National and Store Brand Advertising Strategies

As the propensity of premium store brands (SBs) increases, retailers must consider different ways to drive sales besides promotional strategies. With this in mind, we consider a national brand (NB) and a (premium) SB co-existing in a market. Each brand has to decide the amount to invest in advertising its product and the prices to charge its customers, which can be determined separately or in unison. When either advertising expenditures or pricing decisions are set, each brand must keep in mind that the advertising efforts and revenue may spillover between the two brands, customers who intend to purchase the NB may end up purchasing the SB and vice versa. We derive an analytical model of the situations described and characterize equilibrium advertising decisions. We find that the characteristics of a premium SB may depend on which marketing/promoting instrument (advertising or pricing) is the primary method for driving demand; and in some situations an NB may be better off to not advertise at all and instead let the premium SB carry out all of the advertising

Analysis of Value-Added Meat Product Choice Behaviour by Canadian Households

The competitive landscape in retailing has changed over the past decade. Moreover, the degree of product differentiation has been increasing: households are able to choose between an increasing number of store brands and national brands of similar products. The value added meat market is no different than any other sector of the grocery market – both national brands and private label brands are being developed to appeal to the consumer‘s desire for convenience, health, production and environmental attributes. Understanding the factors that are influencing consumers‘ value added meat product preferences is important for meat manufacturers who wish to add value to their firm‘s performance and increase market share. This knowledge is required in order to predict changes in demand and develop new products and marketing strategies that respond to changing consumer needs. The objective of the paper is to provide information on value added meat consumption patterns in Canada at the household level using household purchase information from a representative sample of the Canadian population collected through Nielsen Homescan™. Specifically the focus is on how meat consumers make their decision to purchase value-added meat products – the impact of value added meat types, store choices and brands preference on meat demand. The study undertakes an empirical investigation of Canadian household value added meat demand for the period 2002 to 2007. A comparison of consumers‘ preferences is performed with respect to store-switching, brand loyalty and meat expenditure. Multivariate regression analysis is employed to explain consumer preferences for the examined stores, products and brands. We find that meat price, advertising, the number of stores visited, household socio-demographic characteristics and regional segments are strongly related to meat expenditure levels. Value added meat product preferences vary widely across meat types - for example, consumer behaviour towards pork is not a good predictor of behaviour towards poultry, in terms of national brand/store brand choice. The data developed in this analysis can highlight6 marketing opportunities that exist for meat producers and processors to increase the value of total sales for their particular products. The results of this study highlight the impact of number of stores regularly shopped at on purchases of national brand versus private label meat products, the impact of expenditure on meat by product form on national brand versus private label and the impact of demographic and regional variables on all meat purchases, by animal species.consumer behaviour, store loyalty, meat demand, value-added meat, national/store brand choice, Consumer/Household Economics, Demand and Price Analysis, D1, M3,

Vertical competition between manufacturers and retailers and upstream incentives to innovate and differentiate

Vertical competition, namely competition between retailers' store brands (or private labels) and manufacturers' brands has become a crucial factor of change of the competitive environment in several industries, particularly in the grocery and food industries. Despite the growing literature on the determinants of the phenomenon, one topic area regarding the impact of vertical competition on the upstream incentives to adopt non-price strategies such as product innovation as well as horizontal and vertical product differentiation has so far received little attention. An idea often put forward is that the increasing bargaining power of retailers and higher vertical competitive pressures can have negative effects on such incentives by lowering manufacturers' profits. On the other hand, there is a significant empirical evidence supporting the view that non-price strategies of product innovation and differentiation continue to play a key role and remain a crucial source of competitive advantages for several manufacturers. In this paper, we present a simple conceptual framework which allows us to focus on two hypotheses which interacting explain why the disincentive effects are not so obvious. The first hypothesis regards the existence of an inverse relationship between the strength of a given brand and the retail margin as suggested by Robert Steiner. Through a two-stage model in which manufacturers do not sell directly to final consumers and the retail industry is not perfectly competitive, Steiner argued persuasively that in such models leading brands in a product category yield lower retail margins than less strong brands. Retailers are forced to stock strong brands and therefore have relatively less bargaining power in negotiating wholesale prices. In addition, price competition among retailers is more intense on strong brands since consumers select these brands to form their perceptions of stores' price competitiveness and are ready to shift to lower price stores if retail price of these brands is not perceived as competitive. Thus, intensive intrabrand competitive pressures discipline retailers pricing policy on stronger manufacturer brands much more than on weaker brands. A key prediction of Steiner's two-stage model is that, since manufacturers' non-price strategies have a margin depressing impact which is additional to their direct demand - creating effect, manufacturers face greater incentives to invest in advertising and R&D. The second central hypothesis in our framework is that in a world of asymmetric brands and intense vertical competition there is a further mechanism at work due to retailers' delisting decisions. Given that retailers have to make room for their store brands at the point of sale, they have to readjust their assortments delisting some manufacturer brands. Retailers would like delisting strong brands given that the retailer's margin on these brands is lower. The problem is that strong brands can contrast vertical pressures better than weaker brands and cannot be delisted. In making shelf - space decisions, rational retailers will recognise that they can delist only the brands whose brand loyalty is lower than their store loyalty. On the contrary, retailers cannot delist brands for which brand loyalty is greater than store loyalty. This implies that manufacturer brands operate in a two- region environment. We call these two regions, respectively, the 'delisting' and 'no-delisting' region and show that the demarcation point between them is given by the level of retailer's store loyalty. By combining the Steiner's hypothesis with the mechanism of delisting, we argue that in a competitive environment characterized by vertical competition is at work a threshold effect which increases optimal 2 R&D and advertising expenditures. The intuition is that it is vital for manufacturers willing to remain sellers of branded products to keep brand loyalty of their brands at a level higher than retailer's store loyalty. And the only way to pursue this goal and avoid to be involved into the risk of being delisted is to boost brands. We also show that vertical competitive pressures are particularly strong on second- tier brands. A brief review of some recent patterns and stylised facts in the food industries and grocery channels consistent with these predictions conclude the paper.vertical competition, store brands, delisting, optimal advertising, Industrial Organization,

Children’s buying behaviour in China: A study of their information sources

Purpose Reports an empirical study on children’s buying behaviour in China with a special focus on their information sources. Design /Methodology The key literature on consumer socialisation of children is reviewed. Primary data was collected from a sample of 155 children aged 10 to 13 using questionnaire survey. Various statistical methods such as Pearson correlation and tests were employed to analyse the data. Findings Chinese children regard TV commercials as an important information source for new product. However, they place greater level of trust in interpersonal information sources, especially in their parents who are perceived as the most credible information source with respect to their learning about new food products. Originality /Value The study has made a contribution to the extant literature on Chinese children as consumer. The findings would be valuable in assisting companies, specially those in the food industry, to have a better understanding of Chinese children’s buying behaviour

Recommendations for Responsible Food Marketing to Children

The marketing of unhealthy foods to children and youth is a major public health concern. Children in the United States grow up surrounded by food and beverage marketing, which primarily promotes products with excessive amounts of added sugar, salt, and fat, and inadequate amounts of fruits, vegetables, and whole grains. This document provides a comprehensive set of model definitions for food marketing practices directed to children. The recommendations, developed by a national panel of experts convened by Healthy Eating Research, define the child audience range as birth to 14 years of age; address the range of food marketing practices aimed at children; and specify the strategies, techniques, media platforms, and venues used to target children. When paired with sound nutrition criteria, these recommendations will help support responsible food marketing to children by addressing current loopholes in food marketing definitions and self-regulatory efforts that allow companies to market unhealthy foods and beverages to children

Breaking Down the Chain: A Guide to the Soft Drink Industry

Provides an overview of the soft drink industry's earnings, structure, markets, and determinants of demand; major players; supply chain; marketing strategies; and policy and legislative actions in response to the sugar-sweetened beverage tax

Retailing under resale price maintenance: economies of scale and scope, and firm strategic response, in the inter-war British retail pharmacy sector

The article examines the impact of resale price maintenance (RPM) on market structure, productivity, and competitive advantage in British retail pharmacy. In contrast to influential studies, but consistent with contemporary and recent work, it is shown that the major multiples were able to ameliorate the negative growth impacts of RPM. Higher profit margins ‒ principally from larger manufacturer discounts and backward integration – were used to fund initiatives aimed at boosting aggregate sales and economies of scale and scope. These relationships are explored using a recently discovered national establishment-level survey of retail pharmacists’ costs and margins, together with internal data for Boots Ltd

Classification of Empirical Work on Sales Promotion: A Synthesis for Managerial Decision Making

Sales Promotion activities have gained strategic focus as markets are getting complex and competitive. Key managerial concerns in this area are budget allocation across elements of promotions as well as trade vis. consumer promotion, how to design individual sales promotion techniques and a calendar in face of competitive promotions, how to manage them and evaluate the short-term and long-term impact of the same. The objective of this paper is to present, through Meta-analysis, an overview of recent contributions appearing in scholastic journals relevant to the field of Sales Promotion, to classify them into different classificatory framework, report key findings, highlight the managerial implications and raise issues. The database used is the EBSCO host available on VSLLAN (Library)- Indian Institute of Management Ahmedabad). The selection procedure consisted of peer-reviewed scholarly contributions for recent five year period. Out of more than 700 articles 64 article were selected which were analyzed for classifying them into • Perspective addressed: Manufacturer, retailer or consumer. • Market [country where the research was undertaken] • Type of promotion activity addressed - coupon, contest, price cut etc. • Management function addressed: planning, implementation, control [evaluation] • It was found that majority of the articles addressed manufacturers perspectives ; almost all studies were done in developed countries ; coupon as a consumer promotion tool was widely researched; and more than half of the articles were addressing planning related issues. Finally attempt has been made to synthesize managerial implications of the studies under broad topic areas for guidelines for managers.

Food and Beverage Marketing to Children and Adolescents: An Environment at Odds With Good Health

Synthesizes research about the effectiveness of industry self-regulatory marketing practices promoting "better-for-you" foods and beverages to children and adolescents. Examines types of media used for unhealthy food marketing and race/ethnicity targeted

Internationalisation of Spanish fashion brand Zara

Zara is one of the world’s most successful fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap