Browsing by Author "Santos, Catarina Inês Picada Neves dos"
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- Private labels : exploring non-insignia brands : Sonae MC case studyPublication . Santos, Catarina Inês Picada Neves dos; Celeste, PedroIn the last decade, the Portuguese grocery retail market has witnessed a shift in consumers’ behavioural patterns. Mainly as consequence of the economic downturn that substantially diminished consumers’ purchasing power, forcing them to adopt a more “valueconscious mindset”, the percentage of private labels grew on consumers’ shopping baskets. However, even though private labels market penetration on utilitarian product categories is frankly positive, on categories with a higher level of product involvement consumers showed to be more reluctant to renounce the innovative, well-known and trustworthy NBs. The present study aims to uncover consumers’ behaviour towards private labels, the limitations posed to the growth of these products market share on categories with higher levels of product involvement, taking a close look into the strategy adopted by Sonae MC in order to overcome consumers’ reluctance to purchase private labels in every product category. Sonae MC, the leader of the Portuguese grocery retail market will help illustrate a perfectly segmented tiered private label branded under the insignia Continente. Additionally, it is described the development of the non-insignia branding strategy pursued by the company in an effort to persuade consumers to purchase retailer’s own brands in categories with higher levels of associated purchase risk, providing a final overview of the results of this innovative private label branding approach in the Portuguese market. Finally, a teaching note is also provided in an attempt to support in-class case discussion, by identifying the most relevant issues to be addressed.