Perception on private label brands

Abstract

Private label brands for products can be defined as those products which carry the “brand” of the retailer (store) rather than the producers. For Instance- Big Bazar - "Golden Harvest Atta", Big Basket- "BB Royal Atta". On the contrary, National Brands for products can be termed as those which are distributed nationally under a brand name. For Instance, - ITC- "Aashirvaad Atta", HUL- "Annapurna Atta", "Patanjali Atta".

Retail Industry Overview and Private Label Brands:- Private label brands for products can be defined as those products which carry the “brand” of the retailer (store) rather than the producers. For Instance- Big Bazar - "Golden Harvest Atta", Big Basket- "BB Royal Atta". On the contrary, National Brands for products can be termed as those which are distributed nationally under a brand name. For Instance, - ITC- "Aashirvaad Atta", HUL- "Annapurna Atta", "Patanjali Atta". Retail Industry is the speediest creating industry in India which is contributing 10% of country's GDP and responsible for the 8% business. Changing lifestyle and extending optional income of regular workers will further prompts 60% extension of retail exhibit in future. However, Private Labels is still in an advancement stage contributing only 10% of dealt with retail in dislike of the way that its embodiment has been extended in classes like prosperity and wonderfulness, sustenance and refreshments, prescription, etc , it is possible for Private names to land at 1half of supreme formed retail in the next decade – expecting that dealt with retail can touch base at 30% of hard and fast retail by then, Private marks could speak to as much as 15% of complete retail in India by 2025. This project would help us in comprehending the perception of a consumer towards private label brands particularly in the chosen category “Atta” and how such perception affects their purchase decisions. This report is broadly divided into three main components namely Literature Review, Choice of sampling, Scale and Analysis chosen for the study followed by Analysis based on respondent survey leading to recommendations on the basis of our study. It has been observed that the purchase attitude towards Private Label Brand is considered to be very low. The reason why customers purchase attitude is very low might be because of the lack of experiential benefits as customers are not receiving stimulus of private label brand in their day to day life as the marketing of private label is not as active as compare to national brand and therefore they might not able to see private label brand as their part of life. Hence, they are still considered to be as commodity. Secondly, the pre-purchase attitude is considered to be very high. Thirdly, Functional attributes of private label brand is considered to be very important in comparison to symbolic attributes. Although the perception of the consumers towards private label brand has change but from the beginning the basic expectation from any commodity is to provide functional attributes which can provide benefits related to their practical needs. Lastly, Brand awareness of National Brand is higher than the Private label brands. The main reason of high brand awareness over private label brand is their marketing strategies and how they are able to maintain the high involvement of customers via giving emotional appeal so that they can personally connect with the product and company have use every bit of the product starting from their name to even its packaging and till the colour of it so that even slight reflection of the product will remind them it name. Which is not yet have improved in terms of private label brands as the occurrence of various stimulus is very high as compare to private label brands.