Thesis (MBA)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Competition in food retailing has become a noticeable cosmopolitan
phenomenon. Competitiveness filters down from retailers and their private-label
brands to the suppliers and their manufacturer brands. Furthermore, the
proliferation of food retailing has evolved into a double-edged sword for suppliers
and manufacturers of both private-label and manufacturer/supplier-branded
goods. Therefore, these suppliers, in comparison to those that solely
manufacture national-brand goods, has to continuously maintain a favourable
status quo on shelf with regard to brand performance, product quality and price
of both retailer and supplier brands. Moreover, in store and on shelf, consumers
of these brands are overloaded with choices between different packaging, prices
and product statements. All relevant and eye catching, but do the supplier
brands get the worst of the bargain? The objective of this study was to perform a
qualitatively analysis on the supplier value of being a supplier of both privatelabel
and manufacturer brands to the food-retail industry.
The empirical study encompassed one-an-one and electronic interviews with key
participants from specific food retailers to obtain answers validly, objectively and
economically. The researcher employed a qualitative research approach
together with a non-probability sampling strategy to explore the retail
environment and interview participants. The three retailers that participated in
the qualitative study were SPAR and Shoprite from South Africa and Morrisons
from the United Kingdom. Interviews were scheduled with each participant that
was available to participate and actively contribute to the outcome of this study.
Interviews were conducted with a pre-set list of open-ended questions that was
prepared in a discussion guide. Content analysis was then done on the interview
feedback and this was used to formulate major findings and provide justification
for the research objectives and propositions of this study. From the major
findings in this study five themes were identified: growth, challenges, competitive
environment, brand differentiation and supplier-retailer relationship.
Findings indicated that retailers - regardless of their global location, consumer
base and competitive environment - were mostly focused on growing their
company and their respective private-label brand. Depending on the volatility of
the supplier-retailer relationship, this growth focus could even come at the
expense of a manufacturer's brand. The study also revealed that retailers are
faced with a number of different challenges, which include deciding whether a
product is fit to be sold under their private-label brand and if a supplier's strategy
supports their own company strategy. The challenges encompass dependability
of supply, quality of product and delivery reliability. Additionally, prime area for
retailing is becoming more condensed in South Africa and as a result competition
between the four major South African retailers is more vibrant. The study has
noted that major retailers are also seeking expansion into emerging markets
outside the metropolitan areas in South Africa, which will increase demand and
create new customer expectations. Competitiveness and a point of difference
would then be underpinned by innovation , creating a favourable shopping
experience and service delivery, but with no compromise on quality and price.
When considering brand differentiation, the study revealed that retailers were
using this differentiation to increase private-label market share among the
national brands whereas suppliers use it to create aspirational brands that attract
and sustain consumer loyalty. It was concluded from this study that the growing
availability and presence of private-label products in all categories on retailer
shelves will become a serious threat for growing national brands that have not
yet established themselves as market leaders. This threat will be further
enhanced by the fact that retailers are using real estate and shelf space as
leverage to negotiate. Regarding supplier-retailer relationship, this study showed
that a retailer's focus will always be biased with the balance of power tilting in
favour of the retailer, speCifically where a supplier is considered to be a supplier
of both private-label and manufacturer brands. Although the latter is an industry
norm, the power balance is complicated by the fact that no contract exists
between supplier and retailer. As a result, a show of goodwill and a hand shake
will seldom have the one-sided situation swing in favour of a supplier.
Nonetheless, retailers' feedback indicated that they would rather develop
relationships with suppliers that either have brands with smaller market share or
only manufacture private-label products. / AFRIKAANSE OPSOMMING: Mededinging in die voedselkleinhandel het 'n merkbare kosmopolitaanse
verskynsel geword. Mededingendheid syfer van kleinhandelaars en hul private
handelsmerke na verskaffers en hul vervaardigershandelsmerke deur. Voorts
het uitbreiding in die voedselkleinhandel in 'n tweesnydende swaard vir
verskaffers en vervaardigers van goedere vir sowel private as vervaardigersIverskaffershandelsmerke
ontwikkel. Daarom moet hierdie verskaffers,
vergeleke met diegene wat slegs goedere vir nasionale handelsmerke
vervaardig, voortdurend 'n gunstige status quo op die rak handhaaf ten opsigte
van die handelsmerkprestasie, produkgehalte en prys van sowel private as
verskaffershandelsmerke. Origens word verbruikers van hierdie handelsmerke,
in die winkel en op die rak, oorlaai met keuses tussen verskillende verpakking,
pryse en produkverklarings. Dit is alles tersaaklik en treffend, maar trek die
verskaffershandelsmerke aan die kortste end? Die oogmerk van hierdie studie
was om 'n kwalitatiewe ontleding te doen van die waarde vir die verskaffer om 'n
verskaffer van sowel private as vervaardigershandelsmerke vir die
voedselkleinhandel te wees.
Die empiriese studie het persoonlike en elektroniese onderhoude met
sleuteldeelnemers van spesifieke voedselkleinhandelaars behels om op geldige,
objektiewe en ekonomiese wyse antwoorde te bekom. Die navorser het 'n
kwalitatiewe navorsingsbenadering gevolg tesame met 'n niewaarskynlikheidsteekproefnemingstrategie
om die kleinhandelomgewing te verken en
onderhoude met deelnemers te voer. Die drie kleinhandelaars wat aan die
kwalitatiewe studie deelgeneem het, was SPAR en Shoprite van Suid-Afrika en
Morrisons van die Verenigde Koninkryk. Onderhoude is geskeduleer met elke
deelnemer wat vir deelname beskikbaar was en aktief tot die uitkoms van die
studie wou bydra. Onderhoude is gevoer met 'n voorafbepaalde lys oop vrae wat
in 'n besprekingsgids saamgevat is. Inhoudsontleding is daarna gedoen ten
opsigte van die terugvoering wat tydens die onderhoude ontvang is. Dit is gebruik om hoofbevindinge te formuleer en motivering vir die
navorsingsoogmerke en stellings van die studie te bied. Op grond van die
hoofbevindinge van die studie is vyf temas geïdentifiseer: groei, uitdagings,
mededingende omgewing, handelsmerkdifferensiasie en verhouding tussen
verskaffer en kleinhandelaar.
Die bevindinge het getoon dat kleinhandelaars - ongeag waar hulle hul in die
wêreld bevind, hul verbruikersbasis en mededingende omgewing - meestal op
hul maatskappy en hul private handelsmerk se groei toegespits is. Na gelang
van die wisselvalligheid van die verhouding tussen verskaffer en kleinhandelaar
kan hierdie fokus op groei selfs ten koste van 'n vervaardigershandelsmerk
plaasvind. Die studie het ook getoon dat kleinhandelaars voor verskeie
uitdagings te staan kom, waaronder die besluit of 'n produk geskik is om onder
hul private handelsmerk verkoop te word en of 'n verskaffer se strategie hul eie
maatskappystrategie ondersteun. Die uitdagings sluit ook betroubaarheid ten
opsigte van voorraad, produkgehalte en lewering in. Daarby word die
eersteklasgebied vir klein handel in Suid-Afrika toenemend digter en as gevolg
daarvan is mededinging tussen die vier vernaamste Suid-Afrikaanse
kleinhandelaars lewendiger. Die studie het bevind dat vername kleinhandelaars
ook na ontluikende markte buite die metropolitaanse gebiede in Suid-Afrika wil
uitbrei, wat die vraag sal vergroot en nuwe verbruikersverwagtinge sal skep.
Mededingendheid en 'n verskilpunt sal dan deur innovering, die skepping van 'n
aangename inkopie-ervaring en dienslewering - sonder benadeling van gehalte
en prys - ondersteun word. Ten opsigte van handelsmerkdifferensiasie het die
studie getoon dat kleinhandelaars hierdie differensiasie gebruik om die
markaandeel van private handelsmerke onder nasionale handelsmerke te
verhoog, terwyl verskaffers dit gebruik om aspirasie-handelsmerke te skep wat
verbruikerslojaliteit lok en behou. Daar is van die studie afgelei dat die
toenemende beskikbaarheid en teenwoordigheid van produkte onder private
handelsmerke in alle kategorieë op kleinhandelaars se rakke 'n ernstige
bedreiging sal word vir groeiende nasionale handelsmerke wat hulle nog nie as
markleiers gevestig het nie. Hierdie bedreiging sal versterk word deur die feit dat
kleinhandelaars eiendom en rakruimte vir mag in onderhandeling sal gebruik.
Ten opsigte van die verhouding tussen verskaffer en kleinhandelaar het hierdie
studie getoon dat 'n kleinhandelaar se fokus altyd partydig sal wees, met die
magsbalans ten gunste van die kleinhandelaar, veral indien 'n verskaffer as
verskaffer van sowel private as vervaardigershandelsmerke beskou word.
Alhoewel laasgenoemde 'n bedryfsnorm is, word die magsbalans bemoeilik deur
die feit dat daar geen kontrak tussen die verskaffer en die kleinhandelaar
bestaan nie. As gevolg daarvan sal 'n welwillendheidsgebaar en 'n handdruk
selde daartoe lei dat die eensydige situasie ten gunste van die verskaffer sal
draai. Kleinhandelaars se terugvoering het nietemin aangedui dat hulle eerder
verhoudings met verskaffers sal ontwikkel wat of handelsmerke met 'n kleiner
markaandeel het of produkte vir private handelsmerke vervaardig .
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/18155 |
| Date | 03 1900 |
| Creators | Arendse, Garron Mark |
| Contributors | Herbst, F. J., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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