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Private Label Brands: Benefits and Challenges - Pingo Doce Case Study

Author

Listed:
  • José Cevada

    (Faculdade de Economia e Gestão, Universidade Católica Portuguesa - Porto)

  • Joana César Machado

    (Faculdade de Economia e Gestão and CEGE, Universidade Católica Portuguesa - Porto)

Abstract

This working paper analyzes the growing importance of private labels in today’s modern distribution, and the main opportunities and threats they raise for retailers and national brands. Our main purpose was to: (1) analyze consumer´s perceptions of private label brands, (2) identify their critical relevance for retailers; (3) understand how national brands can benefit from private labels’ sustainable growth and (4) identify the major challenges they bring for different types of national brands (namely, A Brands and B Brands). We used a case study approach and analyzed the strategy of Pingo Doce brand, a private label that belongs to Jerónimo Martins group. Among other relevant findings, we found evidence that the drop in Pingo Doce’s market share, in 2013, was the result of a strategic move to significantly improve consumers’ quality perceptions, and, simultaneously, keep a profitable balance between the private label and national brands.

Suggested Citation

  • José Cevada & Joana César Machado, 2015. "Private Label Brands: Benefits and Challenges - Pingo Doce Case Study," Working Papers de Gestão (Management Working Papers) 01, Católica Porto Business School, Universidade Católica Portuguesa.
    • Handle: RePEc:cap:mpaper:012015
    as

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    References listed on IDEAS

    as
    1. Michael B. Ward & Jay P. Shimshack & Jeffrey M. Perloff & J. Michael Harris, 2002. "Effects of the Private-Label Invasion in Food Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 961-973.
    2. Fiona Scott Morton & Florian Zettelmeyer, 2004. "The Strategic Positioning of Store Brands in Retailer--Manufacturer Negotiations," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 161-194, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate brand; private label brands; retailers; national brands; benefits of private label brands;
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