Introducing Nationwide Brands for Discount Stores: Implications pertaining to Brand Picture Essay

Introducing NBs at discounters:

Implications intended for brand picture

Bachelor Thesis Marketing


Word Count number: 7, 039

Emiel Hoosemans

Anr: 881442

Tilburg University or college

Marketing Department

Supervisor: Farreneheit. Sotgiu


The continued growth of the discount grocery sector has triggered manufacturers of national brands to consider introducing goods at these discount stores. Little research has been performed on the results this has for the performance in the national brand. The objective of this study should be to examine the implications of brand name image when introducing the national brand. Consequences to brand image play an essential role in determining the success of the start. Manufacturers have to pay particular focus on the price placing and the quality perception with the national manufacturer with respect to personal labels. Firstly, we take a look at the research background acknowledge the sort of consumers like a control adjustable. Then, two independent factors price placement and top quality perception will be examined. We discover evidence intended for pricing restrictions and develop pricing tactics that have an effect on brand photo positively and negatively. The perception of quality is usually approached in the contexts results literature. Drawing on branding, selling, and costs literature, we find promotional activities that can enhance brand picture at discounters (i. elizabeth. advertising, the labels, innovation) and/or potentially hazardous for brand image (price promotion, display). Table of Contents


Table of Contents3

Phase 1 Introduction4

1 . one particular Problem Definition4

1 . two Problem Statement4

1 . 2 . 1 Study Questions5

1 ) 3 Analysis Background5

1 . 4 Academic Relevance6

1 ) 5 Managerial Relevance7

1 . 6 Structure7

Chapter 2 Conceptual Model8

2 . one particular Conceptual Framework8

2 . two Defining Constructs8

2 . 2 . 1 Brand Image8

2 . 2 . 2 Quality Perception9

2 . installment payments on your 2 Price Positioning10

2 . 3 Control Variable: Sort of Consumers10

Phase 3 Value Positioning12

a few. 1 Value Perception & Pricing Strategies12

3. 2 Promotional Activities15

3. 2 . 1 Advertising15

3. installment payments on your 2 Selling price Promotions15

3. 3 Phase Summary16

Part 4 Quality Perception17

5. 1 Context Effects of Display and Products17

4. 2 Context Effects of Store Image18

4. three or more Feature Advertising18

4. 5 Chapter Summary19

Chapter a few Conclusions20

five. 1 Conclusion20

5. a couple of Discussion21

your five. 2 Recommendations21


Chapter 1 Advantages

1 . you Problem Classification

In the fierce competitive world of supermarkets and adding to this kind of the economical regression, hard discount retailers seem to be growing at an explosive rate. Various brand manufacturers have been reluctant to enter the hard discounters part either defer by excessive entry obstacles or by having insufficient information about the market (Nielsen, 2007). Nevertheless , managers of national brands (NBs) will be coming about to realise entering into the discount channel is a wonderful opportunity (Deleersnyder, Dekimpe, Steenkamp & Koll, 2007). Even though the hard discounter's segment receives an increasing volume of focus in the academics field, little is known regarding the effects of adding NBs to the discounters' selection. In particular, there may be little information available on what this specifically means for the brand name image of NBs. This low self-esteem poses a real challenge for developing sales strategies and strategies to introduce NBs with the discount funnel.

1 . 2 Problem Assertion

Drawing from your past literary works on the low cost grocery market and brand management, this kind of study looks for to provide further insights about how precisely brand photo is damaged when launching NBs in discount shops. The belief of brand image of NBs impact on how managers can placement their brands at discounters. Two of the main variables to consider will be price and quality placement of the NBs. These factors determine how...

Sources: Ailawadi, T. L., Neslin, S. A., Gedenk, E. (2001). " Pursuing the value-conscious consumer: Store brands versus national manufacturer promotions”, Diary of Advertising, 65 (January), 71-89.

Ailawadi, Kusum T. & Kevin L. Keller. (2004). " Understanding price tag branding: Conceptualizing insights and research priorities”, Journal of Retailing, eighty, 331-342.

Bells, D. Ur., Chiang, M., Padmanabhan, V., (1999). " The decomposition of marketing response: A great empirical generalization”. Marketing Technology 18 (4), 504-526.

Bells, D. Ur., Lattin, M. M. (1998). " Buying behavior and consumer response to retail price format: For what reason large basket shoppers favor EDLP”, Promoting Science, 17 (1), 66-88.

Bodapati, A. V., Shrinivasan, V. (2006). ”The effect of characteristic advertising about customer retail store choice”. Exploration paper Number 1935, Stanford Graduate Institution of Organization, May 2006.

Buchanan, T., Simmons, C. J., Bickart, B. A. (1999). " Brand equity dilution: Merchant display and context company effects”. Record of Marketing Study, 36 (3), 345-355.

Buchanan, L., Simmons, C. M., Bickart, B. A. (2000). " Leveraging equity across the brand portfolio”. Marketing Letters, 11 (3), 210-220.

Choi, S. C., Coughlan, A. T. (2006). " Private label positioning: Top quality versus characteristic differentiation through the national brand”. Journal of Retailing, 82 (2), 79-93.

Cleeren, T., Verboven, F., Dekimpe, Meters. G., Gielens, K. (2010). " Intra- and interformat competition amongst discounters and supermarkets”, Promoting Science, twenty nine (3), 456-473.

Cotterill, Ur. W., Putsis, W. P., (2000). ”Market share and price setting behavior pertaining to private labeling and NBs”, Review of Industrial Organization, 17 (1), 17-39.

Crewal, M., Krishnan, L., Baker, J., Borin, N. (1998). " The effect of store term, brand name and price discounts on buyers evaluations and purchase intentions”. Record of Retailing, 74 (3), 331-352.

Deleersnyder, B., Dekimpe, M. G., Steenkamp, J-B. E. M. and Koll, O. (2007), " Win- win strategies at discount retailers, " Journal of Retailing and Customer Services, 18 (5), 309-318.

Dobni, D., Zinkhan, G. M. (1990), " Searching for brand picture: A groundwork analysis", Improvements in Client Research, amount 17, 110-119.

Geyskens, We., Gielens, E. and Gijsbrechts, E. (2010), " Growing private label portfolios: How launching economy and premium private labels influences brand choice", Journal of Marketing Research, 47(5), 791-807.

Hoyer, W. D., Brown, S i9000. P. (1990). " Associated with brand recognition for a common, repeat buy product”. Diary of Buyer Research, seventeen, 141-148.

Search, K. A., Keaveney, H. M. (1994). " A process model of the consequence of price marketing promotions on manufacturer image”. Mindset & Marketing, 11 (6), 511-533.

Kalyanram, G., Winer, R. (1995). " Scientific generalizations coming from reference

selling price research, ” Marketing Technology, 14 (3), 161-169.

Karray, S., Martín-Herrán, G. (2007). " A dynamic version for advertising and pricing competition between nationwide and retail store brands”. Western Journal of operational analysis, 193 (2009), 452-467.

Keller, K. L. (1998). " Strategic manufacturer management: Building, measuring and managing brand equity”, Nj, NY: Prentice Hall.

Lamey, L., Deleersnyder, B., Dekimpe, G. M., Steenkamp, J-B, E. Meters. (2007). " How business cycles lead to private-label accomplishment: Evidence from the United States and Europe”. Journal of promoting, 71 (January), 1-15.

Nielsen, A. C. (2007), " The hard discounter report: A review of Aldi and Lidle in Europe", Consumer observations the Nielsen company. WEB ADDRESS: http://dk.nielsen.com/reports/ConsInsightsEuropeJune07_media.pdf

Nijs, V

Richardson, P. S i9000., Dick, A. S., Jain, A. T. (1994). " Extrinsic and intrinsic cue effects upon perceptions of store company quality”, Log of Marketing, 49 (October), 28-36.

Richardson, G. S., Dick, A. S i9000., Jain, A. K. (1996). " Home store manufacturer proneness: A framework”. Record of Retailing, 72 (2), 159-185.

Sethuraman, R. (2003). " Calculating national brand' equity over store brands”, Review of Marketing Science, 1(2), 1-28.

Sethuraman, R. (2001). ”What makes consumer pay more for NBs than connaissance store brands: Image or quality? ”, Review of Advertising Science, WP No . 318.

Sethuraman, R., Cole, C. (1999) " Factors impacting on the price monthly premiums that customers pay for nationwide brands above store brands”. Journal of Product & Brand Managing, 8 (4), 340 – 351.

Claire, C., Sullivan, M. W., (1993). " The measurement and determinant of brand equity: A financial approach”. Marketing Scientific research, 12, 28-52.

Sinha, I., Batra, R. (1999). " The effect of consumer value consciousness on private labeled purchase”. Worldwide Journal of Research in Marketing, 16, 237-251.

Steenkamp, E. Meters., van Heerde, H. J., Geyskens, My spouse and i. (2010). " What makes buyers pay a cost premium to get NBs more than store brands”, Journal of promoting Research, 47, 1011-1024.