The Premium Private Label from the Perspective of Supply Chain Players: An Explorative Analysis

Abstract

The private label plays an increasingly important role among the competitive strategies being implemented by the major retailers in the consumer goods field. In fact, during the process of growing market penetration within the various categories, we have seen more strategies aimed at greater segmentation, in large part due to the attempt to match the new needs conveyed by the end consumers. More specifically, an increase in the number of shares has been noted in the premium segment, where, as everyone knows, the key factors for success do not depend only on pricing but also on product quality. In light of this evidence, the present study explores the importance of a premium private label's success factors (e.g., quality, sustainability and diversity) according to the perspectives and expectations of the different players operating along the supply chain, such as copackers, distributors and, of course, consumers. To be more precise, the objective of this study is to prove that differences exist between the various players' judgment of the premium private label's success factors, and therefore providing us a better understanding of which retail actions should be taken to increase both market shares and user satisfaction. The results found in this paper may provide useful information not only for brand managers working in the Italian distribution, but also for scholars and representatives of private and public institutions.