Brand Management: Ralph Lauren Case Study - Essay Example

Task: Brand Management: Ralph Lauren Case Study Analysis Table of contents Introduction 3 2. Apply all four steps of Keller’s CBBE model (2003 or 2008 or 2011) in case of the Ralph Lauren brand. To what extent do you think the Ralph Lauren brand has achieved resonance with its customers? 3 Steps in Keller’s Brand Equity Model: 3 2.1 Brand Identity (Salience or Awareness) 3 2.2 Brand Performance 3 2.3 Brand Image 4 2.4 Brand Judgement 5 2.5 Brand Feelings 5 2.6 Brand Resonance 5 3. Describe the Points of Parity (POP) and Points of Difference (POD) of the Ralph Lauren Brand: 6 3.1 Points of Difference (POD’s) of the Brand RL 6 3.2 Points of Parity (POP’s) of the brand RL 7 4. Recommend ways through which the brand can continue to be successful in future: 8 5. Conclusions 9 6. Bibliography 10 1. Introduction This report contains relevant information about the Keller CBBE model steps and how a brand like Ralph Lauren has successfully managed to implement the Keller CBBE steps to their competitive advantage. In addition to that, the paper also contains information about POP’s as well as POD’s and how a brand like Ralph Lauren can utilize these unique and strategic features so as to gain a competitive edge and a lasting market stand. 2. Apply all four steps of Keller’s CBBE model (2003 or 2008 or 2011) in case of the Ralph Lauren brand. To what extent do you think the Ralph Lauren brand has achieved resonance with its customers? According to Keller (2003), the CBBE model is used by businesses so as to create an impact and a solid platform through the products and services that they have to their targeted market. Steps in Keller’s Brand Equity Model: 2.1 Brand Identity (Salience or Awareness) This step involves the creation of an outstanding brand name. Keller (2003) termed this as “brand salience”. The RL brand has optimally fulfilled brand identity. They have been in existence for a number of years and have managed to counter competition effectively. Their customers distinguish their products as being luxurious. Therefore, whenever a customer wants superior products, they are sure that RL will be one of the possible brands to deliver. It can also be noted that, the brand RL know what specific market segments they need to target with their superior products. This tip could be related to the idea that they always engage in thorough market research techniques and strategies which unveil information that is relevant to keep them ahead of their game at most times. Through the information that is deduced from market research, it can be noted that the brand has also managed to attract customers to their array of products and services which fully satisfy the needs demanded. Extent of RL Brand Awareness: When consumers need luxurious and high quality products, they always have RL in mind. 2.2 Brand Performance According to Keller (2003), brand performance is the capability of the product to achieve the desired needs and/ or wants of the customer. There are a number of different customers’ needs such as: product reliability, product durability, product efficiency and effectiveness, product design and the most important is the product pricing. The RL brand main core business products and services include: clothing, footwear, fragrances, jewellery, tailoring and food service. From that, it can be determined that the brand has achieved performance through their product pricing, product reliability, product design, as well as product durability. This is due to the fact that they only deal with luxurious products for men, women and children and they have never compromised on the quality, reliability, durability and design of their products. In addition to that, their brand is priced accordingly and they will always deliver as stated. 2.3 Brand Image According to Keller (2003), brand image refers to the general outlook of the product. It can also relate to the experience that the customer got while using the product or service and how that experience impacted them – Positively. The RL brand has managed to positively shape the way their products and services are perceived. First, their customers are fully aware that their brand is top notch and the products or services that they will get from RL will be superior and with a touch of class. Secondly, their brand suits a specific lifestyle and it also offers quality. With that, customers who want classy outfits that have a touch and twist of style can be sure that RL will provide adequately. Thirdly, the brand has managed to offer their customers optimal loyalty through their products and services. That means that, they have never compromised on the quality of their brand to their consumers. The fourth aspect with regard to image is the availability of their products. The brand has managed to deliver their products through various channels including online stores. It should be noted that, this is a reliable form of product access to customers who are in different parts of the world. Lastly, the brand has justified its image through Corporate Social Responsibility (CSR). According to ITM 2011 (2011), RL established a “Polo Ralph Lauren” foundation whose main aim was active CSR. As cited from Global.ralphlauren (N.d), the foundation has a Pink Pony Cancer Care and Prevention Fund which caters to patients who have cancer. The benefit of this fund is to ensure that cancer treatment has been adequately provided to individuals who cannot provide for them the care and treatment needed. In the US any purchase of Pink Pony products from RL guarantees a 25% return to the fund. Secondly, the foundation caters for a “Habitat for Humanity” cause. The aim of this cause is to provide recycled and green building materials. This cause was established in a bid to help individuals and communities who were affected by the Hurricane Katrina. Thirdly, the brand has also advocated for volunteers who help by giving their time back to the community and to various organisations such as: Free Arts in New York, City Harvest, Leukaemia and Lymphoma Society and the centre for Cancer Care and Prevention. The fourth aspect of their brand imagery has been portrayed through their determination to provide education to the under privileged communities. Lastly, the brand has proven to be environment friendly by re using fabric materials such as Organic Tote - Pure organic cotton. 2.4 Brand Judgement Brand judgement refers to how consumers perceive the products and services of the company. Keller (2008) suggests, “A brand has positive customer-based brand equity when consumers react more favourably to a product and the way it is marketed when the brand is identified than when it is not.” With that, consumers are prone to respond positively to a brand with regard to the way that it was marketed. Therefore, that is how they gauge the brands’ products and services as compared to those of their competitors. Brand judgement can be categorized into: Sincerity: Consumers believe that the product or service from the company is reliable. Relevance: Consumers can be sure that the product or service is relevant to their demands. Quality: That is the worth that comes with the product. Superiority: That is the dominance that the product or service has with regard to the existing market. The RL brand is one that has optimized on product and service sincerity, relevance, quality as well as superiority. This is because consumers respond positively to their products or services; therefore, their judgement on what the brand has to offer is positive. 2.5 Brand Feelings Brand feelings relate to how consumers feel and experience when they use the brand. According to Keller (N.d) there are two types of feelings that a product can create. These include: Experimental and Enduring. Experimental feelings do not last long – They are short lived while enduring feelings make an impact to the consumer. With that, a brand can create one or both types of feelings. The brand RL has solemnly created enduring feelings through the following ways: RL makes children feel cherished, happy and fun while wearing RL clothes; Men and women feel superior and confidence when they use the brands products or services. Additionally, they get a sense of security, social approval and self respect through the brands products and services (Keller n.d) 2.6 Brand Resonance According to Keller (2003), this is the level that most companies and businesses strive to achieve. It is marked with: Optimal consumer loyalty – where consumers will always utilize the products or services despite the economic trends. Product attachment – where the consumers will always feel attached to the brand’s products or services. Community partnership – where the consumers will have pride when associated to the brand or their volunteers. Engagements – where the consumers will feel free and open to share their experience while using the brand’s products or services through word of mouth or the social media platform. This could also include the extremes that a consumer would go to so as to seek more product and service information about the brand. It can be noted that the RL brand has already established a strong bond with its consumers. This relationship is based on active loyalty on both sides – That is; the consumer and the brand. How has this been done? RL promises their consumers to continue manufacturing products and services that are luxurious, high quality and fairly priced. On the other hand, the consumer’s loyalty is based on the fact that they are proud to be associated to the brands products and services. In addition to that, the consumers will always go for the RL brand despite the economic trends. This could also be followed up by repeat purchases. This is the factor that makes consumers have an attachment to the products and services being offered by the brand. Lastly, there are consumers who offer loyalty to the brand by acting as RL volunteers. They therefore give back their time to the community as a form of active CSR. 3. Describe the Points of Parity (POP) and Points of Difference (POD) of the Ralph Lauren Brand: 3.1 Points of Difference (POD’s) of the Brand RL Cite Management Article Repository (2006), describes POD’s are characteristics that differentiate a company or a business from its competitors. These include the extra details and attributes that a company or a business has incorporated so as to uniquely differentiate their products or services from those of their competitors. With the Ralph Lauren brand (RL), it can be determined that their POD include: Product quality – The brand is keen to ensuring that the products or services they offer are luxurious and with a touch of heritage; Loyalty to their consumers – This factor goes hand in hand with product quality. If they ensure that the products or services being offered are of high quality; then they have assured loyalty to maintaining that kind of quality in all their products or services. Additionally, this creates brand value. Product pricing – It is with no doubt that the products and services from RL are luxurious. Despite that, their pricing is very exclusive. Therefore, this attribute makes consumers prefer their products and services amongst other options that may be available in the market. When they are compared to other competitors in the same market field; it can be established that their other POD is that they have a chain of restaurants with their name. Thus they are not only offering products to their consumers but they are also providing restaurant services. 3.2 Points of Parity (POP’s) of the brand RL According to the Market Segmentation Study Guide (2012), POP’s are attributes that are “largely similar” to those that are being offered by competitors. This means that, the POP’s are attributes that either the competing companies or businesses have in common. Therefore, if either the companies or the businesses do not implement POD’s then there would be no competition since there is no added value in the products or services that are being offered. With regard to the case study analysis of the brand Ralph Lauren, it can be established that their universal Points of Parity (POP’s) include features such as: premium pricing, high quality and classy products. With the pricing, any brand can be able to implement on premium pricing; with the product quality, any brand can claim to offer high quality products and services to their consumers. Comparison examples The Market Segmentation Study Guide (2012) provides a classy example that illustrates the difference between POD’s and POP’s of McDonalds which is a leading fast food chain industry. If a rival fast food industry wants to beat McDonalds to their game, they first have to initiate and implement POP’s. This means that they first have to implement some of the services that McDonald has. This could be related to their menu product choices as well as the pricing. Now, in order to differentiate their services from those offered by McDonalds, they have to personalize the products that they are offering. This could be done through adding higher quality ingredients to their products or offering a flexible menu that consumers will find easy and friendly while ordering what they prefer. Other examples include FedEx the logistics company who offer their services 24 hours, Nike who offer consumers products that ensure optimal performance and durability and Lexus, the vehicle company who seek to ensure that the quality of their vehicles is never compromised despite economic calamities that may occur. Therefore, it can be concluded that Points of Parity (POP) and Points of Difference (POD) are competitive positioning tools that businesses ought to implement in a bid to ensure that their products and services remain the most preferred by their customers. 4. Recommend ways through which the brand can continue to be successful in future: Once a company or a business have achieved all the steps mentioned in the Keller Customer-Based Brand Equity (CBBE) model, maintaining that stand needs much work than anticipated. That is why most brands make an impact for a short duration of time and once they lack the knowledge and skill to maintain their stand. Stiff competition from their rivals always kicks them out of the fast lane and they go back to where they started from. For a company or a business that has achieved all the Keller CBBE model steps, and they have the relevant knowledge and skill to endure through stiff competition from their rivals. These companies or businesses always turn out to be the future market leaders for longer durations/ periods of time. A good example would be the brand Ralph Lauren. The brand has successfully fulfilled the Keller CBBE model steps and with their constant market research techniques and strategies, they have managed to endure years of stiff completion from their rivals. As stated in the Cite Management Article Repository (2006) a good example of a company brand that has also managed to endure such kind of market competition through the years is the Swedish retailer company by the name of IKEA. The company deals with home furniture and furnishings. It is with no doubt that this market has become one of the most competitive markets in the world. IKEA offer better product pricing for their consumers and this is one of the factors that has ensured loyalty by their customers. Additionally, they offer their customers the experience of purchasing and assembling furniture parts on their own. This is one of the Points of Difference (POD’s) that the company has fully implemented and it has ensured that they remain market leaders in Sweden. With regard to the case study at hand, the brand Ralph Lauren could implement the following strategic solutions that would ensure that they continue to be market leaders in the future. Taking part in active CSR: The Truist (2013) suggests that CSR shows “true commitment to a cause”. Good examples of commitment to causes include: Environmental sustainability projects such as going green and fabric re use, offering educational scholarship funds to under privileged individuals and communities, providing funds and resources for community based developments or coming up with volunteer programs that nurture talent and inspire employees. In addition to that, Schema Advisory (2012) suggests that CSR is important due to the fact that it ensures “organizational success” as well as “long-term sustainability”. Implementing stronger POD’s: Points of Difference (POD’s) could be with regard to exclusive product and services pricing so as to attract a larger audience to what they have to offer and coming up with creative, innovative and new designs for their products and services that will further distinguish their brand. Implementing celebrity endorsements: Truist (2013), mentions “Social media visibility” as an ingredient that can be used so as to spike up brand awareness and perception among consumers. With that, celebrity endorsements are one channel that can further progress a brand’s products and services to the targeted audience in the present time and in future. Technology: Morris (2010) conducted an interview with David Lauren that revealed the use of emerging technology tools such as E-commerce, online social media and online shopping stores would ensure that their brand remains sustainable now and in the future. Other examples of social media that could gear up future sustainability include: Blogging, Photo sharing, Videos and Internet memes (Visual.ly 2013). Additionally, technology assists to promote a “bigger mission and purpose” (Social Media Today 2013). 5. Conclusions Some of the brief findings that can be deduced from the discussion include the fact that the brand RL has successfully achieved all the steps in the Keller CBBE model. In addition to that, they have also managed to apply the POD and POP points coherently to maintain their brand identity. It can be concluded that RL should seek to maintain the implementation of the entire Keller CBBE model as well as the POD and POP points so as to remain competitive in their industry. 6. Bibliography Keller, Kevin Lane (N.d) Building Strong Brands - Three Models for Developing And Implementing Brand Plans. 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Keller, Kevin Lane (2008) Strategic Brand Management. New Jersey: Prentice Hall Mind Tools (N.d) Keller's Brand Equity Model. [Online] Available from: http://www.mindtools.com/pages/article/keller-brand-equity-model.htm [Accessed: 22 October 2013] Market Segmentation Study Guide (2012) Points-of-Difference and Points-of-Parity. [Online] Available from: http://www.segmentationstudyguide.com/understanding-perceptual-maps/points-of-difference-pod/ [Accessed: 22 October 2013] Market Segmentation Study Guide (2012) Points-of-Difference and Points-of-Parity Examples. [Online] Available from: http://www.segmentationstudyguide.com/understanding-perceptual-maps/points-of-difference-pod/points-of-difference-and-points-of-parity-examples/ [Accessed: 22 October 2013] Morris, Andy (8 November 2010) The future of Ralph Lauren. [Online] Available from: http://www.gq-magazine.co.uk/style/articles/2010-11/09/gq-style-news-david-lauren-on-fashion-and-technology [Accessed: 22 October 2013] Ralph Lauren (N.d) Ralph Lauren. [Online] Available from: http://www.ralphlauren.com/home/index.jsp?ab=Geo_iKE_rUS_dUS [Accessed: 22 October 2013] Social Media Today (28 August 2013) The Importance of Social Business Strategy. [Online] Available from: http://socialmediatoday.com/briansolis/1698191/5-important-questions-answered-about-importance-social-business-strategy [Accessed: 22 October 2013] Schema Advisory (2012) The Importance of CSR. [Online] Available from: http://schemaadvisory.com/the-importance-of-csr/ [Accessed: 22 October 2013] The Truist (4 February 2013) Why Corporate Social Responsibility is so Important in 2013. [Online] Available from: http://truist.com/why-corporate-social-responsibility-is-so-important-in-2013/ [Accessed: 22 October 2013 Visual.ly (2013) The Importance of Social Media and How it can help your business. [Online] Available from: http://visual.ly/importance-social-media-and-how-it-can-help-your-business [Accessed: 22 October 2013] Read More