PRIVATE LABEL AT ASDA

Private Label At Asda

Private Label At Asda

Private label and customer satisfaction at ASDA

Satisfaction is generated when the customer's perceived value meets or exceeds his/her expected value. Satisfaction advances the relationship to the subsequent stages through repeated purchases and this serves to enhance the perception of the supplier's reliability. Such advances strengthen the positive attitude towards the supplier (also defined as trust) and allow the development of the relationship towards loyalty (Bitner 1995; Chaudhuri and Holbrook 2001). Over the past decade, ASDA use manufacturer brands to generate consumer interest, patronage, and loyalty in a store. With the growth of competition, ASDA compete with manufacturers for consumer pull to increase their relative market power and their share of the total channel profit pie (Steiner, 1993).

In doing so, the rise of the retailer as a brand is one of the most important trends in retailing. Private label strategy can help ASDA attract customer traffic and create loyalty to the store by offering exclusive product lines and premium products (Corstjens and Lal, 2000). In addition, Private label strategy can help project a lower-price image for ASDA, increase their bargaining power over manufacturers and producers of major national brands, and lead to increased control over shelf space (Dunne and Narasimhan, 1999). With the overwhelming success of some private labels in European retail (e.g. Marks and Spencer, Asda, Tesco, Carrefour) and the popularity of President's Choice private label in Canada, strong retail brands have become the source of intense interest (Wileman and Jary, 1997). Some analysts expect that close to 50% of all EU grocery sales will be represented by the top ten ASDA by 2005. Therefore, the cumulative power carried by these ASDA and their store brands is significant (Lepir, 2001).

Marketing Tools Promoting Private Labels

Research shows the vast majority of consumers already believe the quality of store brands is equal to--or better than--the quality of national brands. This belief will only become more widespread as private label offerings continue to close the performance gap with branded players. It behooves you to carefully source products that meet the high standards you wish to provide to your customers. Selecting suppliers who are willing to go the extra mile, working with you in terms of support, marketing, merchandising and other key elements of sellthrough. Your business supports them, make sure they are doing the same for you.

Ensuring every product in your planogram contributes ...