Introduction

Indian Retail sector is booming and has become the fifth largest global retail destination. It is

estimated that the total number of shopping malls to grow at the rate of 18.9% by 20151. As per

the study conducted by RNCOS the Indian organized retail market is expected to reach US$ 50

billion by 20112. In 2009, the revenue of Indian apparel retail industry was $28,102.6 million,

representing a compound annual growth rate (CAGR) of 9.9% for the period spanning 2005-

20093. According to the Nirmalya Kumar4, “private label’s market will grow from less than 5%

in present to 50% in India5”. Till 2-3 decade ago, there was no concept of Private label there in

India. Indian apparel market was unorganized. Consumers were buying material or fabric from

the small local unorganized retailers. In early 1990s, Shoppers Stop pioneers the concept of

private label in India and redefined the concept of 'shopping' by making efforts to provide the

Indian consumers with an international shopping experience. It launched a STOP brand in India

with the branded women ethnic wear. This attracted many business houses and visionary

entrepreneurs entered into the retail arena. Players like Future Group, Trent, Pantaloons Retail,

Infiniti Retail, and The Mobile Store, Westside and Universal launched their own private label

brands which captured 14% of the total retail market. Private label are spreading its focus from

wheat flour, masalas and papads to high technology electronic gadgets like mobiles, apparels,

furniture etc. With the growth of private label brands, national brands are grabbing the share

from the national brands. Private labels are not only low priced but are also high on quality and

for the retailers its high margin. Private labels are growing faster than the manufacturer’s brands.

They have studies the taste and preference of customers and improved on quality & offer a value

proposition to the customers. As compare to National brands, Private labels give higher margin

and greater bargaining power to retailers and hence retailers promote more private labels. Even

some private labels have positioned themselves as premium brands; they have started their own

outlets. In the year 2009-10, Pantaloon (Future Group) acquired 10% i.e. $20-billion (Rs 92,000

crore) of Indian organized retail space. It hopes to break-even operationally by 2012, and is

aiming to match Pantaloon’s share by 20156. Retail Giants capalize more on private labels. Out

of total merchandise of Reliance hyper marts, its own brands hold 35-40% of the total

merchandise. Pyramid retail also possesses the major lot of store brands and thereby saving on

transportation, marketing and advertising.

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Introduction to Private Label

Private labels are those brands which may be manufactured or provided by one company for

offer under another company's brand. Brand owned not by a manufacturer or producer but by a

retailer or supplier who gets its goods made by a contract manufacturer under its own label. It is

available in a wide range of industries and positioned as lower cost alternatives to regional,

national or international brands.

Types of Private Label

I. Store brands - The retailer's name is very evident on the packaging.

II. Store sub-brands - Products where the retailer’s name is low-key on the packaging.

III. Umbrella branding - A generic brand, independent from the name of the retailer.

Advantages

I. Lower Prices

II. Better Margins

III. Offer consumer greater value

IV. Bargaining power to the retailer

V. Disadvantages

VI. Conflict with other brands in the category.

VII. Higher R&D expense

VIII. Higher marketing expense

IX. If product fails, will create negative image

X. Inventory risk

Evolution of Private Labels

In 19th century, consumer moved from no name brand to branded product.

The manufacturers use the media.

The branded message to consumer was one of the smart shopping.

In 20th century, retailer were small, leads the brand manufacturer to establish their power

over distribution channels.

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In 1970’s retailer started to develop their national chains like metro, expanded

internationally & consolidated to global player.

The retail started to sell non-CPG product, e.g.Wal-Mart sales were $150 billion on non-

CPG.

Private label refer as own label, store brands, distributed-owned brands Global private

label now approach one trillion dollars.

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Literature Review

(Sarfaraz and Bhavsar, 2012) aim to uncover current consumer perceptions of, and attitudes

towards, private label brands in the FMCG sector. The research alsoascertains the impact of

various Demographic factors (with particular reference to gender and income) on consumption of

private label brands. Furthermore, it aims to shed lights on the effect that pricing, accessibility,

packaging, retail Communications, shelf positioning and in-store promotions have on shopping

behavior with reference to purchasing of private label brands. As the result the research shows

that the Private label brands have the potential to compete directly with the National brands, if

the strategies are carefully selected to promote them.The private label brands can be positioned

as premium quality products with price levels ranging from marginally below to the prices of

category-leading manufacturer brands. (Toops,, News and Editor, 2012).Focused on the biggest

category of private label brands which are the food products..There is mentioned that theprivate

label food brands are a $90 billion business accounting for 17.4 percent of retail food sales in the

U.S., according to Nielsen Co. Over the past six years, while most food categories have been

struggling, private labels have grown at a rate of 6 percent per year. This shows that how much

stronger this market is and how much potential is there in such markets. (Barry, 2012)has

discussed about the outcome of a recent study in Australia by Australia's largest provider of

industry-based research, which concludes that private labels will account for over 30 percent of

supermarket sales in Australia by 2017-18.The study also has findings, that the private label

products have been one of the fastest growing segments in Australia's supermarkets over the past

decade. According to the data in the research in 2007-08, private labels accounted for just 13.5

percent of total supermarket sales — meaning the segment has grown by more than 85 percent

over the past five years. The economic conditions have played a large role in driving private

label growth, but wider availability of private label products has also made a difference, the

strongest growth, according to the research, has been in products such as butter, sugar, bread,

milk & Eggs. (Pandya, Joshi, and Monarch, 2011) described the difference between the

organized retail in the developed economies and developing economies. In this article organized

retail is in the range of 75-80% of the total retail and in the developing economies it is about 15-

20%. The Indian retail market is the second emerging retail market for investment after Vietnam.

It was about $450bn in 2007 and it is expected to touch $720bn in 2011, $ 833bn in 2013 and 1.3

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tn in 2018. The Indian organized retail accounts about 5% of the country’s economy and it is

expected to contribute 15.5 % by 2016. A research was conducted on private label brands which

is substantial interest to both the academicians and researchers. It is the retailer who owns and

controls the brand and the retailer has exclusive rights over the private label brands. This means

different Easy Day do not sell identical products which is not the case when Easy Day sell name

brands. The two advantages of adopting private labels by the retailer are bigger margin and

increased store loyalty. The present study was designed to gain an insight into the Indian

customers’ perception towards private labels as well as NBs on preference pattern and location

of respondents for private label brands v/s national label brands. For this purpose respondents

from Ahmadabad and Surat city were taken. (Chakraborty, 2011) described that private-labels

brands are the brain child of Easy Day. These products are fully owned, controlled and sold

exclusively by the Easy Day, and can be found across all the product categories. The private-

label cola (carbonated soft drinks) is one such type of product that has been manufactured and

sold by some big Easy Day of UK. These colas are priced very low compared to premium colas

and do posses a huge resemblance to the premium ones. In recent years, these colas have been

flooded across the respective retail stores, the sales volume has gone up, giving a tough

competition to premium brands like Coca-Cola and Pepsi in the carbonated soft drinks sector.

Moreover, they play a crucial role in customer buying behavior process. This paper tries to

explore the general perceptions, and subsequently the buyer behavior about private-label colas in

the UK retail market. (Calmer, 2011) talked about the Publix a retail store of Florida which has

gained a good growth and a position where its customers feel proud of shopping from Publix.

Publix has done all this by listening to consumer needs and expanding private label in response

rather than just using private label as the low-cost alternative. It employs a two-tier private label

approach that includes its basic Publix brand and its Publix Premium label. Plus, it has launched

a specialty private label brand, Green Wise, which appeals to shoppers seeking natural and

organic options, and also is targeting Hispanic shoppers with offerings within its Publix brand.

The result has been private label sales that account for 20 percent of all Publix sales. In short,

Publix is being pro-active in building private label sales rather than merely reactive to what

national brands are doing. (Conroy, 2010) spoken about the changing trend of customers

favoring more the private label brands. The people involved in the study were accepting that the

private label are as good as the national brands. And during the recession they felt that it is good

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to buy private labels as they don’t feel any sacrifice involved in it. As the consumer get more

variety and products of private label brands meets their demand they prefer to buy private label

brands. (Barraco, 2010) studied about how the private label brands manufactures are trying to

use the technology for managing their business. The private label brands are now using

technology for minimizing their risks and are trying to be safe from various defects. By using the

new age technology they are able to respond quickly and effectively. By a coordinated business

structure it becomes easy to manage it from coordinated supply chain solution that connects the

trading partner community with product data and Easy Day' orders in a unified application can

achieve better results. Private label Easy Day that utilizes technology as a risk mitigation strategy

and are growing their business. (Goldsmith, Elizabethand Craig, 2010) shown that the consumer

perception towards the private label brands. In this article three sample sizes (ns= 279, 245 and

305) of us consumers were studied to compare attitudes of buyers of private and national brands

in three product categories: orange juice, cereal and bottled water. The results show that private

label buyers (23% of orange juice, 65% of cereal and 14% of bottled water buyers) consider

brands themselves to be less important and private brands to offer better performance. This

article reflects that consumers who are price sensitive are ready to buy private label brands. Price

differential is the only sufficient determinant to persuade customers to forgo national brands in

favor of private label brands. This explains further that the sale of private label brands is growing

at a fast rate despite of fluctuations in the market when private label brand sales show decline.

By the 21stcentury, sales of private label brands in USA represents over 20% of the category

sales, with 3 out of 10 primary shoppers buying private label brands than a year ago and 24%

saying that they will continue to buy private labels. A survey of British shoppers in march 2009

reported that 58% use no frills products. Marketers are trying to improve the product quality of

private brands to increase their market share in this category. Goldsmith and Flynn(2006)

reported that when perception of national brand buyers are compared with those of private label

buyers, the former give more favorable ratings to national brands regarding brand familiarity,

uniqueness, relevance and trust than do private label buyers. (Pate& Patel, 2010) discussed about

the consumer’s and retailer’s perception towards private labels brands. The main outcome of this

study about Easy Day' and consumers' perceptions is that the private labels are showing

increasing growth because of the attractiveness that they offer to Easy Day. Their strategic

growth in the current scenario should be directed along the lines of consumers’ perceptions. In

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the long term, the growth strategy of private label brands should be based on the combined view

of consumers and Easy Day. The main factors that Influence the Purchase of a Brand, private

label brand by Consumers are brand image and product performance and quality.

(Beneke&Justin, 2009) aimed to investigate the perceptions of fast moving private label brands

in the South African grocery food sector. This paper will definitely help in current position these

brands occupy in the minds of South African consumers. The study also includes the

consideration of critical branding elements such as trust, availability, pricing, packaging, etc. As

the result of the study it appears to be skepticism surrounding the quality of the entire spectrum

of such brands, with significant heterogeneity between specific private label brands.

(Rao&Tanniru, 2009).This article reflects that about that the private brands account for 10- 35%

of store sales in packaged foods and grocery items. This article explains that the retailer who

markets both the private brands and manufacturer’s brands is delineating his private label

market. The retailer should know the reasons behind every purchase of private label brands by

the consumer. The manufacturer must deal with two serious problems in meeting the competition

of private brands. The first is the possible price differential advantage of private brands over

manufacturers' brand, and the second is the degree of control exercised by the retailer in

providing shelf space and in-store services for promoting his own brands relative to the

manufacturer's brand. Retailer no longer competes with the manufacturer on price alone but on

such facets of product competition as quality, packaging, advertising, brand image, etc.

(Muralidharan, 2009)talked about the emergence of the private label brands in the retail store,

even without spending a huge amount on the advertisement the private label brands are

becoming the bestsellers. This is why most of the retail stores have started to sell their own

private label brands in their store next to a nationalized brand. Now there are such retail store

who keep 40-50% of space for the store brands only. As the private label brands provide higher

margins and hence a big profit. (Vikkraman, 2007)A Study on the Consumers’ Brand Preference

towards FMCG -Dental Care, Products with Special Reference to Organized Retail Stores in

Erode was done with the primary objectives of the study as on above. Every customer in the

market has his/her own Brand Preferences. Customers will be looking for certain attributes

before purchasing the products i.e., FMCG. The research study used in this study is descriptive

method. Under this study the survey is conducted with the customer generally around the erode

city for the specified product. The major limitation in this study is that some customers led some

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problems in the customer service area. The time taken for the survey was between July 2011 and

September 2011.The present study shows the brand preference towards FMCG (Dental care) at

organized retail stores only. Personal bias by the respondents may have script in while answering

the questions. (Ronald and Goldsmith,2006) evaluated consumer perception towards private

brands with the goal of understanding their appeal in order to enhance efforts to convince more

consumers to buy them when asked about specific brands, national brand buyers tended to be

price insensitive towards national brands, and private label buyers price insensitive towards store

brands. In addition, the national brand buyers saw some of the national brands to be more

relevant to their lifestyles and needs, but the private label buyers saw the private labels the same

way. Being relevant to consumers’ lives appears to influence brand selection. Besides touting

lower prices, private brand promotions might stress the equivalent performance of private labels

and create promotions showing how these brands can be relevant to consumers’ lifestyles and

needs. (Tsungand Liu, 2004) talked about promoted brands and private labels attract different or

similar consumers through psychographics and store image that drive consumer perception for

these brands. The results using regression analysis demonstrate that this perception is driven by

differences in psychographics and store image. Perception toward promoted brands is

characterized by positive store image, smart shopper self-perception, need for affiliation, and

money attitude regarding power-prestige and anxiety. the conclusion is regarding the indirect

effect of demographics on the feasibility of using store brands and national brand promotions via

psychographics appears weak, since we conclude that the impacts of demographics on the two

types of purchase consumer are weakly funneled through psychographics. (Jain,2002) talked

about the Factors like after sales service, Promotion, Price, Perceived Risk, Packaging and Brand

Image of Store. The study comprised three categories of private labels namely Food and Non

Food FMCG, Apparel and Consumer Durables. Multistage random sampling was used to collect

responses from 200 store managers. A significant difference is found in perception of Easy Day

for after sales service and perceived risk while no significant difference is found for Promotion,

Price, Packaging and Brand Image of Store in the categories considered. Further study presents

implications for Easy Day in terms of chalking out effective strategy on the basis of category of

private labels. Manufacturers of national brands need to aware of gaining acceptance of private

labels in various categories. This research opens up new areas of investigation for private labels.

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Objectives

1. To investigate consumer brand preference for national versus store brands in Apparel segment.

2. To study the influence of quality, price, variety, availability and current trend on brand

preference for national versus store brands.

Scope of the study

The study has been conducted in Jalandhar of Punjab.

It is decided to consider two malls Big bazzar and Easy day, where we can easily find out the

respondent for the survey.

Hypotheses

H0: Brand preference for National brands and Private labels for Apparel segment is getting

significantly equal.

H1: Brand preference for National brands is still more than Private labels.

The study is based on descriptive research design. Products like jeans, shirts, dress, suits etc

apparel segment were taken. Mall intercept interview were conducted to collect the data for the

study by using questionnaire as the research instrument. The sample of 30respondents was taken

from Jalandhar easy day and 30 from big bazaar. Customers participated in the survey.

Customers within the age group of 16-40 were involved in the study.

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RESEARCH METHODOLOGY

Research Design

Data Collection

Sampling Procedure

Research design

We carried out the research using primary (Questionnaire) and secondary data. Thus I design my

research on a combination basis of

1. Exploratory Research design

2. Descriptive research design

Exploratory research

As we were unaware of the market for private label brands, exploratory research helped me to

gather information from the secondary resources. We used this research because less work is

done on this topic.

Descriptive research

Descriptive research is done with a specific research question in mind. It gives a set view of the

subject, population, market segment or problem.

Quantitative methods:

o Surveys

Data Collection

Data is the information collected from various sources. It is concerned with gather accurate and

proper knowledge about the problem that is in hand. Formally there are 2 types of gathering

information namely primary data and secondary data.

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Data collection mode: Two methods have been used to collect the relevant data, which are

essential for the study, they are:

Primary Data: Data is collected to obtain desired information through structured questionnaire

in the form of Survey according..

Secondary data: - Data is collected with the help of previous researches.

Tools for data collection

Data for this study is collected from primary data

The primary data is collected through a structured questionnaire which was

prepared to interview the respondents

With the help of previous researches done by different researchers

Statistical tools used for hypothesis testing

Paired T-test was performed to test whether the quality, price, availability, current

trends factors have any influence on brand preference for national brands versus

private labels.

Sampling

A small selection of the large group which is taken for interviewing is called sampling. A sample

is taken representative and adequate which gives proper information.

Sampling plan:

In order to study “Comparative Analysis of Consumers’ Perception towards Private Labels &

National Brands in Jalandhar City” the following sampling plan was adopted

Sample size:

A sample size of 30 was taken in order to carry the final study in Easy day.

A sample size of 30 was taken in order to carry the Final study Big Bazaar.

Sampling unit:

For this survey the target population consisted customers of easy day and big

bazaar.

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Instrument of data collection is questionnaire.

Data analysis and Interpretation

Plan of analysis

The data is collected from both primary and secondary sources and also been tabulated in the

form of tables and drawn in to graphs depicting the various finding significantly. The data

collected through questionnaire are analyzed in detail and divided in to various categories of

preferences and conclusion are drawn on the possible changes are causes for brand preference

and market share is given based on the research study.

Data for this research have been collected from 30 Big Bazaar customers and 30 Easy day

customers. In this process 10 attributes listed for preparing the questionnaire. The questionnaire

was divided into two parts: (1) National brands and Private label brands questions for each

information type’s usefulness from their personal viewpoint. In the second part, they use the

following divisions for answering the questions. each customer provided a numeric score of

value between 1 to 5 for each of the attribute type mentioned 1- Strongly disagree 2- Disagree 3-

Neutral 4- Agree5- Strongly agree.

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Graphical Representation of DataQ NO 2 & 3

Chart 1: National Brands Vs Private label

Easy day

Strongly Disagree

Disagree Neutral Agree Strongly Agree0

2

4

6

8

10

12

14

National BrandsPrivate Labels

Big bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree0

2

4

6

8

10

12

14

National BrandsPrivate Brands

In case big bazaar out of 30 respondent 11 and 5 are strongly agree and agree that they bought apparels are national brands, 2 are disagree and 12 are neutrals, if we talk about private brand 2 and 10 are strongly agree and agree that they bought apparels are private brand, 1 and 8 are strongly disagree and disagree and 9 are neutral, it means people buy the apparel s of national brand.

In case easy day out of 30 respondent 3 and 10 are strongly agree and agree that they bought apparels are national brands, 3 are disagree and 13 are neutrals, if we talk about private brand 2 and 7 are strongly agree and agree that they bought apparels are private brand, 1 and 7are

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strongly disagree and disagree and 13 are neutral, it means people buy the apparel s of national brand.

In both store the people have same behavior most of respondent like to buy the apparels of national brand

Q No. 4& 5

Chart 2: Quality provided by National Brand and Private label

Easy day

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

16

National Brand QualityPrivate Label Quality

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

16

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National Brand QualityPrivael Label Quality

In case big bazaar out of 30 respondent 6 and 15 are strongly agree that national brand has quality, no one are strongly disagree and disagree 9 are neutrals, if we talk about private brand 3 and 8 are strongly agree and agree the private brand has quality, 0and 3 are strongly disagree and disagree and 16 are neutral, according to the people national brand is superior in quality

In case easy day out of 30 respondent 5 and 15 are strongly agree that national brand has quality, no one are strongly disagree and 3 are disagree, 9 are neutrals, if we talk about private brand 3 and 12 are strongly agree and agree the private brand has quality, 0and 2 are strongly disagree

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and disagree and 16 are neutral, according to the people thought that quality provided by private label is superior.

In easy day people they thought that quality provided by private label is superior ad in big bazaar people thought that national brand is superior in quality

Q NO 6 & 7

Chart 3 Value for money (in terms of quality).

Easy Day

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

National Brands Value for MoneyPrivate Labels Value for Money

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

National Brands Value For MoneyPrivate Label Value for Money

In case big bazaar out of 30 respondent 11 and 9 are strongly agree that national brand provide value for money, no one are strongly disagree and 3 disagree 7are neutrals, if we talk about private brand 7 and 12 are strongly agree and agree that private labels provide value for money, 1and 2 are strongly disagree and disagree and 8 are neutral, according to the people thy thought that both national brand and private Labels are provide value for money.

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In case easy out of 30 respondent 3 and 7 are strongly agree that national brand provide value for money ,no one are strongly disagree and 7 disagree , 13 are neutrals, if we talk about private brand 4 and 9 are strongly agree and agree that private labels provide value for money ,1and 3 are strongly disagree and disagree and 13 are neutral , according to the people thy thought that both national brand and private labels are provide value for money

In both store the people have same behavior most of respondent thought that both national brand and private labels are provide value for money

Q NO 8 & 9

Chart 4: Variety of apparels in National or private label.

Easy Day

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

National Brands VarietyPrivate Label Variety

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

16

National Brands VarietyPrivate Label Variety

In case big bazaar out of 30 respondent 6 and 13 are strongly agree that national brand has more variety, no one are strongly disagree and 2 disagree 9 are neutrals, if we talk about private brand 3and 8 are strongly agree and agree that private labels has more variety, 1 and 4are strongly disagree and disagree and 14 are neutral, according to the people they thought that national brands has more variety.

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In easy day out of 30 respondent 5 and 5 are strongly agree that national brand has more variety ,no one are strongly disagree and 10 disagree ,10 are neutrals, if we talk about private brand 5and 11 are strongly agree and agree that private labels has more variety,0 and 4 are strongly disagree and disagree and 10 are neutral , according to the people thought that both national brands and private labels has more variety.

In big bazaar people thought that national brands has more variety and in easy day the people thought that both national brands and private labels has more variety

Q NO 10 & 11

Chart 5 Easily available of Private Label & National Brands

Easy Day

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

National Brands AvailabilityPrivate Label Availability

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

National Brands AvailabilityPrivate Label Brands Availability

In the case of big bazaar out of 30 respondents 5 respondents are strongly agree that National brands are easily available at their shopping destination 13 respondent of national brand said that they are Agree that they find their choices of apparels, 9 respondents shown their natural behavior in purchasing national brand apparels 2 disagree and 1 strongly disagree regarding the statement of availability of shopping destination .In we talk about the private brand 2

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respondents strongly agree and 9 respondents agree and 11 are natural in their behavior that private brands are easily available,6 respondents are disagree and 2 are strongly disagree to the statement of availability of apparels.

In case of easy day national brand availability out of 30 respondents 12 agree 7 strongly agree, 7 are neutral 2 respondents are disagree and strongly disagree in their statement of availability of apparels of national brand while in private label availability 9 respondents are neutral,8 agree,4 strongly agree ,8 disagree and 1 strongly disagree in their statement of availability of private label apparels.Q NO 12 & 13

Chart 6: Discounts and Offers

Easy Day

1 2 3 4 50

2

4

6

8

10

12

14

16

National Brands Discounts & Of-fersPrivate Label Discount Offers

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

16

National Brands Discounts & Of-fersPrivate Labels Discounts & Offers

In case of big bazaar out of 30 respondents have a view that National Brands Discounts & Offers are like 10 said neutral, 9 agree and 4 agree regarding the discounts and offers they get in this statement 5 disagree and 2 strongly disagree .likewise some respondents said Private label 14

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agree that Private labels come out with various discounts and 7 strongly agree 6 are neutral and 2 disagree 1 strongly disagree to the statement.

In case of easy day out of 30 respondents of National Brands Discounts & Offers said 10 disagree, 1 strongly disagree, 11 are neutral, 6 agree, 2 strongly agree regarding the statement of they get offers and discounts and offers .likewise Private label discount offers 14 agree and 4 strongly agree to the statement 9 shown neutral and 3 disagree to the statement that they get private label offers on private label apparels

Q NO 14 & 15

Chart 7: Current Trends

Easy Day

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

16

National Brands follow current trendsPrivate Labels follow current trends

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

16

National Brands Follow Current TrendsPrivate Labels Follow Current Trends

In case of big bazaar out of 30 respondents 14 respondents are strongly agree, 11 agree, 4 neutral that national brands follow Current Trends .likewise in Private label 13 respondents shown

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neutral behavior,6 agree and 4 are strongly agree to the statement that private label follow the dynamic trends in the apparels.

In case of easy day out of 30 respondents 13 shown neutral behavior in national brands follow Current Trends ,9 agree ,2 strongly agree and 6 respondents disagree to the statement .likewise in private label 14 agree,5 strongly agree ,4 neutral and 7 disagree to the statement Private Labels follow current trend

Q NO 16 & 17

Chart 8: Impact of advertisement

Easy Day

1 2 3 4 50

2

4

6

8

10

12

14

National Brands sell more due to PromotionPrivate labelss sell more due to Promotion

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

National Brands sell more due to PromotionPrivate Labels sell more due to Promotion

In case of big bazaar out of 30 respondents said that Impact of advertisement on preference of National brands impacts more 10 agree and 7 respondents strongly, 8 neutral,4 disagree and 1 strongly disagree .likewise in private label 12 respondents shown neutral ,4 agree ,3 strongly agree and 7 disagree and 4 strongly disagree to the statement that advertisement play a vital role in private label branding.

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In case of easy day out of 30 respondents National Brands sell more due to Promotion as shown 12 respondent’s neutral behavior, 11 agree, 4 strongly agree, 1 disagree, 2 strongly disagree to the statement promotion play a vital role .Likewise in case of Private label 9 respondents are strongly agree, 9 neutral, 5 agree to the statement and 5 disagree and 2 strongly disagree to the statement that promotion play a vital roles.

Q NO 18 & 19

Chart 9 Celebrity Endorsements.

Easy Day

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

National Brands sell more due to Celebrity AdvertisementsPrivate Labels sell more due to Celebrity Advertisements

Big Bazaar

Strongly Disagree

Disagree Neutral Agree Strongly Agree

0

2

4

6

8

10

12

14

National Brands sell more due to Celebrity AdvertisementsPrivate Labels sell more due to Celebrity Advertisements

In case of big bazaar out of 30 respondents have given views that National Brands sell more due

to Celebrity Advertisements in terms of respondents 11 are neutral in their behavior and 8 are

agree and 4 strongly agree ,rest 4 disagree and 3 strongly disagree to the statement .Likewise

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Private Label buyers have a opinions like 12 disagree ,7 neutral ,3 agree ,8 strongly disagree to

the statement

In case of easy day out of 30 respondents have given their views like Private label buyers have a

views regarding Celebrity Advertisements like 12 disagree ,7 neutral ,3 agree and 8 strongly

disagree to the statement regarding the Celebrity Advertisements.

Q NO 20

Chart 10 Operating hours.

Easy Day

3%

43%

40%

13%

This store has operating hours convenient to all their customers.

Strongly Disagree Disagree Neutral Agree Strongly Agree

Big Bazaar

7%

37%

30%

27%

This store has operating hours convenient to all their customers.

Strongly Disagree Disagree Neutral Agree Strongly Agree

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As according to the figure 40 % of easy day 30% of big bazaar customer think that the operating

hours are convenient to them 44% of easy day and 36 % of big bazaar shown that they are

satisfied with the timings.

Q NO 21

Chart 11 Preferred location for shopping national brand or private brand.

Easy Day

37%

20%

30%

13%

Preferred location of shopping for National brands

Malls Multi Brand StoresModern Retail StoresCompany's Own Outlet

Big Bazaar

33%

23%

27%

17%

Preferred location of shopping for National brands

Malls Multi Brand StoresModern Retail StoresCompany's Own Outlet

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As according to the pie chart explained 37% of easy day and 33% of big bazaar customer think

that their proffered location for shopping for national brand is malls .Rest 20% of easy day

customer and 23 % of big bazaar customer like to shop from multi brand stores.

Q NO 22

Chart 12 Preferred location of shopping.

Easy Day

57%

10%

27%

7%

Preferred location of shopping for Private labels

MallsLocal StoresModern Retail StoresPrivate Label OutletAlso give the reason for the same

Big Bazaar

53%

20%

17%

10%

Preferred location of shopping for Private labels

MallsLocal StoresModern Retail StoresPrivate Label OutletAlso give the reason for the same

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As according to the figure 56 % of easy day 53% of big bazaar consumers said that their

preferred location for private label and national brand is shopping mall followed by local 27%

modern retail sores preferred by easy day respondent and 20% prefer local stores by big bazaar

respondent.

Table: Weighted Mean (Easy Day)

Weighted Mean of all 5 Parameters

National Brands (A)

Private Labels (B) d-B-A d^2

Quality 3.8 3.57 -0.23 0.0529Price 3.2 3.4 0.2 0.04

Variety 3.17 3.57 0.4 0.16Availability 3.63 3.2 -0.43 0.1849

Current Trends 3.23 3.57 0.34 0.1156    Sum 0.28 0.5534

By applying Paired t-test, we get

1. Calculated value of t --- 1.708

2. Tabulated value of t= 4.604 at 5 % level with 4 d.f. 2.776

Since Tt >Tc so Brand preference for National Brands and Private labels for Apparel segment is

getting significantly equal in case of easy day..

Table: Weighted Mean (Big Bazaar)

Weighted Mean of all 5 ParametersNational Brands

(A)Private Labels

(B) d-B-A d^2Quality 3.65 3.45 0.2 0.04Price 3.11 3.31 -0.2 0.04

Variety 3.34 3.44 -0.1 0.01Availability 3.87 3.03 0.84 0.7056

Current Trends 3.27 3.44 -0.17 0.0289    Sum 0.57 0.8245

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By applying Paired t-test, we get

1. Calculated value of t as 1.462

2. Tabulated value of t = 4.604 at 5 % level with 4 d.f. is 2.776

Since Tt >Tc so Brand preference for National Brands and Private labels for Apparel segment is

getting significantly equal in case of Big Bazaar.

Since Tt >Tc in case of both samples so Brand preference for National Brands and Private labels

for Apparel segment is getting significantly equal as a Hypotheses is proved.

Analysis of data shows that customers had strong brand preference for national brands.

Customers felt that quality and advertisement of national brands is better than the store brands

while store brands are priced lower than the national brands. As national brands spend heavily on

advertisement they might influence the customer perception about the quality and the benefits of

the product while private labels cannot spend on advertisement as it would lead to increase

average cost, so only those customers who visit the store can be influenced. However consumers

have started treating private labels on an equal platform with National brands. The perception

that private labels are low quality products has changed significantly. As private labels’ quality is

improving and they are trendier than national labels, it is seen that the acceptance level of Private

label is increasing. Celebrity endorsement has least impact on the choice of both National brands

as well as Private labels. Customers today need more variety and current fashion clothes. They

enjoy to shop more from Malls and company own outlets. They have special preference for a

particular store destination for variety of product available, quality, convenient location and

discounts & offers. It is also found that customers are buying apparels anytime without any

specific reason.

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Conclusion & Managerial Implications

Private brands provide more variety, discounts and offers to customers, built loyalty and

customer retention for organized retailers. Private labels provide more variety to their loyal

customers and differentiate themselves from their competitors in organized retail sector.

Sometimes national brands may not be able to provide more variety to retailers choose to have

their own options. Private brands are becoming greater threats to major national brands of Peter

England, Westside, and Pantaloons as they are directly or indirectly competing with their major

brands in the market. Even Private labels have to come out continuously with unique products,

create own stores in order to maintain the growth momentum. Marketers of national brands have

to change their positioning strategies and reposition their brands frequently with increasing

competition from private brands of retailers. They need to come out with more sales promotion

activities and more varieties in their product aisles. Marketers of national brands need to

innovate brilliantly to keep coming up with new products and new value additions continuously.

This helps their national brands as moving targets and not sitting ducks in stores. Where ever

possible manufacturers has to provide discounts and more margins to their major key retailers by

sales promotion targeting towards customers and retailers. Marketers of national brands must

start to partner with their profitable retailers by considering their strengths. Innovate and focus

strategy is needed in order to remain competitive.

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Limitations of the study

In attempt to make this project authentic and reliable, every possible aspect of the topic was kept

in mind. Nevertheless, despite of fact constraints were at play during the formulation of this

project. The main limitations are as follows:

The sample size is small as compared to universe; limited Sample size was small 30 from easy day 30 from big bazaar.

Survey is conducted only in areas prescribed.

The chance of biased response can’t be eliminated though all necessary steps were taken

to avoid the same.

Lack of published or unpublished literature on the study is also an limitation.

As the study was done in Jalandhar easy day and big bazaar we can’t predict the choices of customer nationally.

People perception go on changing time to time accordingly trend going on in the market The study is relevant only to present situation and not to future.

The study is time bound, due to rapid changes in the market, expectation level of

consumer’s, introduction of new products.

The study may not be applicable over a period of time

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References

1. Abhishek & Abraham Koshy (2008), “Quality perceptions of Private Label Brands”, Indian Institute of Management, Research & Publication, W.P No: 2008-02-04, 1-22. 2. Abhishek (2011), “Private Label Brand Chioce Dynamics”, Indian Institute of Management, Research & Publication, W.P No: 2011-01-07, 1-20

3. Ailawadi & Keller (2004), “ Understanding Retail Branding: Conceptual Insights & Research Priorities, Retail Branding, 1-34

4. Aithal Rajesh (2009), “An Exploratory Study on the Emergence of Private Labels in India”, Marketing Paradigms for Emerging Economies”, 239-243

5. Baidyaray Debjani (2011), “Changing face of Apparel Retail in India”, Retail Biz, Volume 8, Issue 11, 9-14

6. Beneke Justin (2010), “Consumer perceptions of private label brands within the retail grocery sector of South Africa, African Journal of Business Management, Volume 4, Issue: 2, 203-220 .

7. Chakraborty Samrat (2011), “Perceptions & Buyer Behavior Towards Private-Label Colas: An Exploratory Study to Understand the Views of the Store Managers of United Kingdom:, The IUP Journal of Marketing Management, Volume 10 , Issue 1, 5-18

8. Fraser Alison (2009), “Attitudes to Private labels: The Role of Store Image”, 1-9

9. Glynn Mark & Chen Shaoshan (2009), “Consumer Factors Moderating Private Label Brand Success: Further Empirical Results”, International Journal of Retail & Distribution Management, Volume 37, No.1

10. Hariprakash (2011),”Private Labels in Indian Retail Industry”, International Journal of Multidisciplinary Research”, Volume 1, Issue 8, 1-3

11. Hoch Stephen and Banerji Shumeet (1993), “When do Private Labels Suceed?”Summer, Sloan Management Review, 57-67

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12. Hoch, Montgomery & Park (1994) , “Long Term Growth Trends in Private Label Market Shares”, W. P No: 00-010

13. Jelena Koncar, Goran Vukmirovic, Zita Petrovic Katai (2010), “Private Label Development in Republic of Serbia”, Business & Economic Horizons, Volume 3, Issue: 3, 105-110

Appendix

Questionnaire

We are MBA students at Lovely Professional University, conducting research on topic “Comparative Analysis of Consumers’ Perception towards Private Labels & National Brands in Jalandhar City” We would appreciate it if you would take 5-10 minutes of your time to complete the questionnaire. Rest assured that your answers are confidential and will be used for research purposes only.

a. Name of the Respondent:___________________________

b. Age: _____________

c. Gender: __________

d. Education: ______________

e. Total monthly income (Rs.)

10,000-15,000 1 6,000-29,000 30,000 and above

f. Occupation: Service Business Home maker- Student

Any other

Please read the following instructions

1. Please tick on the answer of the questions

1. When do you buy apparels?

Festival Some special occasion Discounts & offers

No specific occasion

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Please use the following divisions for answering the questions.1- Strongly disagree2- Disagree3- Neutral4- Agree5- Strongly agree

2. Most of the products (apparels) bought are National brands.

3. Most of the products (apparels) bought are Private brands.

4. The quality provided by National Brands is superior.

5. The quality provided by private labels is superior.

6. National brands provide value for money (in terms of quality).

7. Private labels provide value for money (in terms of quality).

8. National brands provide huge variety of apparels.

9. Private labels provide huge variety of apparels.

10. National brands are easily available at your preferred shopping destination.

11. Private labels are easily available at your preferred shopping destination.

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54321

54321

54321

54321

54321

54321

54321

54321

54321

12. National brands often come out with various discounts and offers from time to time.

13. Private labels often come out with various discounts and offers from time to time.

14. National brands often reflect current trends.

15. Private labels often reflect current trends.

16. Impact of advertisement on preference of National brands.

17. Impact of advertisement on preference of private labels.

18. I prefer national brands due to endorsement done by celebrity.

19. I prefer private labels due to endorsement done by celebrity.

20. This store has operating hours convenient to all their customers.

21. Preferred location of shopping for National brands

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54321

54321

54321

54321

54321

54321

54321

54321

54321

54321

Malls

Multi brand stores _________________________

Modern retail stores ________________________

Company’s own outlet _______________________

22. Preferred location of shopping for Private labels

Malls _______________________________________

Local Stores _________________________________

Modern retail stores ___________________________

Private label outlet ____________________________

Also give the reason for the same:_________________

33