Private Label Positioning Determined by Consumers' Categorizations of Brands. Analyzing Meanings Linked to the Sandstrøm Private Label Brand.

Abstract

The purpose of this study is to analyze how consumers categorize Gigantti’s private label brand in different product groups. Therefore, the research problem of the study is how does the Sandstrøm private label brand position in the minds of consumers? This is achieved by examining the underlying associations, meanings and personal values that determine consumers product categorizations in the household appliances and consumer electronics industry. The research paper concentrates on four specific product categories that the Sandstrøm brand is represented in. These are dishwashers, microwave ovens, coffee machines and portable DVD-players.

Consumers evaluate brands by categorizing them in their minds. By understanding how consumers categorize brands in a product class, we can understand how a specific brand positions in the minds of consumers. The theoretical pre-understanding section of this study divided the eight factors that influence consumers’ private label categorizations into three groups: 1) product related factors, 2) consumer related factors, and 3) brand related factors.

Furthermore, the empirical section of the study employs the laddering interviewing technique as a research method, which specializes in uncovering consumers’ means-end chains for different product categories. This study concludes that the meanings related to the Sandstrøm brand are very category specific. The Sandstrøm brand was recognized as an interesting option and categorized more favorably in the coffee machine and portable DVD-player product categories, where brand familiarity was not as important to respondents. However, the Sandstrøm brand was perceived to have a good range of tangible attributes on products in all the product categories studied in this research paper as well as credible pricing. This study was formed in co-operation with Gigantti Oy Ab.