National vs. Store brands competitionentry timing and scale effects on new product performance

Resumen

Given the increasing power of store brands in the CPG (consumer packaged good) sector, the authors question the actual relevance of the so-called first-mover advantage, thus bringing together two important strands of literature: the research on NPD and entry timing and the research on the competition between national and store brands. A market share attraction model that incorporates order, as well as marketing efforts concerning price gap, distribution, advertising expenditures and sales on promotion, is specified and will be tested so as to evaluate whether order-of-entry effects still exists and how the market response to marketing efforts vary depending on entry timing and the power of store brands in the product category. Retail scanner data from the Spanish market covering a period of seven years across 12 CPG subcategories pertaining to 5 different product categories will be analyzed to empirically test our propositions.