Manufacturer and retailer brands: is strategic coexistence the norm?

Chimhundu, Ranga and 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. ISSN 1441-3582

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.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: © 2014 Australian and New Zealand Marketing Academy. Permanent restricted access to Published version, due to publisher's copyright restrictions.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Management and Enterprise
Date Deposited: 02 Apr 2015 06:42
Last Modified: 24 Jan 2017 00:26
Uncontrolled Keywords: manufacturer; retailer; brand; strategic; category; private label
Fields of Research : 15 Commerce, Management, Tourism and Services > 1505 Marketing > 150503 Marketing Management (incl. Strategy and Customer Relations)
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150399 Business and Management not elsewhere classified
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150307 Innovation and Technology Management
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Identification Number or DOI: 10.1016/j.ausmj.2014.11.004
URI: http://eprints.usq.edu.au/id/eprint/26915

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