The purpose of this dissertation paper is to investigate the attitudes held by TESCO customers towards TESCO’s private label range of products and to investigate if attitudes changed depending on demographic. The author designed a survey and administered it to two different samples – customers of TESCO Dun Laoghaire and TESCO Tallaght. To gain further insight, a focus group was also conducted.
Following in-depth analyses of the data gathered, it was found that the customers of both demographics held similar views towards TESCO’s private-label range. However, areas in which there were noticeable differences included those that frequented the Tallaght store expressed greater tendency to purchase national brands compared to those that shop in Dun Laoghaire. It was also found that, while consumers do report an improved opinion towards TESCO’s private-label range, this does not translate to store loyalty – much of the reasoning behind this appears to relate to brand-trust.
Finally, according to the views expressed during the focus group, the extension of private-labels into more categories, combined with the introduction of multi-tier ranges, is actually adversely affecting customers confidence in their product ranges as there is a lack of perceived “expertise” in any one area, thus encouraging customers to purchase more expensive national brands which tend to focus on a single category (i.e. Lindt: chocolate; Tayto: crisps etc.).
The author concludes that while the general opinion towards TESCO’s private-label range is improving, their relative newness is inhibiting their ability to gain consumer trust. Perhaps the most significant find from this study is that multi-tier ranges, while offering greater variety and accommodating to a greater demographic of consumers, is damaging the brand from the perspective of their limited expertise in any one area.