Retailization: Brand Survival in the Age of Retailer Power by Lars Thomassen

By Lars Thomassen

Offers an leading edge and pragmatic step by step method to assist companies reconsider their model efforts round the retail ideas that most sensible meet the wishes of modern day consumers. Illustrates how model energy is inexorably being changed through shop strength. according to a two-year examine performed by way of AC Nielsen and BBDO Europe - the biggest international examine on promoting branded items ever carried out - the booklet finds how agencies and their manufacturers are dealing (or now not dealing ) with this new period. -

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These are categories where shoppers do not necessarily think all that much about quality, or rather, they expect anybody (either brand or retailer) to be able to deliver the quality they expect. Milk is a great example. As we saw earlier in the International Retailization Study 2005, only 10 per cent of shoppers would expect the private label version to be of a lesser quality, which explains the 44 per cent level of private label in the category. However, refrigerated food accounts for the biggest global private label share category, with penetration reaching 32 per cent and value sales growth of 9 per cent.

0-7494-4689-7_CH03_29 The private dilemma 29 ಴ In 2005 the European private label growth rate was 4 per cent, which is interesting considering that the aggregated sales of manufacturer brands remained essentially flat (ACNielsen, 2005a: 9). Next time you are hurtling through a supermarket, slow down and look around the packaged goods battlefield. Make a point of not only looking at the tremendous amounts of private label products present, but also checking out their levels of sophistication and differentiation.

In a market like Switzerland where retailer concentration – measured as share of sales held by top five retailers – is 86 per cent, the private label penetration is 45 per cent (ACNielsen, 2005a: 10). Decades of relentless retail concentration and resulting private label growth have resulted in scenarios of brandless future supermarkets. In Aldi – which is, according to ACNielsen, Europe’s strongest in-market grocery retailer brand (2004) – private labels account for 95 per cent of sales. In most large retailers you will find that the penetration is noticeably higher than the national average.

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