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The Phenomenon of Private Label in Neuquén (Argentina)

own brands also known as private label distributor, white or English-language retail and private labels or store brands, are trademarks of ownership, control and exclusive sales retailers. These labels have a leading share of sales in European countries ranging from there to other continents.

I set out below in summary a number of conclusions after studying the phenomenon of Private Label in the city of Neuquén (Argentina)

  • supermarket own brands, after 2001, had a boom, but declined to improving the economic situation, "probably can be associated with quality, because store brands were emerging and were directly positioned as the cheapest product on the market. Now, however, very few people who do not buy own brand products by considering them of poor quality.
  • own brands have an inverse relationship to the state of health of the country's economy as well: when recession hits and sales soar when times are good shrink.
  • In times of rising inflation, as Argentina is experiencing low income sectors lost significant purchasing power and try to buy the same, with less money.
  • In an economic slowdown and lower growth "own brands may be more penetration, because they are cheaper and it is likely that consumers tend to prefer these products even more.
  • The supermarkets, in adopting the concept of own brands, they do it as a strategic measure that seeks among other things:

    1) Improving profitability
    2) Provide your client with no alternative for their choice usually of a more favorable price
    3) act as price regulator and as a counterweight to the power of brands
  • consumers more favorable attitude toward store brands in Neuquén are

    People Media income
    age between 18-25 years and those over 50 years
    Large Families
    The female is slightly higher than the male consumer
  • The research results showed that consumers of private label products, prefer buy lower-priced products, while not as well known brand.
  • Additionally the research revealed that sensitivity to the price - quality of store loyalty, brand loyalty, perceived risk of buying own brand products, the price to quality partnership and trust in the extrinsic attributes, not have a significant impact on the attitude towards private labels.
  • While there was a high intent to purchase Private Label among most respondents, over half of people claim to have purchased Private Label products.
  • found that people are not buying Private Label is due mainly to rely more on the leading brands because they do not consider cheaper. However the field study within hypermarkets showed that Private Label is considerably cheaper than leading brands.
  • is noteworthy that there are product categories where private labels have a greater acceptance than others.
  • Many consumers are unaware that the same companies that produce brand with significant market presence are the ones who also manufactured inputs retailers (hypermarkets). The same, even claim that only buy name brand products, such as "Nature" and not own brands because they do not generate confidence. Being "Natura" Private Label provider of hypermarkets studied.
  • Within Private Label suppliers of hypermarkets include companies such as, "Way", "Natura", "Canale", "Ilolay", "La Salta, among others.
  • coincide with the conclusions reached by Gustavo Alvarez, Lorena Franco Chamorro and Delise in his graduate thesis, this research showed that consumers place great importance on product packaging, identifying him as a good indicator quality. Therefore, those private-label products that have a good presentation, will be in a position most advantageous to their competitors.
  • Additionally as mentioned in the theoretical framework, "retailers need to put on the label of the package, much objective information as possible, on the product's ingredients and industrial quality, and reduce the uncertainty consumers feel about quality of these products. Such information must include specifications and can move ahead outbreaks of approval or other recommendations of others. "
  • The communication strategy of own brands in Neuquen, limited exposure to diverse strategies in the supermarket.
  • The advertising communication has a fundamental role: to establish a specific relationship between the consumer and the brand. In order to attract more customers, communication strategies in neighboring countries are becoming more aggressive.
  • Those companies step up their communication strategy and be able to establish an emotional connection between brands and consumers will be advantageously positioned against its competitors.

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