An Investigation of the Life Cycle Stage of Private Label Apparel Brands and the Use of Automatic

82 Pages·2015·1.07 MB·English

by  Katherine M. Copeland

Florida State University Libraries
Electronic Theses, Treatises and Dissertations The Graduate School
2005
An Investigation of the Life Cycle Stage of
Private Label Apparel Brands and the Use of
Automatic Replenishment Programs
Katherine Copeland
Follow this and additional works at the FSU Digital Library. For more information, please contact [email protected]
THE FLORIDA STATE UNIVERSITY

COLLEGE OF HUMAN SCIENCES

AN INVESTIGATION OF THE
LIFE CYCLE STAGE OF PRIVATE LABEL APPAREL BRANDS
AND THE USE OF AUTOMATIC REPLENISHMENT PROGRAMS

BY
KATHERINE COPELAND

A thesis submitted to the
Department of Textiles and Consumer Sciences
in partial fulfillment of the
requirements of the degree of
Master of Science

Degree awarded:
Fall Semester, 2005
The members of the Committee approve the thesis of Katherine Copeland defended on
June 13, 2005.

____________________________
Susan S. Fiorito
Professor Directing Thesis

____________________________
Jeanne Heitmeyer
Committee Member

____________________________
Larry Guinipero
Outside Committee Member

Approved:

______________________________________________________________________
Rinn Cloud, Department of Textiles and Consumer Sciences

______________________________________________________________________
Penny Ralston, Dean, College of Human Sciences

The Office of Graduate Studies has verified and approved the above named committee
members.
ii
ACKNOWLEDGMENTS
I would like to express my deepest appreciation for those who contributed to this
research. I am forever grateful to Dr. Susan Fiorito for the continuous understanding,
patience, guidance, and encouragement throughout the entire process. Thank you to my
committee Dr. Jeanne Heitmeyer and Dr. Larry Guinipero for the direction and support
provided during the stages of this research. I am extremely grateful to my Dad, Dr. Rick
Copeland, who was a valuable resource for statistical assistance and provided continuous
encouragement and patience throughout the research process.
Thank you to the faculty members and staff in the Department of Textiles and
Consumer Sciences and in the Dean(cid:146)s Office who provided encouragement and guidance
during my graduate program.
Finally, thank you to my family and friends for their support and constant
encouragement throughout my education. I love you all.

iii
TABLE OF CONTENTS
Page
LIST OF TABLES(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..vi
LIST OF FIGURES(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...vii
ABSTRACT(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).viii
CHAPTER
1 INTRODUCTION(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...1
Purpose Statement(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...4
Objectives(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)4
Research Questions and Hypothesis(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)4
Rational(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)4
Limitations(cid:133)...............................................................................................5
Assumptions(cid:133).............................................................................................5
Definitions of Terms(cid:133)................................................................................5
2 REVIEW OF LITERATURE......................................................................7
History of Branding.....................................................................................7
Types of Branding........................................................................................8
Private Labels(cid:133)(cid:133).......................................................................................8
Competition(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)11
Supply Chain Management and Automatic Replenishment Programs(cid:133)..13
Product Life Cycle(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).16
Stages of the Product Life Cycle(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...16
3 METHODOLOGY(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)25
Design(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)25
Variables(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)25
Description of Instrument(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..26
Personal Interviews(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)26
Sample(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)27
Data Collection Procedures(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)27
Data Analysis(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).28
4 RESULTS(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..30
iv
Questionnaire Response Results(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)30
Private Label Apparel Buyer Profile(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..31
Development of Product Life Cycle Index(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)35
Correlation Analysis(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..35
Relative Life Cycle Index Tree(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..37
Comparison of Life Cycle Stages(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..39
Automatic Replenishment Programs(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).43
Stock Turnover(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...44
Research Questions(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)44
5 SUMMARY, DISCUSSION, CONCLUSION,
RECOMMENDATIONS(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...48
Summary(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)48
Discussion(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..50
Conclusions(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)54
Recommendations(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..54
APPENDIX(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)56
Human Subjects Approval(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).57
Survey Instrument(cid:133)(cid:133)(cid:133)(cid:133)..(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)59
REFERENCES(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..68
BIOGRAPHICAL SKETCH(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).72

v
LIST OF TABLES
Table Page
1. Questionnaire Response Rate Figures(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...31
2. Demographics for Responding Buyers(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).31
3. Years that Private Label Apparel Brands have been in Existence(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)34
4. Mean Scores for the Percent Sales for Private Labels within Each Department(cid:133)(cid:133)..34
5. Mean Scores for the Degree of Innovation for the Private Label Brand(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..35
6. Correlations: Years, Percent Sales, and Innovation(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..36
7. Separating Variables into Quadrants(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)36
8. Labeling Variables into Quadrants(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...37
9. Relative Life Cycle Index Means(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).40
10. Two-Sample T-Test: Company A (M&W), Company B (M&W)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..41
11. Two-Sample T-Test: Company A Men, Company A Women(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)41
12. Two-Sample T-Test: Company B Men, Company B Women(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).(cid:133)(cid:133)(cid:133)(cid:133)42
13. Two-Sample T-Test: Company A Men, Company B Men(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..42
14. Two-Sample T-Test: Company A Women, Company B Women(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...42
15. Two-Sample T-Test: Company A&B Men, Company A&B Women(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133).42
16. Correlations: Index, Years, Percent Sales, ARP(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..44
17. Life Cycle Stages for Company A & Company B for Two Families of Business(cid:133)..45
18. Private Label Apparel Brand Product Type, Fashion Position, and Price Point(cid:133)(cid:133)..46

vi
LIST OF FIGURES
Figure Page
1. The Product Life Cycle for the Entire Industry(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)18
2. Management Activities during the Life Cycle(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)..24
3. Research Model for Analysis of Data(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...29
4. Life Cycle Decision Tree for all Private Label Apparel Brands(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)...39
5. Modified Product Life Cycle Based on the Relative Life Cycle Index(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)(cid:133)43

vii
ABSTRACT
The purpose of this research was to investigate and record the current life cycle
stages of the private label apparel brands in department stores utilizing Levitt(cid:146)s (1965)
model of the product life cycle theory. In addition, an investigation was conducted of the
strategies of possible automatic replenishment programs used for private label apparel
brands in the different stages of the life cycle. The research was conducted using a
mailed questionnaire with questions pertaining to (1) the demographics of buyers in two
department stores, (2) private label apparel brands and their sales, market share, and years
on the market, an (3) the automatic replenishment system in place for the private label
apparel brands in the specific areas of the department stores participating in the survey.
Of the 31 questionnaires sent out, 19 were completed and returned. A relative life cycle
index was developed for placing each private label apparel brand into a stage in the
product life cycle. A modified version of Levitt(cid:146)s product life cycle was developed for
more accurate placement of the private label apparel brands with eight life cycle stages
rather than Levitt(cid:146)s four stages. Correlation and two-sample t-tests were used to evaluate
the relationships between private label apparel brands and the use of automatic
replenishment programs. The results indicated that there was no relationship between the
use of an automatic replenishment program and the current life cycle stage of private
label apparel brands. The analysis also indicated that there was no relationship between
the use of an automatic replenishment program and stock turnover, but a relationship did
exist between the relative life cycle index and stock turnover. Further research is needed
to investigate other areas of private label apparel brands and automatic replenishment
programs.
viii
CHAPTER 1

INTRODUCTION

Branding has been an organized strategic marketing concept since the mid 19th
century, and continues to intensify in the retail market (Goldman, 2003). The American
Marketing Association defines branding as (cid:147)a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods and services of one seller or group of
sellers and to differentiate them from those of competition(cid:148) (www.marketingpower.com,
2004). By strategically placing a name or trademark on a product, the consumer begins
to recognize the product and the retailer that carries the product. This marketing concept
of placing a name or trademark on a product (cid:147)brands(cid:148) it for differentiation among its
competitors and encourages retailers to place their name on products.
Previous research has established that national brands began as a means of
identity in combination with (cid:147)trade marking(cid:148) products in the 1860s. As the
manufacturer(cid:146)s products became more visible throughout the country with advances in
transportation and technology, national brands also conveyed a particular quality to the
retailer and to the consumer (Keller, 2003). Since the early 1920s, national brands have
dominated the retail sector and have been effective in enticing customers into stores
(Hoch & Banerji, 1993). Today, national brands occupy the majority of retail space in
stores and compete head to head with private labels through advertising (Ashley, 1998).
Two scenarios can be seen in the branding of apparel products. Manufacturing
firms introduce new brands to the market to be sold under their own name, or
manufacturers produce brands for other companies under a license (Gilbert, 1999). In
fact, apparel branding includes three possibilities- store brands, private labels, and
national brands (Goldman, 2003; Keller, 2003). A store brand, as defined by Solomon
and Rabolt (2004) is a product sold through retail outlets opened and run by the
manufacturer. These retail outlets sell only merchandise in that store that carries the
store(cid:146)s name. Examples of store brands would be the GAP and Ann Taylor.
Private labels have been increasing in importance in the retail industry and are
owned not by the manufacturer, but by the retailer (American Marketing Association,
1