RETAIL BRANDING

Def : Brand is the product’s essence, its meaning and its direction. It defines its identity in time and space.

Successful Retail Branding starts with:

• 1.      A clear definition of what the retailer stands for
• 2.      An identification of what the customers associate it with
• 3.      When customers think the brand is a reflection of them
• 4.      When the retailer is in the minds of the customer when he think of brand.

Brand

True branding effort

• 1.      Communication that inspires emotional reaction
• 2.      Customer Service
• 3.      How salespersons greet customers
• 4.      How fast product is shipped and delivered
• 5.      Involves every single contact occurring between any product and a human

• Role of Brand
• 1.      Successful Retail Branding ensures Stable long term demands
• 2.      Better margins
• 3.      Differentiation by way of creating long term association
• 4.      Adds value to the product
• 5.      Trust of fulfillment of service expectations
• 6.      Protection from growing competition
• 7.      Image as a company attractive enough to work for
• 8.      Negotiation with suppliers from a position of improved strength

Brand Loyalty

Brand or store loyalty will ensure

• ·         Positive disposal to the brand based on brand loyalty
• ·         Brand preference : Frequent utilization of the store over other stores
• ·         Brand allegiance: Continuous utilization of the store overtime 

Brand loyalty may be expressed for one or more brands

• 1.      Hard core loyalty : Buying one brand all the time
• 2.      Soft core loyalty : Buying a combination of two competing brands
• 3.      Shifting loyalty : Buying preference shifting from one brand to another
• 4.      Switchers: No loyalty to any one brand based on the deal given.

Positioning of brands Determined on the basis of

·         Product usage

·         Price

·         Price

For successful brand positioning Brand Managers should

• ·         Regularly assess the customer’s opinions
• ·         Clearly identify the target
• ·         Plan the brand
• ·         Differentiate the brand from others in the sub group

Differentiate the brand from others in the sub group

Personality of the brand

• ·         It is created by way of adding psychological values through
• ·         Packaging
• ·         Advertising
•     Other aspects of the marketing mix

Importance

• ·         Encourages customers to build a relationship with a brand
• ·         Gives strength to the brand
• ·         Ensures the staying power of the brand

Concept has two non-functional aspects of brands

• 1.      Brand image
• 2.      Brand identity

Brand image

• ·         Customers regard brands possess human-like characteristics
• ·         Customers experience brands as bundles of association
• ·         Customers see, hear, smell, taste and get gut feelings about different brands
• ·         This profile or essence is called brand image

Retail Promotional Strategy

•  Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm

Elements of the Promotional Mix

Advertising Sales promotion Store atmosphere Web site SEM	Personal selling E-mail marketing
Publicity SEM	Word of mouth

Planning a Retail Promotional Strategy

Promotional Objectives

•          Increase sales

•          Stimulate impulse and reminder buying

•          Raise customer traffic

•          Get leads for sales personnel

•          Present and reinforce the retailer image

•          Inform customers about goods and services

•          Popularize new stores and Web sites

•          Capitalize on manufacturer support

•          Enhance customer relations

•          Maintain customer loyalty

•          Have consumers pass along positive information to friends and others

Public Relations

•          Public Relations - Any communication that fosters a favorable image for the retailer among its publics

–        Nonpersonal or personal

–        Paid or nonpaid

–        Sponsor-controlled or not

–        Publicity – Any nonpersonal form of public relations whereby messages are transmitted through mass media, the time or space provided by the media is not paid for, and there is no identified commercial sponsor

Advantages

•          Image can be presented or enhanced

•          More credible source

•          No costs for message’s time or space

•          Mass audience addressed

•          Carryover effects possible

•          People pay more attention than to clearly identified ads

Disadvantages

•          Some retailers do not believe in spending on image-related communication

•          Little control over publicity message

•          More suitable for short run

•          Costs for PR staff, planning activities, and events

Advertising

•          Paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor

•          Key aspects

–        Paid form

–        Nonpersonal presentation

–        Out-of-store mass media

–        Identified sponsor

        Advantages

•          Attracts a large audience

•          Gains pass along readership (for print)

•          Low cost per contact

•          Many alternatives available

•          Control over message content; message can be standardized

•          Message study possible

•          Editorial content surrounds ad

•          Self-service operations possible

Disadvantages

•          Standardized messages lack flexibility

•          Some media require large investments

•          Geographic flexibility limited

•          Some media require long lead time

•          Some media have high throwaway rate

•          Some media limit the ability to provide detailed information

Personal Selling

Oral communication with one or more prospective customers for the purpose of making a sale

Advantages

•          Message can be adapted

•          Many ways to meet customer needs

•          High attention span

•          Less waste

•          Better response

•          Immediate feedback

Disadvantages

•          Limited number of customers handled at one time

•          High costs

•          Doesn’t get customer in store

•          Self-service discouraged

•          Negative attitudes toward salespeople (aggressive, unhelpful)

Sales Promotion

Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness

Advantages

•          Eye-catching appeal

•          Distinctive themes and tools

•          Additional value for customer

•          Draws customer traffic

•          Maintains customer loyalty

•          Increases impulse purchases

Fun for customers

Disadvantages

•          Difficult to terminate

•          Possible damage to retailer’s image

•          More stress on frivolous selling points

•          Short-term effects only

•          Used as a supplement

EMERGING TRENDS IN INDIAN ORGANIZED RETAIL SECTOR

The emerging trends in the Indian organized retail sector would help the economic growth in India.

There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad. 

The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector.

The infrastructure of the retail sector will evolve radically in the recent future. The emergence of shopping malls is increasing at a steady pace in the metros and there are further plans of expansion which would lead to 150 new ones coming up in India by 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade.

The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people's lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector.

The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities.

With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a transformation. At present the Foreign Direct Investments (FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India.

The trends to follow in the future:

• The Indian Organized retail sector will grow up to 10% of total retailing by 2010. 
• No one single format can be assumed as there is a huge difference in cultures regionally.
• The most encouraging format now would be the hyper marts.
• The hyper mart format would be further encouraged with the entry of the TNCs.

MARKETING MANAGEMENT PROCESS

The Marketing Management Process consists of analyzing market opportunities, researching and Selecting target markets, developing marketing strategies, planning marketing tactics, and implementing and controlling the marketing effort.

Analyzing Market Structure and Behavior

Researching and Selecting Market Opportunities

Developing Market Strategies

Planning Marketing Tactics

Implementing and Controlling the Marketing Effort

   

1) ANALYZING MARKET STRUCTURE AND BEHAVIOUR

A company’s marketing environment consists of the actors and factors external to the marketing management function of the organization that impinge on the marketing management’s ability to develop and maintain successful transactions with its target customers.

MICRO-ENVIRONMENT (Immediate Environment)

Organization – Top management, finance, Manufacturing, Accounting

Suppliers

Customers

Competitors

Publics

A public is a distinct group of people and / or organizations that have an actual or a potential interest and / or impact on an organization.

Types of Publics: 

Input Publics (Support, Supplier & Regulatory), 

Internal Publics, 

Agent Publics, 

Consuming Publics (Consumer, customer, influencer &

General)

Publics also referred to as stakeholders.

Consumer – the one who actually consumes product or service

Customer – the one who pays for product or service

Influencer – the one who influences the decision making process of customer and/or consumer

MACRO-ENVIRONMENT (Large Societal Forces)

Demographic Population Growth, Migration, Birth Rate, Aging, Marriage age, No. of children / family, Divorce Rate, Working Women, Non-family households, Education, Inflation, Consumer Savings & Debt, Consumer  Expenditure Patterns  Physical Shortages of certain raw materials, Cost of Energy, Pollution

Technological

Political / Legal

Social / Cultural

2) RESEARCHING AND SELECTING TARGET MARKETS

Moving beyond general terms to specifics and carrying out an analysis of Market Structure.

First Step – Define the Market

Define the general boundary conditions of the market. Determine all the actual and potential members of the market.

Are we in the health service market or smokers’ clinic or maternity home or children’s nursing home?

Are we a technology institute or a general educational institute (problem facing IIT’s)?

Second Step - Market Segmentation

Consists of dividing the market into fairly homogenous parts where any part may conceivably be selected as a market target to be reached with a distinct marketing mix.

Segmentation may be on the basis of any segmentation variable(s) that one may choose. Typical segmentation variables are as follows:

Geographic – Region, State, Country, Rural / Urban, Climate

Demographic – Age, Sex, Family size, Family life cycle, Income, Occupation, Education, Religion,Caste, Race, Nationality, Social Class

Psychographic – Life style, Personality, Benefits sought, User status, Usage rate, Loyalty status, Readiness stage

Third Step – Market Targeting

Market Segmentation reveals the market segment opportunities facing the organization. Now it has to evaluate the various segments and decide how many to serve.

a)    Evaluating the Market Segments

b) Decide a Market Coverage Strategy – Undifferentiated marketing, Differentiated marketing, Concentrated or Niche marketing

Fourth Step – Positioning

Positioning is the act of designing the organization’s product and marketing mix to fit a given place in the consumer’s mind.

Glamour – fashion products, perfumes, cosmetics

Premium – better and superior value (Jet Airlines vs. Indian Airlines)

Value for money – better and superior value at affordable price (Maruti 800)

3) DEVELOPING MARKET STRATEGIES

Marketing Strategy is the marketing logic by which the business unit expects to achieve its marketing objectives. Marketing strategy consists of making decisions on the business’s marketing expenditures, marketing mix, and marketing allocations in relation to expected environmental and competitive conditions.

Marketing Mix is the mixture of controllable marketing variables that the organization uses to pursue the sought level of sales in the target market.

Marketing Mix Variables – 4 P’s

Product – Product Variety, Quality, Features, Options, Style, Brand Name, Packaging, Sizes,

Services, Warranties, Returns

Price – List Price, Discounts, Allowances, Payment Period, Credit Terms, Mode of Payment

Place – Channels, Coverage, Locations, Inventory, Transport

Promotion – Advertising, Personal Selling, Sales Promotion, Public Relations, Direct Marketing

4) PLANNING MARKET TACTICS

Strategy is broad direction. Tactics is detailing.

5) IMPLEMENTING AND CONTROLLING THE MARKETING EFFORT

Getting down to execution; collecting feedback and getting back to planning.