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Store vs. National Brand

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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 between the space occupied by store brands and the market share, and an indirect relationship between the space and the price differential gap, the number of national brands and the range of choice. Research limitations/implications – The main limitation of this research is the time spent on collecting the data. Another limitation is that some variables have not been included in the study such as inventory. The conclusion can be used to account for behaviour of retailers in their outlets and could be used by manufacturers to determine which factors have an influence on the location of their brands on the shelves. Practical implications – It has practical implications for retailers because their “over-merchandizing” of own brands can damage the overall profitability of the category. On the other hand, national leading brands will have to invest more resources in advertising to sustain customer loyalty. Originality/value – This article shows the impact that store brand shelf space has on different variables related to profitability, market share, and assortment. It has value for three agents: academic researchers, manufacturers and retailers. |

A store brand, often referred to as a generic product, is manufactured or acquired by a particular firm for exclusive sale to consumers. A national brand is a product manufactured and developed or acquired by a distributor for resale to the consumer market through multiple retail outlets.

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