manufacturer brands to create an image and establish a positioning for theirstores, generating consumer interest, patronage, and loyalty. Rather the imageand equity of many a regional retailer brands has been overly dependent on thebrand equity of the manufacturer brands i.e. it is the manufacturer brands are the“ingredient brands” that influence consumer pull, often much more than theretailer brand does.Stores in the region can be categorized on two extremes. At one end are a lot ofdomestic retailers like Jumbo, Rivoli, Jashanmal, Paris Gallery, Salams, GrandStores, Rodeo Drive, etc, who are multi-brand retailers, and have developed theirown brand identity based upon strenuously developing brands they carry. On theother end are home grown domestic retail brands like The One, Home Center,and Nayomi that offer own sourced value-priced merchandise, and are notdependent upon manufacturer brands for their brand equity. Many otherdomestic retailers like Damas, Jumbo, Hour Choice, Al Futtaim Electronics, andSplash, and international retailers like Carrefour not only carry manufacturerbrands and but have also developed their own brands (e.g. Damas – Damas,Jumbo – Supra, Hour Choice – Cruiser, Continental, Al Futtaim – Aftron, Splash – Ms, Zync, Nexus). Retailers who have launched private label products havedone so either under their own unique brand names (like Splash) or under theretail brand name (Damas). This approach allows the retailer to differentiate itsofferings from competing retailers, although often without the support affordedmanufacturers brands. International retailers like Zara, Mexx, Massimo Dutti,Gap, Ikea, etc lie outside this categorization. They design, manufacture (orsource) and market their own merchandise, and use pricing, style, color, andassortment to create brand strength. In the case of fashion clothing, brands areessential to image. In other retail sectors, the influence is less so.
Price and promotions
Price and promotions go hand-in-hand in influencing retailer brand pricepositioning image. Price of a product represents in tangible terms what must begiven up to acquire a product, and directly influences consumer perception ofretailer image and store choice behavior. A retailer’s price image is influenced byfactors like average level of prices, extent of price variation over time, frequencyand extent of promotions, and level of store service. Consumers develop generalprice perceptions of products in a store, and use that to evaluate whether or notthe store is expensive in relative terms compared to other stores. This perceptionis not static, and changes based upon how frequently a store offers a priceadvantage on a set of products through promotions, and the magnitude of theprice advantage.Retailers often use promotions involving price discounts (increasing customerperception of value) to increase store traffic and stimulate purchase. Retailersdesire to attract customers through discounting is at odds with the effort tomaintain store margins. Price promotions and discounting also has the potential