Marketing Food Brands : Private Label Versus Manufacturer Brands in the Consumer Goods Industry

With a special focus on private label food brands and manufacturer brands, this book provides a comprehensive overview of the fast-moving consumer goods marketing landscape. The author illustrates the volatile nature of the relationship between the two types of brands as they compete and co-exist with each other on supermarket shelves. Topics such as brand and category management, product innovation, and consumer choice are discussed and supported with rich empirical case studies from countries around the world. Marketing and management scholars will find this new book an insightful read, as well as those generally interested in the worldwide phenomenon of private label brands. Acknowledgements 5 Contents 7 List of Abbreviations 11 List of Figures 12 List of Tables 13 1: Introduction to Issues around Marketing Private Label and Manufacturer Brands 15 Overview 15 Purpose and Background of this Book 16 Significance of the Book 18 Methodology Employed in the Investigation 20 Scope of the Book 21 Contribution of the Book 21 Book Outline 22 Chapter 1 23 Chapters 2, 3 and 4 23 Chapter 5 23 Chapters 6 and 7 23 Chapter 8 24 Chapter 9 24 Chapter Recap 24 References 24 2: The Management of FMCG Product Categories 28 Overview 28 History of Category Management 29 Historical Development 29 Distinct Phases 31 What is Category Management? 33 Distinction between Brand Management and Category Management 36 History of Private Label Brands 37 First Era: Emergence of Private Label Brands (1840–1860) 38 Second Era: The Decline of Private Label Brands (1861–1928) 39 Third Era: The Rise of Private Label Brands (1929–1945) 40 Fourth Era: The Stability of Private Label Brands (1946–1975) 40 Fifth Era: Private Label Brands Versus Manufacturer Brands (1976–2003) 41 Deployment of the Category Management Process 43 Objectives and Benefits of Category Management 44 Brand and Category Management Organisational Arrangements 46 Brand and Category Organisation for the FMCG Manufacturer 46 Supermarket Retailer and Category Management Organisation 48 Joint Category Management Arrangements 48 Manufacturer/Retailer Collaboration 48 Category Captain Arrangements 50 Research Set in the Category Management Context 51 Key Aspects of the Literature on the Management of FMCG Categories 55 Chapter Recap 56 References 56 3: Product Innovation, Category Marketing Support, Consumer Choice and Power 62 Overview 62 Product Innovation 62 Meaning of Innovation 62 Continuum of Innovation 64 Continuous, Dynamically Continuous and Discontinuous Innovation 64 Incremental and Radical Innovation 65 Brand Innovation, Growth and Competitiveness 66 Manufacturer Brand and Private Label Innovation in Supermarket Product Categories 68 Capacity to Innovate 69 Incentives, Nature and Progress of Innovation 70 Category Marketing Support 73 Consumer Choice 74 Power and the FMCG Industry 77 An Overview 77 Bases/Sources of Power 77 Power–Dependence Relationship 80 Power and Cooperation 82 Balance of Power in the FMCG Industry 83 Chapter Recap 85 References 85 4: Private Label and Manufacturer Brand Coexistence 92 Overview 92 Product Categories and Brands 92 Manufacturer Brands and Private Label 93 Hierarchy of Participating Brands in the Categories 94 Private Label Portfolio 95 Balancing Private Label and Manufacturer Brands in the Product Categories 98 Private Label Share in an Environment of High Retail Concentration 100 Private Label/Manufacturer Brand Category Share and Equilibrium 100 Research Direction of this Book 112 Chapter Recap 114 References 114 5: Key Research Issues in the Marketing of Private Label and Manufacturer Brands 120 Overview 120 A Recap of the Research Questions 120 Research Themes and Specific Research Issues 121 Balance Between Manufacturer Brands and Private Label FMCG/Supermarket Product Categories 121 Product Innovation, Category Marketing Support and Consumer Choice 123 Category Strategic Policies on the Coexistence of Manufacturer Brands and Private Label in FMCG/Supermarket Product Categories 127 Conceptual Framework 130 Chapter Recap 132 References 132 6: Research Paradigm, Research Method and Research Design 137 Overview 137 Research Paradigm 137 Positivist Paradigm 139 Phenomenological/Interpretive Paradigm 140 Critical Theory 140 Constructivism 141 Realism 142 Justification of Case Research Methodology 143 Research Design 147 Theory-Building Nature of the Research 147 Quality Issues in Case Study Research 150 Criteria for Case Selection 153 Rationale for Multiple-Case Design 155 Rationale Behind the Choice of Cases 156 Rationale for Number of Cases and Number of Interviews 156 Number of In-Store Category Observation Study Forms Completed 158 Chapter Recap 158 References 159 7: Private Label and Manufacturer Brand Research Execution 163 Overview 163 Data Collection 163 Techniques of Data Collection 163 Secondary Data 164 In-Store Category Observation Study (Primary Data) 165 In-Depth Interviews (Primary Data) 167 Pilot Study 171 Data Analysis 172 Secondary Data 173 In-store Category Observation Data 174 Interview Data 174 Triangulation of Evidence 176 Limitations of Methodology 177 Ethical Considerations 178 Chapter Recap 179 References 179 8: Empirical Evidence on the Coexistence of Private Label and Manufacturer Brands 182 Overview 182 A Restatement of the Research Issues 182 Balance between Manufacturer Brands and Private Label in FMCG Product Categories 183 Product Innovation, Category Marketing Support and Consumer Choice 184 Category Strategic Policies on the Coexistence of Private Label and Manufacturer Brands in FMCG Product Categories 184 Case Summaries: FMCG Categories and Grocery Retailers 185 FMCG/Supermarket Categories 185 Milk Category 185 Flour Category 185 Cheese Category 186 Breakfast Cereals Category 186 Tomato Sauce Category 186 Grocery Retail Chains and Selected Supermarket Groups 187 Balance Between Private Label and Manufacturer Brands 187 Analysis of Research Issue 1 187 Balance in a Highly Concentrated Grocery Retail Landscape 189 Analysis of Research Issue 2a 189 Analysis of Research Issues 2b and 2c 194 Comparative Capacity for Product Innovation and Category Support 196 Analysis of Research Issue 3a 196 Analysis of Research Issue 3b 203 Stance on Comparative Capacity for Product Innovation and Category Support 208 Analysis of Research Issues 4a and 4b 208 Analysis of Research Issue 4c 217 Role of Consumer Choice 223 Analysis of Research Issue 5 223 Nature of Coexistence between Private Label and Manufacturer Brands 226 Analysis of Research Issue 6 226 Role of Power in the Coexistence of Private Label and Manufacturer Brands 228 Analysis of Research Issue 7 228 Power as it Relates to Private Label Growth and Equilibrium 229 Power and Shelf/Merchandising Decisions 231 Power and Category Management Arrangements 233 Power and Driving Category Growth through Innovation and Category Support 234 Power and Private Label Quality Spectrum 237 Wrap-up of Discussion on Research Issue 7 238 Chapter Recap 239 References 239 9: Conclusions and Implications of this Book 241 Overview 241 Summary of Outcomes on the Research Issues 241 Addressing the Findings of the Book in the Context of the Literature 244 Balancing Private Label and Manufacturer Brands in FMCG/Supermarket Product Categories 244 Concluding Comments on Research Propositions 2b and 2c 247 Product Innovation, Category Marketing Support and Consumer Choice 249 Concluding Comments on Research Propositions 3a and 3b 249 Concluding Comments on Research Propositions 4a, 4b and 4c 251 Concluding Comments on Research Proposition 5 253 Category Strategic Policies on the Coexistence of Private Label and Manufacturer Brands in FMCG/Supermarket Product Categories 255 Concluding Comments on Research Proposition 6 255 Concluding Comments on Research Propositions 7a and 7b 257 Resultant Modified Conceptual Framework 259 Theoretical Implications 261 Implications for Marketing Practice 264 Global Implications and Comparative Case Study Examples 266 A Case Study of Switzerland and the UK 266 A Case Study of Australia 267 A Case Study of New Zealand 267 Implications for Private Label Growth 267 Drawing Conclusions from this Book 268 Directions for Further Research 268 Chapter Recap 269 Conclusion 270 References 271 Appendix 276 List of Codes Used in Data Management (Research Interview Data) 276 Glossary 281 Index 283 Front Matter ....Pages i-xvi Introduction to Issues around Marketing Private Label and Manufacturer Brands (Ranga Chimhundu)....Pages 1-13 The Management of FMCG Product Categories (Ranga Chimhundu)....Pages 15-48 Product Innovation, Category Marketing Support, Consumer Choice and Power (Ranga Chimhundu)....Pages 49-78 Private Label and Manufacturer Brand Coexistence (Ranga Chimhundu)....Pages 79-106 Key Research Issues in the Marketing of Private Label and Manufacturer Brands (Ranga Chimhundu)....Pages 107-123 Research Paradigm, Research Method and Research Design (Ranga Chimhundu)....Pages 125-150 Private Label and Manufacturer Brand Research Execution (Ranga Chimhundu)....Pages 151-169 Empirical Evidence on the Coexistence of Private Label and Manufacturer Brands (Ranga Chimhundu)....Pages 171-229 Conclusions and Implications of this Book (Ranga Chimhundu)....Pages 231-265 Back Matter ....Pages 267-293