Marketing Research To study the Consumers approach towards Private Labels

Table of Contents

Topic Executive Summary ntroduction "esearch Limitations %indin&s Conclusion *iblio&raphy ,uestionnaire

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ACKNOWLEDGEMENT
-e would li.e to than. Pro/0 1r2 *hattacharya /or &ivin& us this opportunity to wor. on a topic which would re/lect latest trend3 wor.in& on such a current issues was a &ood learnin& experience2 -e also li.e to than. all the respondents /or their valuable time3 and in helpin& us with their responses without which the pro4ect would not have been possible2

EXECUTIVE UMMA!"

n ndia the &rowth o/ private labels have been phenomenon and is slowly &ainin& more store space2 5ccordin& to a % CC 6Ernst 7 8oun& )00# report3 as 9uoted in The 1ar.etin& -hiteboo. )00'6(03 the retail sector in ndia was worth :)$0 billion3 o/ which or&ani;ed retail comprised !< at :(4 billion2 This study /ocuses on Consumer *elie/s3 5ttitude and motivation towards Private Labels2 The study &ives an insi&ht into the di//erent attributes and parameters considered by consumer /or evaluatin& a in store brand2 Consumer belie/s o/ Private labels across various cate&ories re/lectin& on purchasin& pattern were also discovered which emphasi;ed on the .ey opportunity cate&ory /or private labels and also addressed the cate&ory on which private labels needed to wor. upon2 To accomplish the tas.3 a survey was carried in and around 1umbai city =retail outlets> with a sample o/ )0 respondents ta.en on a random basis approachin& the customers who wal.ed in retail outlets2 5 structured 9uestionnaire was prepared and administered and the data so collected was analy;ed both by percenta&es and statistical methods2 Thou&h3 private labels at present constitute about !< o/ the or&anised retail business3 experts /eel they can &row up to +0< once retail brands develop in the country2

INT!ODUCTION
*rands owned not by a manu/acturer or producer but by a retailer or supplier who &ets its &oods made by a contract manu/acturer under its own label are called Private *rands2 Private label certainly is the tal. about town these days2 Private label3 a/ter all3 is no new .id on the bloc.2 "etailer brands a/ter all3 have been han&in& around national name brands /or more than a couple o/ decades2 The 9uestion was never a matter o/ i/ as much as when private label would evolve to seriously threaten national name brand dominance and primary share o/ shel/ space2 n ndia3 the &rowth o/ store brands is a /unction o/ increasin& retail sophistication2 Lar&e6/ormat3 modern retail stores =.nown as the ?or&ani;ed? retail sector> 66 as opposed to smaller3 traditional ?mom and pop? stand6alone stores 66 are presently only a small portion o/ total retail in the country2 Private label brands constitute (06()< o/ or&ani;ed retail in ndia3 @/ this3 the hi&hest penetration o/ private label brands is by Trent at '0<3 /ollowed by "eliance at $0< and Pantaloons at #!< 2*i& retailers such as Shoppers Stop and SpencerAs have a penetration o/ )0< and (0< respectively2 Bearly 406!0< o/ the store space are dedicated to store brands3these products share the shel/ space with other branded products2%or example3 in the "eliance store its curd brand Cairy Li/e was placed next to the other brands3 such as 5mul2 This is especially true /or apparel3 Shoppers Stop has several in6house brands2 -omenAs wear cate&ory itsel/ it has ST@P3 Dashish3 "emi.a etc Similarly3 in the mens wear cate&ory3 it has ST@P3 Li/e3 Eettorio %ratini3 and so on 2These products are not di//erentiated /rom the other brands in terms o/ store space2 These products are priced substantially lower than the other brands2

Consumers today ac.nowled&e that private labels have the ability o/ creatin& uni9ue3 resonant bene/it propositions /or consumers2 The 9uestion is whether private label brands have come /ar enou&h in the minds o/ consumers /or these brands to compete as le&itimate brands in their own ri&ht2 %rom the consumer perspective3 private labels have closed the &ap with national brands2 Consumers believe private labels are FidenticalG to national name brands and almost !0< see them as FcloseG but not yet on par with name brands2 5bout one in (0 consumers believe private labels are FbetterG or FsuperiorG to national brands2 @nly ! percent o/ consumers perceive private labels to be Fin/eriorG to national brands2

!E EA!C#
P!O$LEM TATEMENT The retailer desires to understand consumers approach their belie/s and attitude towards n Store brands which can help them in better positionin& and desi&nin& mar.etin& strate&ies to accelerate sales o/ their consumer attitudes3 belie/s about private labels what are the .ey aspects that motivates customers to &o /or Private labels visa vis *rands2 O$%ECTIVE O& T#E TUD" To understand Consumer attitudes3 belie/s about private labels what are the .ey aspect that motivates customers to &o /or Private labels visa vis *rands2 IMPO!TANCE O& T#E TUD" *esides understandin& Customers views on private labels and what are aspects they consider be/ore purchasin& private labels we also came to .now about the threats or competition /aced by *rands due to increasin& private labels2 MET#ODOLOG" (2 !esea'c( Design) The chosen research desi&n was Cescriptive Cross Sectional Study )2 o*'ces of Data0 Primary Cata +2 Data Collection Tec(ni+*e0 Survey 42 Data Collection tool) ,uestionnaire =attached> AMPLE DE IGN (2 a,ple P'oce-*'e0 Convenience Samplin& )2 a,ple &'a,e0 The respondents were wor.in& pro/essionals 7 housewives between the a&e &roup o/ )!6!0 years2 +2 a,ple i.e0 The study was conducted based on sample si;e o/ )02
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LIMITATION O& T#E TUD"

The customers study was conducted only in 1umbai city2 The results there/ore are con/ined to this area only and need not necessarily be applicable to other areas2 The sample si;e o/ the customers was small3 so it was not able to convey the attitude o/ the customers "espondents mi&ht have some biased views and this could have a//ected the /indin&s to a certain extent n the 9uestionnaire3 9uestions are very limited3 because it is very di//icult to &et the in/ormation /rom the busy o//icials2

&INDING

Cemo&raphic0

 Pre/erence towards the brand available

5ttributes towards brand in terms o/ importance

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 %actors that can help induce in6house brand

Product Cate&ory pre/erence

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CONCLU ION
"etailers in ndia are spurrin& consumersA decision6ma.in& by expandin& the scope o/ private labels2 ?%or most consumers3 a private label is 4ust another brandG3 Hence3 there has been a steady &rowth especially in the cate&ories where consumers have less loyalty to better6.nown or promoted brands are the cate&ories where n store brands are pic.in& up2 Private label brands have come /ar enou&h in the minds o/ consumers /or these brands to compete as le&itimate brands in their own ri&ht2 %rom the consumer perspective3 private labels have closed the &ap with national brands2 Consumers believe private labels are FidenticalG to national name brands and almost !0< see them as FcloseG but not yet on par with name brands2 Private labels matter /or hi&her &ross mar&ins to retailers and also help in di//erentiatin& them a&ainst other retail outlets2 Hence retailers are adoptin& di//erent mar.etin& strate&ies to maximi;e sales and are &ivin& a direct competition to established manu/acturin& brands2 t could be concluded that Private labels are here to stay3 and will be dominate !0< o/ the retail mar.et2

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Cons*,e'2s app'oac( to/a'-s 3P'i4ate Labels2

(2 Bame )2 Iender 1ale %emale +2 5&e )0yrs6 )! yrs )!yrs6+!yrs +!6!0 yrs 5bove !0yrs 42 1arital Status 1arried Sin&le !2 @ccupation Housewi/e Service *usiness Pro/ession J2 1onthly disposable income *elow "s )!000 "s )!0006!0000 5bove "s !0000

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#2 -hat do you shop3 how o/tenK Caily Ee&etables Irocery %1CI =Toiletries3 Ceter&ents etc2> Iarments Electronics

-ee.ly

*imonthly

1onthly

@ccassional

$2 5re you *rand consciousK 8es Bo 5t times

'2 / Bo3 have you tried the stores in6house productsK 8es Bo

(02 8our pre/erence towards the brands available should be stron&ly disa&ree excellent 9uality value6/or6money not ris.y to buy are /resh excellent pac.a&in& are healthy disa&ree 1oderately a&ree a&ree stron&ly a&ree

are presti&ious

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an excellent ima&e

((2 "ate the below attributes on the scale o/ ( L !2 =! 6 Eery important 7 ( 6 Bot mportant>2 *rand ma&e Presti&uous Healthy Pac.a&in& %resh "is.6%ree Ealue /or 1oney ,uality

()2 -hich amon& the below /actor can help induce trial /or an n House *rand2 Price Ciscount 5dd ons at the same price Promotions @thers

(+2 n case you were to try an n store brand which cate&ory you would pre/er amon& the below and -hyK %ood Products 5pparels Electronic appliances others

MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM

14. Iive any other experience or /actor that ma.es you pre/er private label products

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