Manufacturer and retailer brands: is strategic coexistence the norm?

Article


Chimhundu, Ranga, McNeill, Lisa S. and Hamlin, Robert P.. 2015. "Manufacturer and retailer brands: is strategic coexistence the norm?" Australasian Marketing Journal. 23 (1), pp. 49-60. https://doi.org/10.1016/j.ausmj.2014.11.004
Article Title

Manufacturer and retailer brands: is strategic coexistence the norm?

ERA Journal ID19788
Article CategoryArticle
AuthorsChimhundu, Ranga (Author), McNeill, Lisa S. (Author) and Hamlin, Robert P. (Author)
Journal TitleAustralasian Marketing Journal
Journal Citation23 (1), pp. 49-60
Number of Pages12
Year2015
PublisherSAGE Publications Ltd
Place of PublicationOxford, United Kingdom
ISSN1441-3582
1839-3349
Digital Object Identifier (DOI)https://doi.org/10.1016/j.ausmj.2014.11.004
Abstract

This article reports the results of research that investigated long-term strategic relationships between manufacturer and retailer brands, in the FMCG/supermarket industry, within New Zealand. The research utilised a multiple-case study methodology involving near-census samples of supplier and retailer managers drawn from several product categories. Data was collected via in-depth interviews and instore category observation. The research found a clear perception among managers that manufacturer brands have a greater collective capacity for product innovation and marketing support than retailer brands.
Retail managers believed that category dominance by retailer brands was not desirable, as retailer brands would then not be able to replicate the product innovation and related marketing activities of manufacturer brands, which would be detrimental to long-term growth and profitability of the categories studied. As excessively high retailer brand share in categories compromised overall product innovation and category support, respondents believed that varying optimum levels of retailer brand penetration existed for each category, and that these levels should be actively maintained over the long term. There was no evidence of retailer manager ambitions to either exceed these optimum points or to eliminate manufacturer brands.

Keywordsmanufacturer; retailer; brand; strategic; category; private label
ANZSRC Field of Research 2020350605. Marketing management (incl. strategy and customer relations)
359999. Other commerce, management, tourism and services not elsewhere classified
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Byline AffiliationsSchool of Management and Enterprise
University of Otago, New Zealand
Institution of OriginUniversity of Southern Queensland
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