final private labels

8/7/2019 final private labels

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PRIVATE LABLE:

A GROWING MARKET


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` What Are private labels

` How it is developed or made

` Store brand revolution began in Europe and Canada

`

Boots Started its private labels in 1970s


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1. National brands were heavily advertised in TV andMedia and had a strong consumer franchise

2. Hard for the retailers earlier to gain the economies ofscale in design and production necessary to competeagainst the Manufacturer Brands

3. Retailer were not sophisticated enough to competeagainst the Manufacturer Brands

4. Private Label had the reputations of being inferior toManufacturer Brands


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1. Copycat Branding

2. Premium Branding

3. Bargain Branding

4. Parallel Branding


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1. Exclusivity and Differentiation to retailers.

2. Plugging a need gap -- for instance, Big Bazaar's labelDreamLine is aimed at providing shoppers the entire gamut of

home improvement solutions under one brand.3. Retailers are also spurred to launch private labels given the

low penetration of most categories in India.

4. Then there is the aspect of supply chain efficiencies.

5. Private labels also help in cutting down on intermediaries

6. Dropping cost7. Better margins for retailers

8. More customer discounts


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1. Private labels are generallyintroduced to get higher grossmargin


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` Croma is owned and run by Infiniti Retail Limited, a

100% subsidiary of Tata Sons. Woolworths Ltd, the

Australian retail giant, provides technical support

and strategic sourcing facilities from its global

network.


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` Mr. Das, store manager of Croma (Bandra) said The

idea of having a private label was to increase volume atour stores which would further help us to negotiate in

the Chinese market and not margins alone; though

higher margins is the dominant factor.


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` Pendrive was available

at Rs. 525 a month ago

` Current price Rs. 490

` Placement of the

product

` Sales reps comments` Personal experience


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Croma photo frame

` 17cms Rs 3490/-

` Philips at Rs. 4490/-

` Stacking above Philips

` Camera case

` Croma Camera case- Rs.899/-

` Caselogic Rs. 945/-

` Cromas camera is placed inthe centre


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` 1 Terabyte Hard Drive

` Cromas Lomega HDD

500GB at Rs. 3799/-

compared to Seagate@

Rs. 4399/-

` Placing

`

Stacking


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` Placement centre of 21 tvs

` Price Comparison:-

` Philips Rs. 2990

` Croma Rs. 2484

` Different models of DVD players

placed in a different section (rows)

` DVD players section placed next to

Sony DVD player` Placed next to high end tvs 5.1

Croma DVD players with Sony

closeby


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` Placement

` Price:-

` Cromas 21 tv @ Rs.

6895

` LG 21 @ Rs. 8975


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` DSE foot massager spa

Rs. 1790/-

` Cromas foot massager

Rs. 2490/-

` Placement

` Price Differentiation


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` Priced at Rs. 6490/-

with a Toaster free

` Compared to otherbrands Whirlpool

at Rs. 7790 /-


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` Which includes a mixture grinder, juicer, toaster

@ Rs 9999/-


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` Chroma Air conditioner

Rs. 16,490


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` When do you think its the

right time to go for it???

` Do they face any

competition???` Pricing strategy???


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` Designs and patterns???

` Why do they get into it???


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` Placement of the merchandise?

` Sales figures???


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` Bharti Retail Easyday/ Wal-Mart

Great Value (Grocery)

George (apparel)

Home Trends (Home Furnishing)

Mainstays (Plastic Containers)

Kid Connection (toys, clothing)

` Tesco/Trent Star Bazaar

Tesco Value

Daisy

All About Men

` Reliance Retail

Reliance Select

Reliance Value

Dairy Pure (dairy Products)

` Future Group

Tasty Treat(Processed Food)

Sach (Toothpaste)

Ektaa (Community Food)

Premium Harvest (Staples)

Fresh n Pure (Dairy Products)

Cleanmate (Homecare)

Caremate (Personal Hygine)

` Aditya Birla Retail

More(Staples)

Blue Earth(Apparels)

True(Footwear)

Kitchens promise(Ready-to-eat)

Enriche (Soaps and conditioners)

Fresh-Odent (toothbrush)


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` The hypermarket format retail chain of Trent Ltd

` Trent was founded in 1998 by Ms. Simone Tata, mother of its present

Managing Director Noel Tata

` Low-priced, discount-based hypermarket, which is usually spread over

75,000 square feet

` The first store opened in Ahmedabad in 2004

`

Stocks a whole range of products from food and grocery, to apparel, homeand personal grooming products.

` Four stores in three cities (Ahmedabad, Bangalore and Mumbai)


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` In food and groceries margins of 25-35 percent

` National and regional brands give margins of 10 to

12 per cent

` For Star Bazaar- Private labels contribute 2-4%

revenue


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` Market Leader- Harpic

` SKU-500ml

` -Harpic- `54

` -Star Bazaar - `45

` Bulk deal of star bazaar

phenyl and toilet

cleaner- `49


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` Market Leader-VIM Bar

VIM:

-SKU 762 gm (Pack Of 3) `33

-SKU 254 gm `15

` Star Bazaar:

-SKU 795 gm (Pack Of 3) `31

-SKU 380gm `14


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` Market Leader: Vim

` Vim Drop:

-SKU 225 ml- `36

-SKU 500ml- `69

` Star Bazaar wash Active gel:

-SKU225 ml 25

-SKU 500 ml `59 plus a

star bazaar scrub free


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` Pickles

` Corn Flakes

` Big placards, saying these

are 21 to 37 per cent

cheaper than national

brands


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` Food Bazaar is a chain of food retail stores founded

by Kishore Biyani, regulated by Future Group of

Companies

` It is said that the chain was inspired by Saravana

Stores

` Its first outlet opened in Kolkata in late 2001

` Currently it has approximately 140 store across India


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` Industry Estimates- 80% of customers are repeats and its natural for them

to develop a faith in retailers own brands

` Spencers has private labels in about 60% of close to 650 categories it sells

` Spencers private label sales are growing 40% annually

` Kabir Lumba (MD Lifestyle International) says- Private Labels contribute a

quarter of its sales

` HUL, P&G, Reckitt, Kelloggs Raise Margins up to 25%

` Future Groups Tasty Treat now ranks 7th among all SKUs across

categories ahead of Lays and Haldiram


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final private labels

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