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This study will investigate, discuss and analyse the reasons behind consumer purchases of supermarket own-brand labels relative to manufacturer brands, in order, to gain a deeper understanding of consumer motivations in relation to this.
Member rating: No Rating | Words: | Submitted: Mon Jun 19 2006
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Chapter 1 INTRODUCTION CONTEXT The economic basis of the study is the umbrella branding theory used in supermarkets, where a firm seeks to transfer a consumer's quality perception from one product to another through the use of the same brand name. Market Size The food retail market is the largest sector in the UK retailing industry. In 1999 it accounted for 48% of all retail sales in the retail market, representing a market growth of 40% from the period 1992 to 1999. In 2001, UK grocery market was valued at an estimated £103.4bn. (Source: Institute of Grocery Distribution.) Market Structure The food retail industry in the UK is an oligopoly that is a select few supermarkets dominate a highly competitive and dynamic market. It is estimated that the leading four supermarket chains - Tesco, J.Sainsbury's, Safeway and Asda account for 60% of all grocery sales in the UK. In 2000, food sales through supermarkets reached £76.78bn -...
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