Academic Group Project Sec A Group 7

1. Private Label
Submitted By :
Sec A | Group 007
Augustus Martin(PGP30014)|Arvind Kumar(PGP31072)|R Poorna(PGP31101)|Rahul Ranjan(PGP31102)
Indian Institute of Management Lucknow, 2016
Brands

2. What is a BRAND?

3. Let’s start by breaking some
MISCONCEPTION

4. a
BRAND
is not a
LOGO

5. a BRAND is not a PRODUCT

6. Gut feeling about a product,
service or an organization is a
BRAND

7. Its not what YOU say it is

8. It’s what THEY say it is

9. So what is most
IMPORTANT
to make a brand?

10. Differentiation

11. Radical Differentiation

12. What is a PRIVATE LABEL?
It is a label that is owned by the department/retail store it is sold in

13. Private Label

14. QUALITY IF PRIVATE LABEL PRODUCTS
Differentiation through low/ value pricing

15. PREMIUM PRIVATE LABELS
Differentiation through innovative products
Loblaws

16. NEW
CHANNELS

17. NEW CATEGORIES

18. DON’T BELIEVE US?

19. Source: Nielsen Global Survey of Private Label, Q1 2014

20. Source: Nielsen Global Survey of Private Label

23. What contributes to
BRAND STRENGTHS?

24. • Purchase process favors brand name
• Parallels strength of the economy
• Value for retailers
• Dilution of stretching emphasis on private labels

25. How to tackle PRIVATE LABELS ?

26. High
innovation
rate
low brand
equity
Brand
Private
Label

27. 5%
Trade Penetration
27%
THE NATION WANTS TO KNOW

30. Price is important to most consumers and is the primary driver
of consumers’ purchase intent
Consumers are seeking quality and value, and private label
delivers on both of these attributes
Consumers are fiercely brand-loyal
69% - Best
Price
70% - Save
Money
67% - Value
for Money
62% - Smart
Purchase

33. Indian Retail Sector
Top 5 Private label categories (by sales contribution)
Tissue Paper
28 %
Floor Cleaners
24 %
Packaged Atta
21 %
Packaged Rice
21 %
Packaged Pure Ghee
12 %
Nielsen Survey: “If all private labels of Indian retailers are put under one roof then it would be the third largest
FMCG supplier.“

34. Degree Of Private Label Penetration
90%
80%
75%
38%
30%

35. Bharti Walmart’s Great Value Assortment
50% share in terms of sales in the
category
In top three spot in terms of sales in
the category
Tea
22%
Wheat Flour
35%
Rice and
branded snacks
20%
Great Value tops the floor cleaner
segment

36. Private Labels by
 Labels by SS:
 Stop
 haute curry
 Kashish
 Life
 Elliza Donatein
 Vettorio Fratini
 400 high quality SKUs across 4
brands
 confectionery, chocolates, chips,
flavored nuts, teas, gluten free
pastas, etc.
 Signed up Kangana Ranaut as
its brand ambassador for its
private label brand – Melange,
contemporary ethnic wear
brand
17.2% - Share
of Sales Mix
10% - Share
of Sales Mix
15% - Share
of Sales Mix
Players like Snapdeal, Flipkart, Big Basket, Urban Ladder and many more are deriving at least 20+% sales contribution
from in-house labels.

37. Online e-tailer - Myntra
Targeting 35% of its
revenue from its private
labels over the next 12-18
months
Myntra offers 11 of its
own private brands,
which contribute to 20%
of the overall revenue
Based on customer insights gleaned from their platform, they are launch new fashion
collections, under the Moda Rapido brand, once every four weeks. This process normally
takes other brands a few months to execute. They are still in the process of experimenting
with this tech-led fashion brand.

38. If you Don’t, Don’t Start
Excess capacity used for production of private labels can become a narcotic
Additional manufacturing and distribution costs
Efficiencies of contracts are exaggerated
Easy to overstate relative contribution of private label goods

39. EVALUATING
PRIVATE LABEL
BUSINESS
1.Private Label Audit
2.Calculate private label profitability
3.Examine impact of private label
share on your brand
4.Close excel capacity

40. WINNING STRATEGIES

43. Use
fighting
brands
sparingly

44. Build Trade Relationships

45. Manage price
spread

46. Exploit sales
promotion
tactics

47. Manage Each Category

48. Use category profit pools
as a performance measure

50. Take private labels seriously
TWO RUPEES ADVICE

51. This project was done as a part of Group Project for
academic purpose under the guidance of
Prof. Sameer Mathur, Faculty, Brand Management,
Indian Institute of Management, Lucknow

52. References
• http://www.indiaretailing.com/2016/05/02/fashion/the-business-of-private-labels-in-indian-
retail/
• http://economictimes.indiatimes.com/industry/services/retail/private-labels-owned-by-retailers-
such-as-bharti-retail-future-group-outsell-national-brands-in-own-
stores/articleshow/11772449.cms
• http://www.business-standard.com/article/companies/private-labels-to-continue-growing-in-
retail-sector-kpmg-109040200182_1.html
• http://www.isme.in/private-labels-their-growing-importance-in-retailing/
• http://articles.economictimes.indiatimes.com/2013-08-14/news/41409826_1_private-brands-
private-labels-modern-trade
• Private Label Brands in Indian Retail Industry. Article by T.Subha, R. Kirthika, P. S. Narayanasamy