...Drivers of Brand Commitment: A Cross-National Investigation Name Institution Drivers of Brand Commitment: A Cross-National Investigation Introduction Brand commitment is the degree of psychological links between consumers and service or products they purchase. In fact, commitment towards a brand is the loyalty of consumers towards certain services and products produced by distinct businesses. Brands are a vital component of businesses, this is because they develop customer relationships which eventually results in performance of the business (Eisingerich & Rubera, 2010). Customer brand loyalty is repetitive purchasing of the particular service or product with biasness over other commodities attributed to the psychological evaluation by the consumer. Businesses are thus tasked with cultivating high brand commitment by using brand drivers to enhance performance. Brand drivers are attributes which generate strong impacts on the customer purchasing behaviors (Perrey, Spillecke & Armstrong, 2011). Brand commitment can be further elaborated as a consumer’s psychological pledge to have a long term attachment in terms of relationship towards a service or product they purchase into future times (MacInnis, Park, & Priester, 2014). Brand commitment is the supportive longevity behavior that a consumer exudes intentionally for a service or product. Initially, brand commitment starts with a consumer wanting to possess the particular service or goods which later...
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...…………….11 • Review of Literature…………………………………………………………………………….13 Section II • Research Methodology………………………………………………………………………..18 i. Objectives of Research……………………………………………………………….18 ii. Research Problem……………………………………………………….…………….18 iii. Research Question……………………………………………………….……………19 iv. Research Hypothesis………………………………………………………………….19 v. Research Method………………………………………………………………………20 vi. Limitations…………………………………………………………………………………20 Section III • Data Analysis……………………………………………………………………………………….21 i. Demographics……………………………………………………………………………21 ii. Awareness………………………………………………………………………….……..23 iii. Importance of Factors influencing Purchase………………………………25 iv. Consumer Attitude……………………………………………………………….……27 • Private Label Vs National Brand: Brand Strategy………………………………….36 • Findings of Research………………………………………………………………………..….40 Section VI • Implications for Retailers……………………………………………………………………..41 • Suggestions ………………………………………………………………………………………...42 • Conclusion……………………………………………………………………………………………43 Bibliography………………………………………………………………………………………………..44 Appendix: Questionnaire……………………………………………………………………………….46 Contents of tables 1. Determinants of Success of Private Labels……………………………………………16 2. Descriptive Statistics 1…………………………………………………………………………26 3. Descriptive Statistics 2……………………………………………………….………………..31 4. Correlation Matrix…………………………………………………………………..…………..33 5. Communalities…………………………………………………………………………………….34 6. Component Score coefficient Matrix……………………………………………...
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...Shelf space assigned to store and national brands: A neural networks analysis Document Information: | Title: | Shelf space assigned to store and national brands: A neural networks analysis | Author(s): | Mónica Gómez Suárez, (Dpto. Financiación e Investigación Comercial, Facultad CC. Empresariales, Universidad Autónoma de Madrid, Madrid, Spain) | Citation: | Mónica Gómez Suárez, (2005) "Shelf space assigned to store and national brands: A neural networks analysis", International Journal of Retail & Distribution Management, Vol. 33 Iss: 11, pp.858 - 878 | Keywords: | Generics, Labelling, Merchandising, Neural nets, Product management, Shelf space, Spain | Article type: | Research paper | DOI: | 10.1108/09590550510629437 (Permanent URL) | Publisher: | Emerald Group Publishing Limited | Abstract: | Purpose – To empirically analyse the relationship between the shelf space assigned to brands and several factors related to store management. Design/methodology/approach – The data come from a study of 40 product categories in a sample of superstores in Spain. The variables are: shelf space occupied by private labels, private labels market share, number of promotions, assortment (number of brands and number of varieties) and prices gap between private labels and national brands. A neural network analysis is then applied to the data. Methodologically, this method is shown to have better predictive power than a multiple regression. Findings – There is a direct relationship...
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...recently and there are lots of tomatoes to be found whether you switch on the TV or look at a billboard. The story of tomato ketchup in Pakistan began with Mitchell’s – a food brand that dates back to the 30s. The category has changed significantly since and more brands have entered the market. Today, the category is populated by names such as Bake Parlor, Knorr, Mitchell’s, National Foods, Shangrila, Shezan, and international brands like Heinz. According to Adnan Malik, Head of Marketing, National Foods, the tomato ketchup category is worth three billion rupees (Source: A C Nielsen) and his brand accounts for 51% of the share. He says that there is a 70% penetration of this category in consumer segments A1, A2, B and C. In sharp contrast, the penetration levels go down to 30-40% in B, C and E. Since the 90s the strategies for ketchup brands have evolved. Inflation and the economic downturn have seen cuts in consumer spending and brands have turned to offering their customers convenience and economy. To this end, Shangrila (established in the late 80s) introduced a 100g sachet in the late 90s and became the first company to launch pouch packaging, a development that raised the bar among competitors and also brought the price down, helping develop a market for ketchup among a wider public. National Foods quickly followed suit and today claims to be the leader in this format. Pouches account for 60% of the company’s sales and even consumers who are not price sensitive and previously...
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...National Branding vs. Private Label Branding | National brands typically have a better value for the consumers compared to a private label brand, because national brands generally sell far more than private label brands. In all probabilities, consumers believe that the national brands are typically of higher quality. Whether this belief is factual or not is irrelevant to the outcome in the market, as long as consumers believe it. There is very small difference in quality between some national brands and private brands, yet consumers pay more for the national brands. Usually, it is hard to know, without the aid of chemical analysis or other forms of tests, whether private brands match national brands. Uncertainty may occur due to many reasons. For example, a bread company produces many private-label breads. This however does not mean that private brands are of the same quality as the name (national) brand. The bread company may differ in its formula when producing private brands, and we should also consider that the private brands may not be as fresh as the national brands (Kis 10). Similarly, we can also look at the case of say the largest brewer of beer in your region under its own national label; can also be among the biggest supplier of private-label brand of beer. Many private-label brands of wines and spirits as you have witnessed are produced by well-known national-brand companies. Consumers are usually willing to pay more for national brands, because they are...
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...disposable tissues and hygiene products under the brand name “Renova”. * Purpose (What do we want to be in? * They would like to be Europe’s leading brand that loves the customers, care about them and has a culture * Expand new market in Western EU * To promote the well-being brand of both body and mind, while supporting successful relationship not only of a person with oneself, but also with the whole environment. Company/Organisation Analysis SWOT Analysis Strength: (Internal) * Strong domestic brand-awareness. Using its already established brand awareness in people’s minds. * Furthermore strong brand awareness helps Renova to introduce new products or modifications for instance “moist toilet paper” to the market. - Innovative advertisement the company can differentiate itself (Creative, art). Renova is able to conduct its advertisement campaigns and promotions in a very effective and direct way.- Flat company structure (medium-sized family business) build creative - Wide range of product with wide range price (Exhibit 6) | Weakness: (Internal)- Generally high domestic prices- Innovative and broad product-line - High price could be a weakness, because it’s considered important by the customer compared to private label.- Renova has to pay attention to its weakness of fairly high priced products. Consumers compare prices thoroughly and might easily switch to a cheaper brand competing fiercely.- Low market share in Western...
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...sectorhas made the consumersto experiencePrivate Labels. With the approval of 51 % direct investment by Government of India in single brand retail showrooms, foreign retail majors like Tesco,Walmart and Carrefour are all set in to enterthe Indian market. All thesecompanies are known for their Private label brands. Tasty treat ofF ood Bazaar has now become popular and comes in a wide range of product categories. Food Bazaar's in house tea-brand -which is 20-30% cheaperthan the major National Brands has cornered 40% market share. In salt, Food bazaarhas market share of 40-50% .Kishore Biyani of Future Group has evensaid that -Private Labels can be usedto hedgethe inflation. According to the Private Label Manufacturers' Association (PLMA), "Private label products encompass all merchandisesold under a retailer's brand. That brand can be the retailer's own name or a name created exclusivelyby that retaile1: In some cases,a retailer maybelong to a wholesale group that owns the brands that are available only to the members of the group". According to (Baltas,1997), a Private Label is, "A consumer product produced by, or on behalf of,retailers and sold under theretailers' own name or trademarked through their own outlets " . Private labels or store brands are generally brands owned, controlled, and sold exclusively by retailers (Sethuraman and Cole, 1999). Store brand grocery items are products owned and branded by organizations, whose primary economic commitment is distribution rather than production...
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...The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself (Ducker). Though a simple statement, as the world economy grow and consumers change this gets increasingly difficult. Globalization has caused marketers to research different countries, creeds, and cultures to make unique marketing strategies. Globalization isn’t the future of our economy, it’s the now. Advances in technology have made the world a much smaller place. With access to new markets many companies are venturing into uncharted territory in search for profit. Though its sounds great there are many precautions to take before a company finds a new market. There are barriers to entry: most common among many are tariffs, quotas, and sociocultural variances. Tariffs are taxes put on imports from other countries. The effect of a tariff is to raise the price of the imported product; it makes imported goods more expensive so that people are more likely to purchase domestic products. Quotas are limits on the amount of goods that can be imported. Putting a quota on a good creates a shortage, which causes the price of the good to rise and make the imported goods less attractive for buyers. This encourages people to buy domestic products, rather than foreign goods. Sociocultural differences in religious beliefs or practices, basic cultural assumptions and/or patterned behavior, language, idiom, body language and assumptions about social strata are all among potential...
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...trade mark throughout their own outlets. Most often private label brands were manufactured by retailer itself by putting any name or private log on that products. Retail products mostly reduce the cost of production because manufacturer or producers usually do not need to spend heavily amount on that products even private label brands were less advertised. Private or own-label brands enable the manufacturers to achieve the economies of scale in producing or distribution of the products and utilization of more capacity. However, it appears that most own-label suppliers were small regional players not unintentionally playing on the major manufacturers’ field (Hoch, 1996). Past research examined circumstances which craft it nice-looking for a store brand to be introduced to exacting product categories (Hoch et al 1993; Sethuraman and Dhar, 1995). Raju et al. (1999) classified three conditions below which a store brand raises a retailer's categories earnings. First, if the cross price compassion amongst the national brands was low down. Second, if the cross price compassion among the national brand and the store brands was high. Third, if the category has a big number of national brands. Category share was also been studied as a performance assess for store brands. Hoch et al come acrossed that the category split of store brands was to be expected to be lower when there exist a larger number of national brand manufacturers, or when advertising expenditures per manufacturer was...
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...QAT 1 TASK 2 Solution Company A produces and sells a popular pet food product packaged under two brand names, with formulas that contain different proportions of the same ingredients. Company A made this decision so that their national branded product would be differentiated from the private label product. Some product is sold under the company’s nationally advertised brand (Brand Y), while the re-proportioned formula is packaged under a private label (Brand X) and is sold to chain stores. Because of volume discounts and other stipulations in the sales agreements, the contribution to profit from the Brand Y product sold to distributors under the company’s national brand is only $12.50 per case compared to $100 per case for private label product Brand X. There are four ingredients involved in this problem. The recipes specifying the use of each ingredient in the two product brands are given in the template. Also note, an ingredient may either be in limited supply or may have government regulations requiring a minimum or maximum amount of an ingredient. Objective A The constraint for nutrient C = 4x+4y is less or equal than 30 which is the minimum constraint. Therefore y<=-x+7.5 is the maximum constraint. The constraint for flavor additive = 12x+6y is less or equal than72 which is the minimum constraint.. Therefore y<=-2x+12 is the maximum constraint. The constraint for color additive = 6x+15y is less or equal than 90 which is the minimum constraint. Therefore...
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...OBJECTIVE: Kanpur Confectionaries Private Ltd (KCPL) has the vision of emerging as a leading national brand in the biscuit industry and thus maintaining the family name and dignity. PROBLEM: APL is a leading national player in the biscuit industry and is a major competitor of KCPL. KCPL has to decide their response to the proposal of A-One Confectionaries Private Ltd (APL) about becoming its contract manufacturer. OPTIONS: KCPL has the following 3 options: • Option 1: Accept APL’s offer • Option 2: Become an independent contract manufacturer. • Option 3: Rebuild the “MKG” brand. DECISION: KCPL should work on reviving its brand. ACTION PLAN: KCPL has to work on technology upgradation, increasing capacity utilization and managing a efficient workforce. It also has to improve its brand image and target new profitable markets. CONTINGENCY PLAN: As a contingency plan, KCPL can accept the offer of APL. 1. SITUATIONAL ANALYSIS Mohan Kumar Gupta started Kanpur Confectioneries Private Limited (KCPL) in Jaipur in 1947 to sell sugar candy under the brand name of “MKG”. He later set up a production unit in Kanpur (UP) because of intense competition in Jaipur. He ventured into the biscuit industry with the “MKG” brand. Its turnover increased during the early 80’s. But with the stiff competition from the firms in the organized and unorganized sector its sales have declined and by mid 80’s it has started making losses (Exhibit 1). It became a contract manufacturer...
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...of packaging design as a vehicle for communication and branding is growing in competitive markets for packaged FMCG products. This research utilized a focus group methodology to understand consumer behavior toward such products. The challenge for researchers is to integrate packaging into an effective purchasing decision model, by understanding Consumer’s behavior towards the packaging of FMCG products. When consumers search for and process information in-store, the product's package can contain relevant and useful information for the consumer. Product packaging forms the end of the 'promotion-chain' and is close in time to the actual purchase and may therefore play an important role in predicting consumer outcomes. Packages also deliver brand identification and label information like usage instructions, contents, and list of ingredients or raw materials, warnings for use and directives for care of product. INTRODUCTION “Packaging is the container for a product – encompassing the physical appearance of the container and including the design, color, shape, labeling and materials used” Packaging has a huge role to play in the positioning of products. Package design shapes consumer perceptions and can be the determining factor in point-of-purchase decisions which characterize the majority of shopping occasions In recent years the marketing environment has become increasingly complex and competitive. A product’s packaging is something which all buyers experience and which has strong...
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...everyone. We are a marketing company in the beauty, personal and healthcare industries where we shall be known for strong brand management of pioneering, high-quality and innovative products derived from extensive research, to improve the well-being of our consumers. We shall do this through: Leading edge trade and consumer marketing systems. Pursuit of excellence in all other business systems. We shall be generous in sharing the rewards with our employees, business partners, stockholders and our community for the realization of our corporate cause. MISSION VISION VALUE CURVE & KSF 10 9 8 7 6 5 4 3 2 1 0 Branding Reach Product Development Market Research Value Splash MNCs Key Success Factor KSF Product Development Market Research Price Reach Branding 30% 50% Old Metrics(MNC’s only) 20% New Metrics(With Splash) 25% 25% 15% 10% 25% PERCEPTUAL MAPPING OF SPLASH Perceptual Map of the Skin Care Industry in the Philippines Cheap Low R&D Expensive High R&D PORTERS FIVE FORCES Potential Entrants (Threat of Mobility Supplier (Supplier Power) Industry Rivalry Buyer (Buyer Power) Substitutes (Threat of Substitutes) SWOT ANALYSIS S TRENGTHS W EAKNESSES 1 Market Research 2 Product Research & Development 3 Product Diversity 4 Product Efficacy and Reliability 5 Reach 6 Brand Loyalty 7 Value for Money 1 Weak Brand Loyalty Outside the Philippines Internal 2 Limited Market Knowledge and Experience Outside the Philippines factors 3...
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...14 pounds per person. In 1986, snack chips per capita consumption was slightly less than 12 pounds. The snack chip industry contains mainly three types of competitors: national brands, regional brands, and private brands. National brands are those that distribute products nationwide, include Frito-Lay, Borden, Procter and Gamble, RJR Nabisco and Eagle Snacks. Regional competitors consist of regional brand firm which distribute products in certain parties of the United States. Private brands are produced by regional or local manufacturers on a contractual basis for major supermarket chains. The competition in the snack food industry is very intense. As many as 650 different types of snack chip products are introduced into the market each year by both national and regional brand companies. Most of the products are new flavors for existing snack chips. It is reported that the new product failure for snack chips is very high. Pricing is also very competitive and snack chip manufacturers often resort to price deals to attract customers. Frito-Lay is a major powerhouse in the snack chips industry. It accounted for 50% of all snack chips retail sales in 1990. Of the top ten best selling snack chips in the US, 8 of them are Frito-Lay brands and the top 5 selling chips are all Frito-Lay brands. Frito-Lay is considered the...
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...Target Case Analysis 1. What benefits does Target receive from its store brands? • Target is known for their approach to the public as a retailer that offers “design and innovation” and “value as more for less”. Since more consumers are stretching their dollar by purchasing store brands these days, Target has use an excellent marketing strategy by being one of the pioneer in its field developing, launching and integrating more than a dozen store brands. One of its most well-known store brand is “Up & Up” which replaced the general “Target” brand couple of years back. The company’s massive success in recent years has been attributed to their diverse store brands, expanding from three different food brands which include “Archer Farms” promising a line with healthier products to “Simply Balanced” an organic line promoting no GMOs in their products. Consequently, this benefits Target tremendously since it has positioned itself as the only store in the market that could offer an array of store brands at a reasonable price and delivers its costumers expectations and needs; thus attracting more loyal consumers to its store and continuing to grow in popularity, size and revenue. 2. Is Target’s store brand strategy working? Explain. • I believe given the mogul’s annual revenue and nationwide popularity, one could conclude that Target’s store brand strategy seems to be paying off extremely well. Target’s exclusive innovations have placed the company in terms of popularity...
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