The Effects of Private Label Brand Strategies on Consumer Perception

Abstract

The increasingly globalized economy has many effects on consumer everyday lives. The rapid changes in technological, social, and economic aspects have impacted the people's buying and consumption patterns. Even the traditional roles in value chain have started to disappear. Manufacturers have started to be taken over retailing functions whereas retailers began with the creation of their own brands. This increasing trend towards the retailer's brands is indeed one of the key changes in the retail industry. As per the reports of FMI and IRI's consumer research, 97% of households consume private label products. This chapter will give insight on different perspective and strategies that effect the consumer perception.

Key Terms in this Chapter

Private Label Brands: The brand owned and managed by retailers.

Differentiation: The strategy to distinguish one product with the competitor’s product.

Positioning: The image of brand in the minds of consumer.

Consumer: The one who consumes the product or service.

House of Brands: All store brands have individual package design.

National Brands: The brand manufactured and owned by manufacturers.

Packaging: The tool used by marketers to promote the product.

Branded House: All store brands having standard packaging.