Decoding the success of private labels in the FMCG industry : a study of brand equity dimensions from the consumer perspective

Abstract

This thesis aims to decode the drivers behind the growing success of private labels in the FastMoving Consumer Goods (FMCG) industry. Success is assessed through two complementary dimensions: the value consumers attribute to private labels (brand equity), and their market performance (purchase intentions, sales, and market share).

The study adopts a dual perspective. First, it identifies, among a wide range of factors, those that influence consumers’ purchase intentions towards private labels, as well as the interactions between them. Tested variables include price, quality, retailer influence, trust in the retailer, retailer type, advertising, word-of-mouth, external factors, etc. Second, it explores how the multiplicity of private labels shapes consumer perceptions, with a particular emphasis on price-positioning, branding, and categorization strategies implemented by retailers.

Findings reveal that price, quality, and the brand equity of both private label and retailer play a key role in shaping consumers’ purchasing decisions. In parallel, the results confirm that private label development, perceptions, and success strongly depend on how retailers position and market them.

Overall, this research supports, extends, and restructures prior findings in the literature while offering new managerial perspectives to the different stakeholders of the industry.