Branding in an Era of Retailer Dominance

Abstract

In an era of increasing multiple grocery retailer dominance, weaker manufacturers cut brand investment, while stronger manufacturers maintained brand support. Questions were raised about the way consumers perceive competing items under varying conditions of manufacturer brand activity. Consumer research, across six product fields, showed that regardless of long-term changes in manufacturer's brand advertising, consumers always perceived manufacturer brands as one category with own-labels and generics as an alternative category. This is thought to be due to the way that generics were so strongly associated with particular retailers. Problems in branding terminology are highlighted by this research and it is proposed that marketers should adopt the terms manufacturers' brand and distributors' brand when analysing the competitive structure of product fields. Clarification of these terms is advanced.

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