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Manufacturer and retailer brands: Is strategic coexistence the norm?

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  • Chimhundu, Ranga
  • McNeill, Lisa S.
  • Hamlin, Robert P.

Abstract

This article reports the results of research that investigated long-term strategic relationships between manufacturer and retailer brands, in the FMCG/supermarket industry, within New Zealand. The research utilised a multiple-case study methodology involving near-census samples of supplier and retailer managers drawn from several product categories. Data was collected via in-depth interviews and in-store category observation. The research found a clear perception among managers that manufacturer brands have a greater collective capacity for product innovation and marketing support than retailer brands. Retail managers believed that category dominance by retailer brands was not desirable, as retailer brands would then not be able to replicate the product innovation and related marketing activities of manufacturer brands, which would be detrimental to long-term growth and profitability of the categories studied. As excessively high retailer brand share in categories compromised overall product innovation and category support, respondents believed that varying optimum levels of retailer brand penetration existed for each category, and that these levels should be actively maintained over the long term. There was no evidence of retailer manager ambitions to either exceed these optimum points or to eliminate manufacturer brands.

Suggested Citation

  • Chimhundu, Ranga & McNeill, Lisa S. & Hamlin, Robert P., 2015. "Manufacturer and retailer brands: Is strategic coexistence the norm?," Australasian marketing journal, Elsevier, vol. 23(1), pages 49-60.
  • Handle: RePEc:eee:aumajo:v:23:y:2015:i:1:p:49-60
    DOI: 10.1016/j.ausmj.2014.11.004
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    Cited by:

    1. Tanusondjaja, Arry & Nenycz-Thiel, Magda & Dawes, John & Kennedy, Rachel, 2018. "Portfolios: Patterns in brand penetration, market share, and hero product variants," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 211-217.
    2. Elena Meliá-Martí & Guillermina Tormo-Carbó & Juan Francisco Juliá-Igual, 2020. "Does Gender Diversity Affect Performance in Agri-Food Cooperatives? A Moderated Model," Sustainability, MDPI, vol. 12(16), pages 1-27, August.
    3. Robert P. Hamlin & Lisa S. McNeill, 2023. "Marketing Tactics for Sustainable Fashion and the Circular Economy: The Impact of Ethical Labels on Fast Fashion Choice," Sustainability, MDPI, vol. 15(13), pages 1-18, June.
    4. Sasa Veljkovic & Zoran Bogetic & Dragan Stojkovic, 2015. "Using Marketing Approach to Respond to Internationalization Challenges and Changes in Marketing Channels," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(2), pages 79-100.

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