Manufacturer and retailer brands: Is strategic coexistence the norm?

Manufacturer and retailer brands: Is strategic coexistence the norm?

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.

Files associated with this item cannot be displayed due to copyright restrictions.