Reasons behind sourcing house brand products

Introduction to NTUC's Private Labels
In Singapore, NTUC FairPrice, the country’s largest food and drink retail chain, is one
of the forerunners of house brands. It has a network of more than 200 outlets.
FairPrice house brand products were introduced in 1985, to encourage competitive
pricing among manufacturers and retailers and to help moderate the cost of living, so
as to keep the price of food products fair and reasonable
Reasons behind sourcing house brand
• - By sourcing for products from all over the
world and going direct to the source, NTUC
FairPrice is able to cut down on middleman
handling and pass the cost savings to
• - This strategy has allowed FairPrice to price its
house brand products at approximately 10 to
15 percent lower than national brands.”
Direct Relationship Lowers Price
• Work directly with manufacturers, save on
sales force and advertising or even
distribution channels and consolidate our
group buying power to pass on the savings to
consumers by pricing our products more
competitively against national brands
How consumers felt towards House
• - Consumers have started to be more
receptive of house brands as retailers are
continuously educating them on the [good]
quality and lower prices of their house brands.
• - Consumers are seeing greater value in house
brands. And with the economic downturn,
many are turning to house brands for instant
The 4ps of NTUC fairprice housel abel
are as the following
• PRICE- the amount of the house labels stay the same regardless if
it’s at ntuc fairprice or ntuc finest. However the price of international
brands may varies due to the venue. But if we compare house label brand
and international brand, usually the houselabel brand tends to be cheaper.
This is so to promote their own branding.
• PLACE- Different venues of NTUC outlet have different consumer
in mind. For example, NTUC finest at bukit timah , has a larger variety
range wines . This was to cater to the changing tastes of Singaporeans who
are increasingly well-travelled. The two-storey outlet has an offering of
products different from other FairPrice stores, and also features a Swissstyle Delicatessen, a wine cellar and a European bakery.
The 4ps of NTUC fairprice housel abel
are as the following
• PROMOTION-Inconjution to bulid up a new target market
for ntuc finest at bukit timah, NTUC had arranged by Ch'ng Poh
Tiong a wine expert giving a lecture on wines, which was well
This shows that it was creating a promotion that if you buy the
wine, you get to attend the lecture for free.
The 4ps of NTUC fairprice housel abel
are as the following
• PRODUCT- as mention in the place, different
venue has different product. As for Bukit timah, the
outlet has a wide variety of international product.
Such as special cheese imported from Switzerland
which other NTUC outlets do not have.
Recommendations to enhance NTUC FINEST
brand positioning.
• As Ntuc finest is a new concept store, our team
suggest them to increase brand usage of current
• By doing so this would allow and buy over the
usual user to use their house branding by
providing good quality and afforadable price. In
order to stay competitive, ntuc needs to
consistently improve and promote their own
house brands to create greater awareness
contributing to greater sales