Marketing manufacturer and retailer house brands: a study of shelf space in two product categories

Chimhundu, Ranga (2012) Marketing manufacturer and retailer house brands: a study of shelf space in two product categories. International Journal of Marketing Studies, 4 (6). pp. 35-43. ISSN 1918-719X

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Abstract

This article investigates shelf space allocation in the marketing of manufacturer brands (national brands) and retailer house brands (store brands) in the consumer packaged goods sector in a highly concentrated grocery retail environment. Of special interest is the degree to which the market mechanism is still at play in this kind of environment where retail chains wield considerable power over manufacturers supplying the respective grocery retail categories. The study focuses on two consumer packaged goods categories, and data collection is conducted via a combination of in-store category observation and in-depth interviews. The results of in-store category observation data indicate that the shelf space occupied by retailer house brands is largely proportional to the market share of the retailer house brands, which tends to negate the possibility of abuse of power within the product categories studied. Analysis of research interview data unveiled a number of themes that seem to collectively indicate that, both the manufacturer brand and the retailer house brand will continue to have a home in the respective categories, and performance on the part of manufacturer brands is expected for them to be able to justify occupation of valuable shelf space ahead of other competing manufacturer brands in the tightly contested shelf arena. The study points to the importance of participation of both manufacturer and retailer house brands if optimum category performance is to be achieved.

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Item Type:	Article (Commonwealth Reporting Category C)
Refereed:	Yes
Item Status:	Live Archive
Additional Information:	This work is licensed under a Creative Commons Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Management and Marketing (1 Jan 2011 - 30 Jun 2013)
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Management and Marketing (1 Jan 2011 - 30 Jun 2013)
Date Deposited:	18 Dec 2012 06:46
Last Modified:	18 Dec 2017 06:40
Uncontrolled Keywords:	manufacturer brand, retailer house brand, private label, shelf space, product category, consumer goods
Fields of Research (2008):	15 Commerce, Management, Tourism and Services > 1505 Marketing > 150503 Marketing Management (incl. Strategy and Customer Relations)
Socio-Economic Objectives (2008):	B Economic Development > 91 Economic Framework > 9104 Management and Productivity > 910403 Marketing
Identification Number or DOI:	https://doi.org/10.5539/ijms.v4n6p35
URI:	http://eprints.usq.edu.au/id/eprint/22333

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