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A Project report on study on Private Label
A Project
Index report on
31)
3.3SWOT Analysis of Big
Joshi
Bazaar……………………………………………………………………………………
Giriraj ….8
Jadeja(B-60)
4. Private
Dhaval Solanki(A-54)
Label…………………………………………………………………………………………
…………………………10
Himmatsinh Bhatti(A-
4.1Private Label as a Marketing and Business
Tool…………………………………………………………10
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A Project report on study on Private Label
4.2Reasons for acquiring Private
Label…………………………………………………………………………..10
4.3Percentage share in Private
Labels…………………………………………………………………………….11
4.4National V/s
PLBs………………………………………………………………………………………
………………11
4.5Big Bazaar-Private
labels……………………………………………………………………………………
……..12
5. Consumer
Perception…………………………………………………………………………………
……………………13
6. Research on consumer Perception towards Private
Labels…………………………………….………..14
7. Management
Implications………………………………………………………………………………
………………28
8. Limitations of the
Research……………………………………………………………………………………
……….29
Appendix……………………………………………………………………………………
…………………………………..30
Bibliography………………………………………………………………………………
…………………………………...32
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A Project report on study on Private Label
Retail is India's largest industry. It accounts for over 10 per cent of the
India's GDP and around eight per cent of the employment. Retail sector is
one of India's fastest growing sectors with a 5 per cent compounded
annual growth rate. India's huge middle class base and its untapped retail
industry are key attractions for global retail giants planning to enter
newer markets. Driven by changing lifestyles, strong income growth and
favourable demographic patterns, Indian retail is expected to grow 25 per
cent annually. It is expected that retail in India could be worth US$ 175-
200 billion by 2016.
The organized retail industry in India had not evolved till the early 1990s.
Until then, the industry was dominated by the un-organized sector. It was
a seller’s market, with a limited number of brands, and little choice
available to customers. Lack of trained manpower, tax laws and
government regulations all discouraged the growth of organized retailing
in India during that period. Lack of consumer awareness and restrictions
over entry of foreign players into the sector also contributed to the delay
in the growth of organized retailing. Foundation for organized retail in
India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL).
Following Pantaloon's successful venture a host of Indian business giants
such as Reliance, Bharti, Birla and others are now entering into retail
sector.
But there is a flip side to the boom in the retail sector. It is feared that the
entry of global business giants into organized retail would make
redundant the neighbourhood kiryana stores resulting in dislocation in
traditional economic structure. Also, the growth path for organized retail
in India is not hurdle free. The taxation system still favours small retail
business. With the intrinsic complexities of retailing such as rapid price
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A Project report on study on Private Label
Trained human resource for retail is another big challenge. The talent
base is limited and with the entry of big giants there is a cat fight among
them to retain this talent. This has resulted in big salary hikes at the level
of upper and middle management and thereby eroding the profit margin
of the business. All the companies have laid out ambitious expansion
plans for themselves and they may be hampered due lack of requisite
skilled manpower.
But retail offers tremendous for the growth of Indian economy. If all the
above challenges are tackled prudently there is a great potential that
retail may offer employment opportunities to millions living in small town
and cities and in the process distributing the benefits of economic boom
and resulting in equitable growth.
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A Project report on study on Private Label
2. Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one
of India’s leading business houses with multiple businesses spanning
across the consumption space. While retail forms the core business
activity of Future Group, group subsidiaries are present in consumer
finance, capital, insurance, leisure and entertainment, brand
development, retail real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over
16 million square feet of retail space in 73 cities and towns and 65 rural
locations across India. Headquartered in Mumbai (Bombay), Pantaloon
Retail employs around 30,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that
captures almost the entire consumption basket of Indian customers. In the
lifestyle segment, the group operates Pantaloons, a fashion retail chain
and Central, a chain of seamless malls. In the value segment, its marquee
brand, Big Bazaar is a hypermarket format that combines the look, touch
and feel of Indian bazaars with the choice and convenience of modern
retail.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever
organic expansion of a hypermarket. The first set of Big Bazaar stores
opened in 2001 in Kolkata, Hyderabad and Bangalore.
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A Project report on study on Private Label
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A Project report on study on Private Label
3. Big Bazar
Big Bazaar is a chain of hypermarket in India, which caters to every
family’s needs and requirements. This retail store is a subsidiary of Future
group, Pantaloons Retail India Ltd. and is an answer to the United States’
Wal-Mart. Big Bazaar has released the doors for the fashion world, general
merchandise like sports goods, cutlery, crockery, utensils, and home
furnishings etc. at best economical prices.
3.1 History of Big Bazaar:
The worldwide country chain, Big Bazaar, is formed by CEO of Future
Group, Mr. Kishor Biyani. The group do not promises more than what it
delivers. Their basic attraction associated with reasonable prices is their
Unique Selling Price.
Though, the products Big Bazaar stores stocks might not be advanced, but
the customers are assured to avail the worth of the money spent by them.
In 2001, the group opened its first store on the VIP Road, Calcutta, which
was the primary departmental store offering regulated services of
parking, steel vessels, apparel, electronics etc under the one roof at the
competitive prices. Big Bazaar has become a massive hit with lower
middle-class and middle class people as a major client base.
At present, the Future Group comprises various formats and brands like
Pantaloons, F123, One Mobile, Urbana, Brand Factory, Hometown and
Central. The Big Bazaar has several stores located all over the India,
among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune,
Mumbai and Delhi is those metro cities where the stores of Big Bazaars
are located.
3.2 Facilities offered by Big Bazaar:
• Online shopping: Big Bazaar has an official website,
FutureBazaar.com, which is one of the most favourite sites among
people of India for online shopping. Future Bazaar is an online
business venture of Future Group, which sells an assortment of
products such as fashion, which includes merchandise for men and
women, mobile accessories, mobile handsets and electronics like
home theatres, video cameras, digital camera, LCD TVs, kitchen
appliances and many more.
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A Project report on study on Private Label
• Free Gift wrapping: Big Bazaar also provides Gift wrapping facility
for the product purchased from the store. This facility is provided to
all customers that also free of cost.
Before going in to depth first of all let’s clear the meaning of SWOT
analysis. Following terms clarifies the meaning of the SWOT analysis.
Figure 1.1
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A Project report on study on Private Label
➢ Opportunities:
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A Project report on study on Private Label
1. Private Label
Private label products or services are typically those manufactured or
provided by one company for offer under another company's brand.
Private label goods and services are available in a wide range of industries
from food to cosmetics to web hosting. They are often positioned as lower
cost alternatives to regional, national or international brands, although
recently some private label brands have been positioned as "premium"
brands to compete with existing "name" brands.
Use of Private Label goes well beyond the Store Brands, though certainly
this is the most frequent situation in which a customer will have contact
with one.
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1. Product recognition — almost everyone 1. You have control over your pivotal
recognizes the names of the leading product, and that means over your
nationally branded coffees. Millions of business.
dollars are spent advertising these 2. It is the only way to be able to
products, making them easier to sell. market high quality products, if you so
2. People can choose between various choose.
familiar labels. 3. You save substantially in product
3. A buyer interviewing a private label cost. You can spend these savings on
salesman and a national brand salesman is anything you please, including higher
likely to have more confidence in the latter, product quality.
all other aspects of their presentations 4. You have no competition for the
being equal. brands that you carry. No one can
4. Consistent quality control trade on your name legally. This is a
strong motivational plus for your
5. The nationally branded companies help
salespeople.
promote sales with and for you, albeit sales
for their own brand. 5. With your exclusive brand you can,
if you wish, enters the entire Out-of-
6. Nationally branded products are
Home market supply.
generally available in constant supply from
local wholesalers with short lead times on 6. You can sell the mystique as well as
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A Project report on study on Private Label
Big Bazaar, the hypermarket of Pantaloon Retail, has come out with a
breakfast cereal range under its private label, Tasty Treat. Big Bazaar
already sells noodles, pasta, vermicelli, soups, namkeens, chips, toast,
khari, papads, jams, pickles, carbonated drinks, and ketchup and fruit
beverages under the brand. It has now added breakfast cereals to the
range.
The breakfast cereals will be available in three variants — plain
cornflakes, chocolate-flavoured Choco Gols and honey-flavoured Honey
Circles. There are two reasons for launching the product, says Pantaloon
Retail’s head of private brands, Devendra Chawla. “One is that private
brands give us far higher margins, and the second is that cornflakes as a
category is under-penetrated and has a lot of scope to grow.”
The market for breakfast cereals is still small. While the packaged food
market is valued at Rs 33,234 crore, the organised breakfast cereal
market is just Rs 250 crore — less than one per cent. But the market is
growing fast, given the growing health consciousness in the country,
especially the urban middle class. Kelloggs monopolises the market for
breakfast cereals with its range of flakes. Some other multinational
players have also shown keen interest in this market. PepsiCo has already
entered with its bestseller brand, Quaker Oates. Heinz India, which has a
hugely strong bond with households because of its Complan health drinks,
too has joined the bandwagon.
In spite of the presence of a large number of players in the branded
packaged food segment, Tasty Treat is growing at about 70 per cent. This
perhaps has given Big Bazaar the confidence to try its luck in breakfast
cereals as well.
In a recent development, Pantaloon Retail, promoted by Kishore Biyani,
has boycotted Kelloggs at all its retail formats for turning down its
demand for higher margins. Not surprisingly, Big Bazaar is pushing its own
brand of cornflakes now. This is not the first time Big Bazaar is doing this.
A while back Cadburys and PepsiCo owned snack food brand Frito Lay had
to bear the brunt.
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1. Consumer Perception
In general psychological terms, perception is our ability to make some
kind of sense of reality from the external sensory stimuli to which we are
exposed. Several factors can influence our perception, causing it to
change in certain ways. For example, repeated exposure to one kind of
stimuli can either make us oversensitive or desensitized to it. Additionally,
the amount of attention we focus on something can cause a change in our
perception of it.
In other words,
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2.Research on
consumer
Perception
towards
Private Labels
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A Project report on study on Private Label
Consumer
FMCG Durables Apparels Grocery Other
16 7 16 6 0
Findings:
From the above Pie chart, it can infer that large amount of purchase is
occurring in FMCG and Apparels category which are followed by Consumer
Durables. It may be, because the consumer durables products are normally
high involvement products. Consumers normally don’t hesitate in spending
their money easily in low involvement products which does not have long
term life.
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Speciality
Shopping mall stores Internet others
20 11 3 0
Findings:
From the above Pie chart, it can be infer that normally consumers’ gives first
preference to large shopping malls and speciality stores who sells their own
branded product, who are also known to local public. With some increase in
use of internet in shopping habits of Indians, these medium also has starting to
play their role.
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Findings:
From the above data, it can be inferred that out of 30 respondents, majority
of them are more confident when they use private label brands. They don’t
hesitate to use private label brands.
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Finding:
From the above data, it can be inferred that out of 30 respondents, high
percentage of them are feeling economical when they purchase private
brands.
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A Project report on study on Private Label
Findings:
From the above data, it can be seen that respondents showed a mix
response though the weightage is more inclined to positive side for
private label. 12 respondents (3-strongly agree, 9-Agree) were agree that
it may be associated to luxury, while 9 were disagree.
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Findings:
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Findings:
One negative aspect about PLBs which is seen in this context of Youthful
image of PLBs is if we compare the data, few of respondents have
considered the PLBs as having youthful image. The reasons may low
advertisement of private label brands than that of national brands.
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Findings:
Most of responded have agreed that it’s secure to use PLBs as we can see
from the above chart. Most of the owners of PLBs provides all information
about their products so that there will be no confusion regarding the
same. This may be the main reason.
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Findings:
From the above data, it can be seen that most of the respondent found it
simple to purchase PLBs compare National Brands. This may be because
the owner of the shop always has more information about his products
rather than the products of the National brands. So the consumer can
easily acquire the information which he needs to make a purchase of a
product.
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Findings:
From the above data, it could be gained that majority of the respondents
find Private label brands to be very reasonable to buy. Reasonability is not
gaining very strong response but major of them agree on a neutral scale
that it is reasonable to buy PLB.
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Strongly highly
agree Agree neutral Disagree disagree
4 13 8 5 0
Findings:
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A Project report on study on Private Label
Findings:
From the above data, it can be seen that consumers agree that PLBs are
innovating. The major reason could be because of the launch of the
Private label brands in many new sectors and that too with more features
and quality in comparison to the national brands.
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Findings:
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3. Management Implications
Private label brands have made tremendous inroads over the past two
decades. Although the success of private labels has been limited to
certain product categories and segments of consumers, retailers continue
to expand the domain of private label offerings.
In this exploratory study, our objective was to assess how PLBs are
perceived in a multicultural context. Findings comprise some main points
that are valuable for retail firms operating in multi-cultural contexts.
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Although the sample does have some characteristics that are desirable in
terms of their similarity to the wider population of consumers’ students,
the sample does not allow for consideration of the impact of consumer
variables such as income or education, both of which have been
demonstrated to impact private label purchasing behaviour.
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Appendix
Yes
No
FMCG
Consumer Durables
Apparels
Grocery
Other(please specify)_______
Shopping malls
Speciality stores
Internet
Others (please specify)_________
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4. Mark the following statements with 1 if you strongly agree to 5 if you
strongly disagree
Personal Details:
Name:____________________________________________________________________
_
Area of
Residence:___________________________________________________________
Age:
15 – 20
21 – 25
26 – 30
Above 30
Gender:
F
M
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Bibliography
Websites:
http://iims-markathon.blogspot.com/2010/02/private-labels-from-cheap-
substitutes.html
www.futuregroup.in/home.asp
pantaloon.futurebazaar.com/indexPantaloon.jsp
http://bizdom.blogspot.com/2010/03/brand-update-sach-toothpaste-from.html
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