Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Marketing Management Expert

Attempt all the problems.

Section-A

problem1) Describe in details the Cost and Retail Methods of accounting for Inventory Valuation? Use appropriate exs and Data Tables to describe your understanding?

problem2) prepare brief notes on any TWO from following giving appropriate exs?

a) Merchandise Security & types of Inventory Shrinkage in Retailing

b) Re Order point in Inventory levels and the significance of EOQ

c) Compare Basic Stock Method to Percentage variation method in Inventory Planning

d) Planned Reductions and Planned Purchases in Inventory Planning by Retailer

problem3) What are the main factors affecting vendor negotiation?

problem4) describe Electronic point of scale (EPOS) system. How it is used in improving stock control system?

Section-B

Read the case and answer the following problems:

Private Label

Private labels are products which are manufactured by retailer itself, rather than the manufacturer who generally markets them through separate retailers. As is evident, private labels are mostly prevalent in organised retail. Europe is the largest market for private label products globally. Within Europe, United Kingdom is the largest private label market by size, followed by Germany. Private label penetration in United Kingdom is close to 37 per cent at present, and is forecast to exceed 40 per cent by 2011. Should manufacturers really lose sleep over what retailer is doing? Well, private labels are large in developing markets — they account for 40 per cent of Wal-Mart sales ($126 billion or Rs 5,16,600 crore), 50 per cent for Tesco ($36 billion or Rs 1,47,600) and are eating into a larger chunk of organised retail sale in developed markets. In Germany, for ex, private label has shot up from 12 per cent of sales to 34 per cent. This has, in effect, changed balance of power between brand manufacturers and retailers, giving latter a decided advantage when negotiating terms with brand manufacturers. And apart from the multibrand retailers, category of private label-only retailers has also been created — like, Toys ‘R’ Us, Zara — who sell only private label brands.

The writing is on wall: private labels are growing faster than manufacturer brands. They are ubiquitous across categories and they now compete on quality — in fact, they are now brands! Private label share is expected to grab almost 22 per cent of sales in developed markets by 2010.
Private labels have evolved from ‘cheap and nasty substitutes’ to the real thing. Indeed, ‘copycat’ private labels still remain a strong strategy for retailers. However, the copycat no longer depends on the price advantage to fight branded product; it has improved on quality and offers the value proposition to the consumer. Likewise, the earlier theory that recessions fuelled private labels while the economic boom resulted in growth of brands no longer holds good.

Among he leading retailers of private labels is Tesco, that has the large portfolio spanning the entire price range. So from a ‘pile it high, sell it cheap’ approach, Tesco has moved into a more consumer-focused chain where private label offerings are the core of the strategy.

Wal-Mart, on the other hand, casts the net wider on private labels to create a ‘house of brands’. The only caution for retailers is that there should be a judicious mix of private labels and brands.

With India on cusp of the retail revolution, some of the case studies must provide food for thought. In the ACNielsen consumer survey in 2008, only 56 per cent Indians agreed that private labels are good option in comparison with brands – as against four in five consumers in developed countries. Further, same survey also concluded that the majority of Indian consumers associate private labels with low cost, and are, hence, apprehensive about compromising on quality. Target segment for organised retail in India is still predominantly urban, and in the context of private labels, it is more inclined towards ‘upwardly mobile' urban consumers. This segment gives high priority to quality, and the ‘budget label' perception does not help at all.

Further, Indian retailers have not been able to develop the bond with consumers. Consumer loyalty has been seen to provide impetus to private label growth in developed countries like the United Kingdom. The lack of this bonding and loyalty can hamper private label penetration in coming years.

With entrance of different corporate majors like Reliance, Birla, Pantaloon there is intense store-level competition in the present Indian retail scenario. Though, if Indian retailers were to follow UK model, this can actually turn out to be the boon for private label growth. Main UK retailers like Sainsbury and Tesco have successfully used private labels to distinguish themselves. This scenario can be replicated in India in near future. At the same time, though, the Indian consumer's psyche also provides an opportunity for retailers. The Indian urban consumer is price-conscious, but also expects high quality.

problems:

problem1) What are private labels? What is the share of private labels for a) Shopper Stop b) Westside c) Pantaloon?

problem2) Suggest strategies by which potential of Private label could be tapped in Indian Market.     

problem3) What are the categories in which Private labels likely to exhibit maximum penetration? Justify. Why?

Marketing Management, Management Studies

  • Category:- Marketing Management
  • Reference No.:- M93626
  • Price:- $70

Priced at Now at $70, Verified Solution

Have any Question? 


Related Questions in Marketing Management

My product is coconut turnovers it is a pastry with

My product is coconut turnovers. It is a pastry with shredded coconut inside. Need the questions below answered. No more than 150 words total. Include references please. Market Overview - describe the competitive landsca ...

Advertising analysis assignment by the time this assignment

Advertising Analysis Assignment By the time this assignment is due, the national political campaigns will likely be over. However, I would like you to think about the results of the Presidential election and explain, in ...

1 what laws do you think the united states should pass to

1. What laws do you think the United States should pass to protect personal information? Or none? Why? Should some personal information be more protected than other information? Why or why not? 2. What is public key encr ...

A mass on a spring vibrates in simple harmonic motion at a

A mass on a spring vibrates in simple harmonic motion at a frequency of 4.0 Hz and an amplitude of 4.0 cm. If a timer is started when its displacement is a maximum (hence x =4cm when t=0), what is the acceleration magnit ...

What are the three is of eye communication and how do you

What are the three "I"s of eye communication and how do you see each used in a typical face-to-face sales encounter? 400 Words

Find an article related to marketing and write a page about

Find an article related to marketing and write a page about it (2 articles) (1 page each) You may use foxnews.com because it has a business page. However, you can get an article from any website or magazine. You can pick ...

Assignmentyour response essay must be in your own

Assignment Your response essay must be in your own words.Including a strong instruction and conclusion.Paragraphs must be at least 3 sentence long. Include 2 or more references from the APUS Library system and be present ...

Topic 1 target marketgo to the small business

Topic 1: Target Market Go to the Small Business Administration website, and locate information on determining a target market for the product or service offered by your company. You can do a search on the SBA site for "t ...

Case assignmenta well-written report should have a brief

Case Assignment A well-written report should have a brief introduction, headings or subheadings, and a brief concluding comment. Note that you should use some keywords as headings or subheadings such as "Johnson's pricin ...

Write a mission and a vision statement for biocon india

Write a mission and a vision statement for Biocon India Group. How ill these statements support the development of sustainable competitive advantage.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen