STRATEGY FOR DEVELOPING PRIVATE LABELS BY SUPERMARKETS IN BRAZIL

ABSTRACT

Retail companies in Brazil, specially the supermarkets, are adopting practices in order to increase the number of consumers and keeping them loyal. At the same time they are trying to be different from the competitors. The competition incited between the supermarkets forces them to look for alternatives capable to strength their position compared to the competitors and also compared to the traditional producers with well known brand products. Among the actions developed to this purpose, some supermarkets invest in development of products with their own brands, the products with supermarkets private label. This study analyzes the process of development, from strategy motivations to results obtained in managing private labels. Five supermarkets were listened through a study of multiples cases and the use of multiples sources of evidence. The results show that the supermarkets develop products with private label mainly to keep the consumers fidelity, increase the profit and raise the bargain power next to the traditional suppliers. Beyond these motivator factors, a social motivator appeal was also identified in the process of these products development.

KEYWORDS:
Supermarket; Private label; Bargain power