ANALYSIS of Minor Project Data Collected

8/12/2019 ANALYSIS of Minor Project Data Collected

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1.EXECUTIVE SUMMARY

1.1 OBJECTIVE:

Main Objective

The study is aimed at studying the growth of private labels in stores of Shoppers Stop, Lifestyle

and Pantaloon India and the factors that affect the consumers buying decision towards these

brands.

Sub-Objectives

i) Estimate the ratio between quantities of private label products and national label

products available in these stores.

ii) Identifying the space allocation, placement of product and of the private labels in the

store.

iii) Understanding consumer buying behavior for private label versus national labels.

1.2METHODOLOGY:

1.2.1Type of research used: descriptive research

1.2.2 Data Collection:

i) Primary dataare originated by a researcher for the specific purpose of addressing the

problem at hand. The primary data source for this study is the questionnaire developed

for the customers of the stores and personal observation.

ii) Secondary dataare data which have already been collected for purposes other than

the problem at hand. These data can be located quickly and inexpensively. The

secondarydata sources used in the study are e-newspaper articles, online retail magazinesand journals and online databases like ebsco-host.

The research follows quantitative and qualitative approach.


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1.2.3 Sampling Process:

Sample size: customer survey sample size of 50 customers each of Shoppers Stop,

Lifestyle and Pantaloon in Hyderabad.

Sampling Technique:

Probabilistic Sampling for the customer survey will be followed.

1.3FINDINGS

1. Majority of the customers like to visit the stores monthly as well as once in 2 weeks to

make purchases of clothes and accessories and thereby stores offer something new to the

customer on a continuous basis and must have availability of stock.

2. There is a substantial awareness of the private labels of the stores among the customers of

these stores and the leading private label of Pantaloons is John Miller, of Shoppers Stop

isStopandof Lifestyle areLife and Ginger.

3. Private labels are not as widely advertised as the national labels are and it could be act as

a hindrance to its awareness.

4. The best seller private labels of these stores are :

Bare & John Miller from Pantaloons

Stop & Kashish from Shoppers Stop

Mlange & Ginger from Lifestyle

5. Quality of private labels does not exceed the quality level of national labels, however it is

satisfactory and customers are satisfied with it.


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6. Customers have to pay the same price for private labels as they would for national labels

followed

7. Private labels offer :

Similar designs as are also available in national labels.

Better deals to its customers in comparison to national labels.

8. Majority of people prefer to shop at Lifestyle store.

9. The attribute of brand name is very important consideration for the customers before

purchasing or shopping from these stores.

10.The attribute of price is not the most important consideration but a fairly important

consideration for the customers before purchasing or shopping from these stores.

11.The attribute of quality is of prime consideration for the customers before purchasing or

shopping from these stores.

12.The attribute of design or trend is a fair but not important consideration for the customers

before purchasing or shopping from these stores.

13.The attribute of brand name is not the most important consideration but it is fairly

important consideration for the customers before purchasing or shopping from these

stores.

1.4CONCLUSION

Customers are aware of the private brands and frequently purchase these brands. Privatelabels are competing with national brands on providing better deals and lesser prices with

similar quality and designs as found in national labels. These labels have potential to give

good competition to the national brands and must focus on brand building activities. Theyare growing in awareness but are yet to be accepted by the Indian Customer.


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2. INTRODUCTION

2.1BACKGROUND

Twentieth century was the century of manufacturer brands. Initially, consumers bought

manufacturer-endorsed brands as symbols of quality, trust, and affluence. Subsequently,

these brands were consumed as symbols of aspirations, images, and lifestyles.

Manufacturer brands reached consumers through distributors and retailers. For most of the

twentieth century, retailers were relatively small, compared with their largest suppliers. This

allowed branded manufacturers to ride a wave of quality products, innovation, and mass

advertising to establish their power over distribution channels. Manufacturers exploited this

power over retailers by becoming branded bulldozers, forcing retailers to accept theirproducts with the associated price and promotion policies.1 Retailers were usually given the

classic take it or leave it choice.

Ascendancy of Retailers and Private Labels

Sometime in the 1970s, things began to change, albeit slowly, as retailers started to develop national

chains. Some retailers, like Ahold, Carrefour, and Metro, even began to expand internationally, and

consolidation of the retail industry from mom-and-pop stores to global players was well under way.

Spurred by these pioneers, retailers of consumer packaged goods (CPG), such as Aldi, Auchan,

Costco, Lidl, Makro, Tesco, and Wal-Mart, plunged eagerly into global markets over the last two

decades of the previous millennium.

Apparel is one of the largest sectors for private labels. Private label or store brands now

account for 45 percent of total U.S. apparel unit sales, up from 39 percent just two years

ago and 35 percent five years ago. In categories like womens skirts and childrens

clothing, the share of private labels is more than 65 percent.11This is partially driven by

the resounding success of several private-label-only retail formats such as Gap, H&M, The

Limited, and Zara. In response to the value provided by such spe cialty retailers, upscale

department stores like Bloomingdales and Macys are also increasing their percentage of

sales from store brand merchandise.


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Private labels are slowly becoming the protagonist in the big Indian retail growth story. Taking

cue from the West, Indian retailers are also churning out newer ways to increase their profit

marginsone such initiative is the introduction of in-house brands. With Indian customers

increasingly accepting these private label brands, they would soon be major contributors to the

profits of Indian retailers.

2.2 OBJECTIVE:

Main Objective

The study is aimed at studying the growth of private labels in stores of Shoppers Stop, Lifestyle

and Pantaloon India and the factors that affect the consumers buying decision towards these

brands.

Sub-Objectives

i) Estimate the ratio between quantities of private label products and national label

products available in these stores.

ii) Identifying the space allocation, placement of product and of the private labels in the

store.

iii) Understanding consumer buying behavior for private label versus national labels.

2.3LITERATURE REVIEW:

Twentieth century was the century of manufacturer brands. Initially, consumers bought

manufacturer-endorsed brands as symbols of quality, trust, and affluence. Subsequently,

these brands were consumed as symbols of aspirations, images, and lifestyles.

Manufacturer brands reached consumers through distributors and retailers. For most of the

twentieth century, retailers were relatively small, compared with their largest suppliers. This

allowed branded manufacturers to ride a wave of quality products, innovation, and mass

advertising to establish their power over distribution channels. Manufacturers exploited this

power over retailers by becoming branded bulldozers, forcing retailers to accept their


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products with the associated price and promotion policies.1 Retailers were usually given the

classic take it or leave it choice.

Ascendancy of Retailers and Private Labels

Sometime in the 1970s, things began to change, albeit slowly, as retailers started to develop national

chains. Some retailers, like Ahold, Carrefour, and Metro, even began to expand internationally, and

consolidation of the retail industry from mom-and-pop stores to global players was well under way.

Spurred by these pioneers, retailers of consumer packaged goods (CPG), such as Aldi, Auchan,

Costco, Lidl, Makro, Tesco, and Wal-Mart, plunged eagerly into global markets over the last two

decades of the previous millennium.

Apparel is one of the largest sectors for private labels. Private label or store brands now

account for 45 percent of total U.S. apparel unit sales, up from 39 percent just two years

ago and 35 percent five years ago. In categories like womens skirts and childrens

clothing, the share of private labels is more than 65 percent.11This is partially driven by

the resounding success of several private-label-only retail formats such as Gap, H&M, The

Limited, and Zara. In response to the value provided by such spe cialty retailers, upscale

department stores like Bloomingdales and Macys are also increasing their percentage of

sales from store brand merchandise.

Private labels compete on quality

Gap has introduced the 1969 label, which retails at twice the price of most Gap jeans, while The

Limited has launched Seven7 jeans to compete against designer jeans by Calvin Klein, Diesel,

and Hugo Boss.

Private labels are brands

Brands give us meaning in our role as consumers. Consumers want brands for the qualityassurance and the emotional satisfaction they provide. Any product that is not a brand will

inherently have limited market appeal. However, brands do not necessarily have to be

manufacturer brands. They can also be store brands. And this is what has happened over

the last decade as retailers became bigger and more sophisticated and their private labels

became more ubiquitous and successfulproviding the necessary mass for investments in


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branding activities. Retailers now position their private labels as brands in their own right.

Their store brands are increasingly imbued with emotion and imagery rather than only with

the functional logic that dominated private labels a generation ago.

(Source: Pri vate Label Strategy, har vard Business school press

Boston, Massachusetts)

Private labels in I ndia in apparel

According to Images Retail Report 2009, as quoted in "Indian Retail: Time to Change Lanes" by

KPMG; private label brands constitute 10-12% of organized retail in India. Of this, the highest

penetration of private label brands is by Trent at 90%, followed by Reliance at 80% and

Pantaloons at 75%. Big retailers such as Shoppers Stop and Spencers have a penetration of 20%

and 10% respectively. Globally, store brands constitute nearly 17% of retail sales. In fact,

international retailers such as Wal-Mart and Tesco have 40% and 50% of in-house brands in

their stores. (Refer Table 1)

L if estyle I nternational Ltd, part of the Dubai-based retail firm Landmark Group, is betting big

on its private label apparels labels Forca, Club Hopper, Fame Forever, Ginger, Junior and

Melange and furniture label Home Centre. They are expected to contribute 25-30% to total

turnover in a year or two.

Department store chain Lifestyle owned ethnic wear private label Melange, which clocked 100-

crore revenue in three years since its inception, will be spun off as exclusive brand outlets.

Lifestyle, which earns 40% margins on its private labels, is the second retailer after Future Group

to spin off private labels into exclusive brand stores. Future Group launched its mid-priced mens

private label, John Miller, as a stand-alone brand in 2008.

Exclusive brand stores enable higher impulse sales in categories such as accessories as the

consumer does not have other brands to compare with. Retailers tend to expand their range under

a private label to tap this. These labels are often priced lower even while expanding on their own.

Lifestyle stores sell womens t-shirts, kurtis and mens shirts starting Rs 99, Rs 299 and Rs 199,

respectively.


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The contribution of private labels has been increased from 18-20 per cent two years ago to 25 per

cent now. Profit margins on private labels for a retailer can be as high as 50 per cent, way above

the 20-25 per cent offered by other brands. Pantaloons thus get 50-60 per cent of its business

from private labels.

With its private labels giving it higher margins and revenues, Pantaloon Retail is planning to spin

them off into individual store brands in the near future. The retail major has identified four of its

leading private labels to add to its retail format considering the healthy growth rates registered by

each of them.

Labels such as John Miller, Bare, Ajile and Righave been shortlisted to make a foray into the

retailing industry as standalone format stores.

Shoppers Stophas a range of Private Labels across Men's casual wear to formals to Women's

wear. Private Labels contribute a mere 20% to its Total Sales. In comparison, Private Labels

contribute around 85% of Pantaloons' Total Sales.

These are the Private Labels Sold in Shoppers Stop outlet:

Kashish - Mens's Ethnic Wear

Stop - Western Wear - Men & Women

Life - Mens Casual Wear , Jeans Wear

Mario Zegnoti - Men's Formal Wear

Acropolis - Men's Formal Wear

Push and Shove - Eye Wear

Vettorio Fratini - Premium Men's Wear

SSL's Private Labels registered Sales growth of 17% in FY2009, but contribution from the same

dipped albeit marginally to 19.9% in FY2009.

Shoppers Stop has several in-house brands and these products are not differentiated from the

other brands in terms of store space.

Price tag: These products were priced substantially lower than the other brands.


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'Life' T-shirts for men from Shopper's Stop range from Rs 349-699, while 'Stop' ladies western

wear is available for Rs 299-699.

Factors affecting growth of pri vate labels

The reasons for the development and success of these private labels are:

1) changing consumer habit: one impediment to private label programs in fashion retailing

has been the belief that stores have to carry a broad selection of styles to satisfy diverse

consumer interests.

2) Information technology: one of the obstacle to private label program in the field of

fashion used to be that it represented high level of risk. Dealers had to make

commitments well in advance of selling season and later they could not return private

label merchandise nor get markdown allowance from vendor. Availability of better

information has reduced this risk significantly.

3) Changing consumer taste: the ageing of baby boom generation has produced shifts in

apparel demand. The industry way tells consumers about latest fashion have also shifted.

Music, videos, point of display has taken on greater importance in educating customer

and promoting new styles.

(Sour ce: pr ivate labels are back in fashion, Walter J. Salmon and Karen A.Cmar)

Private Label products have a higher gross margin and retailers believe this means theyre

making more money. Private Label products are priced anywhere from 20 to 70 percent lower

than the national brand. Even with larger discounts, Private Label products achieve a higher

gross margin percent than the branded competition.

Private Labels low prices do not equate to or increase sales. Neither does it increase market

share. This confirms price is not the sole factor consumer use in selecting products.

If the consumer determines the product performs in their household in an equivalent or

acceptable fashion the quality is the perceived as equal. The second factor is packaging for

Private Label. Products must be competitive and current in design.


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The dominant pricing philosophies are Velocity and Size. The Velocity philosophy establishes a

lower selling price for faster selling items and a higher one for slower selling items. The Size

philosophy establishes a lower price per unit for the larger packages. Over-arching these two

philosophies is a minimum and maximum gross margin range for the category.

Private Label products are typically priced off the leading item. Since these leading items are

priced off of competition, philosophy and gross margin range, the effect is Private Label

products are reflective and not independently priced. The results are a significant opportunity for

retailers.

Comparing competition prices has limited value for pricing Private Label products. Few if any

consumers actually compare Private Label prices among retailers. The reason for this is that it is

extremely difficult for consumers to make a product quality comparison

(Source: I s private label pr icing the way to go? , W. Fr ank Dell I I , CMC)

Consumer Behavior

Manufacturers build their power through customer loyalty. Loyal consumers are more likely to

pay full price for their favorite brands and look for them in any store they shop. If not found,

they may shop elsewhere.

Retailers acquire power similarly through the strength of their appeal to consumers. In

recent years, private label brands have aided this end by building unique consumer

interest in their stores. Similarities or differences in consumer reactions to national brand

promotions and private labels may be ascertained by identifying antecedents to them both. As

shown below.


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Value consciousness has been defined as a concern for paying low prices subject to some

quality constraint product value is often characterized as the ratio of the perceived quality

of a product divided by the price paid for that product.

For private label brands, promotional messages used by retailers often focus on encouraging

consumers to use product value as the determinant attribute in private label evaluations,

rather than absolute quality perceptions or quality inferences associated with national brand

names. It also has been suggested that where consumers balance price and quality there is a

more favorable attitude toward private labels. Thus, given the literature on price and value

relationship and empirical research that has identified value-related measures as

positively related to private label attitude; weconclude that consumer value consciousness

should directly and positively affect attitudes toward private label products.

(Source: Antecedents of private label attitude and national brand promotion attitude:

simi lar iti es and dif ferences Judith A. Garr etsona, Dan F isherb, Scot Bur tonc )


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Recent literature in business suggests three broad sets of reasons that potentially underlie

consumer receptivity to private label brands.

Attitude toward private label brands are associated with consumer orientation toward and

perception of price. For Eg. A consumer may view private lable products positively due to a

desire to pay low prices or a strong desire to maximize ratio of quality received to price paid.

1) Attitude towards private label product is related to consumer price perceptions. Specifically

private label attitude is a) positively related to price consciousness b) positively related to value

consciousness c) negatively related to price quality perception.

2) Attitude toward private label product is a) negatively related to brand loyalty b)negatively

related to risk averseness c)negatively related to impulsiveness d) positively related to smart

shopper self-perception.

3)Private label attitude is a)positively related t general deal proneness level of consumer b)morestrongly related to price related type of deal proneness(sale proneness, coupon proneness etc.)

c)positively related to consumer reliance on internal reference prices.


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4)Private label is positively related to percentage of private label purchases made on a shopping

trip and is able to explain variance in private label purchases beyond that explained by price

perception, deal perception and other marketing related constructs.

(Sour ce: A scale for measur ing attitude toward pri vate label products and examini ng of its

psychological and behavioral correlates, scot Burton, Donald R.Lichtenstein, Richard

G.Netemeyer, Judith A Garretson)

3.RESEARCH METHODOLOGY:

Type of research used: descriptive research

Data Collection:

i) Primary dataare originated by a researcher for the specific purpose of addressing the

problem at hand. The primary data source for this study is the questionnaire developed

for the customers of the stores and personal observation.

ii) Secondary dataare data which have already been collected for purposes other than

the problem at hand. These data can be located quickly and inexpensively. The

secondarydata sources used in the study are e-newspaper articles, online retail magazines

and journals and online databases like ebsco-host.

The research follows quantitative and qualitative approach.

Sampling Process:

Sample size: customer survey sample size of 50 customers each of Shoppers Stop, Lifestyle

and Pantaloon in Hyderabad.

Sampling Technique:


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Probabilistic Sampling for the customer survey will be followed.

4.LIMITATIONS:

The survey will be restricted to the stores of Hyderabad.

Due to time and money constraint the survey sample size is restricted to 150 for customer

survey.

5.ANALYSIS AND FINDINGS:

Analysis is based on the Questionnaire developed for customers (Appendix 2)

There were 68 percent female respondents and 32 percent male respondents.

Income bracket varied from Nil to 6.75 lakh per annum.

72 percent of respondents were unmarried and 28 percent were married.

Occupation of respondents:

Students

Professionals

Service class

lecturer


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1. How often do you visit the store?

Figure 1: The frequency of going to the store:

The survey reveals that 64 percent of respondents visit the stores once in a month, while 16

percent of them visit the store once in 2 weeks or during sale season.

This shows that majority of the people like to visit the stores monthly as well as once in 2 weeks

to make purchases of clothes and accessories and thereby stores offer something new to the

customer on a continuous basis and must have availability of stock. Also there are customers

who visit the stores during sale season and they would like to grab more during the discount

period.

once a week

4%

once in 2 weeks

16%

once in a month64%

only during sale

season

16%

Frequency

once a week

once in 2 weeks

once in a month

only during sale season


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2. Which of these labels do you recognize?

Figure 2: Recognition of labels

Out of the list of private labels of the 3 stores (Lifestyle, Shoppers Stop and Pantaloons) the most

recognized labels are:

John Millerof Pantaloons-80%

Stopof shoppers Stop -68%

Lifeand Gingerof lifestyle-64%

Kashishof Shoppers stop-56%

Mlangeof lifestyle-52%

84

24

42

60

78

48

102

60

30

96

120

36

96

30

24

60

66

0 20 40 60 80 100 120 140

kashish

maria zegnoti

vettorio fratini

fame forever

melange

ajile

stop

acropolis

forca

ginger

john miller

rig

life

push and shove

club hopper

junior

bare


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Many of the private labels of the stores of Pantaloons, Lifestyle and Shoppers Stop are

recognized by majority of respondents. 80% of the respondents have a very strong recognition

of John Millerof pantaloons, 68% of them recognize Stop of Shoppers Stop and 64%

recognize Life and Ginger of Lifestyle.

From this information we can infer that there is a substantial awareness of the private labels of

the stores among the customers of these stores and the leading private label of Pantaloons isJohn

Miller, of Shoppers Stop isStopandof Lifestyle areLife and Ginger.

3. How did you come to know about the private labels

Figure 3: Source of awareness

According to the data collected, 72 percent of respondents got to know about the private labels of

the store upon visiting the store wherein the store has display of names for every brand in

different sections allocated to each brand and the Visual merchandise of the store which has

many life size advertised posters of the brand.

16 percent of the respondents got aware about the private brand through advertisement, 8 percent

through word of mouth and 4 percent of them were unaware of such labels.

From the above information, we can infer that the private labels are not as widely advertised as

the national labels are and it could be act as a hindrance to its awareness.

word of mouth

8%

advertisement

16%

when you

visited the

store

72%

do not know

about these

labels

4%word of mouth

advertisement

when you visited the

store

do not know about these

labels


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4. Which labels of the above do you often purchase?

Bare

Stop

Mlange

Ginger

John Miller

Kashish

Out of all the private labels of the stores, majority of the customers buy Bare & John Miller of

Pantaloons; Stop & Kashish of Shoppers Stop and Mlange & Ginger of Lifestyle.

From the above information we can infer that the best seller private labels of these stores are :

Bare & John Miller from Pantaloons

Stop & Kashish from Shoppers Stop

Mlange & Ginger from Lifestyle

5. Rate the Quality of private label in comparison to a national label:

Figure 4: Quality comparison

0

42

36

60

6

0 10 20 30 40 50 60 70

Poor

Average

At par

Good

Excellent


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According to the figure above, 40% of the respondents rated the quality of private label in

comparison with the national label asgoodand 28% rated it as averageor fair as compared to

the national labels. 24% of respondents rated it at paror similar to the quality of national labels,

4% rated it excellentor more than satisfactory, while none rated it aspoor.

From the above information, we can infer that the quality of private labels does not exceed the

quality level of national labels, however it is satisfactory and customers are satisfied with it.

6. How do you find the pricing of private labels in comparison to national labels?

Figure 5: Comparison on price

As per the data collected, 46% of the respondents rated the pricing of private label in comparisonto national label as similar, 33% of them rated it as offering value for money, 13% rated it as

over-priced compared to national label and 8% of them rated it as cheaper compared to national

labels.

cheaper

8%

not much

difference

46%over

priced

13%

value for money

33%

comparison on price

cheapernot much difference

over priced

value for money


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We can infer that majority of respondents feel that they have to pay the same price for private

labels as they would for national labels followed by few others who feel that private labels are

value for money.

7. How do you find trends and designs available in private labels as compared to national labels?

Figure 6: Comparison on trends

As per data recorded above, 44% of respondents rated the designs and trends offered by private

labels as similar to the designs available in national labels, 24% rated the designs as better and

appealing than national label designs, 16% rated designs of private labels as basic and regular as

compared to national labels, while 12% rated them as latest and upcoming in comparison to

national labels.

We can infer that private labels offer similar designs as are also available in national labels.

18

66

36

0

24

0 10 20 30 40 50 60 70

Latest & Upcoming

Similar to National Labels

Better & Appealing

Poor & Outdated

Basic & Regular


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8. How do you find the deals on private labels in comparison to national labels?

Figure 7: Comparison on deals

As per the above information, 72% of respondents rated the private labels having better deals,

20% rated them as having poor discounts, 8% rated them as offering higher discounts, while

none rated them as having poor discounts as compared to national labels.

We infer that the private labels offer better deals to its customers in comparison to national

labels.

12

108

30

0

0 20 40 60 80 100 120

Higher Discounts

Better deals

Poor discounts

Poor deals


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9. Which store would you rather shop for private labels?

Figure 8: Store Preference

As per the above data, 48% of respondents prefer to shop at lifestyle, 28% of them prefer to shop

at Shoppers Stop, 16% prefer to shop at Pantaloons and 8% prefer to shop at other stores.

We can infer that majority of people prefer to shop at Lifestyle store.

10.a) Rank in order of your preference, the attributes you see while shopping

from a store, on a scale of 1 to 5: - Brand name, where 1=high , 5=least

Figure 9: Brand Name attribute

Lifestyle

48%

Shoppers

Stop

28%

Pantaloons

16%

Any other

8%

Store preference

Lifestyle

Shoppers Stop

Pantaloons

Any other

60

30

30

18

12

0 10 20 30 40 50 60 70

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5


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As per the above data, respondents rank the brand nameattribute as follows:

Rank 1- 40%

Rank 2-20%

Rank 3-20%

Rank 4-12%

Rank 5-8%

We infer that, the attribute of brand name is very important consideration for the

customers before purchasing or shopping from these stores.

10.b) Rank in order of your preference, the attributes you see while shopping

from a store, on a scale of 1 to 5: - Price

Figure 10: price attribute

As per the above data, respondents rank thepriceattribute as follows:

Rank 1- 12%

Rank 2- 28%

Rank 3-32%Rank 4-12%

Rank 5-16%

18

42

48

18

24

0 10 20 30 40 50 60

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5


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We infer that, the attribute of price is not the most important consideration but a fairly

important consideration for the customers before purchasing or shopping from these

stores.

10.c)Rank in order of your preference, the attributes you see while

shopping from a store, on a scale of 1 to 5: - Quality

Figure 11: Qulaity attribute

As per the above data, respondents rank the Qualityattribute as follows:

Rank 1- 52%

Rank 2-12%Rank 3-4%


We infer that, the attribute of quality is of prime consideration for the customers before

purchasing or shopping from these stores.

78

18

6

18

30

0 10 20 30 40 50 60 70 80 90

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5


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10.d)Rank in order of your preference, the attributes you see while shopping from

a store, on a scale of 1 to 5: - Design and Trend of the product

Figure 12: design and trend of product attribute

As per the above data, respondents rank the design or trendattribute as follows:

Rank 1- 24%

Rank 2-24%


Rank 5-12%

We infer that, the attribute of design or trend is a fair but not important consideration

for the customers before purchasing or shopping from these stores.

36

36

18

42

18

0 5 10 15 20 25 30 35 40 45

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5


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10.e)Rank in order of your preference, the attributes you see while

shopping from a store, on a scale of 1 to 5: - Deals offered

Figure 13: price attribute

As per the above data, respondents rank the deals offered attribute as follows:

Rank 1- 8%


Rank 4-28%

Rank 5-12%

We infer that, the attribute of brand name is not the most important consideration but it is fairly

important consideration for the customers before purchasing or shopping from these stores.

6.RECOMMENDATIONS:

Stores like Shoppers Stop, Lifestyle and Pantaloons should focus on advertising and

creating more awareness about their private labels which have potential to give good

competition to national labels like John Miller (Pantaloons), Stop (Shoppers Stop) and

Ginger (Lifestyle).

12

36

42

42

18

0 5 10 15 20 25 30 35 40 45

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5


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These private labels must focus on brand building activities for potential brands.

Private labels should strengthen on attributes like quality and brand name in order to

compete with the national brands. These attributes are the given prime importance

before making a purchase. Also these brands must offer competitive prices to attract

more customers.

7. CONCLUSION:

Customers are aware of the private brands and frequently purchase these brands. Private labels

are competing with national brands on providing better deals and lesser prices with similar

quality and designs as found in national labels. These labels have potential to give goodcompetition to the national brands and must focus on brand building activities. They are growing

in awareness but are yet to be accepted by the Indian Customer.


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8. BIBLIOGRAPHY:

1. Pri vate Label Strategy, har vard Business school pressBoston, Massachusetts,Ni rmalya Kumar and Jan-Benedict E . M . Steenkamp.http://hbr.org/products/1673/1673p4.pdf

2. Time to change lanes, Images Retai l Report 20093.

4. h

http://www.dnaindia.com/money/report_retail-majors-sold-on-private-labels_1244594

5. Corporate Tr endsPri vate labels seeing strong growth i n popular ity: Nielsen Study Feb 21,2011

http://m.economictimes.com/PDAET/articleshow/msid-7331249,curpg-2.cms

6. Pri vate labels are back in fashion, Walter J. Salmon and Karen A.Cmar

7. I s private label pr icing the way to go? , W. Frank Dell I I , CMC8. Antecedents of pri vate label atti tude and national brand promotion attitude:

simi lar iti es and dif ferences Judith A. Garr etsona, Dan F isherb, Scot Bur tonc

9. A scale for measur ing attitude toward pri vate label products and examin ing of i tspsychological and behavioral corr elates, scot Bur ton, Donald R.Lichtenstein , Richard

G.Netemeyer, Judi th A Gar retson

A thri fty l if estyle,

Bhupesh Bhandari & Sayantani Kar / New Delhi/ Mumbai August 9, 2010,

0:49 IST

http://www.business-standard.com/india/news/a-thrifty-lifestyle/403903/

Retai l majors sold on pr ivate labels

Publi shed: Thur sday, Apr 2, 2009, 2:37 I ST

By Shailaja Sharma | Place: Mumbai | Agency: DNA
http://hbr.org/products/1673/1673p4.pdfhttp://hbr.org/products/1673/1673p4.pdfhttp://www.dnaindia.com/money/report_retail-majors-sold-on-private-labels_1244594http://www.dnaindia.com/money/report_retail-majors-sold-on-private-labels_1244594http://m.economictimes.com/PDAET/articleshow/msid-7331249,curpg-2.cmshttp://m.economictimes.com/PDAET/articleshow/msid-7331249,curpg-2.cmshttp://www.business-standard.com/india/news/a-thrifty-lifestyle/403903/http://www.business-standard.com/india/news/a-thrifty-lifestyle/403903/http://www.business-standard.com/india/news/a-thrifty-lifestyle/403903/http://m.economictimes.com/PDAET/articleshow/msid-7331249,curpg-2.cmshttp://www.dnaindia.com/money/report_retail-majors-sold-on-private-labels_1244594http://hbr.org/products/1673/1673p4.pdf


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9. APPENDIX:

Appendix 1:

TABLE 1


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Appendix 2

Customer Survey Questionnaire

A survey on Private labels and National labelsDear Sir/ Madam, I, Upasana Virmani am a student of NIFT, Hyderabad, pursuing masters offashion management. I am doing a research project on private labels and national labels ofPanataloons, Shoppers Stop and lifestyle. There is a small questionnaire in that regard. Kindlyfill it up. Thank you for your time.* Required

Name *

age *

Gender *

Occupation *

Marital status

Income

1. How often do you visit the store? *frequency of going to the store

Once a week

Once in 2 weeks

Once in a month

Only during sale season


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2.Which of these labels do you recognize? *

kashish

maria zegnoti

vettorio fratini

fame forever

melange

ajile

stop

acropolis

forca

ginger

john miller

rig

life

push and shove

club hopper

junior

bare

3.How did you come to know about the private labels

word of mouth

advertisements

when you yourself visited the store

I do not know about such labels

4.Which labels of the above do you often purchase?


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5.Rate the Quality of private label in comparison to a national label:comparison of private labelas comared to national label

Poor

Average

At Par

Good

Excellent

6.How do you find the pricing of private labels in comparison to national labels:price of prvt labelin comparison to national label

cheaper

Not much difference in price

Over pricedvalue for money

7.How do you find trends and designs available in private labels as compared to national labels:

Latest and upcoming designs

Similar to the designs available in national labels

Better and appealing designs than national labels

Poor and outdated designs

Basic and regular designs

8.How do you find the deals on private labels in comparison to national labels:

Higher discounts

Better deals

Poor discounts

Poor deals

9.Which store would you rather shop for private labels at:

Lifestyle

Shoppers Stop

Pantaloons

Any other


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10. Rank in order of your preference, the attributes you see while shopping from a store, on ascale of 1 to 5:1= highest preference, 5= lowest preference

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Brand name

Price

Quality

Design or trend of

product

Deals offered

Documents

ANALYSIS of Minor Project Data Collected