Impact of Manufacturer Brand Innovation on Retailer Brands

Abstract

The article explores the impact of manufacturer brand innovation on retailer brands in grocery product categories,<br />drawing on literature from category management, power and product innovation. It is argued that the consumer<br />packaged goods literature has largely portrayed manufacturer brand innovation in relation to retailer brands as a<br />competitive tool that is employed against the retailer brands. The alternative view of manufacturer brand<br />innovation as an enhancer of retailer brands has not been fully addressed academically. The article further argues<br />that aspects of manufacturer brand innovation that enhance retailer brands have relevance for the determination<br />of strategic policies that govern the coexistence of the two types of brands in supermarket categories. The paper<br />offers a fresh perspective in explaining the coexistence of manufacturer brands and retailer brands in grocery<br />retail categories. Aspects of manufacturer brand innovation that positively impact on the welfare of retailer<br />brands play a strategic role

Conceptualizing and measuring consumer perceptions of retailer innovativeness in Taiwan

“…Modern retailers tend to introduce various private brand products to increase consumer attention and intention to purchase (Anselmsson and Johansson, 2009). Therefore, several studies have defined retailer innovativeness as the capability of a retailer to introduce new products (Dupuis, 1998(Dupuis, , 2001, particularly private brand products (e.g., Anselmsson and Johansson, 2009;Chimhundu et al, 2010). However, no exact scale of PRI currently exists.…”

“…Pantano and Pietro, 2012;Reynolds, 2014) and some articles have focused on consumer perceptions of the ability of retailers to offer new products (e.g., Chimhundu et al, 2010;Morrison and Humlen, 2013) and/or services (e.g., Berry et al, 2010;Druehl and Porteus, 2010). However, the idea on a general consumer-orientated conceptualization of perceived retailer innovativeness (PRI), combining multiple dimensions of retail contributions, is less understood.…”

Management perspectives on country of origin

“…In contrast, manufacturer brands, by definition, are owned by manufacturing organisations (Chimhundu et al, 2010), and are responsible for all aspects of the brand's development, production, transportation, promotion, and support. Dicken (2015) points out that some manufacturer brands were also regarded as actual manufacturers in their own right, as they had ownership on the manufacturing facilities, but due to the high production costs, most manufacturer brands now use offshore sub-contractors, whilst some have moved their facilities overseas, and thus, still regard themselves as manufacturers.…”

Store Brand Purchase in the Italian Market

“…Although the majority of studies argue that the propensity for product and process innovation stems from branded industrial companies (Chimhundu, Hamlin, & Mcneill, 2010), it is also true that major European distribution chains have updated their SB products portfolio by creating a distinctive and innovative offer thanks to the increasing integration of the R&D and marketing functions. These strategies have been implemented by identifying and selecting co-packers who are able to guarantee a certain degree of product innovation.…”