The Influence of Consumer Selection on Store Brands over Name Brands in the Food Retailing Industry

Abstract

Food retailing industry has expanded commensurate to the growing requirements of a bulging world population. Initially, most retailers depended on external suppliers for most of their stock. The suppliers controlled the branding and pricing elements. This has since evolved with retailers having exponentially grown, endowing them with the ability to support their own brands.In addition to the inherent additional capability, changing business dynamics have meant that retailers have introduced additional aspects to their in-store brands. These brands which have been developed in-house have grown in scale and reach but still limited to branded stores. Food retailing has spawned lateral branded stores with respect to their food characteristics.The study has focused on evaluating the myriad factors that have sufficiently influenced consumer psychographics when choosing private store brands instead of commercial name brands. This was achieved by analyzing; general marketing strategies, effective branding, pricing and associated discounting, and general attractiveness of store brands.The condensed objective was dissected into related sub-objectives including; the marketing strategies that have been pursued by food retailers in promoting their own brands, factors that influence preference for store brands in relation to pricing, discounts, psychographic dynamics, existence of promotion thresholds and their overall influence on purchasing habits.Research was undertaken using qualitative methods by surveying the emerging trends that have supported the growth of store brands. Price comparisons were made from empirical data collected from several outlets while the survey was conducted on consumer responses to pricing and discounting. The resultant data was evaluated and represented in tables and charts to support the primary objective of the research.