-: Paper Title :-

A comparative study of Consumers Attitude towards Private

Label Brands and National Brands
Prepared by:
Mr. Nailesh Limbasiya
R K University Rajkot
!!R"##:
$Brahamani Krupa
!ha"ti Na#ar !ociety
$avadi %in# %oad Choc"
B&' %adhi"a %estaurant
%a("ot )*+,,,-
Ph. No. %&'()*&+&(
"mail: nailesh.limbasiya,rk-.a..in

$ .omparative st-dy o/ 0ons-mer1s ttit-de to2ards
Private Label 3rands and National 3rands4
bstra.t:
.lobally /ndia is reported fifth lar#est retail mar"et #rowin# with 01percenta#e per annum2 3otal
si4e of /ndian retail industry is around /N% 0+ 3rn 5%A!C/ 6,0072 /t is the lar#est industry in
/ndia and contributin# around 0, percenta#e of the /ndias .892 8ue to chan#e in per capita
income and spendin# with #rowth in income chan#in# lifestyle etc2 it is e:pected to #row 61 ;
yearly2 3his industry provide second lar#est employment i2e2 around 0, ;2 <ith the #rowth of
service sectors and improvin# the industrial output in /ndia has set the sustainable #rowth of this
industry2
3he paper captures consumer attitude towards private store brand versus private national brand
while purchasin# #oods from the store2 3he paper also attempts to study the future prospects of
private label for store owner and future threats for private national brands2 3he study captures
consumer attitude towards five attributes vi42 =uality price ris" pac"a#in# and brand2 3he
utility and implication of the proposed study is discussed for owner of retailers owner of private
national brand mana#ers and researchers2
Key2ords: Private label brands %etail formats Consumer attitude National brands
$ .omparative st-dy o/ 0ons-mer1s ttit-de to2ards
Private Label 3rands and National 3rands4
5ntrod-.tion:
Brands which are e:clusively owned controlled and sold by the retail store owner is termed as
the private label brands or store brands or in)house brand of the retailer2 /ts own store brands
which are launched by retailers2 <estside and Pantaloons are the /ndian retail or#anisation which
are predominantly store brand driven2 /t also available in various se#ments li"e accessories
footwear colas fruit (uice noodles snac"s ready to eat food air fresheners floor cleaners
deter#ents washin# shops etc2 currently retailers focuses more on private label brands to
improve the productivity of the store2 3ill now the retailers were hi#hly focused on apparels and
accessories se#ments but now it is sifts towards >$C. #rocery and electronics2 9ne of the
reason behind the #rowth of private label brands in /ndia is the #rowth of or#ani4ed retailin# in
/ndia2 !till the /ndian or#ani4ed retail mar"et is at the infancy level i2e2 ?)0,; of all types of
retailin#2 %etailers are e:plorin# various promotional and positionin# strate#ies to differentiate
the private label brands in the mind of consumer2 3he prime challen#es for private brand retailers
are in terms of "ind of retail mi: rivalry amon# the national brands and the availability of shelf
spaces2 /n #eneral practice the retailers are purchasin# the private label #oods from the supplier
or from the manufacturer and rename repac"a#e and sells under the own brand name2 $any
time manufacturers supplies the #oods under prescribed labelin# and pac"a#in# of the retailer2 /t
is also a "ind of contract manufacturer2 8ependin# on the a#reement between manufacturer and
retailer they can use the retailers name or middleman name or combination of both to sell their
product in mar"et2 Normally lar#e retailers or wholesalers are used to do private labelin# to
improve the overall profitability2 !maller retailers may not have sufficient mar"etin# "nowled#e
and funds to compete with other lar#e national player in mar"et2
3ene/its o/ Private Label 3rands:
Cost of Private label brands is lower compare to manufactures brand because of the
lower cost of advertisin# so customers can purchase the same #oods at lower price2
Additionally the private brand retailers are havin# the more control over the price and
they are able to levera#e the price with customer demand2 !o it can easily meet the
competition and demand both2
Besides it private label is also #et the advanta#eous to display it for the ma:imum impact2
/t can also create the point of purchase advertisin# display to #rab the attention of the
customer2
Private label brand is also appeal the bar#ainin# conscious consumers2 Consumer
perceives plus value in private label because of store loyalty2
%etailer can have the more control over shelf space and can e:ert the bar#ainin# power
over the manufacturers2
Private 3rands at 3i6 3a7aar:
Apparels@ 8ABC pin" n blue22etc
>$C.@ 3asty 3reat >resh n Pure
.eneral merchandise@ 8ream)line
Consumer durables B electronics@ !ensei and Koryo2
Revie2 o/ Literat-re:
3here are si#nificant researches are conducted to understand the impact of consumer behavior
and performance of private label brands amon# the reputed national brands2 3he !tudy of A C
Nielsen 56,,17 has found that the 1+ percenta#e of the consumer believed that private label
brands are #ood alternative to various national brands2 Chandan B !hilpa 56,0,7 found that the
overall advertisin# to sales promotion ration at shoppin# mall is increases from +,&-, to C1&+1
percenta#e2
>ran" Boyd 50?+17 determine that the various consumption socio economic and shoppin# habits
of the customers distin#uishes the private label brands from the manufacturers brand2 Bush
50?DC7 e:amine that the demo#raphic and psycho#raphic variables are important to understand
the consumers attitude towards private label brands2 A study also found the substantial
difference in the preference of private label brand by various income #roups Code 50?C072
3he study of Batra and !inha 56,,,7 e:amine that the consumer perceived ris"s are sub(ect
matter of the !earch and E:perience attributes of the products and it is for different
cate#ories of the private label and national products and brands2 /n 8elhi and $umbai there is
sales 4oom about -, percenta#e from the previous year 5Economic 3imes 6,0*7 which shows
the better opportunity for mar"etin# private label brands2
8bje.tives o/ the #t-dy:
3o study the consumer buyin# behavior in conte:t of bi# ba4aar %a("ot
3o study the awareness of the private label brand available at bi# ba4aar
3o analyses the competitive position of the private label brand in the retail sector
3o study the factors that can help in promotin# the private label brands in bi# ba4aar
3o identify various parameters which influence the customers buyin# behavior2
"9pe.ted 0ontrib-tion /rom the #t-dy:
3he study of this topic would contribute in clarifyin# the trend of awareness e:istence of the
private label brands in the bi# ba4aar stores2 3he beneficiary from the study of this topic would
be first of all self)researcher academicians practicin# mana#ers prospect researchers and the
concerned people at bi# ba4aar2 /f these parties refer this research study in future may ta"e
advanta#e of the findin# and su##estions2 3he company mana#ement if feel may implement the
su##estions for providin# values to the customer at bi# ba4aar2
Resear.h Methodolo6y:
Type o/ Resear.h: 3his research is descriptive research2 3he topic is theoretical and data was
collected from personal visit of $all visitors from the bi# ba4aar store %a("ot2 3he descriptive
research is most suitable to the topic selected2
#o-r.es o/ the !ata: 3he study was conducted in the bi# ba4aar %a("otF %esearch will relies on
primary dataF a self reportin# =uestionnaire was developed for study2
5nstr-ment /or !ata 0olle.tion: A !tructured Guestionnaire was used as an instrument which
consists of closed ended =uestions2 9ne to one interaction with respondents was bein# done to
ascertain their point of view on various aspects which was covered in the structured
=uestionnaire2
Resear.h Methods: >or collection of primary data for this research wor" survey and
observation methods was used2
#amplin6:
o !amplin# $ethod@ Convenience !amplin#
o !amplin# Hnit@ /ndividual $alls Iisitors
o !ample !i4e@ +, J %espondents -,K
o Population@ %a("ot City
Res-lts and nalysis:
Table ': #hare o/ Prod-.t 0ate6ory /or one time #hoppin6 Port/olio at 3i6 3a7aar
!epartments Proportion
>ood Ba4aar *D2*
*
Htensils
02++
Apparels 6+2+
+
Electronics
*2**
!taples 01 3oys ,
'ome fashions 0, Accessories 02++
!tationary *2** >oot <ear ,
#o-r.e: :rom primary data .olle.tion
>rom the above chart it can analy4ed that in the customers shoppin# portfolio food ba4aar
contribute the ma(or share2 3he food department has a ma(or role to play in the customer buyin#
habits2 3he second ma(or contribution is of apparels or the fashion ba4aar followed by staples
and home fashions2
>rom the study it was founded that -1; of the customers "now about offers and schemes
throu#h newspapers2 3he people in %a("ot city are more habituated to read newspapers so they
are more influenced by that2 3he second most preferred source is words of mouth -,; of
customers are influenced it followed by in store advertisements and television2 3he other
important aspect is the other sources called website and hoardin#s are ineffective for the
customers of %a("ot2
>rom the basic information of consumer it was also analy4ed that out of the total respondents
5customers7 only ++2+C ; are aware about the private label brands available in the bi# ba4aar
store and remainin# **2** ; are unaware about the private label brands2
0omparative nalysis o/ Private Label 3rands ; National 3rand:
<ypothesis:
3he followin# null and alternative hypothesis has been framed for this study2 'ere we assume
that both the variables are independent2
<=: There is no significant difference between consumer attitude for Private Label
Brands and National Brands
<': There is significant difference between consumer attitude for Private Label
Brands and National Brands
Table (: 0ons-mer ttit-de to2ard Private Label >P3? ; National 3rand
#o-r.e: :rom primary data .olle.tion
3he ma(or consideration is that despite of infancy sta#e of the products of private label brands
the price structure of it has no si#nificant difference in comparison to the products of national
brand bein# in the maturity sta#e2 3he ma(or consideration is that the customers feel more
secured when they "now the brand but in case of private brand they have more threat of ris" in
comparison to the product of national brands2 3he ma(or consideration is that the customers are
always attracted by ele#ant pac"a#in#2 /n terms of pac"a#in# the customers rated the products of
national brands superior than products of private label brands2 3he ma(or consideration is that the
customers are always attracted the products havin# better brand ima#e2 /n terms of brand ima#e
#r No. Parameters 3rand 0ate6ory 66re6ate #.ore o/ the 0ons-mer ttit-de
' @-ality
P3 '+
N3 )(
( Pri.e
P3 -A(
N3 '&
A Risk
P3 -(+
N3 AA
B Pa.ka6in6
P3 BA
N3 &)
* 3rand
P3 -*
N3 ++
the customers rated the products of national brands superior than products of private label
brands2
Table A: #in6le :a.tor N8C Test
Groups Count
Su
m
Averag
e Variance
PB 1 )- ),2D 0,,,2C
NB 1 6C+ 1126 DC+2C
N8C
Source of
Variation SS df S !
P"
value ! crit
Between .roups CD-, 0 CD-,
D2*10?C
+ ,2,6,6 12*0C+11,+*
<ithin .roups C1,?2+ D ?*D2C
3otal
01*-?2
+ ?
'ere the p)value is less than ,2,1 that indicates the si#nificant difference in attributes of private
label and national brands2 <e can re(ect the null hypothesis and the alternative hypothesis is
accepted2 'ence there is si#nificant difference between consumer attitude towards national and
private label brand2
0on.l-sion:
>rom the above analysis we can conclude that consumer perceived value and attitude towards
private label brands and national brands are si#nificantly different so retailers has to put e:tra
efforts to chan#e the attitude of the consumer for private label brand2 Additionally followin#
issue can be recommended for Bi# Ba4aar2
3he products of private brands should be promoted more
3he customers should be informed about the offers and schemes associated with the
products of the private label brands2
!pecial Lone should be developed to enhance the sellin# of private label brands2
!pecial I$s should be made to attract core customers2
353L58DRP<E
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