Short answers of brand management

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    903

1. Note down three brand categories. For each category decide whether you tend to buy branded, own brand or a mixture of branded /own branded products. What trends emerged? Why do you think they emerged?

Toothpaste: when making a purchase for toothpaste, I buy branded products. For example, I prefer buying Colgate rather than Tesco branded toothpaste. When making a purchase for the sensitive teeth toothpaste, I usually buy Sensodyne instead of Tesco branded sensitive toothpaste.

Washing powder (Detergent): When making a purchase for washing detergent, I shop for the branded products. This is especially from Proctor and Gamble, who have been able to make high-quality washing powder for a long time.

Food and beverage: in the food and beverage, I usually shop both own-brand and branded products. When in large retail stores, I prefer to shop for own brands. I shop branded beverages in cases where I have no or little experience on the own brand on offer.

Emerging trends

When shopping for the toothpaste and washing powder, I prefer the branded products only. This is a contrast to food and beverage. There is a trend of preference for the branded products in all cases. I can associate this trend with the fact that despite being cheap in most cases, most of the own brand fails to define their category well and communicate it. It is also due to fact that some of the own brands are not well established especially in the oral care section.

2. Consider how you would develop a salt ‘own brand.’ (You may wish to look at previous lecture’s notes i.e., emotion, personality, added values etc.).

Developing own brand starts with a vision and target audience. After defining the target audience, it is important to ensure that four factors which are brand; positioning, name selection, sponsorship and development are followed (Aaker, 2012). The salt has to be positioned in the consumer mind. This includes being of high quality, healthy and fresh. This will reduce direct competition. The next step is brand name selection. This requires some knowledge of history, art, and science. The name should give the consumers some information on brand qualities. The name should be simple to use, common and easily translatable to global languages. The brand name must be legally protected. Own brands are sponsored by the manufacturer. The brand must be emotionally connected with the consumers. This is the emotional feel towards the brand where consumers believe on the brand promise. This is attained through developing salt that meets the consumer needs and benefits expected. The brand must have a distinct personality (De Chernatony, 2010). Through creating trust in the brand, it will be possible to have agreeableness. The brand will be an open brand that will be based on appreciation for emotion. Compared with other brands, the own brand will have added values. This will include rewarding loyalty, improving the experience and offering free delivery for large orders.

3. An FMCG organisation is considering embracing a category based model. What challenges do you foresee? How would you manage these issues?

Brand category for an FMCG organisation can be faced by challenges. The first challenge is making sales from own brand categories. New brand categories are not very familiar with the customers and may take time before the customers have trust in them. This is a challenge that can be solved through the creation of a strong own brand category. The firm is supposed to position the new categories to ensure they are recognizable and have an emotional connection with consumers. Another challenge is interference with the characteristics that consumers use to categorize products. This is based on the way in which consumers perceive a product in relation to other brands. This can be solved by ensuring that categorization is based on the consumers’ perceptions and preferences. There is a need to understand consumer evaluation of different goods categories (Ataman, Mela and Van Heerde, 2008).

4. If you are advising a retailer about social media, based on your reading of retailer issues and the additional reading (Retailers Need Social Media) what would you advise/ recommend?

At the moment, a lot of retailers are using social media more than they use their own websites. A lot of consumers interact with the retailers through the social media than the company websites. For a retailer, this is a great opportunity. The retailer should enhance in-store personalization and use social media to integration to the company website. It is recommendable for a retailer to have more than two social media networks in use for the business. This is especially Facebook, Twitter, and YouTube. The business should ensure they have social media followers through engaging them in the sites. This is through encouraging social media interactions through a two-way communication and developing timely and relevant content. For the retailer, it is important to have knowledge on the channel usage frequency. This is because some social media channels will require interaction more than others. The retailer should use the social media to create brand awareness and enhance visibility (Constantinides, Romero, and Boria, 2008).

References

Aaker, D.A., 2012. Building strong brands. Simon and Schuster.

Ataman, M.B., Mela, C.F. and Van Heerde, H.J., 2008. Building brands. Marketing Science, 27(6), pp.1036-1054.

Constantinides, E., Romero, C.L. and Boria, M.A.G., 2008. Social media: a new frontier for retailers? In European Retail Research (pp. 1-28). Gabler Verlag.

De Chernatony, L., 2010. Creating powerful brands. Routledge.