CONCENTRATION OF THE RETAIL SECTOR AND TRAPPED BRANDS

This article explores how the growth in concentration of the retail tr ade has influenced both the strategies and performances of brands with in the FMCG industry. Three mature markets within the FMCG industry-te a, toothpaste and dishwashing liquid-are examined over a 13-year perio d (1982-1993). The study com pares the strategies of dominant brands i n these markets against those of second tier brands. Four key brand st rategies-advertising, distribution, number of brand variants and prici ng-are closely examined. The study illustrates the increasing divergen ce in the strategic profile of dominant and second tier brands and the emergence of a group of brands, termed 'trapped' brands, which are pa rticularly vulnerable as a consequence of consolidation of the retail trade. (C) 1997 Elsevier Science Ltd. All rights reserved.