How Consumer Differentiation Between Store and Manufacturer Brands Is Affecting Tesco’s Performance in the Health and Beauty Care Product Domain.

How Consumer differentiation between store and manufacturer brands is affecting Tesco’s performance in the health and beauty care product domain.

SECTION 1: THE RESEARCH TOPIC

Unlike the yester-decades, store brands are growing at an exponential rate today on the scale of popularity. While the rising popularity of store brands is being observed virtually all over the world, it seems more prominent in the UK - at least in the case of health and beauty care products. This is primarily because led by retail giants such as Tesco, the store brands in the UK are increasingly eying on the ever-expanding domestic and international health and beauty care product market. However, while store brands are busy strengthening their grip over the market, old guards, i.e. the manufacturer brands, are still standing strong. The powerful presence of both these fractions in the health and beauty care market, however, is acting in favor of consumers who now have more choices at their disposal than ever before.

The core objective of our research is to take this changing market dynamics into account and figure out how the consumer differentiation between manufacturer and store brands is influencing the sales figures of Tesco’s health and beauty care products.

2a Research Aim(s) / Purpose

This study is aimed to launch an in-depth look into a comparatively unexplored subject that intends to highlight how the changing consumer perspective on store brands is affecting Tesco’s market stand in the domain of health and beauty products. In addition, we will also try to address the contemporary parameters that the average supermarket consumers base upon to distinguish manufacturer brands from store brands. The research intends to highlight and compare the reliability and quality values attached with Tesco’s health and beauty care products with that of the manufacturer brand products within the same domain.

2b Research Questions/Sub Questions

The primary question that

References: 1. Dunn, m.G., murPhy, P.e. AnD Skully, G.u. 1986. “The influence of perceived risk on brand preference for supermarket products.” Journal of Marketing Research. 9(5): pp.366-374. 2. FuGAte, D.l. 1979. “An exploratory investigation of the effects of manufacturer disclosure on consumer perception of private brand grocery product attributes.” University of Missouri, Columbia, MO, unpublished PhD dissertation. 3. Hirsh, L. 2008. Grocery rivalry heats up between Tesco, supermarkets. California Press- Enterprise (15 February) From http://www.pe.com/business/local/stories/PE_Biz_D_groceries16.3487bba.html 4 5. Walters D. (1994) The Impact of the Recession on Retailing Management Decisions and Performance, International Journal of Retail & Distribution Management, Vol. 22 Issue 4, pp.20-31; 6 7. Baltas, G. AnD ArGouSliDiS, P.C. 2007. “Consumer characteristics and demand for store brands.” International Journal of Retail and Distribution Management. 35(5): pp.328-341. 8. Beneke, J. 2010. “Consumer perceptions of private label brands within the retail grocery sector of South Africa.” African Journal of Business Management. 4(2): pp.203-220 9 10. GERSTNER, E. & HESS, J. D. (1991): “A theory of channel price promotions“. American Economic Review, 81. pp. 872-886. 11. LAL, R., LITTLE, J.D.C., & VILLAS-BOAS, J. M. (1996): “A theory of forward buying, merchandising, and trade deals”. Marketing Science, 15(1), pp. 21-37. 12. QUELCH, J. S. & HARDING, D. (1996): “Brands versus private labels: Fighting to win.” Harvard Bussines Review, 74(1), pp. 99-109. 13. STEENKAMP, J. B. E. M., & DEKIMPE, M. G. (1997): “The increasing power of store brands: Building loyalty and market share”. Long Range Planning, 30 (6), pp. 917-930. 14. BRANCH, S. (2003): “Going Private (Label) –Store Brands Go Way Upscale As Designer Items Lose Cachet; $675 for Macy’s Own Sheet”. The Wall Street Journal, N.Y. June 12, 2003–Eastern Edition.