At the end of this session students will be able to:
Clearly differentiate between product brands and retail brands
Comment on evidence that indicates the growth of retail own brands
Identify strategic forces driving the development of retail own brands
Recognise different approaches to own brands across the retail sector
List a range of relevant sources
How far will a retailer go
to promote their brand?
The growth of the retail brand in fashion retailing
UK fashion retailing is characterised by high levels of market concentration, centralisation and outlet standardisation. In the pursuit of market share, the multiple fashion retailers are implementing branding strategies that aim to differentiate their product offer and reinforce their market positioning.
( Birtwistle and Freathy IJR&DM Vol 26, No 8 1998)
Different types of own brand (McGoldrick, 2002) Retailer name brand Tesco, H&M, Monsoon, Mothercare Store sub-brand usually targeted at a specific market segment. Sainsbury Taste the Difference Tesco Finest John Lewis JFW Generic brand usually targeted at price conscious segment Tesco Value Exclusive brand Tu (Sainsbury’s) George (ASDA) Exclusive designer brand in some situations a manufacturer brand is provided exclusively by a retailer Debenhams and Jasper Conran, Sainsbury and Conran cookware.
Penetration of own brand in grocery retailing Product category Percentage share Dry grocery 36.1 Dairy 65.4 Delicatessen 85.4 Frozen foods 48.6 Bakery 64.4 Confectionery 15.5 Petfood and pet care 19.6
Drivers of retail own brand growth (a)
Product category sales are large and growing
Category is dominated by a few large manufacturers so retailers promote their own brands to reduce dependency
New manufacturer brand innovations and developments are infrequent and easy to copy
Drivers of retail own brand growth (b)
Retail distribution is well organized
Contribution of own brand to profits
Success of other retailers
Retailer has size and resources to develop own brand
Drivers of retail own brand growth (c)
Retail recognises the contribution of own brand to differentiation strategy
Tendency of retailers to differentiate themselves by emphasising their range of producer brands is becoming rarer
Lifestyle retail brands
For consumers of lifestyle retail brands, the consumption experience is an interactive process that creates value:
“ Lifestyle themes shape consumption patterns, the goods acquired undergo the consumption processes of symbolism, embellishment, transformation and display, and so shape lifestyle”.
(Helman and de Chernatony. Development of Lifestyle Retail Brands.
The Service Industries Journal. Vol 19, No 2 April 1999)
Lifestyle retail brands
Lifestyle retailing involves the development
of a clear customer focus and the offer of a
“ total package”, which appeals to a target
customer group defined by lifestyle.
Lifestyle retail brands (Walters,1998)
As forms of popular culture, lifestyle retail brands are able to communicate more effectively with consumers through their performance in the roles of change agent, gatekeeper, opinion leader and innovator.
In providing a “total look”, that is made available in an environment that provides a “total experience”, which is relevant to the target customer group, the lifestyle retail brand effectively closes any gap that may exist between the consumer and the retailer.
The retailer as a brand
Brands are much more than products, they are identifiable clusters of functional and emotional values (de Chernatony and McDonald,1998)
Retail brands, as distinct from manufacturer brands, can offer to simplify our lives; they can help to edit or filter the choices; they can provide increased personalisation (Whale, European Retail Digest, March 2001)
“ We live in a world where symbolic meaning linked to brand use provides status and social significance for the consumer of that brand” (Gilbert)
Discussion forum topic
Read the journal article ‘Jamie Oliver at Sainsburys’ on Moodle*.
1. The current model for celebrity endorsements needs to be changed to incorpor ate elements of brand alliances. Discuss. *If you have problems with the link search online in Emerald
2. Comment how branding is used as a communication device to signal values, positioning and products at Sainsburys
Briefing: Comparison of evidence of brand strategies (product and store) from stores in 3 different categories: