RECESSION – AN OPPORTUNITY FOR OWN BRAND IN MERKUR D. D.

Brands are part of their lives and we encounter them every day at every step. In the poetic language of advertising, they can be something that gives us strength for a new day, something whose proximity makes us happy, something we identify with. The sixth and seventh chapters include the author's recommendations to the company management and concluding thoughts.

Problem

Brands are part of their lives and we encounter them every day at every step. In the poetic language of advertising, they can be something that gives us strength for a new day, something whose proximity makes us happy, something we identify with. Ultimately, we could say that each individual represents their own brand, the characteristic of which is reflected in the multitude of brands that the individual swears by.

Their purchasing behaviour depends on the perceived value of a particular brand. If we look at the market from the consumer's perspective, we notice a huge number of products and even more brands, which is why the battle for customers and concern for their loyalty is becoming an increasingly important factor in the operations of today's companies. Brands are currently also an increasingly frequent topic of discussion in Slovenian companies, because with Slovenia's entry into the European Union, they have gained a new market that offers more opportunities for their success, but at the same time also more threats to their existence.

The biggest challenge for Slovenian managers thus remains whether they will be able to create strong brands in the eyes of consumers, for which the latter will be willing to pay the required value. Whilst some companies in the Slovenian market were even monopolists, they are now, from the perspective of the European Union market, merely a small segment in the market. They rarely have the opportunity to compete with successful European corporations and their established brands.

In a competitive market, such as the Slovenian one, it is of utmost importance to retain customers, which is only possible through the development of a private label brand. Just as many times before, Slovenian companies have once again followed the development of foreign companies and begun introducing so-called private label brands. In Slovenia, the occurrence of private label brands first took root among food retailers, but currently it is a time when it is increasingly intensively penetrating the ranks of retailers of technical goods.

The introduction of a private label brand for a technical goods retailer does not only bring greater control over suppliers, but also a wider range of products, increased sales and consequently greater prestige. The diploma thesis comprises seven chapters. The introductory chapter includes the definition of the topic addressed, the purpose, objectives and assumptions, as well as limitations and a description of the research method used in the empirical part of the diploma thesis.

In the second chapter, they presented the company Merkur, d. d., as well as the company's mission, vision and objectives. In the third chapter, they theoretically defined private label brands in the company Merkur, d. d., their purpose and objectives, pricing policy and payment terms, sales promotion and the importance of promoting the private label brand, methods of sales promotion during a recession, and the positioning of the private label brand itself. In the fourth chapter, they carried out a sales analysis between Merkur's brand and other brands.

In the fifth chapter, they conducted research on the sales of the private label brand in the company Merkur, d. d.

Results

The sixth and seventh chapters include the author's recommendations to the company management and concluding thoughts.