Brand DecisionsBrand Decisions

BrandBrand

Any name, term, design, or symbol Any name, term, design, or symbol or other feature that distinguishes or other feature that distinguishes productsproducts and and servicesservices from from competitive offerings competitive offerings

((American Marketing AssociationAmerican Marketing Association))

The consumers' experience with an The consumers' experience with an organization, product, or serviceorganization, product, or service

(Chartered Institute of Marketing)(Chartered Institute of Marketing)

Private Label BrandsPrivate Label Brands

Store-owned brand marketed Store-owned brand marketed exclusively for the store or lineexclusively for the store or line

Dependent upon the strength of the Dependent upon the strength of the retailerretailer

Generic BrandGeneric Brand

No brand at all which actually acts as No brand at all which actually acts as a brand for an affordable producta brand for an affordable product

Used heavily in grocery industryUsed heavily in grocery industry

Attitude BrandingAttitude Branding The choice to represent a feeling, which is not The choice to represent a feeling, which is not

necessarily connected with the product or necessarily connected with the product or consumption of the product at all consumption of the product at all

NikeNike AbercrombieAbercrombie

"A great brand raises the bar – it adds a greater "A great brand raises the bar – it adds a greater sense of purpose to the experience, whether it's sense of purpose to the experience, whether it's

the challenge to do your best in sports and the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee fitness, or the affirmation that the cup of coffee

you're drinking really matters." — you're drinking really matters." — Howard SchultzHoward Schultz (CEO, Starbucks Corp.)(CEO, Starbucks Corp.)

Brand LoyaltyBrand Loyalty

Proclaimed by some to be the ultimate Proclaimed by some to be the ultimate goal of goal of marketingmarketing

Consists of a consumer's commitment to Consists of a consumer's commitment to repurchase the repurchase the brandbrand and can be and can be demonstrated by repeated buying of a demonstrated by repeated buying of a product or service or other positive product or service or other positive behaviors such as word of mouth behaviors such as word of mouth advocacyadvocacy

Implies that the consumer sometimes Implies that the consumer sometimes willing to put aside their own desires in the willing to put aside their own desires in the interest of the brandinterest of the brand

Private Label vs. BrandPrivate Label vs. Brand

"With private label, retailers are able to customize their lines to target

specific groups of consumers who shop at their stores...

A third of women who shop in department stores are 25-55,

and many private label programs are aimed at this group.“

(now Macy’s)

Federated Dept Stores Mgt:Federated Dept Stores Mgt:

JC Penny experiences success:JC Penny experiences success:

THANKS TO ITS NEW "THANKS TO ITS NEW "EVERYEVERY day day matters" branding campaign and a matters" branding campaign and a concerted switch to private-label concerted switch to private-label brands, J. C. Penney Co. reported brands, J. C. Penney Co. reported record profits, with net income record profits, with net income

gaining 13.3%, to $238 million, in the gaining 13.3%, to $238 million, in the first quarter. first quarter.

Private Label ChallengesPrivate Label Challenges

Old pricing policies (10-20% lower Old pricing policies (10-20% lower than brand names)than brand names)

Lack of assortment and varietyLack of assortment and variety Look like knock-offsLook like knock-offs Quality-levelsQuality-levels

Private Label MarketingPrivate Label Marketing

Unique brand identifiedUnique brand identified Tight and relevant product mixTight and relevant product mix Fulfill the promises made by the Fulfill the promises made by the

brandbrand Co-branding is an optionCo-branding is an option

– Simply Vera with Kohl’sSimply Vera with Kohl’s Active marketing campaign to Active marketing campaign to

position brand in the mind of position brand in the mind of consumerconsumer