• Title/Summary/Keyword: retailer brand

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Why Do Manufacturers Produce the Private Brand, Even if They Have Their Own National Brands? (독립 브랜드를 가진 제조업체의 유통업체 브랜드(Private Brand) 공급 전략)

  • Song, Tae Ho
    • Journal of the Korean Operations Research and Management Science Society
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    • v.37 no.4
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    • pp.1-18
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    • 2012
  • With the enormous growth and various applications of private brands, national brand manufacturers are confronted with a dilemmatic situation. That is, paradoxically, some manufacturers have come to produce private brands of retailers which are potential competitors to their own brands. This study reveals why manufacturers with their own brands let themselves do the consignment production of retailers' private brands although those private brands may become strong competitors of their own brands and then investigates the condition in which manufacturers may benefit from such consignment production. Through an analysis of a game theoretical model assuming a monopoly market, the present study presents the theoretical backgrounds and provides new insights about consignment production of manufacturer with its own brand for retailer's private brand. First, such consignment production can play a role in mitigating the loss in the consignee manufacturer's own brand sales caused by the private brand in the competitive environment. Second, the effectiveness of such role is affected by the quality of the private brand produced under consignment. In other word, only if the consignee manufacturer keeps the quality of the private brand low, the manufacturer can maintain the benefit from its own brand. In addition, a consigner retailer needs to consider the final objective of launching its private brand, when it chooses its consignee manufacturer of the brand. Finally, a manufacturer with its own brand may consider consignment production as not merely an unavoidable option compelled by a retailer's power but a reasonable strategic choice to reduce the risk from competition.

How can Sporting Goods Retailers Achieve Sustainable Success? : Concept of Sport Brand Authenticity (스포츠 용품 유통기업은 어떻게 지속가능한 성공을 이룰 수 있는가? : 스포츠 브랜드 진정성 개념)

  • Lee, Jekyung;Song, Sangyeon
    • Journal of Distribution Science
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    • v.16 no.4
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    • pp.57-65
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    • 2018
  • Purpose - As society continues to develop and the economy grows, consumer participation in sports activities and consumption of sports-related goods are steadily increasing. Nowadays, Spyder, the sporting goods company has achieved great success in the Korean market. In the launching, Spyder tried to communicate the sport authentic brand value to consumers as successful sporting goods brands did. The purpose of this study is to identify the key factors influencing the successful branding strategies of sporting goods retailers. In the process of value trading to the consumer, the concept of authenticity which includes 'originality', 'truth' and 'genuine' is considered as one of the most important factor for branding. This study tries to define the brand authenticity in sporting goods retailer and to develop measurement scale. This study suggests a new paradigm for sports brand research and implications for management of domestic sporting goods retailer that is losing the direction to develop brand value. Research design, data, and methodology - This research consists of two parts of study. The first study is a qualitative research to define sport brand authenticity and measuring items through expert interviews. The second study is the development of scales to the authenticity. And reliability and validity of the scales are verified by quantitative methods. A total of 500 respondents were surveyed and the statistical tests were conducted by dividing two groups. Results - This study defines the authenticity of sports brand which is divided into four dimensions; behavioral authenticity, performance authenticity, spiritual authenticity and virtuous authenticity. And this newly defined four dimensions measurement tool is proved statistically in this study in terms of reliability and validity. Conclusions - For the success of sporting goods retailers, it is important to understand the value of sport and to communicate it with customers effectively. This study suggests a tool for sport brand authenticity and also significant implications for brand strategies. In addition, every entity which is related with sport can apply the measurement scale of this study to understand their position and find direction in terms of authentic sport value.

The Promotions of Brands and Stores and their Impact the Optimal Decisions for the Marketing Channel Members (두 종류의 촉진(브랜드 프로모션과 점포 프로모션)과 유통구성원의 최적결정)

  • 김상용
    • Journal of Distribution Research
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    • v.3 no.1
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    • pp.7-29
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    • 1998
  • Manufacturers want brand promotions at the stores. In contrast, retailers want promotions for the stores rather than for the brands since better store promotions can attract customers from the competing retail stores. In this paper, three scenarios are assumed for the promotions in terms of the allowances or the side-payments form the manufacturer to the retailer and the pass-through rate for the allowances being used for the brand promotions by the retailer. An analytical model for the marketing channel distribution is used for the analysis. Then, several marketing implications are suggested based on the findings.

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Lessons from Haitai Distribution Inc's experience in Korea

  • Cho, Young-Sang
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.25-36
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    • 2011
  • Owing to the rapid growth of hypermarket/discount store formats since 1996, Korean retailing has suddenly attracted the significant attention from researchers. Before the emergence of large scale retailers such as E-Mart, Lotte Mart and Tesco Korea, there were the two retail formats who led the Korean retailing in the modern retailing history: department store and supermarket formats. Nevertheless, there has been little literature concerned about the two retail formats as a case study, while some authors have paid their attention to hypermarket/discount store formats. In addition, when mentioning the development process of retailing history, it is less likely that authors have made an effort to illustrate supermarket retailing history. In order to regard supermarket retailing as part of the Korean retailing, it is interesting to look at a representative supermarket retailer, Haitai, who was one of the subsidiaries of Haitai chaebol. Based on supermarket retailing, the company which was established as a joint venture in 1974 led a supermarket retailing in the Korean modernised retailing history. Before analysing whether Haitai failed or not, the definition of failure should be illustrated. With regard to the term, failure, in the academic world, authors have interchangeably used the following terms: failure, divestment, closure, organisational restructuring, and exit. To collect research data as a case study, the author adopted an in-depth interview method. The research is based on research interviews with 13 ex-staff who left after Haitai went bankruptcy, from store management department to merchandise department. By investigating Haitai's experiences through field interviews, the research found that Haitai restructured organisational decision-making process at the early stage when companies started to modernise organisational charts, benchmarking sophisticated retailing knowledge through the strategic alliance with a Japanese retailer. In respect of buying system, the company established firmly buying functions by adopting central buying system, and further, outstandingly allocated considerable marketing resources to the development of retailer brands with the dedicated team of retailer brand development. In the grocery retailing, abandoning a 'no-frill' packaging concept, the introduction of retailer brand packaging equal to, or better than national brand packaging design, encouraged other retailers to change their retailer brand development strategies. In product sourcing ways, Haitai organised for the first time the overseas sourcing team with the aim of improving the profit margins of foreign products and providing exotic products for customers, followed by other retailers. Regarding distribution system, the company introduced the innovative idea which delivered products ordered by stores directly to each store withboth its own vehicles and its own warehouse in which could deal with dry foods, chilly foods, frozen food, and non-foods, and even, process produce. In addition, Haitai developed many promotional methods to attract more customers like 'the guarantee of the lowest price', and expanded its own business to US in 1996, although withdrew, because of bankruptcy in 1997. Together with POS introduction in 1994, Haitai made a significant contribution to the development of the Korean retailing, influencing other retailers in many aspects. As a case study, the study has provided a number of lessons from Haitai's experiences for academicians and practitioners, suggesting that its history should be involved in the Korean modernised retailing.

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Consumers's Distrust for Discounting Claims and Purchase Intention for Apparel Products (의류 제품의 할인판매에 대한 소비자의 불신과 구매의도에 관한 연구)

  • 오영아;정명선
    • Journal of the Korean Society of Clothing and Textiles
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    • v.21 no.8
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    • pp.1307-1314
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    • 1997
  • This study investigated the factors that influence consumers' distrust and consumers purchase intention for discounting, specifically discounting of clothes. Through literature, discounting rate, retailer type and brand reputation were identified as influencing factors and were tested. A 2$\times$2$\times$3 factorial design was used to test the effect of each factor on consumers' distrust and consumers' purchase intention for jean products. Retailer type was manipulated as high and low, brand reputation as well-known and less-known, and discount rates 10, 30 and 60%. An convenience sample of 165 female undergraduate students participated in the study. The data were analyzed using SPSS/PC+ The results showed that consumers did distrust discounting claims and consumers' distrust of the claims was greater for less-known brand. In addition, no significant effect of retailor type was found. Further effort is needed to generalize the result to different product categories.

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The Strategies of Manufacturers and Retailers for Customer Acquisition and Retention Using Scanner Panel Data (스캐너 패널 데이터를 이용한 유통업체와 제조업체간의 고객확보 및 유지 전략에 관한 연구)

  • Lee, Seung-yon;Son, Jungmin
    • Knowledge Management Research
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    • v.12 no.3
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    • pp.73-96
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    • 2011
  • Recent market saturation makes the local retailers consider an attempt to innovate the market with the retailer's brand. This is the retailers' efforts to expand the market control through the enhancement of private brands. As the competition among manufacturers extends to the competition between manufacturers and retailers, the marketing knowledges of manufacturers need to be diversified to the ones that can be applied to the manufacturers and retailers due to their bilateral competition. This research concentrates on the customer acquisition strategy (attack strategy) and customer retention strategy (defense strategy) in the place of both sides of manufacturers and retailers. Also this research targets to develop the differential marketing strategies for target market's National Brand(NB)/Private Brand(PB) purchase by analyzing individual customer's purchase probability on repurchase and switch-purchase of NB and PB. This study is based on the data of frequently consumed product, tomato ketchup on scanner panel from the ERIM data of University of Chicago, USA. This study compares and analyzes the NB and PB repurchases and switch-purchase of 4 types. The comparisons provide the informations that which factors should be managed for the attack strategy, the defense strategy, and the differential marketing strategies both for manufacturers and retailers. This research is expected to contribute on cumulating the industrial knowledges of retailers' and manufacturers' survival strategy, expecially focusing on the effect of marketing factors and consumer-characteristic factors.

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Effect of Retailer Credibility on Attitude to Private Brand and Product Purchase Intention (유통업체 신뢰성이 유통업체 브랜드(PB)에 대한 태도 및 PB상품의 구매의도에 미치는 영향)

  • Lou, Liguo;Park, Man Seok;Koh, Joon
    • The Journal of the Korea Contents Association
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    • v.15 no.11
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    • pp.467-485
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    • 2015
  • The market share of private brand(PB) is growing at a rapid pace. Based on the previous studies, consumers pay more attention to the extrinsic cues when they buy the PB products. This paper proposes an integrated model to examine how the retailer credibility which is one of the important extrinsic cues affects perceived quality variation, value consciousness, attitude to PB, and PB product purchase intention. Also, familiarity with PB is regarded as a moderating variable that can interact with retailer credibility. An analysis of 199 useable questionnaires found that retailer credibility has a significant impact on the attitude to PB, directly and indirectly. Further, the moderating effect of familiarity with PB was significant. For this, we interpret that when consumers are more familiar with the private brand, they tend to have few bias toward the quality of PB. These findings provide several effective strategies for the development of PB, such that retailers must improve consumer's familiarity with PB via various promotions like free samples or testing events. Academic and practical implications of the study findings and future research directions are also discussed.

A Study on the Factors Affecting Perceived Value of PB, Retailer Credibility and PB Purchase Intention

  • Min-Jung, KANG
    • Journal of Distribution Science
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    • v.21 no.2
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    • pp.103-110
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    • 2023
  • Purpose: The high-end and variety of recently released items are driving the growth of the distribution industry, which is the purpose of private brand (PB) products. Because PB shortens the distribution process and lowers marketing expenses, such as those associated with various commercials, more people will buy PB while paying lower retail prices. The goal of this study is to make the case that PB can be positioned successfully by determining the influence and direction of each individual constituent concept on how product and store attributes (perceived price, image of retail store) affect the perceived value of PB and the legitimacy of retailers. Research design, data and methodology: The gathered data were examined using PLS-SEM using Smart PLS 3.0 in order to analyze the research model of this study. Internal consistency was verified to demonstrate the measurement model's dependability, and extensive validity analysis, discriminant validity, and analysis were performed to verify the validity. Conclusion: This researcher attempted to gather diverse understandings and viewpoints on PB trends in addition to understanding the existing state of PB products. It is meant to be a unique and successful plan in the PB Brands' marketing strategy. By understanding the brand's value proposition aspects, it is hoped to determine how PB influences brand attitudes based on the findings of this study.

The Influence of Perceived Price and VMD Fitness of SPA Brand on Multi-dimensional Commitment (SPA 브랜드의 지각된 가격과 VMD 적합성이 다차원적 몰입에 미치는 영향)

  • Shin, Mi-Hyang
    • Journal of Digital Convergence
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    • v.10 no.3
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    • pp.39-49
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    • 2012
  • The purpose of this study is to analyzed that the perceived price and VMD fitness of the SPA(speciality store retailer of Private label Apparel) brand characteristics impacts on multidimensional commitment consist of affective commitment, calculative commitment and behavioral commitment. Using SPSS 18.0 and AMOS 18.0 by structural equation modeling analysis, we found that perceived price have effects on affective commitment, behavioral commitment and calculative commitment significantly, and VMD fitness have effects affective commitment significant only. Affective commitment and calculative commitment on behavioral commitment was affected significantly. Through this study we found that perceived price and VMD fitness SPA brand maintaining relationships between the consumer and the seller are an important factors.

A Study on Brand Alliance between Private Brand and National Brand (유통업체 브랜드와 제조업체 브랜드간 전략적 연계에 관한 연구)

  • 박진용
    • Journal of Distribution Research
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    • v.9 no.3
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    • pp.49-68
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    • 2004
  • The purpose of this study is to introduce brand alliance to private brand context. The conventional concept of the wheel of retailing hypothesis explains the limitation of private brand growth. Retailers, therefore, has made an effort to adopt brand alliance with national brand to solve the potential problem of private brand. The conjoint analysis was used to identify the importance of brand alliance. The importance of the general variable extracted from part worth presented there was significant benefit in an alliance between a private brand and a national brand. Additionally, the results showed that there were moderating effect of 1) familiarity with private brand, 2) evaluation of specific retailer and vendor and 3) usage amount on part worth structures.

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