Private label in the supermarket industry : a case study of ICA

ABSTRACT Title: Private label in the supermarket industry: a case study of ICA. Level: Final thesis for a Bachelor Degree in Business Administration Author: Zhing Mo, Yulan Qu Supervisor: Dr. Aihie Osarenkhoe Date: 2010 – May Aim: This dissertation aims to find out the motives behind the introduction of private label in ICA. The purpose is to further integrate the private label as a branding concept. Method: Both quantitative and qualitative methods have been used in this research. The primary data has been collected through face-to-face interviews with ICA managers and an administer questionnaire. Secondary data has been collected from books, articles and the Internet. Limitations: This research was limited by the size of the customer population and the number of stores. In addition the research was performed during the early stages of market penetration by ICA’s private label, and the results of future research might be different. Conclusions: ICA released private label to counter manufacturer power and to be more price competitive. Moreover, it had a positive effect on customers’ loyalty. The introduction of the ICA private label had a great impact on brand image and brand awareness. With regards to loyalty, the ICA private label strategy is on the correct track but still has a gap between the intended objective and actuality. Contribution of the thesis: This research contributes to finding out the advantages for retailers of introducing private label. Another contribution is to help the readers gain an in-depth understanding of private label in a brand concept. Moreover the research also presents some interesting prospects for further research. Key words: private label, brand image, brand awareness, brand loyalt