Drivers of change are those factors which bring change in the overall industry. These forces compel industry participants to alter their actions due to which industries change. Drivers of change originate in the outer ring of macro environment and in most cases the inner ring of micro environment. Some of the important drivers of change indentified in the store brand industry are given below.
1. Customers Awareness
Initially customers did not take interest in the private label brands because of their quality and unattractive store displays. But improvements in the quality of private label brands attract a large pool of customers. These customers are now aware about the benefits provided by both the national and private labeled brands.
2. Change in Life Style
Change in life style of people is also an important driver of change. People are getting health conscious and getting aware of what they are paying for a product. They try to get the best quality products in order to remain healthy and physically fit. Due to changes in the life style of customers, many companies are now trying to come up with hygienic products. Similarly, they also try to convey the message to customers that they are caring about the health of customers.
3. Change in the Interest of Retailers
Initially retailers were only interested in the national products. But they started to take interest in the private labeled brands as they experienced the higher profits generated by these private brands. Now Retailers are able to advertise them at lower cost and get higher profits margin.
4. Trend Towards Store Products
Store brand products have improved their quality for the last few years due to which the difference between the quality of store products and national products is reduced. At the same time, store products are easily available which changes the perception of customers and forces the market condition to be changed.
5. Marketing Innovation
Marketing innovation refers to the introduction of new ways to market the products of a company. Since technology is changing very rapidly due to which marketers are able to find new ways of marketing the products. They do online marketing for their products which is proved very successful.
6. Technological Change
Technology is changing rapidly. New technology is emerging day by day. All companies in this industry thus need to upgrade their processes and facilities in order to be competitive in the market. Many companies are now able to sell their products online due to which competition is increasing rapidly. Similarly, new technological products are introduced which helps in reducing the cost effectively.