Summary of Benefits of Branding for Retailers and Customers
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In the previous lesson we learnt the benefits of Branding for Retailers and Customers. Here is the summary of those benefits.
Retailer Benefits:
- Premium Pricing: Strong brands can charge higher prices due to perceived value (e.g., Tanishq).
- Reduced Marketing Costs: Established brands attract repeat customers, minimizing acquisition costs and enabling brand extensions (e.g., Shoppers Stop).
- Increased Footfalls: Popular brands draw more visitors, driven by trust in quality and variety.
- Employee Retention: Reputable brands attract and retain skilled employees, improving service quality.
- Sales Consistency: Strong brands prevent sales fluctuations, fostering steady customer loyalty.
- Franchise Opportunities: Brands can expand through franchising, provided standards are upheld (e.g., McDonald’s).
- Avoiding Price Wars: Branding reduces reliance on discounts, avoiding harmful price competition.
- Trademark Protection: Legal safeguards protect brands from imitations (e.g., Starbucks vs. Sardarbuksh).
- Store Loyalty: Branding builds a dedicated customer base that prefers the brand over competitors.
- Reduced In-Store Contact: Trust in the brand minimizes customer inquiries and support needs.
- Support for Segmentation and Pricing: Brands like Nike attract targeted customer groups willing to pay a premium.
Customer Benefits:
- Enhanced Self-Image: Branded products align with customer identity and aspirations.
- Reduced Risk: Brands offer reassurance and reduce uncertainty.
- Simplified Shopping: Brands save time, effort, and streamline decision-making.
Next Lesson: In the next lesson, we will learn how manufacturer and store brands in the retail industry interact. Understanding how these two types of brands interact is crucial in developing a store's brand strategy and ensuring its success. We will learn how to integrate national and store brands to enhance a retailer’s brand identity and profitability.
At the end of the lesson, you will realize that the relationship between manufacturer brands and store brands is a complex but essential part of a retailer's branding strategy. National brands bring recognition, trust, and loyalty, while store brands offer control, profitability, and exclusivity. Finding the right balance between these two types of brands is key to building a strong, unique store identity that resonates with customers.
Class Sessions
1- Summary of Benefits of Branding for Retailers and Customers
2- Store Positioning
3- Attributes that influence Store Positioning
4- Objectives, Functions and Types of Retail Advertising
5- Crafting the Retail Advertising Message
6- Key Points discussed so far
7- In-Store Media Vehicles
8- Shopper Marketing Process
9- Sales Promotion and its importance
10- Sales Promotion Categories