A STUDY ON THE CONSUMER PERCEPTION TOWARDS PRIVATE LABEL BRANDS WITH SPECIAL REFERENCE TO BIG BAZAAR, COIMBATORE, TAMIL NADU

ABSTRACTThe study aims to analyze the Consumer Perception towards Private Label Brands on Big Bazaar, Coimbatore. The objective of the study is to understand the possibility of success when retailers introduce private brands. The research is aimed to explore if buying choices are made based on brand loyalty and to analyze whether customers actively seek for new brands or strict to the old brands. A detailed study is conducted from the views of customers & collected by conducting a survey with a sample size of 150 (75 Fashion bazaar and 75 Food bazaar) from Coimbatore region with the help of structured questionnaire. The collected data is analyzed using statistical tools and the study reveals that most of the youngsters have good perception towards the private brandsin fashion wear & munchies. Majority of the respondents said that quality, trustworthy and brand image is the leading feature that differentiate private label brand with other branded product.Keywords: Private Label, Fashion wear, Brand image, Brand loyalty.INTRODUCTION:Indian Retail sector is vibrant and has become one of the world's top 5 global retail destinations. It is estimated that the total number of shopping malls will grow at the rate of 18.9% by 2015. The study conducted by RNCOS indicates that the Indian organized retail market is expected to reach US$ 50 billion by 2011.Private label brands are brands owned, controlled, and sold exclusively by a retailer (Baltas, 1997). The concept of private label brands was popularized by large corporate supermarket chains which expanded their private label business at the expense of some heavily advertised national brands and items (Stern, 1966).India has not witnessed Private label brands before the liberalization of Indian economy in 1990's. Indian retail sector was unorganized and customers were relying on unorganized retailers almost for all the products. In early 1990s, Shoppers Stop pioneers the concept of private label in India and redefined the concept of 'shopping' by making efforts to provide the Indian consumers with an international shopping experience. It launched a STOP brand in India with the branded women ethnic wear.With the growth of private label brands, national brands are grabbing the share from the national brands. Private labels are not only low priced but are also high on quality and for the retailers its high margin.Growth of organized retail chain in India has also facilitated the growth of private label brands inIndia. Indian economy has seen average growth rate of more than seven percent since1994 and puttingpurchasing power in hands of customer. Though, initial growth of privatelabel brands in India has been limited to certain categories like grocery and apparel, it isslowly expanding into other categories as well.REVIEW OF LITERATURE:The main reasons that have been cited in the business and academic press for retailers desire too stock private labels are (a) higher retail margins on private labels; (b) negotiating leverage with national brand manufacturers; and(c) higher consumer store loyalty (Hoch and Banerjee 1993).The private label brand choice is depending on 'experience', 'value', 'time utility', 'possession utility','mechanism' and 'place utility'.Hoch and Banerjee (1993) contested the common perception that a private label's primary attraction was the substantial price discount relative to the national brands, at which they were sold. They emphasized the role of quality in the private label purchase decision. They found evidence to support the notion that perceived quality was much more important than the level of price discount in determining the private-label category share. Several studies have examined the role of taste on the perceptions of private label brands.Sundel (1974) used a 'blind' (brands not identified) taste test and found that there were no significant differences in respondent ratings between national, regional and store brands of bread and canned corn. …