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Private label competition: the perspective of Swedish branded goods manufacturers
Luleå tekniska universitet.
King Fahid University of Petroleum & Minerals.
Luleå tekniska universitet.
Luleå tekniska universitet.
Show others and affiliations
2008 (English)In: Management Research News, ISSN 0140-9174, Vol. 31, no 2, 125-141 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – This paper aims to gain a better understanding of how Swedish branded goods manufacturers (BGMs) deal with the increased usage of private labels.

Design/methodology/approach – The approach takes the form of answering the three research questions of this study: how private labels are viewed by BGMs on the Swedish market; how Swedish BGMs strategically respond to the increases in private labels; and how the benefits and drawbacks of these strategic responses are perceived by Swedish BGMs. A contrasting multiple case study of four Swedish companies in the fast‐moving consumer goods (FMCG) industry was used.

Findings – The perceived advantages of private labels are connected to their overall control of the market in which they operate, whereas the advantages of BGMs are seen to be linked to product development and superior brand reputation. BGMs respond to private labels by taking them seriously and striving to increase the perceived distance of their brands from private labels in the eyes of the consumers. The overall benefit of these strategies is perceived to be preparedness for increased private label competition, while the drawbacks vary between companies.

Research limitations/implications – In addition to empirical testing based on previous research on private label competition in a new setting, the study also presents suggestions for future research and the implications of the findings for managers.

Practical implications – Findings indicate that BGMs should take the emergence of private labels seriously, while at the same time striving to maintain good business relationships with the retailers.

Originality/value – The study provides insights into the competitive situation between private labels and the manufacturer brands in the Swedish FMCG market.

Place, publisher, year, edition, pages
2008. Vol. 31, no 2, 125-141 p.
Keyword [en]
Sweden, Labelling, Brand management, Competitive strategy, Retailing, Fast moving consumer goods
National Category
Economics and Business
Research subject
Economy, Business administration; Economy, Marketing
Identifiers
URN: urn:nbn:se:lnu:diva-16164DOI: 10.1108/01409170810846849OAI: oai:DiVA.org:lnu-16164DiVA: diva2:465710
Available from: 2011-12-15 Created: 2011-12-15 Last updated: 2014-09-09Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf