7- “P”s of Private Label Brands Exploring retailer's perspectives to understand the impact of Privet Label Brands on retailer's perceived bargaining power and consumer's patronage loyalty behavior towards retailers

The definition of private label branding has evolved significantly over time. Some would argue that the term “private label” is a misnomer of great proportions. There is no question and doubt that the words “private label” acknowledges the birth, history and existence of generic and store brands. Yet, the term does not adequately and comprehensively capture the extent to which private label has progressed. Today's retail marketers are managing their proprietary brands with the same combination of care and innovation as manufacturers of for their national brands. Retailers that attempt to gain competitive advantages against their rivals are inclined to develop their own branded (privet label) products. Although this strategy is differentially used in different countries, retailers’ brands are named such things as private label (PL), own brand, in-house brand and store brand. Cutting the story short Retailers’ branded products, are those which the retailer owns and sells only in their own stores, and called as “private label products.

At this point, it is very important to understand retailers’ strategic objectives for developing private label products. Thus, in this study, a questionnaire was administered to different retailers with different categories & merchandise mix. Like any new product, private label entry increases competition within a category leading to downward pressure on both wholesale and retail prices. But, given the higher margins for private labels and potential bargaining benefits for retailers, they have incentives to promote and help private labels gain market share. The paper addresses two questions: First, do private labels enhance a retailer's bargaining power vis a vis national brands by virtue of their relatively higher control on the marketing mix of their own brands? Second, given the higher profitability and potential increase in bargaining power, does the retailer strategically set retail prices and promotions to favor and strengthen the private label in order to derive patronage loyalty?

Hence, the main aim of this research is to show the primary dimensions of retailers’ objectives and the strategic perspectives in developing private label products and to make contributions to the domestic-foreign literature.