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Competition Between National Brands and Private Labels: Determinants of the Market Share of National Brands

In: Advances in National Brand and Private Label Marketing

Author

Listed:
  • Philipp Brüggemann

    (FernUniverstität in Hagen)

  • Rainer Olbrich

    (FernUniverstität in Hagen)

  • Carsten D. Schultz

    (FernUniverstität in Hagen)

Abstract

Against the background of increasing proliferation of private labels (PLs), the present study analyses determinants for the manufacturer brand industry to influence the market share of national brands (NBs). The analysis is based on 7,211,154 purchases by 98,326 households over a period of ten years. All purchases come from four product categories; chocolate, coffee, hair shampoo, and laundry detergent. The analysis distinguishes between discounter and non-discounter, which show significantly different results. The considered determinants are the prices of NBs and PLs, the shares of NB and PL price promotions, NB and PL variety, and brand preference. In particular, the changes in these determinants and in the market share are considered by calculating intertemporal differences. Increasing (decreasing) the price of NBs leads to a decreasing (increasing) market share of NBs. Extending the shares of NB (PL) price promotions has a positive (negative) influence on the market share of NBs. An increase in NB variety (increase in PL variety) slightly increases (decreases) the market share of NBs. Furthermore, the manufacturer brand industry can positively affect households’ brand preferences to increase their market share in discount store settings.

Suggested Citation

  • Philipp Brüggemann & Rainer Olbrich & Carsten D. Schultz, 2020. "Competition Between National Brands and Private Labels: Determinants of the Market Share of National Brands," Springer Proceedings in Business and Economics, in: Francisco J. Martinez-Lopez & Juan Carlos Gázquez-Abad & Els Breugelmans (ed.), Advances in National Brand and Private Label Marketing, pages 39-49, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-47764-6_5
    DOI: 10.1007/978-3-030-47764-6_5
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    Cited by:

    1. Volpe, Richard J. III & Tedjasaputra, Nicole & Jackson, Olivia & Provost, Ryan, 2021. "Supermarket Pricing and Promotional Behavior: Evidence from the San Luis Obispo Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 52(2), July.

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