Branding of private label products by product category: A model suggestion for FMCG market

Abstract

The private label products market is expanding day by day, and the decisions and applications made in this market have become important for retailers, national producers, and consumers. Consumers prefer private label products from retailers that they trust and perceive of high quality. Despite its increasing importance, there is no clear and widely recognized model for branding private label products. In this study, the relationship between the brand value of the retailer, the real quality of the product, and the category of the product were evaluated in terms of branding of private label products in fast moving consumer goods market (FMCG), and a branding model was proposed to comprise the mentioned factors on the branding of private label products. By selecting one of the largest FMCG retail chain of Turkey, a measurement form was developed and applied as a survey (n=353). The results of the research revealed that the perceived brand equity of the retailer has an effect on the branding of private label products according to product quality in the FMCG sector. Another finding of the research is that there is also a relationship between the category of the product and the brand equity of the retailer.