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Fighting store brands
Talking of in-house or store brands (in supermarket chains) as potential competitors, Naveen Kshatriya, director, consumer division, Castrol, said: ``A brand is a combination of rational and emotional offerings. Store brands may be able to make rational offers like delivery and price advantages, but they lose out on the emotional ties that a brand can develop with its customers and their wide reach. Store brands also cannot be technology-intensive, since there is no investment in R&D, product development, creating brand equity.''In the US, for example, 83 per cent of the grocery market is dominated by seven chain stores, with Tesco having 20 per cent and Sainsbury 19 per cent share. But they have not been able to extend their brandname beyond such products. Said Kshatriya: ``People go to supermarkets to interact with the brands. It is a joyous experience. Private labels do not offer the same ambience.'' Pinaki Pan, general manager, sales, SBCH, said competition from store brands cannot be avoided. Theway to compete is by: increasing your value-for-money promise, consolidating brand equity, and making it more difficult for other lucrative offers on the price/availability plank. ``Intangibles like brand value and salience should be strengthened.'' Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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