RETAIL PRIVATE LABEL’S STRATEGIES: A CASE STUDY IN A LARGE BRAZILIAN SUPERMARKET CHAIN

SPINELLI, PAULA BULAMAH; GIRALDI, JANAINA DE MOURA ENGRACIA; CAMPOMAR, MARCOS CORTEZ

doi:10.1590/1678-69712006/administracao.v7n4p121-141

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Articles • RAM, Rev. Adm. Mackenzie 7 (4) • Oct-Dec 2006 • https://doi.org/10.1590/1678-69712006/administracao.v7n4p121-141 copy

RETAIL PRIVATE LABEL’S STRATEGIES: A CASE STUDY IN A LARGE BRAZILIAN SUPERMARKET CHAIN

ESTRATÉGIAS DE MARCAS PRÓPRIAS VAREJISTAS: UM ESTUDO DE CASO EM UMA GRANDE REDE SUPERMERCADISTA BRASILEIRA

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

The present study approaches the advantages and risks related to private labels under a retailers’ perspective, as well as the private label strategies and its growth in the Brazilian market. The paper analyses the strategies used by a large Brazilian supermarket chain with regards to its private labels’ management, using the case study method. The results showed the existence of two private label lines of products, with different strategies: one line of light products (proprietary brand) and another line of products that carry the name of the supermarket under study (retail brand endorsement), both classified as using the fantasy positioning strategy.

KEYWORDS
Private labels; Supermarket retailing; Strategies and positioning

	COMPANY NAME VERSUS DIFFERENT BRAND NAME
	SAME NAME	DIFFERENT NAME
Motives	2/3 of the companies have opted for this strategy to capitalize on brand knowledge and on company's credibility	This strategy allows firms to adapt to the market and to each category, consolidating a new exclusive brand
Advantages	Strengthening of brand image, increase in sales and profits, company divulgation and customers loyalty	It allows for offering more options, attending to and satisfying distinct audiences and preserving the supermarket name
Disadvantages	Necessity of more products' quality control due to the direct association with the company name	More work is needed, it is more expensive and there is no direct association with the supermarket
Examples in Brazil	Carrefour, Barateiro	Qualitá

RETAILER	COUNTRY	ADDED-VALUE EXAMPLE	COMMENTS
Tesco	UK	Tesco Finest	Range of high quality, luxury convenience foods at premium prices
Migros	Switzerland	Anna's Best Yoghurt mousse	Premium dairy products True product innovation
Asda	UK	Store of takeaways	Cooked meals to eat in or take home
Carrefour	France	Etapes Gourmandes	Innovative food products at premium prices
Edeka	Germany	Fantasy brands	Shifting private label ranges upmarket

BASKET	NUMBER OF CATEGORIES		Number of Brands		Number of Chains
BASKET	2001	2002	2001	2002	2001	2002
Food	107	104	237	253	130	138
House Cleaning	29	29	53	63	41	43
Hygiene and Health	50	49	50	65	36	43
Bazaar	43	43	74	92	48	50
Textile	5	5	19	25	9	7
Electronic Equipment	21	24	12	21	6	7

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