Abstract
This study identifies the definition of private label products that various retailers are expanding and brief development process, and examines the relationship between sales promotion activities and national brand (NB) products and private label (PL) products. The goal or purpose of this study is to present different directions for sales promotion by manufacturers seeking to expand sales of NB products and distributors trying to maximize profits with PL products.
For the purpose of conducting this study, the data consists of 1,022 people used scanner panel data using a domestic large-scale mart for 2 years, and on-site discount coupons, which are sales promotion activities applicable to both NB and PL products, were selected as the representative sales promotion method. Furthermore, the focused product is the consumer product, ramen (noodles), a typical consumer goods that uses a lot of discount coupons, was surveyed. NB ramen used all the products of the top five domestic sales, and PL ramen targeted all ramen produced by distributors. Under this study, we analyzed how the sales and sales volume of these ramen, the number of discount coupons used, and the discount amount affected. In addition, the effect on discount coupons according to gender, age, and income, which are demographic characteristics, was also analyzed. The results show that PLs consumers are more deal-proneness, while PBs consumers show the brand loyalty. Moreover, demographic variables showed no significant relationship with promotional activities under this study.
Keywords: private brands, national brands, consumers’ buying behavior, promotional activities effect(s), demographic factors, brand loyalty, brand choice
