1. THE DEVELOPMENT OF STORE BRANDED PRODUCTS IN RETAILING SECTOR Kadriye Sapmaz1, Murat Yercan2 1 Eskişehir Osmangazi University, Turkey 2 Ege University, Turkey

2. UNDERLINED TOPICS O What is store brand O The positioning of store brands in global markets O The effects of the store branding *the reasons behind the store brands O The positioning of store brands in Turkey O Some emperical findings on consumers behavior O Some conclusions

3. WHAT IS STORE BRAND O STORE BRAND= house brands, private label brands, own brands, home brands, generic brands O In terminology; O This is a kind of marketing(branding) strategy which the products sold under the store chain name or some specific name of chains. O STORE BRANDS VERSUS PRODUCER BRANDS

4. Producer Brand Store Brand

5. Producer brandStore brand

6. The positioning of store brands in global markets O The 1 to 3 $ which has purchased for the products packed is made for the store branded products. O The research findings made by AcNielsen (2014), the rate of store branded products in the total sale income 16.5%, in the global World. Figurel 1. Market Share of Store Brands (AcNielsen, 2014)

7. The biggest market share of the store branded products is exit in Switzerland with 53 %. Turkey has some significant development with the 17 % on the store branded producst which is close to World wide average and it shows fast expansion CountryMarket Share (%) CountryMarket Share (%) Switzerland53Finland29 UK47Denmark28 Slovakia44Hungary28 Spain42Sweden27 Germany41Holland26 Austria38Norvay26 Belgium38Greece20 Çheck Rep.35İtaly17 France35Turkey17 Portugal34 Market Share of Store Brands in European Countries Source: PLMA, 2011

8. The effects of the store branding *the reasons behind the store brands O COST DIFFERENTIATION Source: Retailing Institute, 2001.

9. O Triple effects of store brands; Producers-Retailers- Consumers To Producers Positive effectsNegative effects *the usage of utilised capacity *selling quarantee *expantion of production capacity *easy Access to market *getting advantage through the price differentiation *easy competition with the other brands *diclining on selling and profit of the own brand *diclining on resources for own products, shifting own market share to the other brands *diclining profitability Sources: Pala and Saygı, 2004; Kahveci, 2007; Savaşçı, 2003; Orel, 2006; Özgül, 2004.

10. To Retailers Positive effectsNegative effects *More freedom and flexibility in pricing *more control on product attributes and quality *higher margins(or lower selling price) *eliminating manufacturer’s promotional costs *negative perception of consumers *the risks on the quality which is the sam efor all product cathegories *quality awarness by the cheapest price *the problems on logistics by producers *the cost of brand promotion *technical& financial support to producers *reflection ot the other producers Sources: Pala and Saygı, 2004; Kahveci, 2007; Savaşçı, 2003; Orel, 2006; Özgül, 2004.

11. Positive effects *more convenient price *broad range of choices *easy Access to products *post selling assurance To Consumers Sources: Pala and Saygı, 2004; Kahveci, 2007; Savaşçı, 2003; Orel, 2006; Özgül, 2004.

12. The positioning of store brands in Turkey O The first store brand in Turkey was sold by Migros under the “Migros” in 1957. It has been started to be well known and preferred by consumers at the beginning of 2000’s. Producer Brands Store Brands No-name brands General57834 Marmara611128 Ege62830 Central Anatolia66628 Mediterranean53641 Black Sea561133 East and Sout-east43453 The share of purchases in total consumer budget by brands and region of Turkey(%) Source:Ipsos KMG 2010.

13. O The sales of store branş products is 400 billion $ in the global World while it is around 1 billion $ in Turkey. O The Chain Markets like Migros, BİM, CarrefourSA, Metro Market, Kipa, Kiler, DiaSA, A101, Pehlivanoğlu, Gürmar are the lead stores in Turkey which have a great share of their sales of store brands. O Kipa is the lead company which has 4200 different products under the “Kipa” and “Kipa Pazar”. Then, BİM comes behind it with the 3103 different products cathegories.

14. Some emperical findings on consumers behavior. O It has been researched that 65% of the consumers generally buy store branded products in a region of Turkey-İzmir. The consumers sometimes buy store branded rice, legumes and milk (Sapmaz, 2014). O

15. Consumers said that the most effective reasons to buy the store branded producst are existing promotions and sales and the price which is cheapest than the private brands. (Sapmaz, 2014). The reasons why consumers buy store branded foods

16. And, consumers who do not buy store brands also said that I never give up producer brands and my habits- choices are very important (Sapmaz, 2014). The reasons why consumers don’t buy store branded foods

17. Some conclusions O Store-brand goods are generally cheaper than producer branded goods, because the retailer can optimize their resources to suit consumer demand and reduce advertising costs. consumeradvertising O Store branded products are really reliable which all of them produces by the well-known companies. O The store branding is extremely expanding not only for the food but also for the detergents, home cleaning materials, alcoholic and non-alcoholic beverages, house constraction materials, painting and other chemicals, etc. O

18. Thank You… Prof.Dr. Murat YERCAN Ege University, Faculty of Agriculture, Dept. of Agricultural Economics, Turkey murat.yercan@ege.edu.tr