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Article
Publication date: 1 March 2004

Isabella M. Chaney

Over the last decade there has been an increase in the development of products sold as own label brands. The major UK grocery multiples have successfully employed this strategy…

1542

Abstract

Over the last decade there has been an increase in the development of products sold as own label brands. The major UK grocery multiples have successfully employed this strategy, gaining more than half the grocery market with their own branded products. Supermarkets have strengthened their ownbrands by changing their no‐frills, low‐cost strategy to one of quality at a competitive price. This trend has made a major impact not merely on the fmcg sector, but also on the alcoholic market including wine. Consumer research by the supermarkets has addressed both the contents of the bottle as well as the packaging. Labels on own‐label wines have had much attention paid to them on the quest to reflect a more upmarket image. The acceptance of the own‐label brand by consumers is a serious threat to established brands as own‐label brands are likely to grow at the expense of manufacturer brands.

Details

International Journal of Wine Marketing, vol. 16 no. 3
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 1 March 1994

Ogenyi Ejye Omar

Kwik‐Save′s decision to make its first ever own‐label food products (NoFrills) is a clear evidence that own‐label products are more popularthan at any time. Investigates consumer…

2496

Abstract

Kwik‐Save′s decision to make its first ever own‐label food products (No Frills) is a clear evidence that own‐label products are more popular than at any time. Investigates consumer perceptions of national and own‐label grocery products. Reveals that consumers perceive many differences among the two brand types tested. To find the factors accounting for the perceived quality of food, typical consumer explanation for both quality and value for money is about the price and physical attributes of the food brands. Other factors such as store image and food ingredients are equally important. The appeal for own‐label groceries is based on price and consumer scepticism. Product quality is usually the major purchasing factor and the measure of value. The assessment of consumer thinking comes from the marketplace. Cola, lemonade, and orange juice were three product lines put to taste‐on‐test in an effort to assess consumer preferences. Concludes that differences exist in the shoppers′ price and quality perceptions, and brand preference across the product lines tested. Own‐label preference is based on price and value for money rather than quality.

Details

International Journal of Retail & Distribution Management, vol. 22 no. 2
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 1 April 1988

Leslie de Chernatony

With grocery brands manufacturers trying to respond to the increasingly concentrated retailing environment and the significant investment in own labels by retailers, a less than…

Abstract

With grocery brands manufacturers trying to respond to the increasingly concentrated retailing environment and the significant investment in own labels by retailers, a less than healthy future has been reported for some brands (eg Leahy, 1987). To succeed, grocery brands manufacturers should not only take into account consumer buying behaviour, but also recognise and respond to retailers' strategic objectives. However, brands manufacturers have to strike the right balance between satisfying consumers' needs and helping retailers achieve their corporate goals. Warnings have been sounded about the dangers of brands manufacturers shifting their attention too much to retailers, with the consequential cut in consumer related activities, and during the first part of this decade there has been speculation about whether own labels and brands were becoming more alike. This paper is concerned with the problem of similarities/dissimilarities between brands and retailer labels and by reporting on a major consumer research programme provides insight as to the way consumers perceive the competitive tiers of brands, own labels and generics.

Details

Retail and Distribution Management, vol. 16 no. 4
Type: Research Article
ISSN: 0307-2363

Article
Publication date: 1 June 2004

Cleopatra Veloutsou, Evangelos Gioulistanis and Luiz Moutinho

The growth of own label brands of products offered by supermarket chains is changing the “rules of the game” when managing fast moving consumer good products. A lot is written on…

6325

Abstract

The growth of own label brands of products offered by supermarket chains is changing the “rules of the game” when managing fast moving consumer good products. A lot is written on the development of these brands and the consumers' behaviour in regions where their use is widely spread, but not in other markets. This paper compared the importance of choice criteria when purchasing own label and national brands and the perceived characteristics of the products carrying store and manufacturer brands in two regions of the European Union where the development of own label brands is at a different stage, Greece and Scotland. The results indicate that own label and manufacturer brands have an overall different positioning; Greeks are less familiar with own label products and assess them somewhat differently than the Scots, while several own label related attributes may be good predictors of the loyalty to the supermarket.

Details

Journal of Product & Brand Management, vol. 13 no. 4
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 February 1979

David Morris

The author attempts in this article to compare some economic aspects of own and manufacturers' brands, in an attempt to shed light on some of the broader issues in the economics…

1551

Abstract

The author attempts in this article to compare some economic aspects of own and manufacturers' brands, in an attempt to shed light on some of the broader issues in the economics of marketing. The choice of brand policy is complex, depending on demand — and supply — side variables. Simple explanations of either the price differential between own and manufacturers' brands, or their relative market shares are misleading. Despite the absence of sufficient data, preliminary indications are that the price differential is related to different marketing expenditures. However, the market share of own brands is not related to the price differential alone; its market penetration is limited by the strength of the manufacturers.

Details

European Journal of Marketing, vol. 13 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 18 April 2016

Jose Paulo Marques dos Santos, Marisa Martins, Hugo Alexandre Ferreira, Joana Ramalho and Daniela Seixas

This paper aims to explore brain-based differences in national and own-label brands perceptions. Because price is a differentiating characteristic, able to discriminate between…

1448

Abstract

Purpose

This paper aims to explore brain-based differences in national and own-label brands perceptions. Because price is a differentiating characteristic, able to discriminate between national and own-label brands, its influence is also studied.

Design/methodology/approach

The study uses the Save Holdings Or Purchase (SHOP) task with functional magnetic resonance imaging to explore the differences in brain functioning for national versus own-label branded products.

Findings

For the same product, the higher priced national brands and the lower priced own-label brands lead to more buying decisions. It is also found that there are brain structures that are more active/deactive for national than for own-label brands, both marked with real market prices. Price is a powerful driver of buying decisions and has its neural correlates. Parietal regions activate when brand information is subtracted from brand-plus-price information. The most surprising finding is that visual and visual associative areas are involved in the contrasts between branded products marked with switched prices and marked with real market prices.

Originality/value

The activation/deactivation brain patterns suggest that accepted models of brain functioning are not suitable for explaining brand decisions. Also, to our knowledge, this is the first time that a study directly addresses the brain’s functioning when subjects are stimulated with national versus own-label brands. It paves the way for a new approach to understanding how such brand categories are perceived, revealing the neural origins of the associated psychological processes.

Details

Journal of Product & Brand Management, vol. 25 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 29 November 2018

Marzanna Katarzyna Witek-Hajduk and Anna Grudecka

The purpose of this paper is to identify and profile clusters of retailers operating in emerging markets, in terms of positioning strategies of their own brands (based on the…

1460

Abstract

Purpose

The purpose of this paper is to identify and profile clusters of retailers operating in emerging markets, in terms of positioning strategies of their own brands (based on the example of the Polish market).

Design/methodology/approach

The study is based on a random sample of 143 medium and large retailers operating in Poland. The data were collected using a CATI method at the end of 2014 and then analyzed with the use of hierarchical and non-hierarchical methods.

Findings

With the use of cluster analysis, six clusters of retailers were identified. Members of each cluster refer to different predominant factors when positioning their own brands. Members of each cluster do not differ significantly in terms of descriptive variables (exogenous to the cluster analysis) being used for profiling clusters.

Research limitations/implications

In this study, only retailers operating in Poland were surveyed. This study does not refer to the targeting strategies, which may be analyzed jointly with the positioning strategies of retailers’ brands.

Practical implications

The paper has implications in understanding the approaches to the retailer brand positioning representing by the identified clusters of retailers that might be a basis for the creation of the retailers’ competitive advantages.

Originality/value

The main contribution of this research lies in the clustering approach to segmenting retailers in terms of their own brands’ positioning strategies and identifying clusters of retailers in the Polish market due to the retailer brands’ positioning.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 7 August 2017

Chih-Hai Yang and Meng-Wen Tsou

This study aims to investigate the determinants of own-branding strategy and whether branding contributes to higher profitability among industrial firms. Building a strong brand

Abstract

Purpose

This study aims to investigate the determinants of own-branding strategy and whether branding contributes to higher profitability among industrial firms. Building a strong brand can be a source of competitive advantage. However, brands may not be equally important to all firms, especially in the business-to-business (B2B) context.

Design/methodology/approach

This study develops and empirically tests a conceptual model by considering the endogenous choice of branding strategy in the relationship between branding and financial performance. A large, nationally representative dataset from Taiwan, consisting of 13,098 manufacturing firms, is used.

Findings

The present study suggests that larger, younger, more innovative and export-oriented firms have a higher propensity to develop their own brands. E-commerce usage is shown to be the strongest predictor of the decision to brand. The positive effect of branding on profitability is evident for small- and medium-sized enterprises (SMEs), but not for large firms.

Originality/value

Research integrating the perspectives of the decision to brand and branding effectiveness is scant. The methodology used in this study makes a theoretical contribution to the link between branding and firm performance. The findings indicate that large firms have more advantages for building their own brands, yet SMEs stand to gain more financially from branding relative to their large counterparts. This provides the important implication that SMEs benefit from building a strong brand in the B2B context.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 7
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 January 1987

Derek McMaster

Own brands are now emerging in the cookware market, and retailers are thus implementing strategies which influence manufacturers, traditional shopping outlets and consumer…

Abstract

Own brands are now emerging in the cookware market, and retailers are thus implementing strategies which influence manufacturers, traditional shopping outlets and consumer shopping style. This new trend is examined, seeking correlation with other market sectors which have already absorbed the ownbrand factor, relating what is current practice in the cookware market, identifying retailers' own and mixed brand policies and considering consumer choice factors. Cookware brand developments are not expected to differ from those of other sectors. Retailers will try to lead the market through product advancement, while manufacturers must seek to protect their brands by developing added value and using strong marketing strategies to promulgate anti‐own brand products.

Details

European Journal of Marketing, vol. 21 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 February 1978

F. Livesey and P. Lennon

Assesses consumers' choice and behaviour with regard to manufacturer brands and retailer own labels and the contributions of these different approaches. Presents the results also…

2356

Abstract

Assesses consumers' choice and behaviour with regard to manufacturer brands and retailer own labels and the contributions of these different approaches. Presents the results also of an empirical study that throws additional light on brand‐choice decision. Gives tabular results of two studies, one by Myers and the other by Mintel, and examines the results of these in depth. Goes on to the results and methods used by one of the author's herein, which involved 100 housewives answering a number of questions about their brand choice decisions. Proposes that two, tentative, conclusions emerged: first, consumers can be classified as either manufacturer or retailer brand‐prone based on their needs; and second, the classification is only valid on a product‐by‐product basis — but some consumers had other reasons, such as personal budget, involved in their decisions. Accepts that, because of the study's limitations, more research is required.

Details

European Journal of Marketing, vol. 12 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

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