-: Paper Title :-

A comparative study of Consumers Attitude towards Private

Label Brands and National Brands

A comparative study of Consumers Attitude towards

Private Label Brands and National Brands

Abstract:
Globally India is reported fifth largest retail market growing with 15percentage per annum. Total
size of Indian retail industry is around INR 16 Trn (RASCI, 2011). It is the largest industry in
India and contributing around 10 percentage of the Indias GDO. Due to change in per capita
income and spending with growth in income, changing lifestyle etc. it is expected to grow 25 %
yearly. This industry provide second largest employment i.e. around 10 %. With the growth of
service sectors and improving the industrial output in India has set the sustainable growth of this
industry.
The paper captures consumer attitude towards private store brand versus private national brand
while purchasing goods from the store. The paper also attempts to study the future prospects of
private label for store owner and future threats for private national brands. The study captures
consumer attitude towards five attributes viz., quality, price, risk, packaging, and brand. The
utility and implication of the proposed study is discussed for owner of retailers, owner of private
national brand, managers and researchers.
Keywords: Private label brands, Retail formats, Consumer attitude, National brands

A comparative study of Consumers Attitude towards

Private Label Brands and National Brands
Introduction:
Brands which are exclusively owned, controlled and sold by the retail store owner is termed as
the private label brands or store brands or in-house brand of the retailer. Its own store brands
which are launched by retailers. Westside and Pantaloons are the Indian retail organisation which
are predominantly store brand driven. It also available in various segments like accessories,
footwear, colas, fruit juice, noodles, snacks, ready to eat food, air fresheners, floor cleaners,
detergents, washing shops etc. currently retailers focuses more on private label brands to improve
the productivity of the store. Till now the retailers were highly focused on apparels and
accessories segments but now it is sifts towards FMCG, grocery and electronics. One of the
reason behind the growth of private label brands in India is the growth of organized retailing in
India. Still the Indian organized retail market is at the infancy level i.e. 9-10% of all types of
retailing. Retailers are exploring various promotional and positioning strategies to differentiate
the private label brands in the mind of consumer. The prime challenges for private brand retailers
are in terms of kind of retail mix, rivalry among the national brands, and the availability of shelf
spaces. In general practice the retailers are purchasing the private label goods from the supplier
or from the manufacturer and rename, repackage and sells under the own brand name. Many
time manufacturers supplies the goods under prescribed labeling and packaging of the retailer. It
is also a kind of contract manufacturer. Depending on the agreement between manufacturer and
retailer they can use the retailers name or middleman name or combination of both to sell their
product in market. Normally large retailers or wholesalers are used to do private labeling to
improve the overall profitability. Smaller retailers may not have sufficient marketing knowledge
and funds to compete with other large national player in market.
Benefits of Private Label Brands:

Cost of Private label brands is lower compare to manufactures brand because of the
lower cost of advertising so customers can purchase the same goods at lower price.

Additionally the private brand retailers are having the more control over the price and
they are able to leverage the price with customer demand. So it can easily meet the
competition and demand both.

Besides it private label is also get the advantageous to display it for the maximum impact.
It can also create the point of purchase advertising display to grab the attention of the
customer.

Private label brand is also appeal the bargaining conscious consumers.

Consumer

perceives plus value in private label because of store loyalty.

Retailer can have the more control over shelf space and can exert the bargaining power
over the manufacturers.

Private Brands at Big Bazaar:

Apparels: DJ&C, pink n blue..etc

FMCG: Tasty Treat, Fresh n Pure

General merchandise: Dream-line

Consumer durables & electronics: Sensei and Koryo.

Review of Literature:
There are significant researches are conducted to understand the impact of consumer behavior
and performance of private label brands among the reputed national brands. The Study of A C
Nielsen (2005) has found that the 56 percentage of the consumer believed that private label
brands are good alternative to various national brands. Chandan & Shilpa (2010) found that the
overall advertising to sales promotion ration at shopping mall is increases from 60/40 to 75/65
percentage.
Frank Boyd (1965) determine that the various consumption, socio economic and shopping habits
of the customers distinguishes the private label brands from the manufacturers brand. Bush
(1987) examine that the demographic and psychographic variables are important to understand
the consumers attitude towards private label brands.

A study also found the substantial

difference in the preference of private label brand by various income groups Code (1971).
The study of Batra and Sinha (2000) examine that the consumer perceived risks are subject
matter of the Search and Experience attributes of the products and it is for different
categories of the private label and national products and brands. In Delhi and Mumbai there is

sales zoom about 40 percentage from the previous year (Economic Times, 2013) which shows
the better opportunity for marketing private label brands.

Objectives of the Study:

To study the consumer buying behavior in context of big bazaar Rajkot
To study the awareness of the private label brand available at big bazaar
To analyses the competitive position of the private label brand in the retail sector
To study the factors that can help in promoting the private label brands in big bazaar
To identify various parameters which influence the customers buying behavior.
Expected Contribution from the Study:
The study of this topic would contribute in clarifying the trend of awareness existence of the
private label brands in the big bazaar stores. The beneficiary from the study of this topic would
be first of all self-researcher, academicians, practicing managers, prospect researchers and the
concerned people at big bazaar. If these parties refer this research study in future may take
advantage of the finding and suggestions. The company management if feel may implement the
suggestions for providing values to the customer at big bazaar.
Research Methodology:
Type of Research: This research is descriptive research. The topic is theoretical and data was
collected from personal visit of Mall visitors from the big bazaar store Rajkot. The descriptive
research is most suitable to the topic selected.
Sources of the Data: The study was conducted in the big bazaar Rajkot; Research will relies on
primary data; a self reporting questionnaire was developed for study.
Instrument for Data Collection: A Structured Questionnaire was used as an instrument, which
consists of closed ended questions. One to one interaction with respondents was being done to
ascertain their point of view on various aspects which was covered in the structured
questionnaire.
Research Methods: For collection of primary data for this research work, survey and
observation methods was used.
Sampling:
o Sampling Method: Convenience Sampling

o Sampling Unit: Individual Malls Visitors

o Sample Size: 60 [ Respondents 40]
o Population: Rajkot City
Results and Analysis:
Table 1: Share of Product Category for one time Shopping Portfolio at Big Bazaar
Departments

Proportion

Food Bazaar 38.33

Utensils
Apparels
26.66 Electronics
Staples
15
Toys
Home fashions
10
Accessories
Stationary
3.33 Foot Wear

1.66
3.33
0
1.66
0

Source: From primary data collection

From the above chart it can analyzed that in the customers shopping portfolio food bazaar
contribute the major share. The food department has a major role to play in the customer buying
habits. The second major contribution is of apparels or the fashion bazaar followed by staples
and home fashions.
From the study it was founded that 45% of the customers know about offers and schemes
through newspapers. The people in Rajkot city are more habituated to read newspapers so they
are more influenced by that. The second most preferred source is words of mouth, 40% of
customers are influenced it followed by in store advertisements, and television. The other
important aspect is the other sources called website, and hoardings are ineffective for the
customers of Rajkot.
From the basic information of consumer it was also analyzed that out of the total respondents
(customers) only 66.67 % are aware about the private label brands available in the big bazaar
store and remaining 33.33 % are unaware about the private label brands.
Comparative Analysis of Private Label Brands & National Brand:
Hypothesis:
The following null and alternative hypothesis has been framed for this study. Here we assume
that both the variables are independent.

H0: There is no significant difference between consumer attitude for Private Label
Brands and National Brands

H1: There is significant difference between consumer attitude for Private Label
Brands and National Brands
Table 2: Consumer Attitude toward Private Label (PB) & National Brand
Sr No. Parameters
1

Quality

Price

Risk

Packaging

Brand

Brand Category

Aggregate Score of the Consumer Attitude

PB
NB
PB
NB
PB
NB
PB
NB
PB
NB

18
62
-32
17
-28
33
43
76
-5
88
Source: From primary data collection

The major consideration is that despite of infancy stage of the products of private label brands
the price structure of it has no significant difference in comparison to the products of national
brand being in the maturity stage. The major consideration is that the customers feel more
secured when they know the brand but in case of private brand they have more threat of risk in
comparison to the product of national brands. The major consideration is that the customers are
always attracted by elegant packaging. In terms of packaging the customers rated the products of
national brands superior than products of private label brands. The major consideration is that the
customers are always attracted the products having better brand image. In terms of brand image
the customers rated the products of national brands superior than products of private label
brands.
Table 3: Single Factor ANOVA Test
Su
Groups
PB
NB
ANOVA

Averag

Count
5

m
-4

e
-0.8

Variance
1000.7

276

55.2

876.7
P-

Source of Variation
Between Groups
Within Groups
Total

SS
7840
7509.6
15349.6

df
1
8
9

MS
7840
938.7

F
8.351976

value
0.0202

F crit
5.317655063

Here the p-value is less than 0.05 that indicates the significant difference in attributes of private
label and national brands. We can reject the null hypothesis and the alternative hypothesis is
accepted. Hence, there is significant difference between consumer attitude towards national and
private label brand.
Conclusion:
From the above analysis we can conclude that consumer perceived value and attitude towards
private label brands and national brands are significantly different so retailers has to put extra
efforts to change the attitude of the consumer for private label brand. Additionally following
issue can be recommended for Big Bazaar.

The products of private brands should be promoted more

The customers should be informed about the offers and schemes associated with the
products of the private label brands.

Special Zone should be developed to enhance the selling of private label brands.

Special VMs should be made to attract core customers.

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