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Topic :

A comparative study between Private labels and National brands and effect on customer

footfall & sales in Pune.

Submitted by:

NAMES ROLL NOS

Neha Agarwal 04

Anuj 10

Madhuri 15

Eesha 23

Keerty (absent) 29

Manali 33

Monika 38

Nalini 45

Nikhil 49

Niranjan 52

Varsha 59


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Chapter -1

Synopsis

As a Part of Our Academic Project ,the topic assigned to us was A comparative Study

between Private Labels and Nationalised brands and their effect on customer footfall and

sales in Pune.

Generally ,the products are divided into two divisions :

1.Private labels

2.National Brands

Private label products or services are typically those manufactured or provided by one company

for offer under another company's brand. Private label goods and services are available in a widerange of industries from food to cosmetics to web hosting. They are often positioned as lower

cost alternatives to regional, national or international brands, although recently some private

label brands have been positioned as "premium" brands to compete with existing "name" brands.

The National brandare those product that is distributed nationally under a brand name owned

by the producer or distributor, as opposed to local brands (products distributed only in some

areas of the country), and private label brands (products that carry the brand of the retailer rather

than the producer). National brands are produced by, widely distributed by, and carry the nameof the manufacturer.

In our Survey ,

A total of 130 samples were taken ,the analysis shown by the sample collected showed that

Customers are generally aware of the national brand but most of them go for Private

Labels.The most important reason behind this is that private labeled products do not use

promotional tools like Advertisement. As in today era promotion which is one of the P of

marketing mix plays a very important role, this is the reason behind the popularity of National

Brands.

In this Survey we also focused on Expectation level customers in different food retail

stores.Also what are the reasons that Bring Customers to these stores to avail these services from

the Customer Perspective & from the Companies i.e. retail stores.

The sampling method which was used for this analysis was Random Sampling Method. Random

Sample Questionnaire worked as the tool for this analysis.The questionnaire has given a clear
http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Product_(business)


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picture of what the customers think about Retail store as well as both private labels and

nationalized brands.The survey also shows customer preference in terms of their visit to the retail

stores.

On the other hand, when we analyse from Industry point of view ,we can draw conclusion that

company prefer Private Label as compare to National brands.The reason behind this is the

revenue generation. Companies generate most of the revenue from private labels as compare to

the National brands.

As a Conclusion of this analysis we got to know that PLBs were giving more profit to the retail

outlets whereas NB offer wide variety for the retail stores. Most of the Customers generally

know what Private labels are but they are not aware about it as compare to the national

brands.Thus, one can easily conclude that National Brand are important but Private Label too

form an essential part and their presence do effect footfalls as well as sales in Pune.


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CHAPTER 2

INTRODUCTION

The topic of our survey was to do a comparative study of National brands as well as private

labels. While preparing this project report, we came to know about the different food retails

situated in pune and the most important thing is that we

were able to make a comparison between private as well as nationalized brands. Broadly the

whole products are broadly categorized into two broad categories:

Private Label products were once considered the step child to the mighty National Brands but

that's no longer the case.

Products

Privatelabels Nationalbrands


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Retailers across all the different trade classes are focusing on the quality of their private label

brands so they can compete head to head with National Brands.

Private Label has come a long way from ugly packaging and poor ingredients. Quality takes

center stage as private label grows market share at the expense of national brands. An article

in The Times of India titled "Private labels take on branded biggies" points out the strategy ofretailers in India pricing their private label food products in line with their branded counterparts.

Retailers are strategically positioning their private label brands to be on par or even better than

the brand. This is being accomplished through better formulation development, increased

emphasis on internal and external testing of products, conducting audits at supplier

manufacturing facilities, improved art graphics and the use of unique components.

The private label quality initiatives by retailers will continue to:

Build private label brand equity Establish a point of differentiation from the brand Grow retailer margin Weed out poor performing suppliers who cannot meet the higher standards Build customer loyalty

Introduction to the companies visited

FOOD BAAZAR (Ab Ghar Chalaana Kitna Aasaan )At Food Bazaar one can find a hitherto unseen blend of a typical Indian Bazaar and

International supermarket atmosphere.

Flagged off in April02, Food Bazaar is a chain of large supermarkets with a difference,

where the best of Western and Indian values have been put together to ensure satisfaction and

comfort while shopping.

The western values of convenience, cleanliness and hygiene are offered through pre packed

commodities and the Indian values of "See-Touch-Feel" are offered through the bazaar-like

atmosphere created by displaying staples out in the open, all at very economical and

affordable prices without any compromise on quality.


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The best of everything offered with a seal of freshness and purity will definitely make final

buying decision a lot easier.

MORE:Aditya Birla Retail Limited is the retail arm ofAditya Birla Group, a USD 28 billion

Corporation. The Company ventured into food and grocery retail sector in 2007 with the

acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd. The

company expanded its presence across the country under the brand "more." with 2 formats :

1: Supertmarkets.

2: Hypermarkets.

SupermarketMore for youMore supermarkets cater to the daily, weekly and monthly shopping needs of

consumers. The product offerings include a wide range of fresh fruits & vegetables, groceries,personal care, home care, general merchandise & a basic range of apparels. Currently, there are

over 600 More supermarkets in india.

HypermarketMore MEGASTOREIt is a one-stop shopping destination for the entire family. Besides a

large range of products across fruits & vegetables, groceries, FMCG products,more MEGASTORE also has a strong emphasis on general merchandise, apparels.

SPENCER:Spencers Retail Limited is a multi-format food-first retailer providing a wide range of quality

products to discerning young customers - well-travelled citizens of the world, looking out for

authentic flavors and experiences in a fun-filled shopping environment. Their brand positioning

Makes Fine Living Affordable embodies this approach, delighting shoppers with the best

products and services that enable a fine living at reasonable prices while providing them with a

warm, friendly and knowledgeable retail environment.

Spencer runs about 200 stores (including about 30 large format stores) across 35 cities in India,

employing more than 7,000 people. As one of the earliest entrants in the retail space in India,


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they have been instrumental in introducing Indian consumers to the concept of organized

retailing, becoming the countrys first grocery chain back in 1920, and offering the joys of

hypermarket shopping in 2001.

A food first retailer we offer both fresh and packaged foods as well as groceries. They also

have a wide selection of electronics and electrical equipment, home and office essentials,garments and fashion accessories, toys, and personal care.

D-MART:D-Mart seeks to provide a one-stop shopping experience for the entire family, meeting all their

daily household needs. A wide selection of home utility products is offered, including foods,

toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and

much more.

Since D-Mart first opened its doors in the Mumbai region in 2000, it has grown into a trusted

and well-established shopping destination in the Mumbai Metropolitan Region (Mumbai, Navi

Mumbai and Thane). D-Mart is now looking forward to growing its stores across India.

D-Mart's expansion began in 2007, when stores were opened in Ahmedabad, Baroda, Pune,

Sangli and Sholapur. Today D-Mart is established in 38 locations across Maharashtra, Gujarat

and Andhra Pradesh.

D-Mart offers wide selections of products in the following categories:

Foods Toiletries and Beauty products Garments Kitchenware Bed and Bath linen Toys & Games Stationery Home Appliances Footwear

RELIANCE MART:Reliance Mart is the convenience store format which forms part of the retail business

ofReliance Industries ofIndia which is headed by Mukesh Ambani. Reliance plans to invest in
http://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Reliance_Industries


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excess of Rs 25000 crores in the next 4 years in their retail division. The company already has in

excess of 560 reliance fresh outlets across the country.These stores sell fresh fruits and

vegetables, staples, groceries, fresh juice, bars and dairy products.

A typical Reliance mart store is approximately 3000-4000 square feet and caters to a catchment

area of 23 km

STAR BAZAAR:Star Bazaar is a retail operations company that owns and manages a number of retail chains in

India. Established in 1998, it runs lifestyle chain Westside, one of Indias largest and fastest

growing chain of lifestyle retail stores, Star Bazaar, a hypermarket chain, Landmark, a books and

music chain, and Fashion Yatra, a complete family fashion store.

Star Bazaar is changing the way people shop for their groceries and household essentials.

People who used to visit the local shops and vegetable markets frequently are now buying at

hypermarkets such as Star Bazaar that offer customers a variety of products at affordable

prices, in a comfortable environment. But while affordability is a big factor for customers,

they also seek value and quality which they know they will get at Star Bazaar, a Tata

enterprise.

The uniqueness of each Star Bazaar store lies in the size and spread of its merchandise range.

Shoppers can select from a large range of staples, fresh goods, apparel, luggage, consumerdurables, household products and much more and also enjoy the benefit of generous

reductions on the market rate.
http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crore


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CHAPTER -3

RESEARCH METHODOLOGY

The topic of the research wasA comparative survey of Private label and national label

brands & its effect on sales and customer in Pune.

Research design:

Research design is the specification of method and procedure used for acquiring

information needed. As per our research design we went through the path as follows:

Decided the Objective of Research. Determined the most liked way of Method. Specified the source of data collection. Defined the most appropriate sample design and sample size. Conducted the survey of data collection. Analyze data

Inquiry Mode - The mode of inquiry to get the information is qualitative method. The

reason behind this is that we are finding out the customers reaction regarding the effects

of it on the customers.

Sample Size- 120 customers

10 Industries

Data collection method-

Secondary method- We have studied various food retail companies


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Primary method- Questionnaire was adopted as the Primary methodology.

Sample Techniques- structured questionnaire

Geographical area- Pune city

Data

Bifurcation

Table

1. Age wise

2. Income wise

Income No.of People

Less than 3 Lakh 23

3 -5 Lakh 60

Age No. of People

20-25 12

26-30 58

31-35 34

36-40 21

41-45 04

46-50 01

Total 130


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More than 5 Lakhs 47

Total 130

CHAPTER4

Data Analysis & Interpretation

1. Are you aware of Private labels (PL) and National brands (NB)?

PL YES ( ) NO ( )

NB YES ( ) NO ( )

Objective : The objective behind the question is to know the awareness of brands amongthe people i.e. whether the people know the private and nationalized brands .

Yes No

Private Labels 97 23

National Brand 113 07


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Conclusion: People are more aware of National brands as compared to the Private Labels.

2. How often do you visit food retail stores?

Once in a week ( ) Twice in a week ( )

Once in a month ( ) Once in two months ( )

Objective : This question mainly tells about the frequency by which customers prefers to

visit the retail stores.

Once in a week 36

Twice in a week 44

Once in a month 32

Once in two months 08

0

20

40

60

80

100

120

Yes No

97

23

113

7

Private Labels

National Brand


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Conclusion : The study mainly shows that consumer prefer to visit the retail shops twice in

a week.

3. How often do you buy Private labeled products?


Once in three weeks ( ) Once in a month ( )

Objective : The objective behind this question is to find out relationship between theawareness about the brands and their purchasing power .

Once in a week 26

Twice in a week 29

Once in three weeks 19

0

5

10

15

20

25

30

35

40

45

Once in a week Twice in a week Once in a

month

Once in two

months

36

44

32

8


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Once in a month 46

Conclusion : The study shows that customers prefer to buy private labeled

products once in a month, the reason behind this can be that private labels are

advertised less as compare to the National Brands.

4. How often do you buy products of National Brands?


Once in three weeks ( ) Once in a month ( )

Objective : This question mainly shows that whether the customers are aware of the

national brands or not, if they are aware of the brand their purchasing power increases.

05

10

15

20

25

30

35

40

45

50

Once in a week Twice in a week Once in three

weeks

Once in a

month

2629

19

46


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Conclusion : The study shows that customers mainly prefer to buy National brands once ina week , the reason is the promotional strategy i.e. advertisement.

5. Which stores private labeled products do you prefer?

Spencer ( ) D-Mart ( )

Star Bazaar ( ) More ( )

Food Bazaar ( ) Reliance Mart ( )

Objective : The objective behind this question is to rank the retail stores according to the

private labeled products provided by them. This will help us to know how customers rank

their choices in terms of Retail stores.

0

5

10

15

20

25

30

35

40

45

50

Once in a week Twice in a week Once in three

weeks

Once in a

month

46

22

34

18

Once in a week 46

Twice in a week 22

Once in three week 34

Once in a month 18


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Spencer 15

D-mart 16

Star Bazaar 21

More 37

Food Bazaar 49

Reliance Mart 30

Conclusion : The study shows that customers generally prefer to buy private label brands

from Food Bazaar because it provides more variety of products in less price.

6. Does Brand name affect your purchasing decision in case of Private labels?

Yes ( ) No ( )

Objectives : This question helps us to know how brand level impacts the purchasing

decision i.e. Is Brand name playing a vital role in purchasing the private labels or not.

Yes No

Private labels 97 23

0

5

10

1520

25

30

35

40

45

50

Spencer D-mart Star

Bazaar

More Food

Bazaar

Reliance

Mart

1516

21

37

49

30


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Conclusion : The study shows that brand name affects the purchasing decision .

7. Which of the following aspects affect your purchasing criteria while buying Private

labeled products?

Price ( ) Quality ( )

Discount ( ) Offers ( )

Objective: The objective behind this question is to find out how different parameters like

price, discount, offers & quality affects the purchasing criteria while buying the private

labeled products. This shows whether these parameters are directly related or inversely

related with the purchasing criteria while buying Private labeled products.

0

20

40

60

80

100

Yes No

97

23

Private labels


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Price 35

Discount 71

Quality 39

Offers 12

Conclusion : The study shows that out of the above criteria mostly Discount affects

purchasing decision of a customer because customers are more conscious about the prices

of products.

8. What do you prefer PL or NB for following categories?

Grocery ( ) Perishable Food ( )

Bakery ( ) Packed Food ( )

Objective : The objective behind this question is to find out which one i.e. either private

labels or national brands plays a important role while purchasing grocery , bakery,

perishable foods or packed foods.

Private label National brand

Grocery 32 71

0

10

20

30

40

50

60

70

80

Price Discount Quality Offers

35

71

39

12


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Perishable Food 61 23

Bakery 56 33

Packed Food 69 29

Conclusion: The study shows what people prefer usually while taking grocery, perishable

food, bakery and packed foods. The graph shows that generally customer prefer national

brand in case of grocery but in case of packed foods customers prefer private labels.

9. Does unavailability of Private Labels affect your buying decision?

Yes ( ) No ( )

Objectives: The objective behind this is to see how customer get affected with the non-

availability of Private labels. This gives a clear picture that how Private labels affect the

buying decision.

Yes No

Private Labels 48 72

0

10

20

30

40

50

60

70

80

Grocery Perishable

Food

Bakery Packed

Food

32

6156

6971

23

3329

Private label

National brand


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CONCLUSION:The study shows that majority of companies prefer private labels over

national brands.

2.What are the criteria for your selection?


Customer demand ( ) Customer satisfaction ( )

0

1

2

3

4

5

6

7



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OBJECTIVE:The objective of this is to know the basis for selection of the private or

national brand by the store manager.

Price

Quality 5

Customer demand 2Customer satisfaction 5

CONCLUSION:The study shows that company selects the private label and national brand

on the basis of quality and customer satisfaction and 2% also sees on the basis of customer

demand.

3.Whose unavailability effects the stores in terms of sales?

Private label ( ) National brand ( )

0

1

2

3

4

5

6

Price Quality Customer demand Customer

satisfaction


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Objective:The objective behind this question is to know that which( private or national

brand) unavailability effects the most in terms of sales in the store.

Private label 5

National brand 6

CONCLUSION:The study shows that national brands unavailability effects the company

most in terms of sales.

4.How often the stocks are being replenished?

Every day ( ) Once in a week ( )

Twice in a week ( ) Once in a two week ( )

4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

6

6.2



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OBJECTIVE:The objective behind this question is to know how much time does stock gets

replenished from store in a week , twice a week or once in two weeks.

Every day 9Once in a week 1

Twice a week

Once in a two week

CONCLUSION:The study shows that every day stocks from store get replenished and needto be filled as per the shelf requirement.

5.Does offer help you to increase your sales?

National brands Yes ( ) No ( )

Private label Yes ( ) No ( )

0

1

2

3

4

5

6

7

8

9

10

Every day Once in a week Twice a week Once in a two week


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OBJECTIVE:The objective for this is to know whether the offer given by the store on

private labels and the national brands effects on the sales of the respective brands .

Yes NoNational brands 9

Private label 9

CONCLUSION:The study shows that the offer given by the company on private and

national brands equally helps to increase the sales.

6. According to you which brand the customer purchase the most?

National brand ( ) Private label ( )

0

1

2

3

4

5

6

7

8

9

10

Yes No

National brands

Private label


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OBJECTIVE:The objective for this question is to know the store keepers view as which

brand does the customers purchases the most from there store.

National brand 8

Private label 2

CONCLUSION:The study shows that customer purchases the national brand more than

the private label from the stores.

7.On what criteria do you differentiate the private labels from the national brand?


Packaging ( ) Variety ( )

0

1

2

3

4

5

6

7

8

9

National brand Private label


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OBJECTIVE:The objective behind this question is to know at what criteria either on the

basis of price, quality, packaging or variety the store keeper differentiates the private label

and the national brand.

Price 5

Quality 7Packaging

Variety 1

CONCLUSION:The study shows that the company people differentiates the private label

from the national brand on the basis of quality hen price and atlast they look at the price of

the brand.

8.What factors influences consumer to go for Private Label?

Quality ( ) Size ( )

Varieties ( ) Price ( )

0

1

2

3

4

5

6

7

8

Price Quality Packaging Variety


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OBJECTIVE:The objective behind this question is to know the factors by which the

consumer gets influenced for purchasing the private label.

Quality 6Size

Variety

Price 5

CONCLUSION:The study shows that the quality of the brand influences the customer topurchase the private label over the national brand.

9.According to you,company earns more revenue from Private label or National brand?


4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

6

6.2

Quality Size Variety Price


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Packaged food ( ) ( )

Milk and milk products ( ) ( )

Beverages ( ) ( )

Meat ,fish and poultry ( ) ( )

OBJECTIVE:The objective for framing this question is to know that from companies

point of view what does the customer prefer in the above mention categories either private

label or national brand.

National brand Private label

Staple food 8

Fruits and Vegetable 8

Packaged food 2 6

Milk and milk products 8

Beverages 8

Meat, fish and poultry 3 5

CONCLUSION:The study shows that according to company the customers prefer private

label in case of staple food ,fruits and vegeables,milk and milk products and national

brands in case ofpackaged food ,beverages and meat ,fish and poultry.

0123456789

National brand

Private label


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11.According to you, which of the following has more growth in the future?


OBJECTIVE:The objective behind this question is to know that according to company

private label or the national brand has future growth n food retail sector .


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Private label 6

National brand 4

CONCLUSION:The study shows that the private label has more future growth in food

retail than the national brands.

Chapter -4

Observation & Findings

The observation and findings regarding the survey mainly highlights on following points :

0

1

2

3

4

5

6

7



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Although some of the people are aware of the private labels still majority of them goesfor national brands.

It was also found that customers prefer to visit retail stores frequently i.e. once in a week.

The study also showed that brand labels effect the purchasing decisions.

The survey also showed that how customers rank their preference in terms of differentproducts including grocery, bakery ,perishable foods etc.

The other major finding was that out of all the food retails present in Pune, customersmainly prefer Food Bazaar.

Discount , one of the parameter also plays a vital role while purchasing the products.

Chapter-5

Conclusion, Recommendation & Suggestions


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People are not much aware of PLBS, thus a percentage loss of sales compared to NBscan be overcome by making people closer towards the offering and making them aware

about the products.

Out of their total buying , ratio contributed towards buying of PLBS is very less, becausepeople are mostly conscious about NLBS to suite their needs.

There is huge need of variety in case to promote and sale PLBS in the competitivemarket. Private labels need to be advertised ,as the nationalized brands.

Discounts and offers affect the purchasing criteria in big way. But still people go forNational level brand.

Company tends to sell private level brand because they get more profit.


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