused on their own brands at the expense of manufacturer brands.
A consumer survey was done based on four major retail outlets in Ernakulum including people from different economic strata, to see how PLB products are perceived. The results of Mann Whitney & Kruskal-Wallis Test procedures show that PLB image perceptions are the same irrespective of age, education & gender and it also indicate that PLBs are increasingly well perceived by consumers especially in urban areas. It was also found that PLBs were most preferred in the grocery segment.
KEYWORDS: Private Label Brands, Image Perception
Working Definition: Private Label Brand – In this study PLB is limited to Grocery, FMCG Food & FMCG Non Food segments only
1. INTRODUCTION
Private Labels Brands (PLBs), also called store brands (SBs), are goods owned and merchandised by retailers. PLBs have long been considered as an important aspect of merchandising practice, both as a strategic tool for retailers and a unique source of competition for manufacturers. Over
ABSTRACT
Retailing in India is steadily edging its way towards becoming the next boom industry. Retail industry in India is expected to rise 25% yearly owing to strong income growth, changing lifestyles, and favorable demographic patterns. One of the new things seen in the Indian retail Industry is the growth of Private Brands in the organized retail. But as companies line up to grab a bigger and bigger slice of the retail pie, another battle is likely to change the face of the industry, the one between the manufacturer brands and the retail chains private label brands, which are far from being just cheap generics. Private labels, or store brands, are those owned and sold by retailers in their stores typically at a lower price because of minimal marketing and advertising expenses. Worldwide experience shows that as retailers become more powerful, they have increasingly focused on their own brands at the expense of manufacturer brands.
A consumer survey was done based on four major retail outlets in Ernakulum including people from different economic strata, to see how PLB products are perceived. The results of Mann Whitney & Kruskal-Wallis Test procedures show that PLB image perceptions are the same irrespective of age, education & gender and it also indicate that PLBs are increasingly well perceived by consumers especially in urban areas. It was also found that PLBs were most preferred in the grocery segment.
KEYWORDS: Private Label Brands, Image Perception
Working Definition: Private Label Brand – In this study PLB is limited to Grocery, FMCG Food & FMCG Non Food segments only
1. INTRODUCTION
Private Labels Brands (PLBs), also called store brands (SBs), are goods owned and merchandised by retailers. PLBs have long been considered as an important aspect of merchandising practice, both as a strategic tool for retailers and a unique source of competition for manufacturers. Over
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