Private label, store brand, cereal, FMCG, qualitative, South Africa
This study considered the adoption of private label brands, with a particular focus on breakfast cereals sold under a retailer’s own label, within the South African grocery sector. A panel of twelve corporate and academic experts was assembled and consulted to probe these issues and draw suitable qualitative insights for retailers to improve the inherent quality of their private label merchandise and the marketing thereof. Based on the insights gleaned, a number of conclusions and managerial implications were reached. This study produced results to suggest that packaging is an inadequate feature of PLBs in their current state, suggesting a potential reason for their poor quality perceptions and relative lack of success in the South African market place. Moreover, the study stressed the importance of value, and particularly the effect of price in this equation. Lower prices have served as the basis on which these products have traditionally been sold, yet product quality should not be overlooked as a determinant in the value equation. Moreover, the leverage potential of the store image was also highlighted as a prominent factor to allay such fears and create a ‘halo effect’ for the brand.
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