Louis Vuitton’s (LV) primary strategy is the use of its heritage in stories, fashion movies, and others. The brand is enhancing its presence via the most popular social media channels. The content used by LV appeals to the consumer’s lifestyle aspirations. The digital media strategy of the brand covers its memorable monogram, distinguished history of cooperation with the fashion industry, sports, and lifestyle along with French heritage. The brand’s campaigns regularly engage celebrities and upload specific video content. Despite all the technical issues and shortcomings of LV’s social media strategy, its content still has high quality, and its classy approach additionally contributes to the brand’s success. In its online social media strategy, LV, like any other luxury brand, faces the challenge of increasing the loyalty and engagement of its audience and simultaneously maintaining its brand positioning and exclusivity (Giglioli, 2017).
LV’s digital marketing strategy is strategically inclined and defined. It can be further explored utilizing the POEm model which includes paid, owned, and earned media. In terms of paid media, LV prefers to encompass exclusive visuals and high-fashion celebrities aiming to captivate the viewers “including Keith.
Richards, Madonna, Jennifer
Lopez, Sean Connery, Hayden Christensen, and Angelina Jolie, and more recently, David Bowie” and many more (Kasztalska, 2018). The brand connects emotionally with potential customers and makes them believe they are part of LV’s exclusive culture by casting influential models in its fashion films. For instance, it cost LV about six million dollars to engage Angelina Jolie as the face of its single ad campaign in 2018. In addition, the brand actively uses Instagram and Facebook Ads to target its customers effectively. Moreover, to interact with its market more efficiently and closely, LV is sponsoring some mega sports events and primarily focuses on macro-influencers like C. Ferragni. The brand also uses owned media to the fullest. LV’s regular newsletters are sent at least once in 7-10 days, while its festive and campaign newsletters are sent daily. The newsletters are very visual due to the moving illustrations and captivating graphics. They are also very easy to navigate and free of heavy words. The brand has also designed a smartphone app “The Louis Vuitton Pass”. If the user scans the campaign image featuring the app’s icon both in stores and magazines, he or she will be provided with the dedicated space, videos, showcasing product data, images, and so on. Moreover, the app helps customers to locate stores and heads them to e-Commerce platform. Finally, LV’s website is well-designed and has location-based subdomains and global outreach.
Earned media is the most trusted one, as it is not controlled by the brand and is entirely disconnected from it. Therefore, it is crucial for the brand to be mentioned in a positive way (Giglioli, 2017). LV tries to control the situation with possible negative feedback in a preventive form making the customers have no possibility to engage with its Facebook, for example. LV’s collaboration with other brands has a reach history, and its advantage is that these collaborations appeal to a much wider audience and have parallel aligned values, falling out of “luxury fashion only.”
The Geographic Coverage Used by LV
Geographically, there are over 400 official LV stores selling the brand in nearly fifty countries around the globe with its international logistic chain (Kasztalska, 2018). Physically, one can buy original goods only in those official stores – no third parties are ever engaged. The age of the internet has practically ended physical geography. The internet creates its geography through networks, and processing information flows from places. However, exploring LV’s website, it is evident that hyperlinking is under strict control, and it is a strategic practice. For example, some of hypertexts do not offer an unlimited movement across the internet. LV prefers to link back on itself principally. Hence, the opportunities to leave the website are pretty limited, excluding perhaps linking to LV’s social media accounts like Instagram, Facebook, and Twitter (Armitage and Roberts, 2016).
When luxury brands are coming online, their main concern is losing an exclusivity (Athwal, Istanbulluoglu and McCormack, 2019). Nevertheless, LV digital marketing strategy turns out to be very successful. It can increase customer engagement and experience if little improvement changes are applied. One of the remarkable points of the brand’s strategy is the non-retail of their leather and fashion products online on third-party websites. However, if the brand’s marketing managers decided to sell a limited range of its products this way, this decision would be able to increase LV’s outreach to its customers.
A Timeline for LV Campaigns: Suggested Improvements in Social Media
Although LV’s social media presence is quite strong, the content’s consistency between all platforms is not always up to standard. For instance, if one surveys several Twitter handles, they do not always look well-coordinated. Nevertheless, the brand proceeds staying the frontrunner in the luxury field due to its audience’s insight scores. In turn, social media strategy should also be improved to increase the audience’s engagement. It should become more interactive and interacted with the audience’s comments like there in Instagram profiles. Speaking about Instagram separately, the Insta Story template should also be used to the fool. The hashtags used by the brand are very simple and, therefore, they reinforce the cohesion. Each post in social media is tagged as #LouisVuitton. Moreover, the customers can track brand updates due to its event-specific hashtags.
Some additional platforms alike “LV Service” Twitter handle might help create a personalized concierge approach and, therefore, increase exclusivity. The timeline in each source should be updated not less than once a day to support and promote the latest collection launched in January 2020 and its new accessories campaign with Emma Stone, Alicia Vikander and Léa Seydoux. The frequency of timeline updates should be well-coordinated and simultaneous applied to all the platforms used by the brand. LV should streamline and structure by frequency its policy of the presence of its products in popular movies (as a hidden subconscious ad), at various world-wide festivals, in commercials and other resources.
Although the brand states that there is an active chatbot on its website, in practice, there is none. This is one more issue to be handled in terms of marketing strategy improvement. The in-stores implication of such digital strategy elements as virtual reality and gamification can also play to increase brand ratings. Taking into account the continually appearing updated photo and video content, encouraging consumers feedback is essential but is absent at the moment.
Positive and Negative Reputation Management
The lack of dialogue between the consumers and the brand looks strange amid the fact that LV’s number of comments, shares, and likes is one of the most on social media. Hence, one of the essential tasks as of now is establishing reciprocal communication utilizing social media and chatbot. LV might implement the simplest but working elements of marketing strategy like creating some contests, and conduct customer surveys using short but informative questionnaires. These steps can reinforce LV as a brand and make consumers feel significant and develop their loyalty by way of purchases and repurchases.
Despite its successful marketing strategy, LV is still evaluated as not ethical enough by its consumers. For instance, although the brand is a member of the Better Cotton Initiative, there is no apparent emission-reducing target covering any of the brand’s supply chain, reducing potent chemicals, and minimizing textile waste. Besides, the brand prefers to disclose neither the addresses nor the names of its suppliers. Moreover, LV is often blamed in using fur, hair, leather, skin of exotic animals, and so on. Many consumers believe that it is their full right to be aware of who made their goods and the way their choice impacts the animals and planet. Yet, all these negative moments are blocked by the highest quality of the brand’s products.
Kasztalska, A. M. (2018) Louis Vuitton as an example of the old and modern in the same time luxury brand in the eyes of its clientele, CBU International Conference On Innovations In Science And Education, doi: dx.doi.org/10.12955/cbup.v6.1161.
The development of the tourism industry has been quite expeditious and stunningly successful over the past several decades. As the globalization process is gaining momentum, the opportunities for tourism, especially visits to exotic countries, have grown exponentially. However, the means of attracting tourists to a particular location to uncover its economic potential are still quite restricted, boiling down mostly to attractions and sightseeing. In terms of sights, the Assir region of Saudi Arabia has a huge potential due to the richness of its architectural heritage. Therefore, building a museum that would represent the culture of Assir both with its exterior and interior will help to rebrand the area and allow its architecture as an art form to speak to tourists.
Thesis Statement
Architecture can be a major player to rebrand a city and its cultural identity in order to grab tourism.
Problem Statement
Despite the possibilities that the Assir region holds, the benefits of turning it into a tourist attraction and using architecture as the main vehicle for galvanizing the process of economic growth are to be discussed. Since the Assir region can boast an extraordinarily rich history, using architecture as the means of attracting tourists will help to explore the city’s cultural heritage and give the city its cultural identity (Alganaby, 2019). In addition, the lack of publicity about Assir, as well as the possible problems connecting architectural landmarks and the public image of a city, may become a problem in making architecture into the tourist brand of Assir. In turn, the focus on architecture as the main focus of the city’s historical legacy may change people’s perspective, which is why the creation of a museum is a necessity (Plaza, González-Casimiro, Moral-Zuazo, & Waldron, 2015). Therefore, the change in the brand image of the Assir region, the main aspects, and facets of the Assir region cultural identity will have to be located.
Therefore, creating a cultural museum that could reflect the essential aspects of the Assir culture and incorporate unique architectural elements that will attract tourists is expected to serve as the means of increasing the performance of the Assir region tourism industry significantly. According to Tatarusanu and Iatu (2019), selecting a certain art form as one of the types of natural cultural heritage that reflects the centuries-old history of a specific place and allows one to learn more about local culture and its development. Namely, architecture offers insight into how people mimic cultural objects when creating buildings, as well as how a form is used to relay function. Thus, architecture will provide unique information that will differentiate the city from the rest of The Assir region locations.
In addition, the creation of a museum incorporating critical elements of the Assir architecture will help the Assir region to promote the principles of culturalism as the idea of learning about other cultures and developing an understanding of the Assir people. In turn, the use of sustainable tourism standards will guide the global community toward greater acceptance of other cultures. By informing people about the history of the Assir region through the development of its architecture, including sculpture and décor, one will be able to shed light on the rich history of the Assir region, as well as the cultural weight that the local architecture has.
Therefore, the creation of a museum embodying the history of the Assir region and creating an architecture-based narrative should become the priority for local government as the tool for rebranding the image of the area and making tourists see it as a historically significant element of the KSA. A geographical area rebranded as an architecturally rich place will help to change the perception of the Assir region and drive people’s attention to the unique architectural characteristics of the place. Moreover, the proposed change will help businesses to meet rather rigid and demanding environmental regulations established in the Assir region, which is another argument in its favor. The architecture of the Assir region will show the evolution of the past culture, traditions, tastes, and values through the form of buildings, the elements of their décor, and sculptures located in the Assir region.
References
Alganaby, A. A. S. S. (2019). Architecture of The heritage buildings in Najaf and its role in promoting national identity. Al-Adab Journal, 129, 67-76.
Plaza, B., González-Casimiro, P., Moral-Zuazo, P., & Waldron, C. (2015). Culture-led city brands as economic engines: theory and empirics. The Annals of Regional Science, 54(1), 179-196.
Tatarusanu, M., & Iatu, C. (2018). The interpretation of the cultural heritage for tourism in the era of globalization. SEA: Practical Application of Science, 6(1), 21-25.
Customer experience is a business term that refers to the way companies, organizations or any business entity offers their services to their clients aiming at maintaining customer loyalty to their brands. Businesses go an extra mile beyond their sale of services to make sure that the customers feel cared for, appreciated and important.
They give the customer a reason to believe in the product and most importantly want to be associated with the product depending on how the service delivery makes them feel, even though their competitors offer the same services.
Some businesses especially in the hospitability industry have a unique way of creating customer experience. Creativity is an important aspect in making a customer experience memorable, entertaining, worthwhile, encompassing and even emotional especially during festivities like the current valentines season. This is what we call customer experience.
Virgin brand belonging to the famous entrepreneur sir Richard Branson is an excellent example of total customer experience. Virgin has approximately three hundred brands all over the world however virgin airlines come out as one of the best in customer experience.
Virgin airlines one of the top virgin brands was established in the early eighties and has continually emerged as one of the best air carriers in the transport industry offering its services mostly in major cities of the world. The success of virgin airlines in the industry is attributed to their ability to offer excellent customer experience. The service delivery offered by virgin airlines is arguably one of a kind and one that leaves a customer with such an experience that they always want to stick with the virgin brands for life.
Brand integrity
Virgin brand encompasses approximately three hundred business brands most of which are closely related for example, virgin airlines goes hand in hand with virgin hotels, virgin cab services, virgin tourist resorts, virgin balloon flights, virgin cola, virgin charter, virgin health care and others.
Virgin brands are also associated with wealth and class giving the customer an experience of a kind when wholesome package of different executive services from the same company are used. Virgin brand services leave customers especially low income earners who use virgin services with a feel of elegance.
Customer Care
Virgin airlines offer an exclusive customer care services both on and off board that leave the customers feeling important and appreciated. The airline’s cabin crew and the hostesses are always friendly, accommodative and have a unique way of giving special attention not only to first class customers but to all.
The recent gesture where the owner Richard Branson personally did air hostess on one of the flights was a customer experience of a life time. Personally I would have felt so respected when being served and attended by one of the richest man in the world. It was such an invaluable gesture of customer appreciation which left customers with a lifetime experience.
Consideration
Virgin charter airline offers exclusive services to the elite of the universe. In this package they offer executive classic services to elite customers and at the same time offer affordable packages to business, middle and economy classes. In this way they capture all the classes of people and offer them customized services accordingly making them feel that their personal needs have been considered.
Optimization
Virgin airlines incorporates most of its flight bookings with other necessary bookings for example one can book virgin cab, virgin flight, virgin hotel and a virgin tourist package all at the same time in a very convenient online system, since this ventures are all under one umbrella they have an upper hand in service delivery compared to other flight service providers. This makes travelling especially for very busy executives to be quite enjoyable.
Customization
All virgin airliners are equipped with state of the art technology. They were the first airline to install television entertainment sets for every customer in their business class flights. Currently they have computerized entertainment system whereby one can watch movies or even customize entertainment such as music, videos and movies; these entertainment facilities are installed on all the virgin planes. A customer can even order for a favorite drink or snack over the computer even in the economy class.
Though they use the same airbuses as other airline, the economy class of virgin airlines are arguably far much better allowing more leg room than any other airline. They either offer customized packages to different classes of people or make it possible to customize the flight to your own preference hence everyone feels accommodated.
Trust
Credit cards have become the most common means of bill payment. At virgin airlines they make sure that you don’t miss on anything irrespective of your credit card. They accept all credit cards and you ca trust them to charge just what needs to be charged this makes the customer feel secure in the assurance that they can use their cards when and whenever they want unlike in some of other airlines where they have restrictions to credit cards.
Confidence
One of the air traveler’s nightmares is personal luggage handling. With the increased terrorist related attacks, stringent measures and policies have been put into place especially at the airport facilities. Sometimes customers undergo grueling experience when their luggage are ransacked during the inspections and sometimes some properties get lost in the process while in some instances the whole package may even be misplaced or mishandled.
At virgin airlines the luggage handling facilities are mostly automated and the management handle personal luggage with care a sure way of getting into the owners heart. They not only respect the customer but also their invaluable luggage and in this way customers develop confidence in their service.
Sense of belonging
The airlines offer attractive packages to their customers some of which include a loyalty program where customers earn points for every mile they fly with virgin airlines. The customers can then redeem the points with a nice package such as a holiday on Virgin Islands, a return ticket among other offers. This makes loyal customers feel appreciated and also feel as being part of the airline.
Customer recognition
This is one of the most powerful customer experience tools that make a permanent positive impression to customers. At virgin airlines the flight attendants especially in the charter and the business class go that extra mile to keep the faces of their clients smiling and often remind them of previous flight experience and engage them to friendly conversations the next time they fly with them. This makes the customers feel special.
Conclusion
Customer experience is definitely the way to go if business brands have to remain relevant with time. Businesses create customer experience by offering the same services with their competitors but with a different touch.
This touch includes customer recognition, personalization of the services, appreciating customers for using their services, consideration of different needs and expectations, offering customized services among other services. Businesses that encompass the need for enhancing customer experience surely have chance of outstanding their competitors in the current torrential business times.
My mother and I have been toying with the idea of getting a brand new flat screen 47 inch TV for over a year now. After much debating, consideration, and internet searching, we finally decided that it was time to go shopping and make the purchase.
Since this was like buying a new toy for a child, you can just imagine the excitement and eagerness that both of us felt as I drove us to the mall where all the appliance stores were located. Before we seriously buckled down to shopping, I remember feeling a tinge of apprehension. Were we really ready to make this purchase? Wasn’t this just an impulse buy? Maybe we should sleep on it and come back another day?
During the time when I was doing my internet research on the product, I had come to the realization that the amount of money needed to purchase the TV would probably pay for a semester of college for me. Not only that, but television technology advanced and came out with newer, more superior models to the previous flat screen TV releases on a 6 month basis. Making the item devalue practically the minute we plopped down our payment for it.
Somehow I managed to convince myself otherwise and we trudged on in search of the perfect flat screen TV. Knowing that my mother was advancing in age and needed a larger screen TV in order to see the images on the screen, and that we already had a digital entertainment theater system set up at home, sans the correct TV set, were what probably helped me get over my initial apprehensions about buying the flat screen at this point in time.
It may not be a necessity for me, since I spend most of my time at school, studying, or at work, but my mom, who is always at home, needs it for her own personal enjoyment. So who am I to prevent her from getting what she will enjoy the most? I can use the set up when I have some free time anyway.
After Shopping
Okay, so here we are, sitting in the food court and enjoying an after shopping snack. We have finally made the purchase and both feel quite satisfied with our choice of an LG Scarlet 47 inch flat screen. We had actually lucked out at the appliance store because they had both a Samsung flat screen TV and an LG flat screen TV in the display area. These were the exact 2 brands that we were considering to buy and it was fantastic that we got to compare their visual output and other specs side by side.
It made shopping and decision making a lot easier. Thanks to the internet research that I did previously, I was able to ask the salesman the proper questions about the items and get his opinion on the items, all things considered. Since we were shopping for opinions, he even went to the extent of asking his co-workers for their opinions on the 2 items, and later on, his store manager also weighed in with his opinion.
The more opinions the better I always say. We finally settled on the LG flat screen because it had one thing that the Samsung flat screen did not have, a screen protector that would protect the pixels and bulbs from “death” in the event that the screen was accidentally hit by a sharp or blunt object at full force. The Samsung version would have dead pixels instantly.
Since I had my mother with me, and the purchase was really being made for her, I felt that she was the best shopping companion that I could have brought with me. She helped me stay focused on what item we really wanted to get when my eyes would stray to the other product displays, and reminded me of the budget that we had to stick to. We had a pleasant time shopping together and enjoyed our time together because we both knew exactly what was needed and wanted at the time and had already discussed it before hand.
Brand Jordan is a global shoe and apparel brand synonymous with the high-end quality products. The brand is associated with a sporting legend, Michael Jordan. In 1984 while Jordan was signed by Nike to an endorsement deal. The year 1985 is a significant year to brand Jordan.
This is the year when Nike revolutionized basketball shoes with their release of Air Jordan. Unlike shoes of the time, that were plain, Nike brought in a different kind of shoes that were colored red and white. The NBA initially banned the shoe because it violated existing league dress code rules. This created a debate in the media that engendered widespread national coverage. After a long and successful sporting career, Jordan together with Nike created Brand Jordan (David 65).
Discussion
What are the key-brand attribute of Brand Jordan?
The key-brand attributes of Brand Jordan is the jump man logo that shows on both the shoes and apparel. When Michael Jordan retired in 1998, Nike was prepared and in the following year, Brand Jordan was launched as a part of Nike. Inc. The brand had jump man logo branded on all Brand Jordan products.
The brand has since inception had athletes endorse it with Michael Jordan being its leading former athlete endorsee. The brand has seen sporting greats such as a basketball player ray Allen, boxer Roy Jones and a baseball player Derek Jeter.
Athletes’ Endorsements have always been a big part of Brand Jordan as it gives authenticity to the products and an emotion connection with the brand. As of 2006, the group of athlete endorsers collectively known as Team Jordan consisted of thirteen individuals.
They consisted of seven basketball players, two footballers, one boxer, and one musician. The brand has also enjoyed unofficial and unpaid endorsements from celebrities such as Eminem and Fat Joe (David 98).
Another attribute of the brand is the number of products especially shoes that they produce. The company produces a limited edition of Air Jordan. This has not only improved the balance sheet of the company but has also helped it cut a niche in the footwear market.
Even after more than 20 years, every release of the Air Jordan is anticipated by fans who eagerly snatch them from retailers around the world. The company has remained a leader in the footwear industry in terms of products design, technical features, and innovative packaging (David 105).
The brand produces a range of products that are targeted to different segments of the market. The company produces Air Jordan, a footwear line that retails for more than $120 dollars, which targets the high-end market. On the other hand, they produce training kits through the Brand’s line. This caters for training and performance needs of athletes across all sports.
How well does each Team Jordan candidate match up with this brand attributes?
Each of team Jordan candidate matches up with the brand’s attribute. The Team consists of persons with worldwide reckoning the same as the brand. As seen, the team is made up of famous athletes and musicians. All these persons are people who have excelled in their fields just like the brand. These persons just like the Brand are iconic and just like the brand’s logo they stand out from the rest through their superb performance.
Why are celebrity endorsers such an important part of Brand Jordan’s brand strategy?
The best approval deals manage to equate the merchandise with the appeal of the famous person. One example includes Newman’s Own. The actor, Paul Newman, has a brand of organic-food produce.
The association his acting career and the company has worked to his advantage. As a company Nike has always had, athletes endorse their products and Brand Jordan being its subsidiary was no exception. Sportsmen’s’ endorsement of merchandise helps to provide genuineness to a product and helps create a connection with the consumer.
Studies carried out have shown that customers are more likely to buy products sanctioned by athletes than products not certified. Sportsmen are role models and consumers tend to believe them, particularly those with good morals. However, merely having a sportsperson advertise a merchandise or company is not enough. An athlete needs to fit a company’s image, appeal to its audience, and be respectful (Scott 29).
What are the opportunities and risks in expanding Brand Jordan internationally?
When companies go international, various benefits come with this as well as challenges. Brand Jordan is not immune to this and, therefore, impact of it going international should weigh. Some of the advantages of it going international include an increased market; it would lower marketing costs and would help the company in attracting of a competent work force.
The risk the Brand would face include the difference in customers’ needs in different markets for their products, difference in customers’ response to marketing strategies and it would face differences in legal settings, some of which may be different from their home (Scott 102).
How can Brand Jordan ensure the long-term viability of a business built around a retired athlete, no longer dominating the public eye?
During his career, Michael Jordan accomplished a lot as an athlete. Having earned five Most Valuable Player Awards five times and ten NBA scoring titles, he became one of the most decorated athletes of all time. Jordan retired from basketball in order to compete as a professional baseball player.
After a short and mediocre baseball career, he returned to play for the Chicago Bulls in 1995. Jordan retired from basketball in order to compete as a professional baseball player. After a short and mediocre baseball career, he returned to play for the Chicago Bulls in 1995.
Every bit as much the leader and competitor he had been before, Jordan won another three consecutive NBA championships before retiring once again after the 1997-98 season. Individuals of all races, classes, ages, and genders could seemingly identify with him. The Jordan name became synonymous with dominance, excellence, and respect.
With a person who has all this successes, it has been easy for Brand Jordan to prosper. Another thing that has helped push the brand has been their marketing strategy of portraying Jordan as a mentor rather than a player (Scott 152).
Using the list of candidates presented in the case, which athlete would you recommend joining Team Jordan. Why?
Looking at Jamie Foxx history, he would be the best pick. Jamie Foxx is an American Academy Award winning actor, Grammy Award nominee, and comedian.
He is the fourth person in history to have had a #1 album and won an Academy Award. Raised by his grandmother from an early age, Foxx was held to a high standard, which placed him in the Boy Scouts, the church choir, and practicing at the piano. He was also the quarterback of his football team in high school.
He attended Julliard where he studied classical piano. Jamie has it all an American Academy Award, Grammy Award nomination, a musician, and comedian. He is immensely talented. This would endear and appeal to different people with different likes. He would appeal to music lovers, movie lovers and with his sporting history; he would be instrumental in reaching sports fans.
Choose to recommend an athlete not on the list
I would choose to recommend Usain Bolt as a potential athlete to join Team Jordan. Bolt was born in 1986 in Jamaica. Currently he is both the world and Olympic gold medalist in the 200 metres, 100 metres and together with his teammates, the 4 x 100 metres relay. In the year 2002 during the world, Junior Championship Bolt became notable when he won the 200 metres race. In 2004, he ran the 200 metres race in under 20 seconds.
This made him the, youngest sprinter, to ever run it in less than 20 seconds. Bolt turned professional in the year 2004 and his career has been growing successful. At only 25, this youngster is destined for great successes. He is the world’s record holder of 100 metres, 150 metres, 200 metres, and 400 metres (Bolt& Curtis 125). Having an athlete with this credentials joining Team Jordan, would not only be an honor but would push to brand to new heights. This athlete still has many years in his sport and his endorsement
Work Cited
Bolt, Usain & Custis, Shaun. Usain Bolt: My Story: 9.58: Being the World’s FastestMan London: HarperSport, 2010.
David, Andrews. Michael Jordan, Inc: corporate sport, media culture, and late modern America. New York: New York Press, 2001. Print
Scott, Stephen. A new brand world: 8 principles for achieving brand leadership in the 21st century. New York: Penguin, 2003. Print
This report entails a comprehensive analysis of the concept of market segmentation. In the report, the researcher is aimed at developing a concrete understanding of how business organizations undertake market segmentation. Additionally, the report also involves an evaluation of how organizations apply branding in their operation.
The report is organized into two parts. In the first part, the researcher conducts a review of different elements of market segmentation. In this section, the report analyzes the process of market segmentation. This is achieved by evaluating the various steps that organizations undertake in their market segmentation effort. Seven steps are evaluated.
The section also illustrates the various forms of market segmentation that are integrated by organizations. These include geographic segmentation, demographic segmentation, benefit segmentation, volume segmentation and psychographic segmentation. The researcher also evaluates the benefits associated with market segmentation. In the second part, the researcher evaluates the branding process in organization.
This part is composed of a number of sections. The first section entails an evaluation of the branding process. Six steps are evaluated. These include market analysis, brand architecture, the big idea, and market communication, employee involvement and brand measurement. The second part also entails an evaluation of the benefits of branding. Finally, a conclusion and a number of recommendations are outlined.
Introduction
Background to the study
The success of business firms in different economic sectors is dependent on the effectiveness with which they undertake their marketing activities (Baines, Fill & Page, 2008, p.76). To attain this, the management teams have to take incorporate various marketing concepts. One of these concepts is market segmentation.
According to Wedel and Kamakura (2000, p.3), market segmentation is a critical component of marketing. Brennan, Canning and McDowell (2011, p.171) asserts that firms have to be excellent market segmenters considering the dynamic and hypercompetitive nature of the business environment.
In the 21st century, globalization has become a common phenomenon thus presenting the consumers with a wide range of products offering to select from (Brennan, Canning & McDowell, 2011, p.171). As a result, firms should not only concentrate on offering high quality products.
However, firms should be committed at satisfying discriminating customers. This means that it is paramount for firms to shift from mass marketing and concentrate at aggressive marketing techniques. This can only be attained through integration of effective market segmentation strategies.
In addition, it is also paramount for organizations to integrate the concept of branding. According to Dunn (2004, p.3), branding is aimed at building a firm’s brand equity which is a key component in a firm’s effort to attain competitive advantage.
This increases the probability of firms surviving in the long term as going concern entities. Branding is also paramount in ensuring that the firm attains an optimal market position considering the competitive nature of the business environment. Through market segmentation and branding, a firm is able to establish a long-term relationship with its customers.
Aim
In this report, the researcher intends to conduct a comprehensive analysis of the concept of market segmentation. The report also entails an evaluation of how organizations apply the concept of branding.
Scope
The report is organized into two parts. The first part gives an analysis of market segmentation while the second part entails how organizations incorporate branding in their operation.
Analysis
Market segmentation
One of the core objectives of business organisations is to maximise their profit (Brennan, Canning & McDowell, 2011, p.171). Attainment of this goal is only possible if is firm has integrated customer-driven focus. Over the past 2 decades, firms have increasingly considered the concept of market segmentation as an important element in their marketing success. Weinstein (2004, p.3) defines market segmentation as the process through which a firm partitions its market into small groups depending on the customers’ characteristics and needs.
According to Croft (p.2), firms intend to satisfy the consumer’s needs. Currently, adoption of mass marketing can lead into a firm failing. For example, a firm’s margin may be pushed downwards because some needs of a certain category of consumers are not wholly addressed.
This may also give the competitor a winning margin. According to Wedel and Kamakura (2000, p.3), market segmentation is based on the notion that a market is heterogeneous in nature. Therefore, it is possible for a firm to divide the market into small homogenous groups on the basis of the consumers’ desires and preferences. According to Dibb and Simkin (1995, p.10), market segmentation enables a firm to satisfy the diverse consumer needs while at the same time maintaining a certain degree of economies of scale.
Market segmentation process
For market segmentation to be effective, there are a number of steps that management teams should follow as discussed below.
Identification of target market
The first step in market segmentation entails identifying a specific target market that it intends to sell its products and services to. This is achieved by conducting a comprehensive consumer market research on the identified customer group.
The research should be aimed at establishing whether the identified customer group have common consumption behaviour (Madaan, 2009, p.75). According to Dibb and Simkin (1995, p.18), identification of the target market is important since it influences the effectiveness of the marketing strategies implemented.
Understand the expectations of the target audience
For a firm’s products and services to be successful in the market, they must meet the customers’ expectations. Through a consumer market research, a firm can be able to understand the customers’ interests and product requirements. For example, through a market research Kellog which is a firm in the hospitality industry was able to develop a product that targeted customers who intended to reduce their calorie intake.
Creating the subgroups
Organizations should ensure that they have a comprehensive understanding of the target market. This is attained by creating subgroups on the basis of various characteristics. One of the ways through which a firm can attain this is by integrating certain market variables.
Reviewing the target audience
The firm should conduct a continuous review of the consumption behavior of the identified subgroups. This will aid in determining the fluctuations in their product requirement and what triggers it. As a result, the firm will be efficient in adjusting its marketing strategies accordingly. According to Madaan (2009, p.75), consumer demand, interests and perceptions varies frequently. Reviewing the consumers’ behavior will increase the firm’s effectiveness in offering competitive products.
Naming the market segment
The firm should name the segments developed accordingly for the implementation to be easier. For example, the segments can either be on the basis of age.
Develop market strategies
According to Brennan, Canning & McDowell (2011, p.171), firms should devise strategies aimed at promoting its products in the specific segments. The promotion strategies formulated should contribute towards development of a connection with the target customers.
Determining the size of the market segment
This is an important step since it in that it enables a firm to plan its marketing mix strategies well. For this step to be successful, marketers should gather sufficient data from the market. Determining the size of the market will also will also increase the firm’s efficiency in sales planning and forecasting.
Forms of consumer market segmentation
According to Gitman and McDaniel (2009, p.299), there are 5 main bases upon which a firm can conduct its market segmentation. These include geographic, demographic, benefit sought, volume and psychographic basis.
Geographic market segmentation
This entails segmenting the total market on the basis of its geographic characteristic such as the size and region of the country, climate and market density. Market density refers to the population or number of businesses in a particular areal. Geographic segmentation enables a firm to meet the regional product preferences of the customers.
Demographic market segmentation
Demographic segmentation is one of the most commonly used market segmentation strategy. In demographic segmentation, there are different variables that a firm can use to differentiate its products and services offering. These include the consumer’s income, age, gender, education, and household size (Gitman & McDaniel, 2009, p.301).
Evaluation of the consumers’ demographics can aid in offering products that satisfy the target consumer group. A firm can acquire demographic information of the population from the census conducted by the government.
Benefit segmentation
This entails segmenting the market on the basis of the benefits sought by the consumers. Firms should understand the benefits that the consumers seek at attaining by purchasing a particular product. This will enable the firm to be efficient in its product development. For example, Sensodyne toothpaste is targeted at consumers who have highly sensitive teeth ((Brennan, Canning & McDowell, 2011, p.171).
Volume segmentation
This strategy entails segmenting the market on the basis of the quantity of goods purchased. This depends on the consumers’ product usage. According to Gitman and McDaniel (2009, p.301), consumers have varying usage habits which range from heavy, moderate, light to non users. This method of segmentation is best implemented if firms’ understand the consumers’ spending habits.
Psychographic segmentation
Consumers have different personalities and lifestyle which influence their consumption patterns. Psychographic segmentation involves categorizing the customers on the basis of their interest and opinions. According to Gitman and McDaniel (2009, p.301), psychographic market segmentation enhances demographic segmentation.
Benefits of segmentation
There are a number of benefits associated with market segmentation. According to Croft (p.4), segmentation enables a firm to develop a comprehensive understanding of the consumers. For example, it enhances a firm’s understanding of the consumers needs and their decision making process.
This makes it possible for a firm to influence the consumers purchasing patterns. This can be achieved by being efficient in the process of formulating marketing strategies such as promotion, distribution, pricing and product development. Additionally, market segmentation also enables a firm to be effective in adjusting its marketing strategies according to changes in the business environment. The resultant effect is that the firms’ performance is enhanced.
Branding in organizations
Due to the hyper-competitive characteristic of the market, both large and small organizations are considering branding to be of high priority. According to Dunn (2004, p.3), branding is currently being considered as a financial and a marketing concept. Organizations have appreciated the fact that branding can contribute towards attainment of a long term competitive advantage. This arises from the fact that a long term relationship with the customers is established.
Branding is concerned with developing a desirable feeling or idea in the customers’ minds. In their marketing process, firms intend to appeal the consumers in through consumption of their products(Baines, Fil
l & Page, 2008). Currently, consumers are faced with a wide range of products to select from in addition to a shortage of shopping time. To differentiate their products from competing products, firms integrate the concept of branding. Dunn (2004, p.4) asserts that branding enables a firm’s products and services ‘to stand out’. Organizations are increasingly being committed at developing a strong brand.
The process of branding
In their branding efforts, firms take into consideration a number of steps.
Market analysis
The first step entails conducting a comprehensive market analysis. The analysis is aimed at understanding different market aspects such as the existing and emerging market trends. Additionally, market analysis also aids a firm to understand the competitive nature of the market. In branding a firm should ensure that it considers the customers as the core element.
Dunn (2004, p.5) is of the opinion that the most successful brands entail those brands which satisfy the customers’ wants and are easily accessible. To be able to conduct a concrete market analysis, a firm’s management team should conduct a review of the firm’s internal brand information. Trend analysis and evaluation of the current competitive information is also paramount.
Brand architecture
In formulating their brands, organizations should incorporate a number of building blocks. The building blocks are aimed at creating brand clarity. The initial step should entail building a product to supply in the market. The product should be relevant to the customers and differentiated. The firm should also have long term vision. For example, Wal-Mart was established with the vision of being the finest retailing firm.
The brand should also attain a position in the market. This entail the perception of the brand compared to competing products (Baines, Fill & Page, 2008). The brand should also target a specific and narrow target market. Firms achieve this by making a decision whether the brand is to be a local, regional or a global product.
Brand targeting can also be achieved through market segmentation. After this, the firm should decide on the name to call the product. The brand name enables customers to recognize the firm’s products. The brand name should be catchy, easy to pronounce and remember and unique.
Other aspects of branding which the firm should consider developing include brand identity, brand promise, brand emotion, brand quality, brand pricing, brand packaging, brand distribution, brand association, brand credentials and brand message. Brand identity and brand name entails developing a name, symbol or logo that can be used to differentiate a firm’s products. The brand should contribute towards attainment of a unique experience.
The big idea
The success or failure of a particular brand is dependent on the quality of the ideas which form its foundation. A firm should always have ideas that enable its brand to respond to market changes. The big idea enables a brand to move to the next level.
Integrated Marketing Communication
After successful development of a brand, a firm’s management team should be committed at ensuring that there is sufficient market awareness. This can be achieved by conducting a comprehensive market awareness campaign.
One of the ways through which firms achieve this is by incorporating Integrated Marketing Communication. According to Brennan, Canning and McDowell (2011, p.171), the strategy entails breaking away from the brick and mortar mediums of creating market awareness and integrating emerging market communication mediums.
Some of the marketing communication techniques that the firm should consider include use of public relations, advertising, direct marketing, and sponsorship. Some of the emerging mediums which the firm should consider include use of the internet. The market communication campaign ensures that that the consumers are continually aware of the brands existence in the market. Through IMC, a firm is able to create the intended synergy.
Employee involvement
Firms which are most successful in branding are those which consider the employees in their branding process. The employees should be educated about the brand’s overall architecture. For example, they should understand how to defend the brand image. Additionally, they should also understand how they can keep the firm’s brand relevant in the market. According to Dubb, employees form the first contact with a certain brand. As a result, they should be fully incorporated in the process of building the brand.
Brand measurement
This step entails monitoring the performance of the firm’s branding programs so as to determine their effectiveness. Some of the elements considered in the measurement include the products sales, market share and distribution.
To be efficient in measurement, a branding plan that stipulates how the firm intends the brand to be. Some of the brand intangibles that a firm should consider include brand awareness, brand preference, perceived value, customer satisfaction, intent to purchase, brand relevance, intent to purchase, perceived value and intent to repurchase.
Benefits of branding
According to Baines, Fill and Page (2008), a strong brand penetrates the market more easily and has the ability of influencing the consumers purchasing behavior. Additionally, branding also benefits a firm in that it can be able to incorporate a premium pricing strategy.
By developing a strong brand, a firm is able to enhance its brand equity. As a marketing concept, branding can be categorized as being a tangible and an intangible marketing ingredient that enhances a firm’s growth and ability to gain a high market share. Additionally, branding can prevent a firm’s market share from being eroded.
With regard to financial perspective, branding enables a firm to generate free cash flow. Developing a strong corporate brand improves a firm’s appeal to investors and financiers. This means that it becomes easier for a firm to source for financial capital externally (Gregory, 2009, p. 3). For example, over the years it has been in operation, Coca Cola Company has managed to develop financial stability as a result of branding.
The firm estimates that only 4% of its value is attributable to its machinery, locations and machinery. Ninety six per cent of the firm’s value is attributable to intangible assets one of them being its brand. Similarly, Intel which is one of the largest personal computer manufacturing firms in the world attributes 85% of its value to brand equity (Knox, 2004, p.106). By developing a strong brand, a firm can be able to introduce a new product in the market more cost-effectively.
Conclusion
From the analysis, the success of a firm is dependent on the effectiveness with which it undertakes its marketing. One of the concepts which management teams should consider incorporating is marketing segmentation. Through segmentation, a firm is able to address the consumers’ needs more effectively.
The resultant effect is that its competitive advantage is enhanced. Additionally, a firm’s survival in the long term as a going concern entity is also enhanced by its effectiveness in branding. Branding contributes towards development of a strong and a long term customer relationship.
Recommendations
For firms to survive in a market characterized by intense competition, it is vital for the management teams to consider integrating market segmentation and branding. To be efficient in their market segmentation and branding, firms should also consider undertaking a continuous market research.
The research should target both the customer and the competitor as the core variables. This will enable the firms to adjust their marketing strategies in accordance with market changes. Additionally, their branding process should include both the customers and the employees.
Reference List
Baines, P. Fill, C. & Page, K., 2008. Marketing. London: Oxford University.
Brennan, R., Canning, L. & McDowell, R., 2011. Business-to-business marketing. Los Angeles: Sage.
Croft, M., 1994. Market segmentation; a step by step guide to profitable new business. New York: Routledge.
Dibb, S. & Simkin, L., 1995. The market segmentation workbook; target marketing for marketing managers. London: Routledge.
Dunn, D., 2004. Branding; the 6 easy steps. California: Cameron Street Press.
Gitman, L. & McDaniel, C., 2009. The future of business; the essentials. Mason, OH: South Western Cengage.
Gregory, J., 2009. The best of branding; best practices in corporate branding. New York: McGraw-Hill.
Knox, S., 2004. Positioning and branding your organization. Journal of Product
Brand & Management. Vol. 13, issue 2, pp. 105-115. New York: Emerald Publishing Limited.
Madaam, K., 2009. Fundamentals of retiling. New Delhi: Tata McGraw Hill Education Private Limited.
Weinstein, A., 2004. Handbook of market segmentation; strategic targeting for business and technology firms. New York: Routledge.
Wedel, M. & Kamakura, W., 2000. Market segmentation; conceptual and methodical foundations. Boston: Kluwer Academic.
According to economists and business analysts, the ability of a product to sell or to attract a higher clientele depends mainly on how it is packaged, marketed and advertised to the potential market segment.
As such, it is always important to select a name and a presentation technique that will motivate the consumers to buy a product irrespective of the available substitute goods. In today’s society, branding has become a significant strategy to employ while trying to eliminate competition or/and competing effectively. Branding presents an organization with the opportunity to enhance its reputation and make itself known by the consumers.
It is an important tool to utilize especially since consumer loyalty in today’s world can easily be swayed. Therefore, if an organization intends to remain successful in the highly dynamic markets, it is imperative that they employ some cutting edge innovative brand in order to keep the consumers ‘wired’ to the products that the organization is producing.
Introduction
According to Walser, a brand can best be defined as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers” (39). As such, it should be known that branding is not only about making the consumers buy your product but also a means of making them understand that your organization has the ultimate solutions for their needs and desires.
It is an important concept because a product brand acts as a guarantee that the organization will always cater for the needs of the target consumers at all times. Consequently, branding plays a pivotal role in forging a long lasting relationship between the consumers and the product because they are assured that the desired quality of the product will always be there.
As mentioned earlier, brands are very important in the marketing process of a given product. This is mainly because a brand goes a long way in reputation building as well as creating an image for your organization. In most cases, consumers do not buy products because of the management and financial status of an organization but their decision to buy a product solely depends on how it is presented and its ability to satisfy a given need. Therefore, giving a product a good name or a relevant symbol will suffice in convincing the consumers that a given product is what they need.
Brands are very critical towards the success of a business and often refer to what an organization is doing to make itself known to the general public. According to Randall, branding may range from posting an advert, tagging your car with the business logo, using an attractive letterhead on your invoices or letters with essential details on what your business is all about.
The author suggests that in so doing, it may not be a surprise when referrals start trickling in, phones start ringing or people recognizing your product when they see it. A marketing rule of thumb is that you must be seen, heard and remembered by your target market. Branding offers the avenues through which these aspects can be addressed simultaneously. It should be noted that consumers are often showered with different brands on a daily basis.
Therefore, the best way to stay on top should be through effective branding. This can only be achieved when an organization does extensive research on consumer behavior as well as the new trends in the markets. Such endeavors ensure that the consumers are blinded from other products thereby cutting marketing and production costs that could have otherwise been incurred in the process of introducing new products into the market.
Types of branding
There are various documented branding strategies. The decision on which brand an organization should use depends mainly on the targeted market, cost and the type of product or service that the organization is offering to its consumers. They include the following:
Corporate brands
These are brands used by companies which offer a specified benefit or service to their clients. The main advantage of using corporate brand is that everything that the organization does is linked to the brand that it has chosen.
This is beneficial to the company because it reduces the costs incurred in advertising and introducing new products to the market. However such brands have a disadvantage associated with the use of a single brand for various products. As earlier mentioned, consumer loyalty can easily be swayed depending on how a product or service is presented.
What seems fashionable today may not necessarily hold the same weight tomorrow. Therefore, using a single brand for different products may not enable a company to compete effectively with a company which uses various brands for its products. In addition to this, failure of a product, affects the company as a whole because consumers will most likely associate the failure to the brand and consequently every product under the brand will be considered as a failure.
Distinct Brand
This type of brand is used by companies or organizations which choose to introduce all their products as independent brands for example Proctor & Gamble. Most companies prefer this type of branding because each product is independent. As such, any problem that arises from the brand is not linked directly to the company. Additionally, the distinct benefits that can be accrued from a product are directly associated with their brand.
The disadvantage of using this type of brand is that the product requires its own marketing strategy and a budgetary allocation which at times may be very expensive. On the same note, the success of a given brand may not be attributed to the brand of the company that manufactured the product.
Hybrid Brand
According to Haines this is the brand used “when a product extends the benefit of an overall brand or company” (176). It is a great strategy to use because the marketing and the branding can be done using the same budget and help build the overall reputation of the company. However, any problem associated with the product will affect both brands. An example of a hybrid brand is the merger of Firestone tires with Bridgestone tires. If the product they produce generates some negative feedback, this will affect both brands equally.
Umbrella Brand
Haines states that this brand applies “if a company offers different products with different benefits, but they all extend the same value to the customer” (179). A good example for this type of brand is Nike which produces athletic gears. It is much easier and cost effective to present such products under one brand. The advantage of using this brand is that each product contributes towards the satisfaction of the consumers thereby adding value to the overall brand.
In addition to this, the marketing and branding strategies can easily share costs. The disadvantage of using this type of brand is that the company stands at a risk if a single product does not perform as expected. This will ultimately affect the whole brand.
Arguably, whichever branding strategy that a company decides to adopt has its advantages and disadvantages. It is therefore important that an organization select a strategy that will attract more benefits than costs while choosing a branding strategy.
Literature review
It should be noted that analysis performed in branding range from those requiring simple tools (interviews and questionnaires) to others which require elaborate equipment (quality control research and experiments). According to Malhotra “the matter of validity as concerns the results obtained from such analysis largely depends on the procedures followed and measures undertaken during the test run” (187).
The issue of consistency arises in that if there is no standardized way in which these analyses were carried out, then their validity cannot be reaffirmed time and time again.
The desirable consistency can only be achieved if there is a set of well stipulated procedures and methods which are followed to the letter at all times. Therefore, the success of a brand will depend on the degree of organization showcased by the company during the production to the introduction of the product to the market.
In the past, most organizations never gave much thought to quality control. Perhaps this had been due to the absolute power which traditionally lay in the hands of the person producing the products. The consumers of these products and services had in those instances been nothing but a passive recipient with no say over the affairs taking place.
The tables have however turned around with the adoption of absolute customer satisfaction policies by institutes and the information explosion which can be attributed almost primarily to the internet. Due to these two factors, it is important that an organization produce quality products for its client.
From this paper, it has been noted that the failure of a given brand may lead to the demise of a whole company. In as much as branding contributes significantly to the success of a product, matters pertaining to the quality of the product must be equally adhered to in order to avoid compromising situations.
For example, the Firestone tire recall in the 70’s affected the whole company and tarnished the brand name for years to come. This may come as a shock especially since not all products put in the market had problems. Therefore quality goes hand in hand with branding when it comes to marketing a given product.
Having discussed the need for the establishment of quality control, it would be prudent to outline how to go about this in the branding process. Malhotra affirms that there are a number of variables that can affect the success of a brand (226).
These variables include but are not limited to the company’s knowledge of the current market trends, the strategy used and the interpretation and reporting of the acquired results. Despite the existence of these variables, quality control can be achieved if the best practices and procedures are adhered to. It should be noted that these practices are not conclusive in nature now chronological.
From the onset of the branding process, controls should be established for each of the procedures that may be undertaken. A control is a sample of a specimen whose result is already known. It acts as a benchmark and is vital for validating the results of the entire brand (Elliot and Percy, 197).
These controls will be expected to yield results that are in the realm of some pre-prescribed criteria for acceptability. All research performed should strictly follow the physical parameters that have been established. This will lead to standardization in the performance since the same set of physical constraints was used in all similar tests. The consumer who is the center of attention for the organization should also be kept in the know of how the analyses are progressing.
Lindstrom suggests that “not only will this lead to significant increase in the consumers trust in the given brand but it may also lead to faster recovery in cases where a brand has already been disqualified by the market” (72). It is further proposed that the organization should be reassuring to the consumers every step of the way until the launch of the brand. This can be done through advertising the new product which will prepare and make the consumers anxious to try out the new brand.
Monitoring of the current brands and how best they meet the customers’ expectations should be done. As such, the current methods of testing and coming up with results should be analyzed and the satisfaction levels resulting from this both from the customers point for view and from a technical point of view analyzed.
Having done this, it would be easy to assess how far off from the desired quality the current brand fall. A different kind of monitoring that would be desirable would be that of the substitute brands (Elliot and Percy, 193).
This would be done periodically to ensure that best practices are being followed and at the same time see to it that the high levels of quality stipulated are continually followed. In addition to this, it would ensure that a given brand has a competitive edge over its substitutes making it more preferred by the targeted market.
Lastly, the branding process should involve the identification and subsequent addressing of any errors that may have been noticed. To put it in another way, if a current method of getting things done is not effective and efficient, better methods should be come up with.
The addressing of these problems may be done in a range of ways. Hoyer and Macinnis propose the involvement of the consumers in the re-evaluation of the brand (254). However, this can only be done to a point since if the flaw is of a procedural nature, the consumer would not be in a position to offer any significant suggestions due to lack of expertise in the field.
Major advantages can be reaped from a brand driven culture by both the consumer and the organization. The consumer will feel appreciated and hence have more faith in the product while at the same time giving more suggestions and opinions on the product. He will also return to the same organization in the future should the need arise.
The organization will yield better results if the brand is accepted since there will be standardization of procedures and hence repetition of positive results from the product will be assured. Money will also be saved once a set of procedures have been adopted and used continuously therefore costs reduced. The risk of failure or inefficiency will also be reduced by a large percentage.
For example, the manufactures of Mercedes Benz have continuously enjoyed a large market share due to the brand name. Their consistent production of luxury cars has made the company an icon in the motor vehicle industry. Due to this consistency, the company has developed a large consumer base based on the culture fostered by the brand.
Marketing research
According to a survey I carried out on the coca cola beverage brand, majority of the participators claimed that they had never grown an interest in other soft drinks other than their preferred choice. They attributed this to the fact that it is an international brand and that it meet their needs in terms of taste and design. Those that did not have any brand loyalty claimed that they choose their soft drinks according to how it is presented. That means their choice of drinks depends on how it is packaged, its name and how flashy it looks.
On the same note, I also had a chance to interview various athletes about their choice in athletic gear. Those that preferred Nike claimed that the brand has been developing quality gear for a very long time thus making them reliable. From these interviews, I gathered that a brand’s culture and history plays a pivotal role in influencing the consumers into buying those products. In addition to this, it became evident that the brand name does not necessarily reflect on the performance of the organization producing it.
Most of the participants did not know much about the manufacturer of their products but only cared about the products that they get. This goes to show that branding is the most effective way of ensuring a place in the global market. However, the question on quality of the brand also had a significant effect on the brand’s success.
Conclusion
This paper reinforces the dire need for adopting branding strategies in today’s business world. The means discussed herein for creating quality brands in organizations are nowhere near being conclusive in nature but offer a solid platform from which definitive policies can be launched.
It can also be clearly seen from the arguments presented championing the need for a brand culture that there is a great need to formulate some form of quality control method to avoid repercussions of immense magnitude both to the organization and also on the part of the consumers which may come about as a result of brands being flawed.
The paper does recognize the various costs which will be incurred while ensuring a brand’s success and while it may be reasoned out by management that these costs are not a priority, given the many other areas that may need funding, the future economic advantages that can be accrued from adopting an aggressive branding strategy far outweighs the costs.
The various types of branding have been addressed and their advantages and disadvantages mentioned. The various schools of thought presented by various scholars pertaining to branding have also been analyzed. Undoubtedly the assimilation of branding in the marketing of different products presents organizations with a chance to survive the turbulences that are presented by the ever changing markets.
Works Cited
Elliot, Richard and Percy, Larry. Strategic brand management. Oxford: Oxford University Press, 2007. Print.
Haines, Steven. The Product Manager’s Desk Reference. USA: McGraw-Hill Professional, 2008. Print.
Hoyer, Wayne and Macinnis, Deborah. Consumer Behavior. Chicago: Cengage Learning, 2009. Print.
Sugar Plum Bakery (SPB) is a bakery retail business established in Camarillo, California and targets regular and loyal customer with a passion for baked products. The company’s commitments are to provide delicious nut-free baked goods using high-quality ingredients at a reasonable cost to the consumer.
The company’s management has also evaluated and taken into consideration consumers allergic to nuts. To deal with this situation, Sugar Plum Bakery plans to provide delectable homemade treats in a safe environment for consumers allergic to nuts. The company’s goals and objectives are to build a strong and counterproductive market position in Camarillo. This can be achieved by positively benefiting its people in business partnership and improved competitive climate in the area.
Allergy
Allergy is an abnormal reaction of one’s body after contamination with allergens by inhalation, ingestion, injection or skin contact. There has been much research on food allergy in general but not much on peanut allergy alone.
Sugar plum bakery has evolutionary grown with the increased in demand of peanut by consumers globally. Scientist and health professions have defined a substance called allergen to be the primary course of allergy which contains proteins in the food we eat. Peanut allergy is common in children that vary from person to person according to ones immune system.
Allergy health professionals have established clinic all over the world to help diagnose allergic patients. In some countries like the US, the Federal Food Allergen and Consumer Protection Act (FALCPA) require that all packaged food must be labeled specifying ingredients contained in the package (Masi, 1995, 78).
A research has shown that food allergies are mostly coursed by the sensitivity of the peanut. Sugar Plum Bakery is determined to eliminate allergy problems to consumers at all cost. The cost of our company’s product will be affordable to all consumers with an equalized profit for the company’s management and development. Environmental management in Camarillo is in the interest of Sugar Plum Bakery.
Furthermore, the health of Camarillo residents is our main concern in partnership with the local business men. Our products will be freely distributed to local businesses at a minimum cost. Our business is strategically located and readily accessible from all corners of Camarillo with enough space for expansion (Joshi, 2005, 39).
Competition
Competitors are business rivals or one who is competing against the other. Sugar Plum Bakery business has been on the increase due to demand in its products i.e. peanut. This has lead to competition between businesses entrepreneurs involved in Sugar Plum Bakery.
However, the company has survived the competition and has been able to keep cat bay rigorous competitors. Sugar Plum Bakery is a competitive business in today’s market especially due to high consumption and demand of its product globally. The quality of a company’s product improves its demand by the consumers (Joshi, 2005, 34).
A companies’ share do not necessary mean how a company is performing relative to its competitors. Any change in business field like in sales affects market and economic situation. Market share can be defined by the hike in demands and high sale of products leading to competitive profits in comparison with other competitors.
Established customer distribution increases share distribution. Product matchup is the comparison of product from other companies for competition. Our company’s product will be of high quality to favor all consumers.
Macro Environment
A condition that exists in an economy that affects the company planning and performance, and is beyond its control. Business is sources of income that improves economic growth of any given country, city or society. Market is a place where buyers and seller make transaction directly or indirectly.
Marketing has evolved over the year where transaction of good to good in old age to today’s computer technology. History has defined exchange of good and product since the creation of the world which intern due to human intelligence has been made easer whereby you can buy product from wherever you maybe just by a click of the button (Lenskold, 2003, 78).
Companies all around the world have joined hands to improving the living standard of people. Sugar Plum Bakery products demand has extensively increased due to consumers. Products demand and retail supply, increase in import and marketing efforts. Supermarket retailer continues to strive for lower labor and capital cost.
Sugar Plum Bakery has large players who have continuously dominated the market but still small retail firms remain active. Small retail exists in the business trying their level best to compete with large volume firms (Keller, 2002, 67).
Conclusion
Sugar Plum Bakery (SPB) main target is the local people of Camarillo, the establishment of the company will create employment and improve the infrastructure, therefore leading to an improved economy in the area as noted by Clancy (2000,23).The company, further, has great potential for growth considering it is exploring many other avenues and coping with competition favorably.
Over the years, the world’s appetite for luxury goods has grown at an encouraging rate. This has worked in favor of the various luxury brands that have grabbed the moment by increasing their production. Economic scientists suggest that luxury goods are income elastic and their demand therefore heavily relies on the change in income.
In any market, particular merchandise conquers a luxury class performance, quality and durability matched with other substitute products. Others are perceived as luxurious due to their role as status symbols in the social economic arena. They may not necessarily be of high quality performance style and appearance but they are highly priced as compared to their substitutes.
The global market has more than enough room for luxury products. It has accommodated these brands by maintaining a constant demand for the products that constitute its segment. There are several global luxury brands in the global market such as Louis Vuitton and Mercedes Benz.
These brands began with a sole local market and built their way into the global arena. The market has developed mechanisms that set a product into the global path. One such mechanism is endorsement. Members of a category of a product have specific organizations which are entrusted with the responsibility of evaluating the superiority or otherwise of a brand.
Once such a brand is endorsed it joins the competition. After endorsement the burden shifts to the proponents of the brand in as far as marketing and creating a consumer base. The company supporting the brand develops marketing strategies that propel the product in the sea of consumers.
China presents a great opportunity for luxury products. Sales in the Chinese luxury market have been on an upward trend standing at US$2billion by 2004 making China the world’s third largest consumer of luxury goods.
The market according Ernst & Young an authority in market research is expected to grow by 10 percent annually up to 2015 with sales expected to exceed $11.5 (Chung, pp 1-30). Historically Brands have opted to partially shift their production to china while retaining their main plant in their parent home countries for certain pertinent reasons.
Besides economic structural and political concerns the Chinese market has developed a negative image for the label “Made in China” with most consumers associating it with low quality products. This has tremendous influence a brand’s value which is core to a luxury brand (Law, pp1-13).
Despite the fact that a great proportion of their production comes from China, most companies choose to brand their products from their home countries. A Chinese luxury brand therefore will require a lot of time and money invested in changing the consumers’ perception. The Chinese Administration of products quality inspection indicate that 78% of the products they inspect achieve the quality and safety policy required in the market.
These products were however overwhelmed by the negative impression caused by the 12% that failed to pass (Law, pp1-13). A Chinese brand would be attempting to venture into a saturated market that is flooded with well-established western brands that pose heavy competition. This means that the brand will demand a heavy initial investment to set it on the path to the global market.
Shanghai watch, Chinas first high end product company in the watch and clock market has had to undergone several re-inventions to incorporate the nostalgia of the modern Chinese consumer. This is an important strategy that any other prospective luxury brand should adopt if it intends to reach the global market.
The re- invention of a brand keeps the consumer anxious and eager to acquire the latest version. China is the home for 875,000 millionaires. This presents an ample opportunity for a new luxury brand. Endorsement by these individuals puts the brand on the world market and the regional market and provides ample basis for the brand to build its way into the world market and give it global recognition.
Brand architecture is the most fundamental step in the branding process. It requires an employment of the 19 constituent building blocks in the brands structure (Dunn, p 1-33). The most important of these elements to a Chinese luxury brand are differentiation, pricing and quality. The brand must ensure that it stands out from the competition within the global and local market. This will work to counter the negative impression that the market has on products made in china.
The brand should have an equal or higher price as compared to all other competitor brands. The luxury market is price elastic since consumers tend to buy more of a highly priced product due to the connection between the products price and the quality. The brand should ensure that it maintains high quality to allow the players of the market to endorse it.
Launching a brand requires strategic positioning and planning. For instance, if Shangai Watch were to launch a new brand of wrist watches it would organize a two-way concert that will entail two separate events. Considering the fact that 61.5% of the Chinese affluent consumers fall within the age of 25 and 39 years(Law, pp1-13) the first concert will provide a common arena for these middle aged customers to view and even sample the product.
The concert will invite globally acknowledged music artists who will entertain and endorse the product. In the concert it will involve a modeling competition that will have began a month prior to the launch to attract participation from the greater consumer base. The winner of the competition will then be crowned as the brands advocate and will form the face of the brand.
The second concert will target the older population who fall between above the age of 34. The concert will have in attendance a host of eminent personalities drawn from the political social and economic divide. The event for instance could procure attendance of the president.
All global brands share an inspired sense of style and quality. They have continually convinced the consumer that their product is worth the very high price they pay for. These brands have invested heavily in advertising and re- invention with many of them letting up to 15 percent of their budgets into advertising. This has ensured that they keep the consumer impressed and created new markets.
Works Cited
Chung, Olivia. China’s global luxury brand workshop. Asia Times. 2007. Web.
Dunn, Dave. Brand architecture. 2011. Web.
Law, Steve .The Luxury Brand Market in China. 2009 pp1-13. Web.
The cotemporary world is witnessed by increased advancement in technology as well as in the business arena. Subsequently, these developments have resulted to emergence of various products from different companies that highly compete with each other. To overcome the stiff competition, firms are using diverse marketing techniques to position their products strategically.
Competing firms adapt diverse strategies to differentiate their products in order to differentiate them from substitute products from competing firms. Strategic product positioning helps firms to establish strong brands that are essential in the marketing process.
Companies build their brand through effective differentiation process as well as the use of efficient promotional methods. Strong brands helps firms to increase their sales since a strong brands helps a firm to compete on other factors such distribution channels used rather than on prices alone.
Similarly, strong brands enable firms to sell their products at higher prices than substitute products from weaker brands. They are able to raise their prices above the prices offered by substitute brands because people associate strong brands with good quality.
Literature Review
A brand is a symbol, name, term, design, sign or a combination of two or more of the aforementioned. A brand is used to distinguish products or services of one company from substitute products /services of other companies.
The brand is used to identify the products or services of one seller from similar products from other sellers. Organizations invest a lot of their resources in order to establish strong brands. Strategic branding is very essential since strong brands are very effective in facilitating the sale of a firm’s products/services.
Those companies that manage to strategically position their brands are able to succeed in their business ventures. Conversely, those firms that are not successful in branding appropriately are doomed to fail in their missions. Some firm’s such as Coca Cola, Pepsi, and McDonald as well as Burger king have succeeded in establishing their brands effectively. These firms have managed to excel in their respective ventures.
For instance, Coca Cola and Pepsi are fairing very well in the soft drinks industry. Likewise, the McDonald and Burger King restaurants have performed extremely very well in the restaurant industry, despite the existence of very stiff competition in the restaurant industry. Strong brands are usually associated with good quality.
Therefore, those companies that manage to establish strong brands in their market niche are associated with quality products and services that meet customers’ expectations. Such companies are thus in a better position to market their products and services within their market niche as well as in new markets. Weak brands are often associated with poor quality products and services. Many customers do not prefer buying products or services that are associated with weak brands (Alerck & Settle, 2002).
Strong brands are able to sell their products and services at a higher price than weak brands since their demand is higher than products whose brands are weaker. Subsequently, customers and especially those that are financially well up prefer purchasing products and services that are produced or offered by successful companies that have established their brands effectively.
Such customers choose to buy a product or a service from companies that have strong brands at a higher price than buying a substitute product or service from a weaker brand at a lower price.
Similarly, many customers are comfortable to buy products and services from companies that possess strong brands since they argue that if a company has been successful in establishing a strong brand, it has enough resources to invest in adequate research in order to develop high quality products.
Thus, it is generally perceived that strong brands have better quality products than weaker brands since they have enough resources to invest in thorough research while developing new products. Weaker brands are mainly associated with many emerging companies.
Such companies are known not to have adequate resources at their disposal to carry out very meaningful researches while developing new products. Therefore, it is advisable for people to purchase products from firms that are well established and possess strong brands since they are mostly likely to be of better quality.
Moreover, companies that have succeeded in establishing strong bands are very cautious while introducing new products in the market. They ensure that they subject their inventions under thorough tests in order to a certain their performances. They go over all these processes in order to be in a position to sustain their strong brand that they have invested a lot to establish.
Nevertheless, the cotemporary market has become crowded with similar products from various competing firms. Consequently, consumers find it very difficult to identify genuine products and counterfeited products that are of lower quality. Thus, consumers become more concerned by the brands than the real attributes of the products they intend to purchase.
Therefore, people are less interested by the benefits that accompany such products. Instead they emphasize more on the brand rather than the product attributes. A rational product’s benefit is based on the attributes of the product and should be put into consideration when making a purchase decision. The brand equity is very essential in branding.
Brand equity is the marketing effects that are attributed specifically to the brand. This happens when different results are realized when a product is marketed using different names. Brand equity greatly affects the price perception. It entails what customers think about brands and their implications in the business arena.
Customer-based equity signifies the reactions of clients to marketing mix element for a specific brand in relation to a similar element of marketing mix especially attributed to unknown brand. Consumers based brand equity occurs when the consumers is very familiar with a specific brand and attaches a very strong, unique favorable relations in memory (Henderson, 2000).
In United Arab Emirates people attach a lot of weight to specific brands. Consumers prefer purchasing those products that have established strong brands in relation to those products that are associated with weaker brands. Most households in United Arab Emirates belong to the upper social status. They prefer buying products and services that are produced by multinational companies that have established strong brands.
They buy manufactured products that have attained the status of being referred as luxury goods due to their special designs, durability and performances that are remarkably superior to the ordinary ones. It is evident that virtually every category of products that are present in the market today possesses subset of similar products that are of superior quality that is marked with better quality components and materials.
Therefore, these superior / luxury products improve the basic functionality of these products. Because these luxuries products augment performance of products they are therefore credited to cost more than the ordinary substitute products from less established brands (Noor, 2009). In the united Arabs Emirates, people are classified according to where they buy and which brands they consume.
Thus, most people in the United Arabs Emirates consider consuming those products that are taken as being luxuries goods. These products play the role of status symbol and signify that those people that are able to consume such brands are rich and are thus highly respected by the general public.
These products are necessarily not better in quality than other less expensive substitute products, but people opt to consume them for symbolic reasons. People in the United Arabs Emirates consume luxuries products from strong brands to show off their wealth, but not because they are of better qualities.
These products are often comprised of products such as luxury cars, watches, yacht as well as jewelries and designer clothing (Wong & Ahuvia, 1998). Marketers in the United Arab Emirates have realized the effects of raising the prices of some of their products such as perfumes in order to make them more expensive in an effort to be perceived as more valuable and thus increase their sales.
The United Arab Emirates are associated with luxuries brands. A luxury brand is considered as that brand whose name is associated with luxury, high quality, high price although they are not many since it is only few people who can afford them.
Luxuries brands are attributed by big profit margins and are tightly regulated to avoid the market being saturated. Examples of some of luxuries brands that are present in the United Arabs Emirates include the Gucci brand, Louis Vuitton Hennessy as well as the LVMH and Richermont (Chhatlani, 2011).
Method
The study used both primary and secondary research. The secondary research entailed a review of articles, journals and books that contained information about consumer branding especially the consumption of brands in United Arabs Emirates. Conversely, the primary research consisted of a survey that involved sampling of targeted groups.
The researcher sampled 50 respondents who were people that were living in United Arabs Emirates. The researcher used questionnaires as the preferred instrument for collecting the required data (Aaker & Kumar, 1998).
The questionnaires contained both closed ended questions that limited the respondents to specific answers as well as open ended questions that helped the researcher to identify new insight in the research that he/she could have overlooked. The researcher distributed the questionnaires to the 50 people sampled which they filled with the required data.
The researcher analyzed the collected data with the help of SPSS and excels programs to infer require inference. The research findings indicated that more than 75% of those people that were interviewed preferred buying their products and services from firms that had strong brands.
Similarly, more than 65% of those people that were interviewed indicated that they consider the strength of the brand of the products they aspire to buy more than the attributes benefits of the products they are buying. 70% of the respondents indicated that they buy their products from multinational enterprises such as LVMH and Richermont.
Conclusion
Both the secondary and primary research indicated that the brand is very essential in the marketing process. Strong brands are attributed with quality products/services, while weaker brands are linked with low quality products/services. Some people prefer to buy luxury brands because of social status associated with them. Most people in the United Arab Emirates prefer to purchase luxury brands in order to show off their wealth.
Reference List
Aaker, D. & Kumar, D. (1998). Marketing Research. New York. John Wiley & Sons, Inc.
Alerck, P. L. & Settle R.B. (2002). Strategies Building Consumer Brand Preference. Journal of Product and Brand Management, 8, (2).
Chhatlani, J. (2011). Global Luxury Brands. Web.
Henderson, C. (2000). Strategic Branding in the 21st Century. Web.
Wong, N. Y., & Ahuvia, A. C. (1998). Personal taste and family face: Luxury consumption in Confucian and Western societies. Psychology & Marketing, 15(5), 423-441.