FUTURE OF BRANDED PRODUCTS VS PRIVATE LABEL PRODUCTS

The Future of Branded Products Vs Private Label Products

ABSTRACT

The aim of this study therefore is to determine the propelling factors responsible for the growth of the Private Labels and to determine if in any way this trend posses a threat to the manufacturers brands. If for instance we understand the consumer behaviors responsible for the growing trends in Own Labels, retailers will be able to better focus their efforts in creating more categories to reach this target market. Current research on brand alliances has focused primarily on alliances between two known, branded products. However, there is significant benefit to both parties in an alliance between a Branded Products and a private brand. Such alliances are gaining importance in the industry but have not been studied by marketers. The basic question explored in this study is whether using a Branded Products ingredient can benefit a private brand without hurting the Branded Products. First, a theoretical framework to explain how consumers may react to such an alliance is presented. Next, an experiment was conducted which showed that a private brand with a name brand ingredient was evaluated more positively. However, the evaluation of the Branded Products was not diminished by this association. Implications and future research directions are discussed.

Table of Content

ABSTRACTii

CHAPTER 1: INTRODUCTION1

Problem Statement1

Rationale1

Aims2

Significance3

Hypothesis3

Theoretical Framework4

Limitation of the Study4

Assumptions & Limitation5

Ethical Concern6

Reliability7

Validity7

Time Line8

CHAPTER 2: LITERATURE REVIEW9

Evaluation9

Large Investments Brand10

Corporate (Store) Image13

No New Product15

Private Brands And Ingredient Branding16

Growth of private brands16

Theory And Model Development18

Concept Combination Theory And Ingredient Branding18

Concept specialization model18

Attitude Accessibility Theory And Ingredient Branding19

Attitude to alliance product19

The Subtyping Model And Ingredient Branding20

Favorable Evaluation20

Attribution Theory and Ingredient Branding21

Consensus21

Main Effects22

CHAPTER 3: METHODOLOGY28

Research Design28

Sample28

Instrument (interview/ Questionnaire)29

Different Visual Stimuli30

Variable31

Data Collection Method32

Measures32

CHAPTER 4: ANALYSIS34

Manipulation Check: Effectiveness of Manipulation34

Hypotheses 1 and 234

Differences For Dependent Variables35

Value Perceptions36

Effects Of Private Brand Association36

An Important Consideration37

Directions For Future Research38

Development Of Theory39

Ingredient Branding - A Good Thing All Round39

Is There A Down Side To Ingredient Branding For The Host?40

Won't A Bad Host Damage The National Ingredient Brand?41

Some Thoughts About Private Label Brands42

CHAPTER 5: CONCLUSION44

Future Research45

REFERENCES46

BIBLIOGRAPHY57

APPENDICES59

FIGURE59

QUESTIONNAIRE60

TABLES62

CHAPTER 1: INTRODUCTION

Problem Statement

My proposed study intends to investigate brands in a more specific manner, looking at Fast Moving Consumer Goods (FMCG). All around the UK and other Western Countries in Europe and United States, brands in FMCG have dominated the marketplace for decades to the delight of millions of consumers, offering them value for their daily needs. According to a Keynote report Private Labels also known as Own Labels grew from 39.3% in 2004 to 42.3% in 2008 of the total FMCG products sold in the UKb, this indicates a significant 3% market share growth, moreover, Keynote forecasts that Private labels will grow to 48% by 2013b. By definition, Private Labels also known as Own Labels or Retailers labels are products that carry the names of the retailers' selling them as opposed to the names of the manufacturers, on the product labels. Private Labels have grown rapidly over the past three decades, and was worth about ...