Retailers are looking at private labels or store labels as one of the option to drive the customers to their stores. The emergence of organized retailing in India has made Private Labels a reality. It is now well within the reckoning of the consumer, retailers and brand owners. A Private Label is not merely a product with the store/ retailer's name on it. It takes more to qualify as a Private Label. The consumer must see the Private Label product as distinct from being just a ‘product in a pack'. There must be a clear perception that ‘it is produced by this store'
The consumer must see the Private Label product as distinct from being just a ‘product in a pack'. There must be a clear perception that ‘it is produced by this store'. The current Indian economy is witnessing the emergence of organized retail. It is growing at a faster pace and is expected to reach 10 % from the current 4 % of the total retail business. Retailers are expanding through variety of formats like supermarkets, convenience stores, hypermarkets, discount stores, specialty stores, and department stores. Many domestic business houses have entered this sector with ambitious plans.
With the new FDI regime, foreign players are incisive of Indian partners to grab the potential of retail market in India. As competition is becoming stiff, retailers are working on new strategies to sustain in the market. One such strategy being private branding adopted by most of the retailers. Private brands are the most successful corporate brands in the world. Private branding is one of the strategic decisions of most retail organizations in recent years. They are either manufactured by the retailer or bought directly from the manufacturer, avoiding the intermediaries. Hence retailers have control over the marketing mix elements.
Objectives of the Project
• To understand the perception of consumers for the new private labels introduced by retailers.
• To identify the consumer perception of store image on private labels.
• To study the association between private labels ‘quality and store loyalty.
• To find out the various factors that builds the store loyalty.
• Private labels in modern retailing are a set of values and promises made by the retail organization to their customers.
• The sample size was relatively small.
• The respondents compromised more of home makers.
• The study was undertaken in Bangalore which is prosperous than other areas.