A comprehensive study for managing brands in retail.

1. Retail Brand Management
Presenter:
Chandrmouli Singh

2. Overview
 Introduction
 Concept
 Branding
 Retail Branding
 Growth
 Typology
 Brand Development Strategy
 Retail Value Chain
 Key Issues
 Lookalike own brands
 Brand Owner Verses Retailers
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Contd.
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3. 




New Developments in Own Brand Strategy
Own Brand and Its Impact on Retail Brand
Brand Equity
Brand Loyalty
Quiz
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4. Concept
 Branding
The intangible sum of product’s attributes; its name, packaging,
price, history, reputation and the way it’s advertised
- David Ogilvy
 Retail Branding
Retail branding does not only focus only on creation of private label.
In multi-brand retailers the task become more difficult as the retailer
needs to create a store identity which is different from that of
brands, he sold within the store
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5. Growth
 Growth of retail brand aka own brands, own labels, private labels
and store brands, has paralleled growth esp. in grocery segment.
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6. Typology
Own Brand
Type
1
Generics
Description
Identification
with in
retailers
Range of
Products
Degree of
backward
integration
Limited
Low
Limited
Low
Low
Limited
None
Limited
Non Branded
merchandise
Positioning
Low
Limited
Low
Limited
Low
Plain Packaging
2
3
4
Controlledbrands
Exclusive
manufacturer
brands
Low price positioning
Replaced by budget
town
Owned by
manufacturer
None
Given to exclusive
retailer
Counterbrands Owned by retailer
Differentiated by
category
Fighting
Identification with
/budget
retailers
Brands
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None
Medium
Low
Medium
strong
Medium
Stress on retail itself
Low price positioning
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Contd.
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7. 5
Copycat Brands
B
C
6
Reengineered
brands
A
Low cost-retailer
owned
Same functionally
Lookalikes
Similar quality
House brands
Imitate visual features
Name of retailer
appears
strong
Exclusive
Designer
Label
strong
Wide
High
Medium
Limited
High
Medium
Wide
High
strong
High
Limited
High
Very strong
Medium
Wide
High
Medium
Medium
as separate brand
Exclusively designed
for
retailers carry
designer's
Low
name
7
Fascia brands
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Private labels
Retailer's name is
strongly associated
High
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8. Brand Development Strategy
 A retail brand is a combination of company’s heritage, merchandise
mix, store ambience, service strategy, advertising and promotion.
 Three major questions
- Can brand identified with lifestyle of customers?
- Is there any perceptible difference between retailers?
- Can a story be woven around the brand?
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9. Pentagon Strategy
Product
Place
Communication
Value
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People
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10. Triangle Strategy
System
Logistics
Suppliers
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11. Retail value chain
Support Functions
Third Party
Logistics
Suppliers
Customer
management
Retail
Operations
Customers
System
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12. Key Issues
 Look alike own brands
Not only imitate trade marks, graphics, colours, lettering, words and
packaging but also name of branded products.
 Brand owner verses retailers
- Lookalike steals goodwill
- Gimmick to position
- Diminish consumer choice
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13. New Developments in Own Brand Strategy
Low
Extent of innovation
High
Contribution to brand positioning
High
House
Brands
Fascia
Brands
Reengineered
copycat
Tactical
Counter brand
Budget/fighting
Generics
Low
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14. Own brands and its impact
Total retail brand
Trading Format,
Marketing
Communications,
Services, etc..
Manufacturer
brands
Fit and interaction with retailer
image and positioning
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Own
brands
Type and proportion of
own brands
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15. Managing Brand Equity
Customer Loyalty
Brand Awareness
Perceived Quality
Brand Association
B
R
A
N
D
E
Q
U
I
T
Y
Proprietary Assets
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Benefits the customers by
enhancing their confidence
in the purchase decision
Provides value maximisation
for the parent firm through
enhanced brand loyalty, brand
extension, competitive
advantage etc.
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16. Brand Loyalty
 Develop a positive deposition towards the brands on the basis of a
positive brand attitude
 Develop a store or brand preference
 Continue to patronise the retail outlet or brand over a period of time
Contd.
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17. 





Monopoly loyalty
Inertia loyalty
Convenience loyalty
Price loyalty
Incentivised loyalty
Emotional loyalty
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18. The pyramid of brand loyalty
Committed
buyer, brand
equity is high
Like the brandsclear brand assets,
considers brand as
a friend
Satisfied buyer with
switching cost-brand equity
with point of vulnerability
Habitual/satisfied buyer-no reason to
break off relations, brand equity diffuse
Brand switcher/price sensitive buyers/indifferent
to brand-no loyalty-no equity
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19. Key terms






Brand Value
Brand Equity
Brand Loyalty
Brand Awareness
Brand Association
Perceived Quality
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20. References
 Retail Management by S. C. Bhatia (pp 278-299)
 Retailing Management Text and Cases by Swapna Pradhan (pp 481516)
 Retail Management by Suja Nair (pp 401-412)
 Retail management by Gibson G. Vedamani (pp 191-203)
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