Improving Sales of Private Labels in Store

This paper analyzes the effectiveness of different merchandising techniques and in-store promotions in boosting sales of private label grocery products. Private labels differ substantially from (leading) national brands in product positioning and target customer group, and may therefore require a different in-store marketing mix to support their sales. By analyzing the relationship between brand type and the sales impact of different merchandising and promotion tools, we aim to obtain a better insight into which types of in-store stimuli are more appropriate to stimulate private label sales. Results confirm that (1) in-store stimuli have a differential effect on sales of private labels and national brands, and (2) merchandising and promotion tools that trigger a more cognitive and reasoned decision process are more effective in stimulating private label sales.