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Store brand and marketing strategies in the development of retailers and in the relations among

industries

Abstract

This work is part of a large research on the role of the store brand as a driver for the development

of mass retailers in food and no food sectors. In particular, this paper proposes an analysis of the

actual reality of the store brand, considering the difficulties in national and international markets

and the fast development of different formats and concepts of retailers and store brand concepts

in competitive enviroments. This work analyzes the principal core competencies of marketing

which improve the possibilities of differentiation and new possible relationships between retail

companies and industrial firms.

Keywords: Store brand, private label, relations between industry and retailer

Introduction

Since they appeared on the market, store brands have seen a strong development and spread,

obtaining more and more space both in the space allocation of market operators and in the faith

of customers. Nevertheless, private brands still shows great potentialities for the operators, and

this requires a deeper reflection on the strategic size of the phenomenon and the evolution of

purchase and consume. This re-define relations with the productive system – vertical dimension –

and the competent differentiation among retailers - horizontal dimension. This frame requires a

stronger awareness about the store brand as a coordinate action with high strategic value, and not

as mere tactic tool.

With the strong internationalization of distribution and the increasing of marketing culture for

retailers, the potential value generated by the strong identity connotation shows its effects on

categories, format of retailers, through a capacity/competence of structure, creation system.

Above all, it re-positions the surplus value achieved by improving contractual relations and the

confidence of final customers.

These issues determine the necessity for retailers of investing systematically in a set of internal

competencies that – after a long period of competition driver aimed at improving prices and

increasing sales proceeds of industrial firms – could define an autonomous path for the increasing

and distribution of surplus value (inter-dependent phenomena). This path is based on retailers’

marketing competencies and on a clear shared strategy of horizontal differentiation, according to

the issue that development and increasing of retailers – in a moment of stagnation of consumes,

deflation of prices and compression of economic boundaries – will work out thanks to the

confidence of final customers, to the detriment of other retailers existing on the market.

1. Research on the issue of store brand

Studies on the store brand [

] can be classified in five main groups, whose themes and

perspectives changed following the evolution of store brands and branding systems actuated by

retailers in the time.

The first area of studies focused on the analysis of customers towards the store brand. The first

contributes concerning purchasing behaviors about store brands are those of Myers in 1967,

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