Naslov
Quality management of food products' private labels in Croatia

Autori
Martinović, M. ; Vranešević, T. ; Mandić, M.

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
CIRCLE, 4th International Conference For Consumer Behavior and Retailing Research, Hosted by: University of Calabria, Department of Scienze Aziendali, Calabria, Italy and Leeds Metropolitan University, Leslie Silver International Faculty, UK, April 12, 2007. / Davies, Barry J. ; Vignali, C. ; Vranesevic, T. - Calabria : Accent Press, 2007, 196-200

Skup
CIRCLE, 4th International Conference For Consumer Behavior and Retailing Research, Hosted by: University of Calabria, Department of Scienze Aziendali, Calabria, Italy and Leeds Metropolitan University, Leslie Silver International Faculty, UK, April 12, 2007.

Mjesto i datum
Reggio Calabria, Italija, 12.04.2007

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Quality management ; Private brands ; Croatia ; Private brand portfolio

Sažetak
The appearance of private labels (or private brands) in Croatia happened in the mid 90-ies. The business policy and the aim of creating private labels basically relates to the highest possible margin to be achieved by the retailer. This is possible to realise by negotiating a much lower, i.e. a significantly lower purchase price of the product. Retail chains find private labels very acceptable and profitable, for the margin achieved by their sales provides enough space for investing funds into marketing activities. Lower prices lead to the increase of product turnover. To sum up, the fundamentals of the private labels' policy are: setting up a price lower than the price of brands, which means mostly a significantly lower price, increasing product turnover, achieving a higher margin, ensuring a better shelf space for the product and conducting marketing activities through advertising in catalogues, various promotional activities and sales promotion. Today, private labels are increasingly developing and expanding into almost all assortments of food products, so one can say that there is an alternative in private labels for almost all those products. With the further development of private labels and continuous pressure on producers regarding competition, retail chains arrived at undesirable situation. Producers who had to meet unceasing demands for achieving the lowest possible production price were at some point forced to change the recipe of products they produced. They pursued realising a lower price by reducing product quality. Not taking into account the quality, many retail chains reduced their premium brand to the B brand, i.e. the product of a lower quality. This is particularly harmful to the product programmes in which different products are purchased under the same label name but only one or two products in the assortment are of a lower quality. Because of those few products consumers perceive all other products in the assortment as products of a lower value and quality, so that in time the quantity of purchased products decreases. Having led their own private labels to an unfavourable position and in a way undermined them through their business policy, those retail chains started to change that policy and tried to preserve the labels by creating premium and B brands. The premium brand is the more recognizable one which is under constant quality control or whose name is used for products whose quality cannot be easily affected. The other private label, the so called B brand, is the one whose quality can be easily affected. This is largely a brand of a lower quality targeted at consumers of lower living standards. As private labels enhance their quality and consumers earn more trust in retail chains, so there will develop an increasingly stronger competition between private labels and national brands.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA