An exploratory study on consumer purchase drivers towards private label brands : a case of Nakumatt Supermarkets in Nairobi

Submitted in partial fulfillment of the requirements for the Degree of Masters in Business AdministrationPrivate label branding strategies are an emerging trend among retail supermarkets in Kenya. Though previous studies on private label brands have been done in other countries, none has been done in Kenya, hence the gap explored in this study. The study sought consumer perceptions towards private label branded products by examining their response to consumer purchase drivers of price, promotion, store image, packaging and product quality. A descriptive survey design was used for the study with a total of 166 respondents drawn from various Nakumatt stores in Nairobi. Collected data was analysed using a quantitative approach. The results from the regression analysis model showed that quality, price and store image were most influential in consumers’ decision to purchase Nakumatt’s Blue Label branded products. Further, using ANOVA test the study demonstrated that consumers do perceive private label brands to be different from established national brands, with regard to price and packaging. In view of the findings, to retailers offering private label brands in Kenya, the study proposes differentiation and cost leadership strategies. These strategies embedded on the most influential consumer purchase drivers, will enable retailers effectively compete with established brands and gain a bigger market share among retail supermarket shoppers in Kenya. As the study focused on Nakumatt only, future studies may include other major retail supermarkets in Kenya and compare the results on consumer perceptions towards private label brand offering. Further studies may also be done to identify and include other factors that may influence consumer purchase decisions