8/8/2019 Business PCL I Mkt Branding Retailing in Changing Economic Environment Module Assignment 1

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Assessment Front Sheet

IMPORTANT: Your assignment will not be accepted without the FRONT SHEET.

Campus: Stream:

Level: PCL-1 Year/Semester

Module Name: B&RCEE Assignment Type: Module Assignment

Student’s Name: Assessor’s Name:

ssued on:Reqd. Submission

Date:

Actual Submission Date: Submitted to :

Higher Level Skills

Students are expected to develop the following skills in this assignment:• Cognitive skills of critical thinking, analysis and synthesis.

• Effective use of communication and information technology for business applications.

• Effective self-management in terms of planning, motivation, initiative and enterprise.

Certificate by the Student:

Plagiarism is a serious College offence.I certify that this is my own work. I have referenced all relevant materials.

 _____________________ 

(Student’s Name/Signatures)

EXPECTED OUTCOMES Assessment Criteria – To achieve each

outcome a student must demonstrate the

ability to :

Achieved

(Y/N)

To understand the private label exercise in building

brand image 

Ability to understand on label retail branding

To understand the pricing issue vis a vis market shareanalysis

Ability to understand the pricing decision

making criteria

Assignment Grading Summary (To be filled by the Assessor)

Grades Grade DescriptorsAchieved Yes/No

(Y / N)

P A Pass grade is achieved by meeting all the requirements defined.

M1 Identify and apply strategies to find appropriate solutions.M2 Select/design and apply appropriate methods/techniques.

M3 Present and communicate appropriate findings.

D1Use critical reflection to evaluate own work and justify valid

conclusions.

D2Ability to anticipate and solve complex tasks in relation to the

assignment.

D3 Demonstrate convergent, lateral and creative thinking.

OVERALL ASSESSMENT GRADE:

TUTOR’S COMMENTS ON

ASSIGNMENT:SUGGESTED MAKE UP PLAN

(applicable in case the student is asked to re-do

the assignment)

REVISED ASSESSMENT GRADE

TUTOR’S COMMENT ON REVISED WORK 

(IF ANY)

Date: Assessor’s Name / Signatures:

8/8/2019 Business PCL I Mkt Branding Retailing in Changing Economic Environment Module Assignment 1

http://slidepdf.com/reader/full/business-pcl-i-mkt-branding-retailing-in-changing-economic-environment-module 2/2

Case Study

Own – label retail branding

A third prong of retailer power, after bigger shops and computerized control of distribution, is

own label (known as private label in America). As margins drop and competition intensifies,

retailers are becoming ever more aware that selling goods under their own brand – name has twoimportant advantages. The first is that own brands provide fatter margins. The cost of goods

typically makes up 70-85% of a retailer’s total costs: anything it can shave off that cost must be

good business. The second benefit is that own-label goods strengthen a retailer’s image with itscustomers. Since shops the world over increasingly look the same, exclusive products can make

a helpful difference. Own label is most developed in Britain where Marks and Spencer is unique

among large international retailers in selling only own- label goods- and in food retailing. Itaccounts for close to 60% of sales at Sainsbury supermarket chain. Own label has helped British

food retailers to achieve profit margins averaging 8% of sales which is high by international

standards: a typical figure in France and the United States is 1-2 %. Britain’s lead in own-labelgoods goes back a long way. Retail co- operative societies pioneered own label during the 19 th

century. Around the turn of the century Sainsbury began setting up its own farms and food

 processing plants to ensure quality and value for its customers as well as higher profits. Weak 

trade- mark legislation has allowed British supermarkets to sell close copies of manufacturers’ brands. In a relatively small, cohesive market food retailing soon became concentrated in a few

large hands.

But own label is no longer just a British phenomenon. Across Europe, its share of food retailers’

sales is rising steadily. This trend has further to go: for example, Promotes, a large French food

retailer, plans to boost its own-label sales from 17% to 26 % of its total turnover in the next twoyears. And supermarkets’ own –label products are now challenging some of the world’s most

 powerful brands. In America, private label was long regarded as a cheap and nasty generic

substitute for the real thing, rolled out by retailers during recessions and discarded once the

economy picked up again. But no longer is that so. Private- label good’s share of totalsupermarket sales of packaged groceries increased to 19.7% by volume in 1993, from 15.3% in

1988, according to IRI, a market research firm. Just as importantly, the growth came from

 premium private label- goods that compete in quality with manufacturers’ top brands; the shareof cheap generics is tiny and declining. Several American supermarket chains have decided to

increase or upgrade their private- label programmes, and some of the industry’s largest firms are

making the fastest progress. Mark Husson, of JP Morgan Securities, a stock broker, reckons that by the end of the decade private label will account for 27% of American supermarket sales.

Questions:

Q1. Explain the position of super markets in deciding the quality generics in private label

goods.

Q2. Explain the role of distribution in own-label retail branding.

Q3. What role does volume play in building brand personality?