HC 5 – Retail Marketing 10-10-2016
Use Harris-model model for team assignment (8 steps)
Retail branding & Category management
Ailawadi – 5 branding retailer can use
Ailawadi – PL (store brands) how far should drive market share of PL (gross
margins are higher for this) article says that there is a optimum
Vroegrijk – Can you use these brands (PL) to compete with HD.
What is a brand?
Changed over time
- Kotler – identification was main purpose of a brand in this definition
- Aaker – add or subtract value (ensure quality or identity of users of brand)
was main purpose of brand in this definition.
- Franzen & Bouwman – network of associations (the brand is about how it is
in the mind of the customer) was main purpose of a brand in this definition
Is a retailer also a brand?
Associations with 2 different supermarkets:
AH – A-brands, structured store, nice layout, large assortment, expensive
Aldi – cheap, no nice atmosphere, discounter quality not associated with Aldi
So in the view of Franzen and Bouwman there’re already a lot of associations
in the head of the customer.
How strong brands add value?
E.g. Pespi + Cola blind tasting Pepsi won, but when brand is present Coca Cola.
- Pepsi has the best product
- But Cola did the same test and then you see a major shift in what people
prefer.
Laurens: Same research in the Netherlands Product categories (5-6 brands)
base brand was also a product of AH that has an index of 100 (priced).
Then consumers have to rate these brands (BE) what you see, if brand equity is
larger you can ask a way higher price.
What is a strong brand?
The strength of a brand is based on: 3 characteristics:
- Unique of associations (e.g. the safest care: Volvo owns this) that are
related to the brand
- The relevance of these association for consumers (when it is not relevant for
people than it doesn’t matter. E.g. for Families very relevant that they have a
safe car).
- The strengths of the association (does the brand ‘own’ the association
e.g. Volvo)
This is also applicable for retailers.
A brand positioning should be focused retailers often want a large assortment,
low priced, best promotions. But if you want to be the best in everything you will end
up with the best in nothing (e.g. even when AH basic is cheap, the store doesn’t feel
cheap).
Use Harris-model model for team assignment (8 steps)
Retail branding & Category management
Ailawadi – 5 branding retailer can use
Ailawadi – PL (store brands) how far should drive market share of PL (gross
margins are higher for this) article says that there is a optimum
Vroegrijk – Can you use these brands (PL) to compete with HD.
What is a brand?
Changed over time
- Kotler – identification was main purpose of a brand in this definition
- Aaker – add or subtract value (ensure quality or identity of users of brand)
was main purpose of brand in this definition.
- Franzen & Bouwman – network of associations (the brand is about how it is
in the mind of the customer) was main purpose of a brand in this definition
Is a retailer also a brand?
Associations with 2 different supermarkets:
AH – A-brands, structured store, nice layout, large assortment, expensive
Aldi – cheap, no nice atmosphere, discounter quality not associated with Aldi
So in the view of Franzen and Bouwman there’re already a lot of associations
in the head of the customer.
How strong brands add value?
E.g. Pespi + Cola blind tasting Pepsi won, but when brand is present Coca Cola.
- Pepsi has the best product
- But Cola did the same test and then you see a major shift in what people
prefer.
Laurens: Same research in the Netherlands Product categories (5-6 brands)
base brand was also a product of AH that has an index of 100 (priced).
Then consumers have to rate these brands (BE) what you see, if brand equity is
larger you can ask a way higher price.
What is a strong brand?
The strength of a brand is based on: 3 characteristics:
- Unique of associations (e.g. the safest care: Volvo owns this) that are
related to the brand
- The relevance of these association for consumers (when it is not relevant for
people than it doesn’t matter. E.g. for Families very relevant that they have a
safe car).
- The strengths of the association (does the brand ‘own’ the association
e.g. Volvo)
This is also applicable for retailers.
A brand positioning should be focused retailers often want a large assortment,
low priced, best promotions. But if you want to be the best in everything you will end
up with the best in nothing (e.g. even when AH basic is cheap, the store doesn’t feel
cheap).
