Relationship of product claims between private label and national brands: The influence of private label penetration

Abstract

Purpose

The purpose of this paper is to compare the use of front of package (FOP) claims within product categories by private label (PL) products and national brands (NB). This research adapts an existing conceptual model exploring the marketing strategies of PL products and NBs.

Design/methodology/approach

Information for this study came from Mintel’s Global (2009/2011). There were 10,791 products launched in 2011 in the US database, 8,120 NB and 2,671 PL food and drink products. For 2009: 5,838 NB and 2,118 PL that gives 7,956 food and beverages products launched in USA.

Findings

PL and NB companies increased the usage of FOP claims, and also often moved in the same direction for some product categories. The greatest number of increases across product categories for PL and NB between 2009 and 2011 were Ethical-Enviromentally Friendly Packaging; Allergen; Fiber; Weight Control; Gluten Free; Kosher and No Additives claims. There were much less FOP that were decreased in usage. The claims that most frequently decreased were “Organic,” “Calories,” and “Vitamin/Mineral Fortified.” The categories that significantly decreased the “Organic” claim were Baby Food, Bakery, Breakfast Cereals, Fruit and Vegetables among PL product categories and Breakfast Cereals, Dairy, Side Dishes and Soup among NB categories.

Research limitations/implications

The study is based on only a three-year time span. difference over a greater period of time could reveal more significant differences.

Practical implications

The evidence from this research indicates that PL brands are matching NBs as they look to using other attributes and benefits. However, as PL sales increase, retailer margins increase which can lead to further aggressive marketing by the PL brands.

Originality/value

The analysis of FOP claims for PL and NB over such a large sample has not previously been done.

Citation

Stanton, J.L., Wiley, J., Hooker, N.H. and Salnikova, E. (2015), "Relationship of product claims between private label and national brands: The influence of private label penetration", International Journal of Retail & Distribution Management, Vol. 43 No. 9, pp. 815-830. https://doi.org/10.1108/IJRDM-11-2013-0212