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

Assignment business environment and marketing

Assignment : Business Environment and Marketing Research Using the Waters Bottling Companyin Module 1, continue to build the Marketing Plan Sections for the product you have selected/ invented/ created. Complete the foll ...

1 what role do haptic interfaces play2 what is the best

1. What role do haptic interfaces play? 2. What is the best form of personal identification? 3. How can you expect cell phones to change in the future? 4. What is RFID? How does nanotechnology differ from traditional man ...

Watch the video case study geek squad a new business for a

Watch the video case study "Geek Squad: A New Business for a New Environment." http://highered.mheducation.com/sites/0077861035/student_view0/chapter3/video_cases.html Read the case study discussion on pp. 88-89 of the M ...

In response you your answer you provided do you think these

In response you your answer you provided Do you think these explorers were a net positive, or a net negative for the world? Did they do a good thing by expanding into other countries, or did they disrupt those nations wi ...

What should sonics primary pricing objective be explain

What should Sonic's primary pricing objective be? Explain your reasoning. Are smart phone customers like to be price sensitive? What are the implications for your pricing decisions? What price adoptions (such as discount ...

Company chevroletproduct chevy bolt electric carnot less

Company: Chevrolet Product: Chevy Bolt (electric car) Not less than 500 words, references in APA Describe what post-sale service arrangements your firm must or should provide to handle repairs/services. Explain how repai ...

Discussion one 75-150 wordsbullfor this discussion select a

Discussion one 75-150 words •For this discussion select a product or service that you would like to investigate. •See at what price retailers are selling that product. Document at least three retailers and their current ...

What is the consumer decision-making process for buying

What is the consumer decision-making process for buying Dove men'care? How much involvement is therein decision-making?

Quality methodologiesthe ceo has done quite a bit of

Quality Methodologies The CEO has done quite a bit of reading in some of the major quality improvement programs that are available to both the company and to its vendor base. He asked you to describe how a company would ...

A 22 kg rock is released from rest at the surface of a pond

A 2.2 kg rock is released from rest at the surface of a pond 1.8 m deep. As the rock falls, a constant upward force of 4.7 N is exerted on it by water resistance. Let y=0 be at the bottom of the pond. Part A: Calculate t ...

  • 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