Private Labels Final

8/9/2019 Private Labels Final

1/16


2/16

Table of Contents

Topic Pg No

Executive Summary 04

Introduction 05

Research 07

Limitations 08

Findings 09

Conclusion 12

Bibliography 13

Questionnaire 14

2


3/16

ACKNOWLEDGEMENT

We would like to thank Prof: Mr. Bhattacharya for giving us this opportunity to work

on a topic which would reflect latest trend, working on such a current issues was a

good learning experience.

We also like to thank all the respondents for their valuable time, and in helping us

with their responses without which the project would not have been possible.

3


4/16

EXECUTIVE SUMMARY

In India the growth of private labels have been phenomenon and is slowly gaining

more store space. According to a FICCI-Ernst & Young 2007 report, as quoted in

The Marketing Whitebook 2009-10, the retail sector in India was worth $280 billion,

of which organized retail comprised 5% at $14 billion.

This study focuses on Consumer Beliefs, Attitude and motivation towards Private

Labels. The study gives an insight into the different attributes and parameters

considered by consumer for evaluating a in store brand.

Consumer beliefs of Private labels across various categories reflecting onpurchasing pattern were also discovered which emphasized on the key opportunity

category for private labels and also addressed the category on which private labels

needed to work upon.

To accomplish the task, a survey was carried in and around Mumbai city (retail

outlets) with a sample of 20 respondents taken on a random basis approaching the

customers who walked in retail outlets. A structured questionnaire was prepared

and administered and the data so collected was analyzed both by percentages andstatistical methods.

Though, private labels at present constitute about 5% of the organised retail

business, experts feel they can grow up to 30% once retail brands develop in the

country.

4


5/16

INTRODUCTION

Brands owned not by a manufacturer or producer but by a retailer or supplier who

gets its goods made by a contract manufacturer under its own label are calledPrivate Brands.

Private label certainly is the talk about town these days. Private label, after all, is no

new kid on the block. Retailer brands after all, have been hanging around national

name brands for more than a couple of decades. The question was never a matter

of if as much as when private label would evolve to seriously threaten national name

brand dominance and primary share of shelf space.

In India, the growth of store brands is a function of increasing retail sophistication.

Large-format, modern retail stores (known as the "organized" retail sector) -- as

opposed to smaller, traditional "mom and pop" stand-alone stores -- are presently

only a small portion of total retail in the country.

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 Spencer'shave a penetration of 20% and 10% respectively.

Nearly 40-50% of the store space are dedicated to store brands,these products

share the shelf space with other branded products.For example, in the Reliance

store its curd brand Dairy Life was placed next to the other brands, such as Amul.

This is especially true for apparel, Shoppers Stop has several in-house brands.

Women's wear category itself it has STOP, Kashish, Remika etc Similarly, in the

mens wear category, it has STOP, Life, Vettorio Fratini, and so on .These products

are not differentiated from the other brands in terms of store space. These products

are priced substantially lower than the other brands.

5


6/16

Consumers today acknowledge that private labels have the ability of creating

unique, resonant benefit propositions for consumers.

The question is whether private label brands have come far enough in the minds of

consumers for these brands to compete as legitimate brands in their own right.

From the consumer perspective, private labels have closed the gap with national

brands. Consumers believe private labels are identical to national name brands

and almost 50% see them as close but not yet on par with name brands.

About one in 10 consumers believe private labels are better or superior to

national brands. Only 5 percent of consumers perceive private labels to be inferior

to national brands.

6


7/16

RESEARCH

PROBLEM STATEMENT

The retailer desires to understand consumers approach their beliefs and attitudetowards In Store brands which can help them in better positioning and designing

marketing strategies to accelerate sales of their consumer attitudes, beliefs about

private labels what are the key aspects that motivates customers to go for Private

labels visa vis Brands.

OBJECTIVE OF THE STUDY

To understand Consumer attitudes, beliefs about private labels what are the keyaspect that motivates customers to go for Private labels visa vis Brands.

IMPORTANCE OF THE STUDY

Besides understanding Customers views on private labels and what are aspects

they consider before purchasing private labels we also came to know about the

threats or competition faced by Brands due to increasing private labels.

METHODOLOGY

1. Research Design: The chosen research design was Descriptive Cross

Sectional Study

2. Sources of Data: Primary Data

3. Data Collection Technique: Survey

4. Data Collection tool: Questionnaire (attached)

SAMPLE DESIGN

1. Sample Procedure: Convenience Sampling

2. Sample Frame: The respondents were working professionals &

housewives between the age group of 25-50 years.

3. Sample Size: The study was conducted based on sample size of 20.

7


8/16

LIMITATIONS OF THE STUDY

The customers study was conducted only in Mumbai city. The results

therefore are confined to this area only and need not necessarily be applicableto other areas.

The sample size of the customers was small, so it was not able to convey the

attitude of the customers

Respondents might have some biased views and this could have affected the

findings to a certain extent

In the questionnaire, questions are very limited, because it is very difficult to

get the information from the busy officials.

8


9/16

FINDINGS

Demographic:

9


10/16

Preference towards the brand available

Attributes towards brand in terms of importance

10


11/16


12/16


13/16

BIBLIOGRAPHY

Website:

www.business.in.com

www.dare.co.in

www.ibef.org

www.knowledge.wharton.upenn.edu

www.naturalproductsinsider.com

13
http://www.business.in.com/http://www.dare.co.in/http://www.ibef.org/http://www.knowledge.wharton.upenn.edu/http://www.naturalproductsinsider.com/http://www.business.in.com/http://www.dare.co.in/http://www.ibef.org/http://www.knowledge.wharton.upenn.edu/http://www.naturalproductsinsider.com/


14/16

Consumers approach towards Private Labels

1.

Name

2. Gender

Male

Female

3. Age

20yrs- 25 yrs

25yrs-35yrs

35-50 yrs

Above 50yrs

4. Marital Status

Married

Single

5. Occupation

Housewife

Service

Business

Profession

6. Monthly disposable income

Below Rs 25000

Rs 25000-50000

Above Rs 50000

14


15/16

7. What do you shop, how often?

Daily Weekly Bimonthly Monthly Occassional

Vegetables

Grocery

FMCG (Toiletries,Detergents etc.)

Garments

Electronics

8. Are you Brand conscious?

Yes No At times

9. If No, have you tried the stores in-house products?

Yes No

10.Your preference towards the brands available should be

stronglydisagree

disagreeModerately

agreeagree

stronglyagree

excellent quality

value-for-money

not risky to buy

are fresh

excellent packaging

are healthy

are prestigious

an excellent image

15


16/16

11.Rate the below attributes on the scale of 1 5. (5 - Very important & 1 - Not Important).

Brand Image

Prestiguous

Healthy

Packaging

Fresh

Risk-Free

Value for Money

Quality

12.Which among the below factor can help induce trial for an In House Brand.

Price Discount Add ons at the same price Promotions Others

13. In case you were to try an In store brand which category you would prefer among thebelow and Why?

Food Products Apparels Electronic appliances others

_______________________________________________________________________

14. Give any other experience or factor that makes you prefer private label products

16

Documents

Private Labels Final