The influence of retailing-mix levers on private label market share: The case of the Italian FMCG market

• The paper studies the impact of supply-side levers on private label market share in the Italian FMCG market.
• The analysis is performed both in one-equation and in two-equation models using OLS and GMM techniques.
• We find that assortment share plays a crucial role in determining private label sales growth.
• Assortments is more effective than relative price and promotion in supporting private label market share.
• The role of assortment is common to all product department considered.

An in-depth analysis of the impact of retailing-mix levers on private label market share in the Fast Moving Consumer Goods sector in Italy is made. The direction and intensity of the impact of assortment, price and sales promotion is measured for different product categories. OLS and GMM regressions run on an IRI Group dataset indicate a strong positive effect of product range, which can be considered as a proxy of on-shelf brand visibility. Increasing private label assortment share thus appears to constitute the key supply-side factor in augmenting sales share on the Italian grocery retailing market.