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Private label brands may be in danger as a result of recent changes in the marketing strategies used by private label firms. The primary competitive advantage of private label brands, good quality at low prices, may be lost if private label firms continue to modify and expand how their brands are marketed. Specifically, changes in private label brands′ advertising, packaging, sales promotion, and product improvement strategies indicate that private label brands are moving closer than ever to manufacturer brand status. To the extent that these changes result in higher average retail prices and/or lower gross margins for retailers, the advantages of private brands to both consumers and distributors will diminish, illustrating that the historical “wheel of retailing” hypothesis may be applicable to private label brands. Investigates the aforementioned trends and provides suggestions for manufacturers and retailers for future brand management strategies.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

The adoption by retail chains of private brands is big business in developed economies. Such products provide greater profit margins, more control over quality and supply, and improved leverage with existing suppliers. Western countries, particularly in Europe, have adopted private brands as a key aspect of boosting the performance of any type of retail chain. Yet in emerging markets, the use of private brands is significantly lower. Looking to understand why this is the case, and to provide research in an area that has tended in the past to only consider developed economies, Herstein et al. (2017) have looked into the food retail industry in Israel to understand why private brands are proving less successful. Because of the potential for private brands to boost the performance and profits of retail chains, as well as the economy of local areas and the nation as a whole, it is important to understand this disconnect between private brand success in developed and emerging markets.

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

This study analyses direct effects of risk-related factors on perceived quality for private labels.

A total of 159 usable data was collected through survey, using mall intercept method in one regional retail chain in Bosnia and Herzegovina.

The results confirm that the perceived risk has a significant and negative impact on consumers’ perceptions of the quality of private labels, and that the financial risk, performance risk, and physical risk are significant determinants of overall perceived risk, thus indirectly influencing the perception of the quality of these brands.

This chapter shows that the perceived quality of private labels is significantly determined by the perceived risk to which consumers are exposed. The findings of this research can help retailers in terms of adequately defining marketing policies aimed at reducing the perceived risk that consumers are exposed to when purchasing their own brands.

This paper aims to use Q methodology to investigate Millennial perceptions toward private label or national brand apparel.

Q methodology was chosen to identify factors, which correspond to patterns of perceptions prevalent among Millennials. Participants were supplied with 14 statements that they sorted into two Q sorts – One representing perceptions of private label and the other representing perceptions of national brands. The Q sorts were completed through Qualtrics and participants answered open-ended questions on the placement of each statement within each Q sort.

Two factors emerged on private labels, highlighting patterns in price consciousness and uniqueness (acknowledged as patterns surrounding the desire for particular apparel characteristics). Three factors arose for national brand apparel, emphasizing the need for national brands to provide consumers with product security, quality and uniqueness (as identified through the unpreferred qualities national brands typically exhibit).

This study illustrates the various viewpoints retailers must consider when marketing apparel to a specific target demographic. In addition, a single perception (uniqueness) was found to connect motivations, which led to the development of a model for future inquiry.

Despite complete Q sorts and qualitative statements, participants' unfamiliarity with Q methodology and the sorting action of statements could be considered a limitation. The use of MTurk is also considered a limitation owing to the anonymity and possible deception of the workforce.

Private label brand personality growth has many retailers expanding their brand portfolios. Based on the findings of this study, specific opportunities are highlighted for the expansion and marketing of private labels and brand labels based on specific perceptions of a broad Millennial cohort.

The present study aims to investigate the role of brand store image in the context of private and national fashion brands. The study examines two issues: do private brand consumers differ from national brand consumers in their perception of the attributes they value in their store image? And, do fashion consumers in general differ in their perception of the attributes they value in a store image?

Data were collected through a field survey comprising 395 respondents: 195 private brand consumers and 200 national brand consumers.

Findings indicate that the two groups of consumers do not differ in their perception of store image. Cluster analysis reveals two groups of consumers: “Brand Store Image Enthusiasts” who are high in their perception of their brand store image attributes, and “Brand Store Image Indifferent” consumers who are low in their perception of their brand store image attributes. The first group was also found to have greater brand loyalty.

Different marketing strategies are offered to each fashion sector. In addition, distributors in the fashion industry should build a strategy for Brand Store Image Enthusiasts who are high in their perception of all three brand store attributes. It is essential to point out the psychological meaning of the brand when appealing them.

The study contributes to the consumer behavior literature by tying the well-established construct of brand store image to the fashion sector in the context of private and national labels.

The subject area is marketing strategy.

The case is well suited for MBA and executive MBA class on retailing management, strategic management, marketing strategy and brand management.

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?

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.

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.

CSS 11: Strategy.

The purpose of this research is to examine the potential contribution of private branding to the service sector, and to integrate private branding into the SERVQUAL model.

A total of 300 customers of a health maintenance organization (HMO) were asked about the five dimensions of the service‐quality model and about several aspects of their HMO's private brand.

The study finds that satisfaction with service quality among subjects who were aware of the HMO's private brand was higher than that of unaware subjects when asked directly. In addition, a positive relationship was found between the perceptions of service quality in the HMO and the evaluation of a private brand in the HMO those customers who were aware of the private brand. The data analysis suggests that private branding constitutes an additional (sixth) dimension in the SERVQUAL model.

This research was conducted during the initial stages of the market penetration of the HMO's private brand.

HMOs, and other service providers, should consider private branding as a pivotal strategy in reinforcing service quality.

This research is of importance for service providers because it identifies private branding strategy as having significant marketing potential for improving service quality.

The aim of this paper is to discuss the import of private branding strategy for retailers, manufacturers and customers. It seeks to focus on private branding strategies in the emerging MEDA markets, and, using Israel as a case study, aims to identify why the huge potential of private brands has not been exploited in these countries.

Both secondary data and empirical studies of Israeli exporters and chain store managers were conducted to determine what strategies are used to market private brands in developed, emerging and developing MEDA countries. Also included is a case study based on an analysis of four separate periods of the marketing of private brands in Israel, which are very similar to those seen in other emerging MEDA countries such as Greece and Turkey.

A review of private branding strategies in the MEDA countries reveals three different markets, each one managed differently: developing, emerging, and developed. The most attractive MEDA markets with regard to private brands for retailers and manufacturers are the emerging countries, which have the most rapid growth potential in this region.

Few studies are to be found in the literature that are based on the development of private labels in emerging countries. Moreover, the paper is the first to survey such development in Israel, one of the most developed countries in the Mediterranean.

This research seeks to demonstrate the effect of framing on consumers' willingness to buy private brands.

Using an experimental design, 500 participants answered a questionnaire addressed to examine their willingness to buy four private brand products framed either in positive (save) or negative (lose) terms.

Consumers' willingness to buy private brands was higher when the information was presented in negative (loss) framing relative to presenting the very same information in positive (save) framing.

This research examined the effect of framing on willingness to buy private brands. Future research is needed to examine the effect of framing on actual purchasing behavior and regarding other products retailers wish to promote, other than private brands.

Retailers typically try and promote sales of private brands using messages suggesting that consumers will save money by buying their brand. The results of this study suggest that retailers could improve their marketing of private brands by framing their products negatively in terms of the loss consumers incur when not purchasing private brands.

The paper suggests adopting Levin et al.'s typology that distinguished between various types of framing. The typology explains apparently contradictory results found in the literature. While goal framing more accurately describes the more effective messages discussed in this study, attribute framing would better describe the more effective messages mentioned in other contexts.

The purpose of this paper is to investigate the association between three personality traits (individualism, materialism and the “need for cognition”) and two characteristics of shoppers who buy private‐label brands (their predisposition to do so, and the importance they attach to the “brand dimensions”) across four member countries of the Union of the Mediterranean.

A questionnaire in the local language, using questions, items and scales adapted from previous studies, was completed by 683 undergraduate students. The scaled data were analysed by SPSS, and tested for internal reliability and equivalence.

Overall, the personality traits were significantly associated with both behavioural characteristics. Specifically, materialism and the need for cognition were linked to inclination to purchase private brands, and materialism and individualism to the perceived importance of brand dimensions. Cross‐cultural differences were found.

The demographic profile of the private‐brand consumer is well known, but not the behavioural profile. This study provides retail planners with valuable new marketing intelligence.