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Growing and sustaining brand equity
Chapter 10 crafting the brand positioning
Growing and sustaining brand equity
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Positioning is a significant part of organizational or business strategy. MUJI, as a retail company, is consistently successful in branding and positioning in contemporary global market. This is shown in the article “The Commercial Zen of MUJI” written by Silvia Killingsworth in December 2015 on the New Yorker website. Began with describing the scene when MUJI opened a new flagship store on Fifth Avenue in New York, Silvia introduces the origin and current situation of MUJI. In her article, she explains the ‘no-brand’ branding strategy, and discusses the ways in which MUJI position their brand image in consumers’ minds. MUJI promotes ‘minimalism’ design against waste in packaging and production, emphasizing on recycling and reusability by utilizing …show more content…
(P179) Products need to be positioned when being introduced by a marketer to ensure characteristics most desired by the target market are highlighted. MUJI is an example that succeeds in positioning in marketplace. Launched by Seji Tsutsumi in 1980, Muji is a retail company from Japan which sells a wide range of household and living goods. The brand’s name is originated from its Japanese name “Mujirushi Ryohin” which denotes “no label quality goods”. As Silvia says in her article that, “The colors, patterns, and materials are generic, but everything, from toothbrush holders to storage boxes, comes in pleasing shapes” Every product in stores is in MUJI’s own style. With the slogan call “lower priced for a reason” and the concept “less is more”, MUJI offers high-quality, functional and affordable goods to its consumer from all over the world. A product’s position can be based of specific product attributes or features. MUJI has positioned itself primarily on simplicity, functionality as well as lower …show more content…
By using its own way of positioning and branding, MUJI manages to establish and develop its brand image as well as brand identity which leads to great brand equity. As shown in the article “The Commercial Zen of MUJI”, we can see that brand equity brings benefits to a brand by setting it apart from its major competitors and creating increased sales growth. Consequently, MUJI obtains the potential for higher marketshare. Hence, it is necessary to appropriately position a brand and maintain brand
Considering 4 elements of the marketing mix and the case discussion of the general trends in the industry, it seems that MCB is experiencing problem with place and determining its target market. The case provides many examples of the company's difficulties in gaining more retail locations, maintaining sufficient inventory level, and, the most important, improper positioning of its product, which impeded the MCB to reach its potential customers.
Ron Johnson spent a great deal of time and money to promote his ideas of “stores-within-stores” by turning floor space into an area to house several branded boutiques. He did this in order to attract a target market of a wider demographic which includes age, gender, and generation. One of the m...
When the consistency of the information is built, the credibility of the brand becomes higher (Bengtsson, Bardhi and Venkatraman, 2010). It is suggested that asymmetric information leads to consumer uncertainty, which would therefore have a negative impact on brand image (Erdem and Swait, 1998, p. 138). Accordingly, consistency of the information has become a key factor that leads to the successfulness of a global brand since it reduces the uncertainty and the thinking process time of consumers (Lee et al., 2007). Several effects have been found regarding to standardization of a brand (Erdem and Swait, 1998, p. 138). Marketers will have a better control of the brand if the brand meaning has been consistent over the time (Erdem and Swait, 1998, p. 138). First of all, it increases brand equity, which would therefore improve consumer’s brand awareness (Erdem and Swait, 1998, p. 138). Second, it would reduce consumers’ uncertainty of the brand, which would thus increase the reliability of the brand and brand loyalty (Erdem and Swait, 1998, p. 138). Third, it greatly reduces the conflict of consumers’ cognitive structures, which would lead them to trust more on the brand (Erdem and Swait, 1998, p.
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
Moving up the pyramid, the next level includes brand meaning – what are you? This incorporates performance and imagery. The product itself is at the heart of brand equity, and designing and delivering a product that satisfies the consumers’ needs and wants is crucial for successful marketing. In order to reach resonance at the top of the pyramid, the product must (at least) meet, if not surpass, customer expectations and functional needs. The goal here is to identify and communicate brand meaning. Performance dimensions consists of five categories: primary characteristics and supplementary features; product reliability, durability and serviceability; service effectiveness, efficiency and empathy; style and design; and
Building and enhancing a strong brand has been found to have profitable rewards in business, it has therefore become a prime priority for many firms. Customer-base brand equity (CBBE) is a model that is being adopted by many organizations in order to build strong brands that can compete with the other ones in the market. The model outlines the four steps that should be followed in building a strong brand. The first step involves the establishment of appropriate brand identity, which includes enhancing customer awareness of the brand.
By quality/value – positioning of the product based on high quality. Also can be claimed that the product have high value.
15). Cultural and traditional values can be a big success or fail for a brand, as already mentioned in the theory of framing, using a country’s tradition can enhance brand awareness and empathy. Especially in Japan, a nation, which belongs to the category of continuous cultures (Inkster and Satofuka, 2000, p. 34) with such diverse and old traditions, implementing these correctly can effect consumer loyalty. Japanese cosmetic companies themselves have perfected the way to implement tradition values and rituals into their cosmetic lines. One company carries out 400-year-old traditions not only in their products but also in the packaging of their products: Makanai Cosmetics. The term makanai is the Japanese term for “company employee benefits” and refers to the women that worked in the background of a gold beater, which was established in 1899. These women were suffering from skin problems caused by intense heat, dryness and lack of ventilation. To find a solution to tackle their skin problems these women used the materials and ingredients around them and developed several products. Over 100 years the products got revised and re-developed. The female employees also tested all of the hand-made products on their own skin, ensuring its quality and effectiveness (Makanai Cosmetics a, 2015). Until today, all of the products the brand offers are hand-made, organic and labelled with the signature logo of a rabbit pounding Japanese rice cakes in a wooden mortar. The products range from a pouch, made out of the same
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
One of the fundamental parts of successful brand creation process is developing the strong brand image and communicate brand ID across all available media channels. This essay will discuss and evaluate companies NIKE marketing strategies in terms of companies brand development efforts. The company’s success in the footwear, apparel and accessory markets will be linked with marketing branding concept. Furthermore, the discussion on NIKE marketing strategies and their efforts to preserve and increase the leading market position and marketing activities to increase brand equity will be discussed and critically evaluated.
The second step deals in creation of proper brand meaning through powerful and unique brand connection with the customers. The third step involves invoking positive brand response while the fourth one involves engaging the customers so as to build a brand affiliation aimed at enhancing active brand loyalty. However, some building blocks are requisite in order to achieve these steps. These...
Brand image is about how consumers perceive a product and the ability for the customers to be loyal to the brand irrespective of the threats from its competitors. Starbucks prides itself as the best coffee produce, and most consumers have been heard admitting that the company produces coffee that is quality and that makes users sometimes to consume even when they had not budgeted for it. Cleanliness seems to be another strategy that Starbucks uses to promote the image of its brands because customers can trust their products and knows that the company is keen enough in cleaning its environments and the utensils used for the preparation of coffee and other brands. Brand image is critical for measuring brand equity, and it is from this point of view that the company comes up with marketing and operational strategies to make it successful (Keller & Lehmann, 2006). Brand resonance is another important technique that should not be avoided because of its impact towards the study. The attachment that a consumer has to a product will help discover the relationship between a customer and a product. Identifying oneself with a product is only possible if the product is
Brand offers superior quality of the service to the customer’s expectation and satisfaction. Furthermore, people are much attached to the branded products, as majority of the people purchase the branded products with the belief that brands show their status and life style in the society. And also because they believe that they are purchasing quality when purchasing branded product. As duration of stay creates impact of brand on consumer behaviour, so verification of brand image, brand loyalty and personality should be considered as the significant factors in this regard. It can also be said that there is need to improve the product of a particular brand so that the impact of brand on consumer behaviour is more effective in comparison to the existing scenario. The study also reflects that the product features are very essential for consumers. Advertising plays a very important role in achieving growth for any product or brand. The right media for advertising products and services should be chosen to gain customer attention.
“Linked to a brand, its name is the symbol that adds to or subtract from the value provided by a product or service.” (Aeler, 1991) Like country of origin, brand equity is also one of the reasons why some people want to have a well-known brands in the whole world. Sometimes it is not all about the price anymore because in today’s generation brand is more important than
Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. A significant differential advantage can lead customers to focus on product benefits other than price. Brand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and it’s similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors.