Brand Decisions

Brand  Any name, term, design, or symbol or other feature that distinguishes products and services from competitive offerings productsservices productsservices (American Marketing Association) American Marketing AssociationAmerican Marketing Association  The consumers' experience with an organization, product, or service (Chartered Institute of Marketing)

Private Label Brands  Store-owned brand marketed exclusively for the store or line  Dependent upon the strength of the retailer

Generic Brand  No brand at all which actually acts as a brand for an affordable product  Used heavily in grocery industry

Attitude Branding  The choice to represent a feeling, which is not necessarily connected with the product or consumption of the product at all  Nike  Abercrombie "A great brand raises the bar – it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters." — Howard Schultz (CEO, Starbucks Corp.) Howard SchultzHoward Schultz

Brand Loyalty  Proclaimed by some to be the ultimate goal of marketing marketing  Consists of a consumer's commitment to repurchase the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy brand  Implies that the consumer sometimes willing to put aside their own desires in the interest of the brand

Private 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 MgtFederated Dept Stores Mgt: Federated Dept Stores Mgt

JC Penny experiences success: THANKS TO ITS NEW "EVERY day matters" branding campaign and a concerted switch to private-label brands, J. C. Penney Co. reported record profits, with net income gaining 13.3%, to $238 million, in the first quarter. THANKS TO ITS NEW "EVERY day matters" branding campaign and a concerted switch to private-label brands, J. C. Penney Co. reported record profits, with net income gaining 13.3%, to $238 million, in the first quarter.

Private Label Challenges  Old pricing policies (10-20% lower than brand names)  Lack of assortment and variety  Look like knock-offs  Quality-levels

Private Label Marketing  Unique brand identified  Tight and relevant product mix  Fulfill the promises made by the brand  Co-branding is an option –Simply Vera with Kohl’s Simply Vera with Kohl’sSimply Vera with Kohl’s  Active marketing campaign to position brand in the mind of consumer