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The use of private labels as a strategic branding tool
2002 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The aim of this study is to provide a better understanding of how private labels is used as a strategic branding tool. Our research explores, describes and somewhat explains the objectives with private labels, which selection criteria that are taken under consideration prior to entering categories with private label products, tries to describe the types of private labels used, as well as the benefits and drawbacks with pursuing a deliberate private label strategy. We have conducted a contrasting multiple case study primary based on interviews with four companies, two from the UK and two from the Swedish market. Our main findings show that for the Swedish companies financial and market-differentiating objectives are the most important while the UK companies emphasize the objective to use private labels as a means of segmentation. Regarding selection criteria taken into consideration it was found that price and promotion factors as well as new product activities of competition were considered the most relevant groups of selection criteria. Furthermore, it was discovered that the Swedish companies used private labels that could be classified as second generation (cheapest price) and fourth generation (value added brands). Finally, the main benefits acknowledged with private labels were reinforcing store name, presenting value to customers, boosting profits and to gain increased control of product activities. The main drawbacks are that retailers bear opportunity cost, it requires substantial investments, may dilute retailer image and generate conflicts with manufacturer of branded goods as well as cannibalize on existing assortment.

Place, publisher, year, edition, pages
Keyword [en]
Social Behaviour Law, Branding, private labels, own labels, own brands, distributor, owned brands, grocery retailing, varumärkesstrategi, egna, varumärken, egna märkesvaror
Keyword [sv]
Samhälls-, beteendevetenskap, juridik
URN: urn:nbn:se:ltu:diva-46526ISRN: LTU-SHU-EX--02/017--SELocal ID: 427cdea7-dd8a-4194-81ad-c5a9361a586cOAI: diva2:1019841
Subject / course
Student thesis, at least 15 credits
Educational program
International Business and Economic, master's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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