Dissecting the Demand Diffusion Strategies of Indian Private Labels

Abstract

The market share of private labeled products in global market is surging at the rate of 21%
per year. Private labels are accounting for 12% of the revenue in Indian retail market. In this context, an
exploratory research was done among 1028 customers with the aim of mapping of customers’ perception
towards private labeled products and dissecting the marketing mix needed for it. Multidimensional
scaling was used to map the perception level among different product category with respect to cost
consciousness and customization level. The diffusion strategy between branded products and private
labeled products were empirically measured. The research concluded that the retailers have to establish
partnering agreement with branded product manufacturers and reduce the cut-throat competition.