The role of retailer branding strategies in Singapore - Research Paper Example

? THE ROLE OF RETAILER BRANDING STRATEGIES IN SINGAPORE Role of branding Product and brand are terms that are relatedbecause of several properties shared by them. Brand relies on the nature of the product or service. These attributes when used to market the product distinguishes it from its competitors, in the market, gives birth to Brand. Brand is linked with the product by relaying the attributes and character of the product. Additionally the characteristic of a product used to distinguish it from other product is termed as a brand. This means that the attributes associated with the product in terms of the characteristics of the product gives rise to brand. A brand deals with the identity of the product, which enables it to be distinguished from other products (Finskud, 2009, p. 34). A product currently may mean a good with physical characteristics or service or intangible goods such as software or algorithm. Therefore, a product can be described as a product, service or intangible good such as software that a firm produces and use it to generate income. Companies like Microsoft Corporation deal exclusively with software as their end product. Such software like Microsoft office 2010 is, therefore, a product of Microsoft Corporation. Brand deals specifically with the characters that distinguish the product in the market. It is the impression that surrounds the product. A brand can be categorized as a “strong brand” if it has several qualities or characters associated with strong brands (Finskud, 2009, p. 198). A strong brand is characterized by ability to drive the shareholder value; therefore, it is managed by brand marketers who ensure an active buy-in from all stakeholders. The brand is valued in financial terms and is classified as an asset to the company during the calculation of profits and loss. Despite being part of the organization, it is also an essential part of the organization covering a variety of business dimension. The brand, owing to the ability to quantify value of the brand can be used in obtaining loans or be bought as an asset. It is believed that there are four factors associated with the Brands; these four factors influence the strength of the brand (Saget, 2006, p. 88). The four factors are; affinity, challenge, fame and price. Branding is vital in marketing because it enables the sales of all the company’s range of products. The success of many companies such as; Coca Cola, Adidas and Nike among other brands are based on use of brand image creation. Therefore, companies must be ready to venture in branding to be able to achieve success. Retailer branding in Singapore Retail branding is used by giant supermarkets in ensuring that the product sales are improved and outpace competition from other supermarket. The success is based on the ability to create a powerful strong brand. A strong brand is characterized by the ability to drive the shareholder value; therefore, it is managed by brand marketers who ensure an active buy-in from all stakeholders. The brand is valued in financial terms and is classified as an asset to the company during the calculation of profits and loss (Finskud, 2009, p. 45). As part of the organization, it is viewed as a part of the organization and covers a variety of business dimension. Additionally, customers are ready to pay consistently a higher price for the brand while ignoring the competing product or service. As a result of the strong affiliation to the brand, customers want to associate with the brand, it qualities, values and personality. Association with the brand gives rise to loyalty to the brand. Additionally, customers are ready to pay consistently a higher price for the brand while ignoring the competing product or service. As a result of the strong affiliation to the brand, customers want to associate with the brand, it qualities, values and personality. Association with the brand gives rise to loyalty to the brand. Due to the above characteristics the brand becomes a trademark protected by the firm and its legal advisors. It is believed that there are four factors associated with the Brands; these four factors influence the strength of the brand. The four factors are; affinity, challenge, fame and price. Additionally the four factors cut across all the brands regardless of their strength or weakness. Marketing of strong brand has several benefits. These advantages include high level of loyalty to the brand; because the brand has established a loyal market segment sustaining the future sales of the brand (Kapferer, 2008, p. 123). Strong brands encourage greater cooperation and support by reducing the need for trade incentives. Marketing of strong brands is not affected by price because the price is sustainable. Departmental stores in Singapore struggle to develop branding strategies. Retailer branding strategies Value creation strategy The differentiation of brands helps in the creation of the brand. The success of the departmental stores in Singapore will depend on the ability to create value (Beverly & Thomson, 2011, p. 19). Value cannot be evaluated unless customer’s feedback is obtained. Some of the departmental stores handle issues of value by using a detailed pricing policy that allows for the development of price advantages. The society today believes in the need for products to be affordable while also maintaining quality. Social networking strategy Behaviors and habits are developed through the influence of family and friends. Social programs are useful in the process of developing Brand outreach strategies. The outreach strategies include issues such as allowing the loyal customers to invite their friends try out the new brand. The introduction of the new friend will facilitate the trying of the brand. Departmental stores have a variety of [products as such it easier to achieve brand allegiance due to variety. Social networks present a new platform for communication and public relations development which in turn leads to increased loyalty (Crawford, 2000, p. 45). Brand outreach strategies are developed based on both the social network platform. By increasing the number of new customers through invitation from friends, the departmental store can achieve greater success due to brand image improvement. Brands offer opportunity by being the social campaigning tool. Creation of social campaigning opportunity by relying on cultural power of their brands for social change leads to the spread of globalization benefits and the improvement of the brand position. The use of brand as a campaigning tool has shaped the socio cultural perspective of the market. Despite the opportunities developed by the brands, they face different challenges including losing of customer loyalty and value (Crawford, 2000, p. 45). Customer expectation evaluation strategy For every product developed customers, perception is vital for success. The brand allegiance and loyalty may be altered with a poor standard. Departmental store in Singapore have a duty evaluate customer perception and restructure the stores pricing and service policy to create a brand that resonates with the customers expectation. The success of the approach will improve brand image and brand loyalty. Customer expectation evaluation strategy is a vital the 21st century marketing strategies. The consumer expectation and international trends are creating a new situation for brand development. Singapore departmental stores must evaluate the changes in customer’s tastes and preference in the new decade. The success of a department store in Singapore will depend on the customer expectation evaluation strategy (Kapferer, 2008, p. 24). Status branding strategies The social status of the consumers plays a role in brand loyalty. The definition of status has been changing, but the term is till applicable. Customers want to have a unique product as witnessed in the technology market, where changes in application software and designs have led to changes in preference and taste of customers. Brand positioning strategy Proper positioning of a brand ensures proper communication of the brand attributes to the targeted customers thus, leading to increased brand loyalty from the target market. Brand deals with ensuring that the product or service is more visible to the targeted market segment. Positioning is based on one vital principle: all choices are comparative. Because choices are comparative, brands that distinguish themselves from others makes a better cut in the market thus positioning itself better. Brand capitalization is potential of a brand to be used as collateral in the financing of the company’s activities. It can be added to the balance sheet under some circumstances. It can be emphasized that brand capitalization deals with the investment made on the brand regularly leading to increase in sales which in turn increase the value of the brand. This is the treating of brands as accounting assets (Beverly & Thomson, 2011, p. 34). Positioning involves the creation of public perception of the brand position. The success of the brand positioning is based on the ability to market the brand effectively thus developing a positive brand perception. Brand simplicity strategy The simplicity is a new concept in the society. The society requires items and products with simplicity. The development of plug and play devices is a testament of the changing preferences. The departmental stores must develop the different simple approaches to issues such as purchasing and product sales. The success of simplicity in basic operations will increase customer preferences because of service quality improvement. Despite the opportunities developed by the brand simplicity, they face different challenges including loss of customer loyalty and value. Brands simplicity can be used to bring change as such they lead to improving the standard of business practice. This is created by communicating with the customers in a way that promote and create social values and effective product design. It can be achieved by continuous innovation leading to maintenance of brand appeal to the customers. The makes brand to be more important than the innovation. The creation of simplicity in terms use and service delivery will depend on the operational strategy developed by the supermarket. Supermarkets offer a wide range of products requiring a service guarantee which is vital in the service quality (Kapferer, 2008, p. 128). Marketing of “Strong Brands” Strong brands encourage greater cooperation and support by reducing the need for trade incentives. Marketing of strong brands is not affected by price because the price is sustainable. There is minimal price elasticity and consequently creates barrier to the new competitors (Malaval & Benaroya, 2002, p. 78). Customer based brand equity model states that the power of a brand lies in what the customers have learned, felt seen and heard about the brand due to their experience. This model refers to the real situation of brands. All strong brands receive acknowledgment through appreciation from the customers as such the more the customers appreciate the brand the greater the brand equity. Goodwill gives authority by creating a name recognition that is earned over time. This can be achieved by continuous innovation leading to maintenance of brand appeal to the customers. The makes brand to be more important than the innovation. When proctor and Gamble developed pampers brand the message was to make mothers happy. The principle of their message is a dry baby is a happy baby thus, if pampers is taken away from Procter and Gamble the result is loss of incentive. The innovation developed has a positive value that is exploited by the brand marketers to develop positive social outcomes. Consequently, it solves social issues by tacking the respective problem. Brands offer opportunity by being the social campaigning tool. Creation of social campaigning opportunity by relying on cultural power of their brands for social change leading to the spread of globalization benefits (Saget, 2006, p. 133). The use of brand as a campaigning tool has shaped the socio cultural perspective of the market. Despite the opportunities developed by the brands, they face different challenges including losing of customer loyalty and value (Nykiel, 2004, p. 221). The coca cola company is the example of a company facing this challenge. Other global brands have also been affected by the rise of the technology and increase in new brands in the market. This has led to need for brand marketing. Lately brands have been forced to be aggressive in brand promotion so that the identity of their brand is maintained. Conclusion Global brands employ capitalization to stifle competition from other competitors and therefore, tend to compete with each other. The same principle applies to local businesses because they desire a larger market share compared to competitors. The retailer departmental stores in Singapore have succeeded in developing strong brands through association. In conclusion brands rely on the quality of product and consistency developed by the product. Products that have been in the market longer and have widely been used and appreciated by the consumers as such their brands have dominion over other brands. Due to the rising cost of living and the same brands being expensive, consumers are forced to try other brands leading to loss of customers to the dominant brand. Reference Beverly, M., & Thomson, T. (2011). The Power of Real Time Social Media Marketing:How to Attract and Retain Customers. New York: McGraw-Hill Professional. Crawford, M. (2000). Marketing Research and the New Product failure Rate. Journal of Marketing, 51-78. Finskud, L. (2009). Developing Winning Brand Strategies. Chicago: Business Expert Press. Kapferer, J.-N. (2008). The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term 4th edition. New York: Kogan Page Publishers. Malaval, P., & Benaroya, C. (2002). Aerospace marketing management: manufacturers, OEM, airlines, airport, satellites. Berlin: Springer. Nykiel, R. A. (2004). Handbook of Marketing Research Methodologies for Hospitality and Tourism. London: Routledge. Saget, A. (2006). The Event Marketing Handbook: Beyond Logistics and Planning. Berlin: Kaplan Publishing. Read More