Management of a Retail brand

Management of a Retail brand

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  Navin Raj Saroj MBA(Marketing)
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  Brand management isa communication function in Retail that includes analysis and planning on how that brand is position in the Retail house, which target public the brand is targeted at, and maintain a desired reputation of the brand. Brand Equity can be thought of as the marketing effects uniquely attributable to the brand. Brand Equity represents the added value endowed to a product as a result of past investments in the marketing activity for a brand. Brand Equity serves as the bridge between what happened to the brand in the past and what should be happen to the brand in the future.
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   Brand managementbegins with having a thorough knowledge of the term “brand”.  It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining the brand. Branding makes customers committed to your business. A strong brand differentiates your products from the competitors. It gives a quality image to your business.
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  Brand Value DifferencesThemselves become a basis for differentiation Identity becomes important in identifying different products No Need for Product Identification Differentiation Commoditization Increasing Importance of BrandingLo w Hig h Hig h
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  To a consumer,brand means and signifies:  Source of product  Delegating responsibility to the manufacturer of product  Lower risk  Less search cost  Quality symbol  Deal or pact with the product manufacturer  Symbolic device
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   Formed in1946,isdairy co-operative movement in India.  Jointly owned by 2.6 million milk producer in Gujarat.  Spurred the white revolution of India, which has made India the largest producer of milk and milk product in the world.  Overseas market Mauritius, UAE, USA, Bangladesh, Australia. The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets.
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  Successful Retail BrandingEnsures:  Stable long term demands,  Better Margins,  Differentiation by way of creating long term association,  Adds value to the product,  Trust of Fulfillment of service expectations,  Protection form growing competition,  Images as a company attractive enough to work for,  Negotiation with suppliers from a position of improved strength
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  Brand as “aname, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.” Philip Kotler (1997) A brand is not a product. It is the product‟s essence, its meaning and its direction, and it defines its identity in time and space. A brand is basically a name that refers to the products of a particular manufacturer in a particular product category. A brand includes tangible or intrinsic qualities, such as appearance, performance data, package, and the guarantees or warranties that are attached to it. Perhaps more Importantly, A brand involves aspects that the consumer attributes to it, beyond its tangible features. These aspects may include attitudes towards the company that produce the product or towards the brand itself, beliefs about the brand in relationship to it self and others, and so on.
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  The benefit ofdeveloping a strong brand is that consumers are often prepared to pay a price premium for perceived added values related to buying well marketed brands. The price premium, also know as brand equity, is the price customers are prepared to pay above the commodity value of a product or service. A successful brand is a flag bearer as it provides visible signals of positional strength in the market place.
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  1. Build Stable, 2.Build and hold better Margins, 3. Differentiate themselves, 4. Add values, 5. Expectations fulfillment, 6. Customer Loyalty, 7. Protect from Competition alternatives, 8. Superior offer, 9. Image creation, 10. Consistency in availability
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   The AmericanMarketing Association (2011) defines brand loyalty as: ◦ Consumer Behaviour Definition  "The degree to which a consumer consistently purchases the same brand within a product class" ◦ AMA - Sales Promotion Definition  "The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category"
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  Brand Attitude, Brand Preference, BrandAllegiance. Loyalty Segmentation:- 1. Hard Core Loyal 2. Soft Core Loyal 3. Shifting Loyal 4. Switches
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  Brand image Product experience Service experience Personal bonding
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   Exists whencustomers have: ◦ “a high relative attitude toward the brand which is then exhibited through repurchase behaviour”  Dick and Kunal (1994)  Great asset to a firm: ◦ Customers:  Willing to pay higher prices,  Cost less to serve,  Bring new customers  From marketers viewpoint ◦ Loyalty a key factor in terms of consumer usage
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   Dramatic effectson profitability  Longer tenure as a customer  Lower sensitivity to price increases.
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   Positioning isowning a piece of consumer‟s mind  Positioning is not what you do to a product ◦ It‟s what you do to the mind of the prospect  You position the product in the prospect‟s mind ◦ „It‟s incorrect to call it Product Positioning‟ – Ries & Trout  Colgate is Protection  Lux is Glamour  Pond’s DFT is Confidence  Axe is Sexual Attraction  Gillette is Quality
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  BRAND POSITION = BRANDDIFFERENTIATION × BRAND SEGMENTATION Positioning Process:-  Apparent to consumers and offers real added value to them,  Built upon real brand strengths which reflect performance potential,  Clearly differentiated form competitor and communicate to all stakeholders groups,  Able to be achieved
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   Key Insightis „seeing below the surface‟ / „seeing inside the consumer‟  Insight expresses the totality of all that we know from seeing inside the consumer  An insight is a single aspect of this that we use to gain competitive advantage  By identifying a specific way… That the brand can either solve a problem or Create an opportunity for the consumer
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  Key Insight „I wishto get married to a handsome prince‟
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  Key Insight „Fragrance ofmy current talc does not last long and I miss opportunities to enjoy life‟ Key Insight „Soap leaves my skin feeling dry and tight‟ Key Insight „Heavy and Long lasting‟ All is well
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  The Risk ofPoor Positioning:-
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  As markets havebecome more competitive and products have only marginal differences in their physical formulation, it becomes more important to create distinction by adding relevant psychological values through advertising, packaging and other aspects of the marketing mix. Brand Personality as being a unique mix of functional attributes and symbolic values. A strong brand personality is an effective added value at the augmented stage and is reflected in the way consumers describe a brand.
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  Consumers look tobrand not only for what they can do, but also to help say something about themselves to their peer groups. Brand reflects following things for the owner:  Set social sense and enable people to mix with other more easily,  Enable consumer to convey messages about themselves,  Provide a basis for a better understanding of the way people act,  Help consumers to say something to themselves. Self Image:- Consumers hold a view of themselves – what is called their self image – and buy brands which conform to that image.
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  The term propositionis used for a set of statements which summarizes the combination of positioning and personality. Brand Image:- Image is the outcome of the consumer‟s interpretation of the brand. Brand Identity:- Brand identity is the central concept in promoting a brand. Identity comprises durability, coherence and realism, embodying the personality of brand.
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  A brand nameis that components of the brand which consists of words or letters to provide means by which the company can be recognized and distinguished from other companies in the marketplace. Through the use of the brand name, the company is able to recall numerous attributes, for example quality, availability, guarantee, advertising, support and so on.
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   People willoften buy a familiar brand because they are comfortable with things familiar.  Advertising is often aimed at facilitating the growth of brand awareness.  The Awareness Pyramid: Top of the Mind Brand Recall Brand Recognition Unaware of Brand
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  Life Cycle theoriesbelieve that a brand is launched, wins market share, enjoys a period of maturity and then declines. It is less expensive to revitalize an established brand than it is to develop and launch a new brand consumers are less familiar with.
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  1. Same Advertisementcan be replicated by competition, 2. Help to break down loyalty of competitors as well as own, 3. Sales promotion suffer losses, 4. Sales promotion can put pressure to reduce quality, 5. Sales promotion also cause to erosion of profitability, 6. Poorly presented sales promotions campaigns may create negative images.
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  A Successful brandis an identifiable product, service, person or place augmented in such a way that the buyer, or user, perceives relevant, unique added values which match their needs most closely. Its success results from being able to sustain these added values against competitors. Successful brands therefore are required to have unique added values:-  Rituals (campaigns of celebrations),  Symbols (veg / non- veg symbols),  Heritage of good (Kellog‟s as a reflection of time – honored family values)  Aloofness (Carlsberg time spent brewing and storing)  Belonging (Budha Air Royal Club Customer),  Legend (Johny Walker, Red Label),  Quality and trust  Exclusivity (Zara, Gucci)
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  Kapferer (1992) maintainsthat a brand is updated nor as many think, by communication but through its products and meaningful actions. For instance, technical progress alerts the public to a brand‟s revival and intentions. Role of Pricing for Brands:
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  Counterfeit or CopycatBrands: Cheap imitated brand lead to proliferation and hence dilute the brand image. Own brands: Own brands are the names given to consumer products produced by, or on behalf of, distributors and sold under the distributors own name or trade mark through the distributor‟s own outlet.
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  OWN BRANDS There aremain four types of OWN BRAND:- 1. Generic:- 2. Price led retailer Brand:- 3. Quality led own brand:- 4. Exclusive own brand:- Advantages of OWN BRANDS:- 1. The exclusivity of a good quality own brand, at the right price, can boost store patronage. 2. Own label price Flexibility, 3. Store Image Enhanced through OWN- Brand if the own brand well received, 4. Attracts higher customers and lead higher profits through increased sales, 5. Own- label products are free from restrictions of display, promotion, or pricing, 6. Supermarkets own brands can become powerful to put pressure for manufacturers to make concession on brands, 7. Own- Brand can fill gaps of Competition as an opportunity, 8. Launching and distribution cost be much more lesser than Branded Products.
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  It is importantto position organization as a „Brand‟ in the mind of actual and potential consumers. The communication of a company brand is necessarily targeted at a wider variety of „audiences‟ rather than simply consumers. Relevant audiences include shareholders, suppliers, government agencies, banks, employees and potential employees as well as immediate customers.
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   A BrandExtension occurs when a firm uses an established brand name to introduce a new product,  When a new brand is combined with an existing brand, the brand extension can also be called a sub-brand.  An existing brand that gives birth to a brand extension is the parent brand.  If the parent brand is already associated with multiple products through brand extensions, then it may also be called a family brand.
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   The parentbrand is used to brand a new product that targets a new market segment with in a product category currently served by the parent brand.  A line extension often adds a different flavor or ingredient variety, a different form or size, or a different application for the brand. Eg: Head & Shoulders
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  Head & Shoulder’s Extension
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   The parentbrand is used to enter a different product category from that currently served by the parent brand.  ITC
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  1. Introduce thesame product in a different form 2. Introduce product that contain the brand’s distinctive taste, ingredient or component. 3. Introduce companion product for the brand. 4. Introduce products relevant to the customer franchise of the brand. 5. Introduce products that capitalize on the firm’s perceived expertise. 6. Introduce products that reflect the brands distinctive benefit, attribute or feature. 7. Introduce products that capitalize on distinctive image or prestige of the brand.
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   Leveraging brandequity/value by introduction of logical & complementary new product categories E.g Bhatbhateni Super Market  Product Innovation to surpass consumer expectations  It increases awareness of the brand name  Increases profitability from offerings in more than one product category.  It’s a great way to reinforce a brand, reach out to new customers, create a BUZZ
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  Facilitate New ProductAcceptance  Improve brand image  Reduce risk perceived by Customers  Permit consume variety-seeking
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   Increase theprobability of gaining distribution and trial  Increase efficiency of promotional expenditures  Reduce costs of introductory & follow-up marketing programs (save 40-80%) E.g. Apple iPods  Avoid costs of developing a new brand  Allow for packaging & labeling efficiencies
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  Provide Feedback Benefitsto the Parent Brand and Company  Clarify brand meaning  Enhance the parent brand image  Bring new customers into brand franchise and increase market coverage  Revitalize the brand  Permit subsequent extensions
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   Can confuseor frustrate consumers  Can encounter retailer resistance  Can fail & hurt parent brand image  Xerox Computers-synonymous with copiers & no one believed they could make computers  Can succeed but cannibalize sales of parent brand  Amul Butter-”reduced salt butter” is slowly eating up Amul normal butter
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   Can succeedbut diminish identification with any one category  Can succeed but hurt the image of parent brand  Can dilute brand meaning  Can cause the company to forgo the chance to develop a new brand
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   The abilityof the brand to travel across products,  The capability of management to market a new product while not neglecting the core business and overestimating the new brand.
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  Four Brand Extensionwere identified by Peter Doyle(1989): 1. If the brand segment to the same target segment and have the same differential advantage, then they can safely share the same company name or range. 2. if the differential advantage is the same but the target market differs, then the company name can be extended because the benefit is similar. 3. If a company has differential advantages, then it should use separate brand names. 4. If both the target customers and the differential advantages are different, then using unique brand names is the most appropriate strategy.