When society is over-loaded with the amount of information, branding helps to create clarity in consumers’ minds. According to Kapferer (2008), a brand has two different functions: to distinguish products from each other and to indicate a product’s origin. P. Kotler, G. Armstrong, V. Wong and J. Saunders (2008) defines national brand (also called manufacturer’s brand) as “a brand created and owned by the producer of a product or service”. National brands have been the leaders on the market since the last century, but there is a rapidly growing competition from the private labels. Lincoln and Thomassen (2008) define private labels as retailer brands: “brands which are owned and sold by the retailer as well as distributed by the retailer”. Retailer …show more content…
The private brands have moved from their original status as low-priced, value-for-money, low-quality items into premium and life style arenas. Most of the big retailers have taken a “value for money” orientation in the marketing of their private brands rather than competing with national brands on the basis of quality (Halstead & Ward, 1995). By taking a value for money orientation, retailers hope to instill the purchase of these products not only from those consumers who perceive that store brands are lower priced but of relatively good quality but also from those customers who perceive that private brands are lower priced goods and of relatively poor quality as long as savings associated with the price differential provides adequate compensation for purchase. It seems that private brand marketing appears to be shifting from its usual low-cost strategy to a national brand marketing strategy. A recent study by Dhar & Hoch, 1997; Hoch, 1996 found that quality-oriented strategies are more viable than value-oriented strategies for the success of private brands in the long run. Other Factors Moreover the modern-day retailers are becoming more professional in managing their own brands. In order to capture a greater portion of the private-label market, the retailers are expanding their offerings, improving quality, introducing attractive packaging, expanding their distribution networks as well as customer-oriented sales promotion of their brands (Sullivan, 2005). As the retail market becomes more and more concentrated, the retailers are investing in establishing their own brands that have clearly become a more instrumental priority for today’s retailers. In many instances, private labels have surpassed a national brand’s capacity to deliver on visibility, consumer interest, involvement and appeal. Simultaneously improvements in quality, taste, packaging, etc to some extent have also made the customers attracted to
When people go shopping there are limitless choices of one product made by different companies, all choices of this product basically do the same thing, but what makes them different is the brand’s name. Companies with brands are trying to get their consumers by presenting their commodities in ways
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
Burberry seems to overcome several risks which decayed brand value so far and successfully revitalized the brand. However, it seems to centralize its effort on promoting product neglecting after sales relationship which would be essential for repeat purchases (The Economist, 2014). rather than delivering sophisticated experience. 럭셔리는 경험전달이 중요한데 위험함. Even though, Burberry has gathered everything Britishness to promote its brand identity, its home market consumers do not seem to fancy Burberry. Which makes it worse is the fact that it outsource its production from countries like China. These can severely harm its brand identity and subsequently brand value. As many people use luxury brands to represent their social statuses or identities, maintaining brand consistency should be of great importance to companies’ brand management and marketing
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
Increasing awareness of a personal and unique identity distinguishes us from the pack. A brand mantra differs from a tagline, explains Guy Kawasaki, as a mantra describes internal business, a standard for a company to abide by. A tagline is for customers and what they can expect to be delivered (Martinuzzi, 2014). John Jantsch, founder of Duct Tape Marketing defines branding "the art of becoming knowable, likable and trustable” (Martinuzzi, 2014). Many specialists on the subject agree that trust building is essential in success. Being honest is one of the top five steps Forbe’s advises when it comes to brand building (Biro, 2013). Some suggestions to follow from, How to Build an Unforgettable Personal Brand (2014) include, making sure customers are provided what is promised, leading with unwavering quality and being consistent in making good on one’s word. The article also warns that the public will assign a default brand if a
Magnum pricing strategy is based on the premium product pricing to attract to attract the consciousness of the customers. The product prestige image and premium price is taken into consideration as the value provided in premium product pricing. Magnum products are priced higher than those of the competitors (Kates 95). Such an approach has an impact on the consumers’ perception of the product. They view the product as a premium one and high price is a reflection of high quality products. Target market is more likely to respond to price reduction as sales increases when the prices are low. High priced products are presented to the urban consumers who prefer high quality products. Such are special items for self-proclaimed foodies. The variation in pricing suggests that the producers are aware of the customers demand at the various levels and they take appropriate measures to address them(Kates 97). They have been keen in making noticeable changes in their portfolio and balanced it with the necessary pricing to garner more
Marketers assert to develop branding and packaging strategies that signify the brand’s products in a way that establishes lasting impressions in consumers’ thoughts. Because brands distinguish the many product offerings in the marketplace, brands help consumers choose between product offerings. When branding and packaging strategies clearly illustrate worthy product expectations, and products remain true to branding messages, positive consumer perceptions ensue, and brand value is strengthened.
Brand equity is crucial as it implies that the brand itself is an important (financial) asset and can be calculated in financial terms (Barwise, 1993). This is particularly important in the luxury sector as from a behavioural viewpoint, brand equity can differentiate a company or product from other competitors, adding to their competitive advantages based on non-profit competition (Aaker, 2004). The model created by Aaker (1992) states that there are four categories of brand equity; Loyalty, Awareness, Perceived Quality and Associations. Luxury branding relies on a high level of perceived quality, loyalty and associations, although potentially less so for awareness, as it is thought that consumers choose luxury brands based on their exclusivity and as such the more the awareness that surrounds the brand, there is potential for it to become less valuable (Phau and Prendergast,
The practice of brand management is a key component of marketing and performs an integral function by motivating the wants and needs of consumers. It is known that marketing can shape consumer needs and wants, however, consumers today appear to be more knowledgeable about the information regarding products. Consumers lead busy lives and have therefore gone to the internet as one of the many channels to learn about products in order to make informed decisions. This paper will discuss the argument that marketing should reflect the needs and wants of consumers rather than shaping these attributes. Due to the speed and ease of obtaining information, consumers do not take at face value strong marketing efforts that appear to be overly aggressive and push a brand rather than just being informative. Brand managers have to be aware of these changing dynamics and carefully craft brand management practices to meet the demands of consumers.
The shifting of the consumer’s taste of simple products to high quality branded products is not sudden. It grew out in the middle of the 20th century and the companies selling various products needed a new way to differentiate their products from the others giving it a unique identity.
Product is the core of marketing, which including tangible goods like food or drinks or intangible services, as it is the major way to embody customers requirements; and, branding is directly associated with it. In fact, branding is all about decisio ns of products, like brand names or trademarks. Stork (2007) asserted that a brand is a unique business identity which represents the personality, quality or origin of products. And, such a product which added value by branding would appear in every activity of marketing, namely, branding is actually react on the whole marketing system directly and indirectly.
...& MAKLAN, S. 2007. The role of brands in a service-dominated world. Journal of Brand Management, 15, 115-122.
The term 'branding' in modern marketing is generally originated in the agricultural practices of the medieval age. The farmers 'branded' their animals with the iron and then they were able to identify to whom a particular animal belonged. Artisans 'branded' their products, for example, expensive silver tableware. Smiths 'branded' their swords. The role of the brand is to identify products by the same way as for medieval farmers and for modern corporations as well.
Early on in the twentieth century, when mass marketing and production became commonplace, company branding allowed consumers to identify with a company. The consumer made a one sided personal relationship
Branding on consumer purchase decisions. In order to comply with this a questionnaire was prepared and survey has been conducted among 100 respondents and data revealed that brands have strong influence on purchase decision.