Academic literature on the topic 'A private label'

Background and Problem: Consumer behavior has become a topic of great interest in today’s society. Considering todays competitive markets it is imperative that companies understand the needs and actions of their customers. There are many influences behind consumers’ decisions of choosing one brand over another. This thesis investigates Swedish consumers and why some private label products succeed, while others fail within different product categories. Purpose: The purpose of this thesis is to investigate how the nature of the good influences Swedish consumers in their decision between private label and national brand goods. Frame of reference: Three theories are applied in order to understand consumer choices: brand loyalty, perceived risk factor and social risk factor. Method: Both a quantitative survey and qualitative interviews have been carried out and applied to the three theories. Coding of interviews was used to understand how the level of influence varies amongst different product types. In order to respond to the research questions, these findings were compared to sales statistics received from Swedish supermarkets. Conclusion: It can be concluded that the three influences affect consumer choices differently,depending on the type of good. Private label brands succeed in low loyalty, low social risk, and low perceived risk goods, while national brands take the lead in high brand loyalty, high social pressure and high associated risk good categories.

<p>Background: In the past 10 years private label has increased significantly in the Swedish grocery market. This is an important strategic event, which is a great challenge to suppliers as it causes stiff competition. To handle this situation an increasing number of suppliers have to make the decision whether to produce private label or not.</p><p>Purpose: The purpose of this study is to find and analyse factors that influence suppliers in the Swedish grocery market to produce private label. On this basis we intend to confirm or develop existing theories within the field of study.</p><p>Research method: The study has a qualitative approach where empirical data has been gathered through interviews with suppliers and retailers in the Swedish grocery market.</p><p>Results: This study has identified factors that underlie suppliers’ decision to produce private label. The most important factor is the possibility of increased volumes and a more efficient capacity usage. Today there is a great downward pressure on price, why it is of great importance to have a cost efficient production. Many suppliers in the Swedish grocery market do not use their full production capacity and producing private label is therefore an option to increase the level of usage. Moreover, suppliers are experiencing a growing dependence on retailers. This is due to the increased power that retailers have attained through their centralised decision-making, dominating position and increased knowledge and negotiation power. This study shows that the shift in power influences suppliers’ decision to produce private label. Finally, possibilities of improved relationships between suppliers and retailers do not underlie Swedish suppliers’ decision to produce private label.</p><br><p>Bakgrund: Under den senast tioårsperioden har private label ökat kraftigt inom den svenska dagligvarumarknaden. Detta är en viktig strategisk händelse som utgör en stor utmaning för märkesleverantörer, då det innebär en allt hårdare konkurrens. För att möta denna ställs alltfler leverantörer inför beslutet gällande huruvida de skall tillverka private label eller inte.</p><p>Syfte: Syftet med studien är att finna och analysera faktorer som ligger till grund för att leverantörer på den svenska dagligvarumarknaden tillverkar private label. Utifrån detta avses vidare att bekräfta eller utveckla befintliga teorier inom forskningsområdet.</p><p>Metod: Studien har en kvalitativ ansats, där empirisk data har samlats in genom intervjuer med leverantörer och detaljister på den svenska dagligvarumarknaden.</p><p>Resultat: Genom studien har faktorer identifierats som ligger till grund för att leverantörer på den svenska marknaden tillverkar private label. Den viktigaste faktorn är leverantörernas möjlighet till ökade volymer och ett mer effektivt kapacitetsutnyttjande. Då det i dagsläget råder en stark prispress på dagligvarumarknaden är det av stor vikt att ha en kostnadseffektiv verksamhet. Eftersom många leverantörer på den svenska marknaden inte utnyttjar hela sin produktionskapacitet framstår private label-tillverkning som ett alternativ till att utöka denna. Vidare upplever leverantörerna på den svenska dagligvarumarknaden ett allt större beroende till detaljist. Detta beror på den ökade makt som detaljisterna uppnått genom deras centraliserade beslutsfattande, dominerande ställning samt ökad kunskap och förhandlingsstyrka. Studien visar att denna maktförskjutning har en inverkan på leverantörers beslut att tillverka private label. Slutligen utgör inte möjligheten till relationsförbättringar mellan leverantör och detaljist ett motiv till att leverantörer på den svenska marknaden tillverkar private label.</p>

Pagrindinis darbo tikslas yra išanalizuoti privačių ženklų keliamas grėsmes gamintojų ženklams ir atlikus tyrimą aprašyti galimus grėsmių sušvelninimo metodus. Darbas yra sudarytas iš trijų dalių: teorinė analizė, situacijos analizė ir projektinių sprendimų. Privačių prekių ženklų produktai, tai produktai, kurie parduodami tik tuose prekybos tinkluose, kuriems šie prekių ženklai priklauso. Juos kontroliuoja mažmenininkai, kurie turi išskirtines teises į šiuos prekių ženklus. Ilgą laiką privatūs ženklai buvo asocijuojami su maža kaina ir prasta kokybe, bet šiame darbe atliktas tyrimas parodė, kad privačių ženklų produkcija ir jų kokybė yra gana teigiamai vertinama . Šio reiškinio pasekmė yra nauja ir daug sudėtingesnė bei kelianti vis didesnes grėsmes gamintojų ženklams. Trečioje dalyje bus pateikti metodai , kaip būtų galima sušvelninti keliamas privačių ženklų grėsmes.<br>The main aim of the work is analyzing threats that private labels pose to manufacturer brands and, upon the completion of a research, describing methods of mitigating these threats. The work consists of three parts i.e. theoretical analysis, situational analysis and project solutions. Private label products are the products which are sold in stores of retail networks which own these private labels. They are controlled by retailers which have executive rights for these private labels. For a significant period of time private labels were associated with low price and low quality, but the research carried out in this work demonstrates that private label products and their quality are evaluated quite positively. The outcome of this phenomenon is new and more complex as well as posing growing threats to manufacturer brands. The third part presents methods of mitigating the threats which private labels pose.

Thesis (MBA)--Stellenbosch University, 2008.<br>ENGLISH ABSTRACT: Competition in food retailing has become a noticeable cosmopolitan phenomenon. Competitiveness filters down from retailers and their private-label brands to the suppliers and their manufacturer brands. Furthermore, the proliferation of food retailing has evolved into a double-edged sword for suppliers and manufacturers of both private-label and manufacturer/supplier-branded goods. Therefore, these suppliers, in comparison to those that solely manufacture national-brand goods, has to continuously maintain a favourable status quo on shelf with regard to brand performance, product quality and price of both retailer and supplier brands. Moreover, in store and on shelf, consumers of these brands are overloaded with choices between different packaging, prices and product statements. All relevant and eye catching, but do the supplier brands get the worst of the bargain? The objective of this study was to perform a qualitatively analysis on the supplier value of being a supplier of both privatelabel and manufacturer brands to the food-retail industry. The empirical study encompassed one-an-one and electronic interviews with key participants from specific food retailers to obtain answers validly, objectively and economically. The researcher employed a qualitative research approach together with a non-probability sampling strategy to explore the retail environment and interview participants. The three retailers that participated in the qualitative study were SPAR and Shoprite from South Africa and Morrisons from the United Kingdom. Interviews were scheduled with each participant that was available to participate and actively contribute to the outcome of this study. Interviews were conducted with a pre-set list of open-ended questions that was prepared in a discussion guide. Content analysis was then done on the interview feedback and this was used to formulate major findings and provide justification for the research objectives and propositions of this study. From the major findings in this study five themes were identified: growth, challenges, competitive environment, brand differentiation and supplier-retailer relationship. Findings indicated that retailers - regardless of their global location, consumer base and competitive environment - were mostly focused on growing their company and their respective private-label brand. Depending on the volatility of the supplier-retailer relationship, this growth focus could even come at the expense of a manufacturer's brand. The study also revealed that retailers are faced with a number of different challenges, which include deciding whether a product is fit to be sold under their private-label brand and if a supplier's strategy supports their own company strategy. The challenges encompass dependability of supply, quality of product and delivery reliability. Additionally, prime area for retailing is becoming more condensed in South Africa and as a result competition between the four major South African retailers is more vibrant. The study has noted that major retailers are also seeking expansion into emerging markets outside the metropolitan areas in South Africa, which will increase demand and create new customer expectations. Competitiveness and a point of difference would then be underpinned by innovation , creating a favourable shopping experience and service delivery, but with no compromise on quality and price. When considering brand differentiation, the study revealed that retailers were using this differentiation to increase private-label market share among the national brands whereas suppliers use it to create aspirational brands that attract and sustain consumer loyalty. It was concluded from this study that the growing availability and presence of private-label products in all categories on retailer shelves will become a serious threat for growing national brands that have not yet established themselves as market leaders. This threat will be further enhanced by the fact that retailers are using real estate and shelf space as leverage to negotiate. Regarding supplier-retailer relationship, this study showed that a retailer's focus will always be biased with the balance of power tilting in favour of the retailer, speCifically where a supplier is considered to be a supplier of both private-label and manufacturer brands. Although the latter is an industry norm, the power balance is complicated by the fact that no contract exists between supplier and retailer. As a result, a show of goodwill and a hand shake will seldom have the one-sided situation swing in favour of a supplier. Nonetheless, retailers' feedback indicated that they would rather develop relationships with suppliers that either have brands with smaller market share or only manufacture private-label products.<br>AFRIKAANSE OPSOMMING: Mededinging in die voedselkleinhandel het 'n merkbare kosmopolitaanse verskynsel geword. Mededingendheid syfer van kleinhandelaars en hul private handelsmerke na verskaffers en hul vervaardigershandelsmerke deur. Voorts het uitbreiding in die voedselkleinhandel in 'n tweesnydende swaard vir verskaffers en vervaardigers van goedere vir sowel private as vervaardigersIverskaffershandelsmerke ontwikkel. Daarom moet hierdie verskaffers, vergeleke met diegene wat slegs goedere vir nasionale handelsmerke vervaardig, voortdurend 'n gunstige status quo op die rak handhaaf ten opsigte van die handelsmerkprestasie, produkgehalte en prys van sowel private as verskaffershandelsmerke. Origens word verbruikers van hierdie handelsmerke, in die winkel en op die rak, oorlaai met keuses tussen verskillende verpakking, pryse en produkverklarings. Dit is alles tersaaklik en treffend, maar trek die verskaffershandelsmerke aan die kortste end? Die oogmerk van hierdie studie was om 'n kwalitatiewe ontleding te doen van die waarde vir die verskaffer om 'n verskaffer van sowel private as vervaardigershandelsmerke vir die voedselkleinhandel te wees. Die empiriese studie het persoonlike en elektroniese onderhoude met sleuteldeelnemers van spesifieke voedselkleinhandelaars behels om op geldige, objektiewe en ekonomiese wyse antwoorde te bekom. Die navorser het 'n kwalitatiewe navorsingsbenadering gevolg tesame met 'n niewaarskynlikheidsteekproefnemingstrategie om die kleinhandelomgewing te verken en onderhoude met deelnemers te voer. Die drie kleinhandelaars wat aan die kwalitatiewe studie deelgeneem het, was SPAR en Shoprite van Suid-Afrika en Morrisons van die Verenigde Koninkryk. Onderhoude is geskeduleer met elke deelnemer wat vir deelname beskikbaar was en aktief tot die uitkoms van die studie wou bydra. Onderhoude is gevoer met 'n voorafbepaalde lys oop vrae wat in 'n besprekingsgids saamgevat is. Inhoudsontleding is daarna gedoen ten opsigte van die terugvoering wat tydens die onderhoude ontvang is. Dit is gebruik om hoofbevindinge te formuleer en motivering vir die navorsingsoogmerke en stellings van die studie te bied. Op grond van die hoofbevindinge van die studie is vyf temas geïdentifiseer: groei, uitdagings, mededingende omgewing, handelsmerkdifferensiasie en verhouding tussen verskaffer en kleinhandelaar. Die bevindinge het getoon dat kleinhandelaars - ongeag waar hulle hul in die wêreld bevind, hul verbruikersbasis en mededingende omgewing - meestal op hul maatskappy en hul private handelsmerk se groei toegespits is. Na gelang van die wisselvalligheid van die verhouding tussen verskaffer en kleinhandelaar kan hierdie fokus op groei selfs ten koste van 'n vervaardigershandelsmerk plaasvind. Die studie het ook getoon dat kleinhandelaars voor verskeie uitdagings te staan kom, waaronder die besluit of 'n produk geskik is om onder hul private handelsmerk verkoop te word en of 'n verskaffer se strategie hul eie maatskappystrategie ondersteun. Die uitdagings sluit ook betroubaarheid ten opsigte van voorraad, produkgehalte en lewering in. Daarby word die eersteklasgebied vir klein handel in Suid-Afrika toenemend digter en as gevolg daarvan is mededinging tussen die vier vernaamste Suid-Afrikaanse kleinhandelaars lewendiger. Die studie het bevind dat vername kleinhandelaars ook na ontluikende markte buite die metropolitaanse gebiede in Suid-Afrika wil uitbrei, wat die vraag sal vergroot en nuwe verbruikersverwagtinge sal skep. Mededingendheid en 'n verskilpunt sal dan deur innovering, die skepping van 'n aangename inkopie-ervaring en dienslewering - sonder benadeling van gehalte en prys - ondersteun word. Ten opsigte van handelsmerkdifferensiasie het die studie getoon dat kleinhandelaars hierdie differensiasie gebruik om die markaandeel van private handelsmerke onder nasionale handelsmerke te verhoog, terwyl verskaffers dit gebruik om aspirasie-handelsmerke te skep wat verbruikerslojaliteit lok en behou. Daar is van die studie afgelei dat die toenemende beskikbaarheid en teenwoordigheid van produkte onder private handelsmerke in alle kategorieë op kleinhandelaars se rakke 'n ernstige bedreiging sal word vir groeiende nasionale handelsmerke wat hulle nog nie as markleiers gevestig het nie. Hierdie bedreiging sal versterk word deur die feit dat kleinhandelaars eiendom en rakruimte vir mag in onderhandeling sal gebruik. Ten opsigte van die verhouding tussen verskaffer en kleinhandelaar het hierdie studie getoon dat 'n kleinhandelaar se fokus altyd partydig sal wees, met die magsbalans ten gunste van die kleinhandelaar, veral indien 'n verskaffer as verskaffer van sowel private as vervaardigershandelsmerke beskou word. Alhoewel laasgenoemde 'n bedryfsnorm is, word die magsbalans bemoeilik deur die feit dat daar geen kontrak tussen die verskaffer en die kleinhandelaar bestaan nie. As gevolg daarvan sal 'n welwillendheidsgebaar en 'n handdruk selde daartoe lei dat die eensydige situasie ten gunste van die verskaffer sal draai. Kleinhandelaars se terugvoering het nietemin aangedui dat hulle eerder verhoudings met verskaffers sal ontwikkel wat of handelsmerke met 'n kleiner markaandeel het of produkte vir private handelsmerke vervaardig .

Cette thèse est constituée de trois chapitres et s'organise en deux parties. Chaque partie traite d'un problème théorique particulier relatif à la question de l'information privée des entreprises.La première partie traite de l'architecture des politiques environnementales et de l'information privée des entreprises. Le premier chapitre analyse la possibilité de mettre en place un accord climatique international quand l'asymétrie d'information touche à la fois les pays et les entreprises domestiques. Nous prenons en compte les contraintes clés dans la modélisation d'un tel accord: hétérogénéité des pays, asymétrie d'information aux niveaux national et international et participation de tous les pays. Nous obtenons l'accord de premier et de deuxième rang. Nous montrons que l'accord optimal ne se caractérise pas nécessairement par un prix unique du carbone. En effet, en présence d'un double niveau d'asymétrie d'information, l'accord de deuxième rang se définit par des prix du carbone qui diffèrent d'un pays à l'autre. Nous mettons ainsi en lumière la sous-optimalité d'un accord qui reposerait sur un prix unique du carbone. La seconde partie de la thèse, organisée en deux chapitres, s'intéresse à l'interaction entre deux outils de communication le signal par le prix et la divulgation d'information par un tiers qui sont utilisés par les entreprises pour révéler leur information privée aux consommateurs. Le deuxième chapitre s'attache à l'examen d'une divulgation d'information par un tiers sous la forme d'une certification menée par un intermédiaire: un certificateur. Un monopole a le choix entre payer pour cette certification ou utiliser son prix pour signaler sa qualité. Le certificateur est stratégique, soit à la recherche de son propre profit, soit il agit dans l'intérêt du monopole. Je montre tout d'abord que la structure des coûts d'audit engagés par le certificateur détermine le type de monopole qui choisit la certification. Je montre ensuite que les caractéristiques de la certification la probabilité d'audit et les frais de certification varient selon la motivation du certificateur. Le troisième chapitre étudie une divulgation d'information par un tiers qui se caractérise par deux étapes: la certification et l'obtention d'un label.Celle-ci implique deux intermédiaires: un certificateur et un détenteur du label et deux types de coût: un frais de certification et un prix du label. Un monopole choisit entre payer pour cette divulgation ou signaler sa qualité par le prix. Je caractérise la divulgation quand le certificateur maximise son profit et le détenteur du label est soit à la recherche de son propre profit, soit il agit dans l'intérêt du monopole. Je montre que, quand le détenteur du label défend le monopole, le prix du label ainsi que la répartition du surplus dépendent de la nature de la compétition entre certificateurs. En particulier, si ce détenteur du label souhaite empêcher la capture du surplus par un certificateur, il devra favoriser la compétition entre certificateurs ou, quand cela est impossible, choisir un prix du label élevé<br>This thesis consists of three chapters and is organized in two parts. Each part deals with a particular theoreticalissue of firms' private information.The first part of the thesis is devoted to the architecture of global warming policies and firms' private information.The first chapter analyses which global agreement can be implemented in presence of two-tiers asymmetry of information coming from both countries and domestic firms. We impose several key constraints on the design of such a regulatory policy: heterogeneity of countries, two-tier private information both at domestic and international levels and full participation. We derive the optimal first and second-best agreement. It is shown that the optimal global agreement does not always entail a uniform price for carbon. In presence of domestic firm's private information, the second-best agreement entails prices for carbon that differ from one country to another. We thereby highlight the failure of the Law of One Carbon Price. In the second part of the thesis that comprises two chapters, I study the interaction between two communication tools --- price signaling and third-party disclosure --- that firms may use to reveal their private information to consumers. The second chapter examines a third-party disclosure that consists in a certification handled by a middleman: a certifier. A monopolist has the choice between paying for that disclosure or using price to signal quality. The strategic certifier is either a for-profit entity or an entity that defends the monopolist' interest. I first show that the structure of audit costs incurred by the middlemen affects the type of monopolist that chooses certification. I then show that the characteristics of the certification ---audit probability and certification fee--- vary with the motivation of the strategic middleman. More specifically, a for-profit certifier, whenever it is possible, will not audit and put the highest feasible fee while a certifier defending the monopolist will audit with a certain probability and select the lowest possible fee. This chapter thereby contributes to a better understanding of the certification industry.The last chapter studies a third-party disclosure that consists of two steps: certification and labeling. It involves two middlemen --- the certifier and the owner of the label --- and it includes a certification fee and a price for the label. A monopolist has the choice between paying for that disclosure or signaling quality through price.I derive the disclosure when the certifier is a for-profit private entityand the label owner is private either a for-profit entity or an entity that defends the monopolist' interest. I show that, when the label owner defends the monopolist, the price of that label and the sharing of the surplus depend on the nature of certifiers' competition. In particular, I find that, a label owner defending the monopolist in order to prevent the certifier from capturing the surplus should favor competition between certifiers or, when that is not possible, monetize the label

During the past two decades something fundamental has happened to the relationship between manufacturers and distributor organisations in many European countries. Within a number of product markets, distributors have launched their own products, forcing manufacturing companies to compete with shelf space owners in addition to the "traditional" competition with other manufacturers. Theoretical and empirical findings regarding Distributor Own Brands (DOB’S) offer us a number of explanations of the differences between national markets and product categories in terms of DOB penetration. However, much of this literature is deterministic in its approach: DOB penetration is often seen as a direct consequence of different market conditions, rather than as the result of strategy processes involving a number of decision-makers and their perceptions of market-related and organisational factors.This study investigates how an array of organisational and market related factors are perceived by distributor organisations, and how this is expressed in the organisations’ own brand strategies. To investigate this research problem, a theoretical framework that explicitly takes distributor own brand strategy into consideration when examining proposed determinants of DOB penetration is presented. The empirical study is mainly based on interviews with decision-makers within the central organisations of the two largest distributors within Swedish fmcg distribution: the ICA federation and the consumer co-operation KF.<br>Diss. Stockholm : Handelshögsk.