How Consumer Differentiation Between Store and Manufacturer Brands Is Affecting Tesco’s Performance in the Health and Beauty Care Product Domain.

Topics: Brand management, Brand, Marketing Pages: 9 (2402 words) Published: May 3, 2013
How Consumer differentiation between store and manufacturer brands is affecting Tesco’s performance in the health and beauty care product domain.


Unlike the yester-decades, store brands are growing at an exponential rate today on the scale of popularity. While the rising popularity of store brands is being observed virtually all over the world, it seems more prominent in the UK - at least in the case of health and beauty care products. This is primarily because led by retail giants such as Tesco, the store brands in the UK are increasingly eying on the ever-expanding domestic and international health and beauty care product market. However, while store brands are busy strengthening their grip over the market, old guards, i.e. the manufacturer brands, are still standing strong. The powerful presence of both these fractions in the health and beauty care market, however, is acting in favor of consumers who now have more choices at their disposal than ever before.

The core objective of our research is to take this changing market dynamics into account and figure out how the consumer differentiation between manufacturer and store brands is influencing the sales figures of Tesco’s health and beauty care products.

2a Research Aim(s) / Purpose

This study is aimed to launch an in-depth look into a comparatively unexplored subject that intends to highlight how the changing consumer perspective on store brands is affecting Tesco’s market stand in the domain of health and beauty products. In addition, we will also try to address the contemporary parameters that the average supermarket consumers base upon to distinguish manufacturer brands from store brands. The research intends to highlight and compare the reliability and quality values attached with Tesco’s health and beauty care products with that of the manufacturer brand products within the same domain.

2b Research Questions/Sub Questions

The primary question that this research is going to address is how the fast changing consumer differentiation is affecting Tesco’s health and beauty care product lines. While the main objectives of the research is going to be anchored around that theme, the study will also try to encompass the broader and relevant sub-questions such as the impact of store brands’ rising popularity on the status quo of the health and beauty care product industry and whether or not the changing market dynamics has been able to make any significant impact on the popularity of the manufacturer brand products.

2C Research objective

The key objectives of this exploratory study are,

1) To evaluate whether or not the average supermarket consumer differentiates between manufacturer brands and store brands in the health and beauty product category.

2) To find out whther or not the average consumer deemed the reliability and quality values of most Tesco owned brands at par with that of manufacturer branded health and beauty products.

3) To draw a comprehensive comparison between the overall performance value between manufacturer brands and Tesco owned brands in order to examine how price, value for money and quality usually vary.

2d Key theories/Conceptual Models considered to address the topic

In order to accomplish the objective set for this research, we are going to primarily rely upon the consumer purchase decision involvement (PDI). According to the findings of Laaksonen (1997), the average consumer purchase involvement falls into the category of individual state approach. This in turn, coincides with the situational involvement that Laurent and Kapferer address as the “purchase of the product involvement”. Through this definition, the scholar-duo more or less emphasized on transitory, or situational nature of the purchasing mechanism.

In addition, to hypothesize and explain the way consumer purchase involvement (for both store and manufacturer brand products) could affect brand type...
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