RLM 401 ….

BRAND MANAGEMENT IN RETAIL AND LOGISTICS

PRESENTATION;
 what is a brand
 Importance of strong brands
 Attributes of strong brand
 Managing brand
 Building strong brands
 Criteria of choosing global brands
What is a brand?
Keller (2003), defining your brand is like a journey of business self-discovery. It can be difficult,
time-consuming and uncomfortable. They are Personal branding and Retail branding. It
requires, at the very least, that you answer the questions below:

Personal branding

 -Who are you-name, value, back ground, strengths, and weakness?

 -Where are you -going, vision, mission, goals?
 -Retail branding
 What is your company's mission?
 -What are the benefits and features of your products or services?
 -What do your customers and prospects already think of your company
 -What qualities do you want them to associate with your company?

Brand is the "name, term, design, symbol, logo, slogan, feature or a combination of these that
identifies one seller's product distinct from those of other sellers." It can be Personal branding or
Retail branding, brands are used in business, marketing, and advertising.

Simply put, your brand is your promise to your customer. It tells them what they can expect
from your products and services, and it differentiates your offering from that of your competitors
Montoya (2005). Your brand is derived from who you are, who you want to be and who people
perceive you to be. It is what separates competitors and helps consumers remember a product. It
encompasses everything about a company, sometimes good and sometimes bad, depending on
the public’s perceptions.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

A name becomes a brand when customers associate it with a set of tangible and intangible
benefits that they obtain from the product. Brands are what customers buy while products are
what companies produce either small or big. Examples of Retail brands are OK, TM, MEIKLES,
and INNSCOR AND ECONET which is one of the most important aspects of any business.

The importance of strong brands

The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or
design, or a combination of them intended to identify the goods and services of one seller or
group of sellers and to differentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not about getting your target market to
choose you over the competition, but it is about getting your prospects to see you as the only one
that provides a solution to their problem. Branding is an integral part of the business building
process. Brands are important in such a way that:

 Brands enable customers to remember your product-service.

 Brands build customer loyalty and lead to repeat purchases.
 Brands make it easier for current clients or customers to refer you to others.
 Brands send a message as to what your customers can expect.
 Brands convey an emotion.
 Brands add value.

We use brands as shorthand to make our trips to the grocery store easier; we use brands to
reassure us about our purchasing decisions; we even use brands to define ourselves in society.

Remember: a brand is a promise. With a brand, you set customer expectations. When someone
buys your product or service, they count on those expectations to be fulfilled. In broad the main
points to note about the important of a brand are:

Deliver Your Message Clearly

Branding acts as a way of communicating with your customers. Without expensive advertising,
you can deliver a message through your well-designed brand. Because of this, the importance of

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

branding in marketing is clear if you want to connect with your customers without going broke in
the process. If you can customize your brand according to the needs of your customer base, you
will be well on your way to the success you crave for your business.

Differentiate the Brand from Competitors

Branding is very important in retailing because it differentiate a retailer`s characteristics in terms

of his or her competitors. Hence a sense of difference will be created in the mindset of customers
in such a way that when they are able to pick you out among many competitors. Thus the
difference in brands will pave a way for customer loyalty when they associate you with quality
as compared to your competitors hence brand equity is easily achieved when u differentiate
yourself from competitors.

Create Business Credibility

If you can continually associate your brand with quality products and services, soon they will be
one and the same in the minds of your customers. This credibility is not built overnight. You
must prove that your business can continually innovate to provide top-notch customer service as
well as products and services that are dependable.

Connect the Customer to the Product

You probably feel a connection with and even a loyalty to your favorite brands. They have
helped you be successful in various aspects of your life. Products are the backbone of
humankind’s success, and every successful product is backed by a recognizable brand and a
trustworthy company, which are the traits you need to create for your own business.

Motivate the Buyer

When the connection between the customer and the product is strong, the brand becomes a
motivator for the customer to continue buying products, even if they have never used that exact
product before. Your customer places trust in your brand and its quality so they know buying
another product from the same brand is likely to deliver similar satisfaction.

The most clear-cut way to be successful in a business endeavor is to recognize the importance of
branding in marketing and use it to your advantage. To work with a promotional marketing
company that can transform the success of your business.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Members of your target audience will be more apt to associate your firm with the specific
intangibles your brand conveys – intangibles that are important to them. As a result, they will
feel good about doing business with you. Those intangibles might include good value, reliability,
success, luxury, hipness, social consciousness, liberal thinking, conservative thinking, creative,
upper class, and so on.

Your brand will help foster an emotional relationship between your firm and members of your
target audience. This relationship will make them more inclined to do business with you and to
remain loyal to your firm, which means that they are more likely to provide you with repeat
business.

Customers will also be more apt to spend money with your business rather than with one of your
competitors. This will be true even if your services cost more. Your brand will help reduce the
amount you must spend on marketing because your firm will be a known quantity to members of
your target audience. Therefore, you will not have to work as hard to sell your services to them.

Brand Attributes
They are also known as core values, they represent the essence of the brand.
These are the characteristics that identify the physical character and personality traits of a brand.
 Brand Attributes portray a company’s brand characteristics. They signify the basic nature 
of brand. Brand attributes are a bundle of features that highlight the physical and
personality aspects of the brand. Attributes are developed through images, actions, or
presumptions. Brand attributes help in creating brand identity.
 A strong brand must have following attributes:
 Relevancy- A strong brand must be relevant. It must meet people’s expectations and
should perform the way they want it to. A good job must be done to persuade consumers
to buy the product; or else inspire of your product being unique, people will not buy it.
For example City link from the name it means it is meeting people’s expectations due to
its operation from one city to another, Econet that is enhance communication network
and its meeting customer’s expectations.
 Consistency- A consistent brand signifies what the brand stands for and builds
customers trust in brand. A consistent brand is where the company communicates

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

message in a way that does not deviate from the core brand proposition. For example
geisha soap at first it was mother’s love and now it is Geisha family naturals, it’s a sign
of the family lives.

 Proper positioning- A strong brand should be positioned so that it makes a place in

target audience mind and they prefer it over other brands.
 Sustainable- A strong brand makes a business competitive. A sustainable brand drives an
organization towards innovation and success. Telecel, network of choice, this means
there is no need for radical change of brand overtime.
 Credibility- A strong brand should do what it promises. The way you communicate your
brand to the audience/ customers should be realistic. It should not fail to deliver what it
promises. Do not exaggerate as customers want to believe in the promises you make to
them. For example Red bull when advertising it says red bull gives you wings, but in real
it gives energy and not wings.
 Inspirational- A strong brand should transcend/ inspire the category it is famous for. Eg
coca cola- is a well known brand and it is sponsoring soccer that is favoured soccer with
most people and therefore becoming more famous.
 Uniqueness- A strong brand should be different and unique. It should set you apart from
other competitors in market. For example MSU is technological advanced which makes it
more unique than other institutions like GZ.
 Appealing- A strong brand should be attractive. Customers should be attracted by the
promise you make and by the value you deliver. Spar supermarket is attractive that is
they have created more attractive due to their merchandising.

Brand management is the application of marketing techniques to a specific product, product

line, or brand. It seeks to increase the product's perceived value to the customer and thereby
increase brand franchise and brand equity. Marketers see a brand as an implied promise that the
level of quality people have come to expect from a brand will continue with future purchases of
the same product. This may increase sales by making a comparison with competing products
more favorable. There are various ways in which a manager can manage brands i.e. modifying
the product, modifying the market and repositioning the brand.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Introduction growth maturity decline

Sales
Profit

+
0
- Stages of a product life cycle

Brands can be managed at various points in time and their returns to the retail organization
depend on where they are in their life cycle. Different types of marketing activities are carried
out by brand managers according to whether the brand is new in the market, at a growth stage,
decline stage or at a maturity stage

Developing and launching new brands

Just as the archer’s arrow rarely hits the centre of the target the first time, so the analogy
of using learning to further refine new brand concepts needs adopting.
Traditional marketing theory argues for a well-researched new product development process.
When new brands are launched, they arrive in a naked form, without a clear personality to act as
a point of differentiation. Some brands are born being able to capitalize on the firm’s umbrella
name, but even then they have to fight to establish their own unique personality. As such, in their
early days, brands are more likely to succeed if they have a genuine functional advantage to the
customers.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

New brand launches are very risky commercial propositions. To reduce the chances of a new
brand not meeting its goals, many firms rightly undertake marketing research studies to evaluate
each stage of the brand’s development among the target market. Sometimes, however, very
sophisticated techniques are employed, lengthening the time before the new brand is launched.
While such procedures reduce the chances of failures, they introduce delays which may not be
financially justified.

Marketers launching new technological brands need to adopt a more practical approach,
balancing the risk from only doing pragmatic, essential marketing research against the financial
penalties of delaying a launch. The Japanese are masters at reducing risks with new technology
launches with their so-called ‘second fast strategy’. They are only too aware of the cost of delays
and once a competitor has a new brand on the market, if it is thought to have potential, they will
rapidly develop a comparable brand. A classic example of this was when Sony launched the very
successful CCD TR55 camcorder. This weighed 800 grams and had 2200 components shrunk
into a space which was a quarter of that of the conventional camcorder. Within six months, JVC
had an even lighter version, soon followed by Sanyo, Canon, Ricoh and Hitachi.

New product failures should not be seen as a hunt for a scapegoat. Instead, analysis is needed to
learn from the failures and these results rapidly fed back to improve the next generation of
products. Just as the archer’s arrow rarely hits the centre of the target the first time, but does so
on the second trial, so the analogy of using learning to further refine new brand concepts needs
adopting.

There are several benefits from being first to launch a new brand in a new sector. Brands which
are pioneers have the opportunity to gain greater understanding of the technology by moving up
the learning curve faster than competitors. When competitors launch ‘me-too’ versions, the
innovative leader should be thinking about launching next generation technology. Being first
with a new brand that proves successful also presents opportunities to reduce costs due to
economies of scale and the experience effect. Brands which were first to market and were
strongly supported offer the opportunity for consumer loyalty. Almost without thinking about it,
customers ask for the brand which has become generic for the product field

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Being the first with a new brand sets habits which are difficult to change. For example, the
Dettol which sets a certain habit in the customers as they ended up believing that for a detergent
to be very effective it must sting when applied at a soar and must have an odour smell like
Dettol.
Managing brands during the growth phase.
Once a firm has developed a new brand, it needs to ensure that it has a view about how the
brand’s image will be managed over time. The brand image is the consumers’ perceptions of
who the brand is and what it stands for, that is, it reflects the extent to which it satisfies
consumers’ functional and representational needs. As sales rise, the brand’s image needs to be
protected against inferior, competitive, look-alikes. The functional component of the brand can
now be reinforced, either through a problem-solving specialization strategy, or a problem-
solving generalization strategy.

Managing brands during the maturity phase

In the maturity part of the life cycle, the brand will be under considerable pressure. Numerous
competitors will all be trying to win greater consumer loyalty and more trade interest. One option
is to extend the brand’s meaning to new products. A single image is then used to unite all the
individual brand images.

Managing brands during the decline phase

As brand sales begin to decline, firms need to evaluate carefully the two main strategic options
of recycling their brand, modifying their products, modifying their market or coping with
decline.

Building of strong brand

A strong brand is defined by Chernatony et al as an asset either tangible or intangible that drives
shareholder value. Other several authors have come up with definitions for what is a strong
brand. Building a strong brand follows four major steps which are identity, meaning, the
response and the relationship.
1. Identity

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Brand identity is defined as the visible elements used within a company, usually
assembled within a set of guidelines. These guidelines usually administer how the
identity is applied throughout a variety of mediums using approved colour palettes, fonts,
layouts, measurements and logos as well as slogans. These guidelines ensure that the
identity of the company is kept coherent which makes it recognizable. These visual
devices if combined make up the image of a company:
 A logo- the symbol of the entire brand/ retailer- this symbol is the avatar of the
organization as a whole
 Apparel design- tangible clothing items worn by employees/ uniforms
 Signage –interior and exterior design
 Messages and actions- messages conveyed through direct or indirect modes of
communication
 Packaging and products- products sold and the packaging in which they come in
 Marketing collateral- flyers brochures, books and websites
 Stationery –letterheads, business cards, patent rights, copy right and all
intellectual properties
When all these elements are combined and used properly, a unique and distinguitive strong brand
is created. A good example of where almost all the visual elements of a brand are used is by the
Econet Company in Zimbabwe. Firstly the name, the logo is made up of the world sitting on a
pivot, the slogan is inspired to change the world, and the colours are blue and red. The red
colour stands for dominance and blue for respect. If a customer comes across such visual
devices, the Econet Company is automatically registered in their minds. These are the signs of a
strong brand.
2. Meaning
Another step that is followed when one is building a strong brand is the meaning. This is the step
that retail brands clearly clarify or explain to the target market why they exist.

Criterion for choosing brands

Global brands are sometimes called international brands but not all international brands are
global, thus it can be noted that global brands are used in every corner of the world and the
criteria involved include

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

 Affordability
 Accessibility
 Government and regulations
 Lag time
 Quality
 Benefit
 Value
 History of the brand
 Personal attachment to the brand

REFERENCE
Keller. (2003), Strategic Brand Management: Building, Measuring and Managing Brand .2nd
edition. New Jersey: Prentice Hall.

Chernatony and malcom mcdonald( 2003) Creating powerful brands; third edition. Linacre house
Burlington.
Montoya, P. (2005) Branding Management: Your Personal Brand. Andover: Cengage.

Aaker, D.A. (1991), Managing brand equity, The Free Press, New York, NY

Yoo, B., Donthu, N. and Lee, S. (2000), “An examination of selected marketing mix elements
and brand equity”, Journal of the Academy of Marketing Science, Vol. 28.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Strong Brand Attributes

Brand Attributes portray a company’s brand characteristics. They signify the basic nature of
brand. Brand attributes are a bundle of features that highlight the physical and personality
aspects of the brand. Attributes are developed through images, actions, or presumptions. Brand
attributes help in creating brand identity.

A strong brand must have following attributes:

1. Relevancy- A strong brand must be relevant. It must meet people’s expectations and
should perform the way they want it to. A good job must be done to persuade consumers to buy
the product; else inspite of your product being unique, people will not buy it.

2. Consistency- A consistent brand signifies what the brand stands for and builds customers
trust in brand. A consistent brand is where the company communicates message in a way that
does not deviate from the core brand proposition.

3. Proper positioning- A strong brand should be positioned so that it makes a place in

target audience mind and they prefer it over other brands.

4. Sustainable- A strong brand makes a business competitive. A sustainable brand drives an

organization towards innovation and success. Example of sustainable brand is Marks and
Spencer’s.
6. Credibility- A strong brand should do what it promises. The way you communicate your
brand to the audience/ customers should be realistic. It should not fail to deliver what it promises.
Do not exaggerate as customers want to believe in the promises you make to them.
7. Inspirational- A strong brand should transcend/ inspire the category it is famous for. For
example- Nike transcendent Jersey Polo Shirt.
8. Uniqueness- A strong brand should be different and unique. It should set you apart from
other competitors in market.
9. Appealing- A strong brand should be attractive. Customers should be attracted by the
promise you make and by the value you deliver.
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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Brand Positioning - Definition and Concept

Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others.
It is ensures that all brand activity has a common aim; is guided, directed and delivered by the
brand’s benefits/reasons to buy; and it focusses at all points of contact with the consumer.

Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?
Is it significant and encouraging to the niche market ?
Is it appropriate to all major geographic markets and businesses ?
Is the proposition validated with unique, appropriate and original products ?
Is it sustainable - can it be delivered constantly across all points of contact with the consumer ?
Is it helpful for organization to achieve its financial goals ?
Is it able to support and boost up the organization ?

In order to create a distinctive place in the market, a niche market has to be carefully chosen and
a differential advantage must be created in their mind. Brand positioning is a medium through
which an organization can portray it’s customers what it wants to achieve for them and what it
wants to mean to them. Brand positioning forms customer’s views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it
occupies a distinctive place and value in the target customer’s mind. For instance-Kotak
Mahindra positions itself in the customer’s mind as one entity- “Kotak ”- which can provide
customized and one-stop solution for all their financial services needs. It has an unaided top of
mind recall. It intends to stay with the proposition of “Think Investments, Think Kotak”. The
positioning you choose for your brand will be influenced by the competitive stance you want to
adopt.

Brand Positioning involves identifying and determining points of similarity and difference to
ascertain the right brand identity and to create a proper brand image. 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

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

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. For instance- Kingfisher stands for youth and
excitement. It represents brand in full flight.

There are various positioning errors, such as-

Under positioning- This is a scenario in which the customer’s have a blurred and unclear idea of
the brand.
Over positioning- This is a scenario in which the customers have too limited a awareness of the
brand.
Confused positioning- This is a scenario in which the customers have a confused opinion of the
brand.
Double Positioning- This is a scenario in which customers do not accept the claims of a brand.
Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others.
It is ensures that all brand activity has a common aim; is guided, directed and delivered by the
brand’s benefits/reasons to buy; and it focusses at all points of contact with the consumer.

Brand Identity - Definition and Concept

Brand identity stems from an organization, i.e., an organization is responsible for creating a
distinguished product with unique characteristics. It is how an organization seeks to identify
itself. It represents how an organization wants to be perceived in the market. An organization
communicates its identity to the consumers through its branding and marketing strategies. A
brand is unique due to its identity. Brand identity includes following elements - Brand vision,
brand culture, positioning, personality, relationships, and presentations.

Brand identity is a bundle of mental and functional associations with the brand. Associations are
not “reasons-to-buy” but provide familiarity and differentiation that’s not replicable getting it.
These associations can include signature tune(for example - Britannia “ting-ting-ta-ding”),
trademark colours (for example - Blue colour with Pepsi), logo (for example - Nike), tagline (for
example - Apple’s tagline is “Think different”),etc.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Brand identity is the total proposal/promise that an organization makes to consumers. The brand
can be perceived as a product, a personality, a set of values, and a position it occupies in
consumer’s minds. Brand identity is all that an organization wants the brand to be considered as.
It is a feature linked with a specific company, product, service or individual. It is a way of
externally expressing a brand to the world.
Brand identity is the noticeable elements of a brand (for instance - Trademark colour, logo,
name, symbol) that identify and differentiates a brand in target audience mind. It is a crucial
means to grow your company’s brand.

Brand identity is the aggregation of what all you (i.e. an organization) do. It is an organizations
mission, personality, promise to the consumers and competitive advantages. It includes the
thinking, feelings and expectations of the target market/consumers. It is a means of identifying
and distinguishing an organization from another. An organization having unique brand identity
have improved brand awareness, motivated team of employees who feel proud working in a well
branded organization, active buyers, and corporate style. Brand identity leads to brand loyalty,
brand preference, high credibility, good prices and good financial returns. It helps the
organization to express to the customers and the target market the kind of organization it is. It
assures the customers again that you are who you say you are. It establishes an immediate
connection between the organization and consumers. Brand identity should be sustainable. It is
crucial so that the consumers instantly correlate with your product/service.

Brand identity should be futuristic, i.e, it should reveal the associations aspired for the brand. It
should reflect the durable qualities of a brand. Brand identity is a basic means of consumer
recognition and represents the brand’s distinction from it’s competitors.

Sources of Brand Identity

1. SYMBOLS- Symbols help customers memorize organization’s products and services.
They help us correlate positive attributes that bring us closer and make it convenient for us to
purchase those products and services. Symbols emphasize our brand expectations and shape
corporate images. Symbols become a key component of brand equity and help in differentiating
the brand characteristics. Symbols are easier to memorize than the brand names as they are visual

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

images. These can include logos, people, geometric shapes, cartoon images, anything. For
instance, Marlboro has its famous cowboy, Pillsbury has its Poppin’ Fresh doughboy, Duracell
has its bunny rabbit, Mc Donald has Ronald, Fed Ex has an arrow, and Nike’s swoosh. All these
symbols help us remember the brands associated with them.
Brand symbols are strong means to attract attention and enhance brand personalities by making
customers like them. It is feasible to learn the relationship between symbol and brand if the
symbol is reflective/representative of the brand. For instance, the symbol of LG symbolize the
world, future, youth, humanity, and technology. Also, it represents LG’s efforts to keep close
relationships with their customers.

2. LOGOS- A logo is a unique graphic or symbol that represents a company, product,

service, or other entity. It represents an organization very well and make the customers well-
acquainted with the company. It is due to logo that customers form an image for the
product/service in mind. Adidas’s “Three Stripes” is a famous brand identified by it’s corporate
logo.
Features of a good logo are :
a. It should be simple.
b. It should be distinguished/unique. It should differentiate itself.
c. It should be functional so that it can be used widely.
d. It should be effective, i.e., it must have an impact on the intended audience.
e. It should be memorable.
f. It should be easily identifiable in full colors, limited color palettes, or in black and white.
g. It should be a perfect reflection/representation of the organization.
h. It should be easy to correlate by the customers and should develop customers trust in the
organization.
i. It should not loose it’s integrity when transferred on fabric or any other material.
j. It should portray company’s values, mission and objectives.
The elements of a logo are:
k. Logotype - It can be a simple or expanded name. Examples of logotypes including only
the name are Kellogg’s, Hyatt, etc.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

l. Icon - It is a name or visual symbol that communicates a market position. For example-
LIC ’hands’, UTI ’kalash’.
m. Slogan - It is best way of conveying company’s message to the consumers. For instance-
Nike’s slogan “Just Do It”.

3. TRADEMARKS- Trademark is a unique symbol, design, or any form of identification

that helps people recognize a brand. A renowned brand has a popular trademark and that helps
consumers purchase quality products. The goodwill of the dealer/maker of the product also
enhances by use of trademark. Trademark totally indicates the commercial source of
product/service. Trademark contribute in brand equity formation of a brand. Trademark name
should be original. A trademark is chosen by the following symbols:
™ (denotes unregistered trademark, that is, a mark used to promote or brand goods);
SM (denotes unregistered service mark)
® (denotes registered trademark).
Registration of trademark is essential in some countries to give exclusive rights to it. Without
adequate trademark protection, brand names can become legally declared generic. Generic
names are never protectable as was the case with Vaseline, escalator and thermos.
Some guidelines for trademark protection are as follows:
a. Go for formal trademark registration.
b. Never use trademark as a noun or verb. Always use it as an adjective.
c. Use correct trademark spelling.
d. Challenge each misuse of trademark, specifically by competitors in market.
e. Capitalize first letter of trademark. If a trademark appears in point, ensure that it stands
out from surrounding text.

Brand image is the current view of the customers about a brand. It can be defined as a unique
bundle of associations within the minds of target customers. It signifies what the brand presently
stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the
consumers’ perception about the product. It is the manner in which a specific brand is positioned
in the market. Brand image conveys emotional value and not just a mental image. Brand image is
nothing but an organization’s character. It is an accumulation of contact and observation by

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

people external to an organization. It should highlight an organization’s mission and vision to all.
The main elements of positive brand image are- unique logo reflecting organization’s image,
slogan describing organization’s business in brief and brand identifier supporting the key values.
Brand image is the overall impression in consumers’ mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they form
brand image. An image is formed about the brand on the basis of subjective perceptions of
associations bundle that the consumers have about the brand. Volvo is associated with safety.
Toyota is associated with reliability.

The idea behind brand image is that the consumer is not purchasing just the product/service but
also the image associated with that product/service. Brand images should be positive, unique and
instant. Brand images can be strengthened using brand communications like advertising,
packaging, word of mouth publicity, other promotional tools, etc.

Brand image develops and conveys the product’s character in a unique manner different from its
competitor’s image. The brand image consists of various associations in consumers’ mind -
attributes, benefits and attributes. Brand attributes are the functional and mental connections with
the brand that the customers have. They can be specific or conceptual. Benefits are the rationale
for the purchase decision. There are three types of benefits: Functional benefits - what do you do
better (than others ),emotional benefits - how do you make me feel better (than others), and
rational benefits/support - why do I believe you(more than others). Brand attributes are
consumers overall assessment of a brand.

Brand image has not to be created, but is automatically formed. The brand image includes
products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually
brand content. When the consumers purchase the product, they are also purchasing it’s image.
Brand image is the objective and mental feedback of the consumers when they purchase a
product. Positive brand image is exceeding the customers expectations. Positive brand image
enhances the goodwill and brand value of an organization.

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To sum up, “Brand image” is the customer’s net extract from the brand.

Brand Identity Brand Image

1 Brand identity develops from the source or Brand image is perceived by the receiver or the
the company. consumer.

2 Brand message is tied together in terms of Brand message is untied by the consumer in the
brand identity. form of brand image.

3 The general meaning of brand identity is The general meaning of brand image is “How
“who you really are?” market perceives you?”

4 It’s nature is that it is substance oriented or It’s nature is that it is appearance oriented or
strategic. tactical.

5 Brand identity symbolizes firms’ reality. Brand image symbolizes perception of

consumers

6 Brand identity represents “your desire”. Brand image represents “others view”

7 It is enduring. It is superficial.

8 Identity is looking ahead. Image is looking back.

9 Identity is active. Image is passive.

10 It signifies “where you want to be”. It signifies “what you have got”.

11 It is total promise that a company makes to It is total consumers’ perception about the
consumers. brand.

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Focus on shaping your brand identity, brand image will follow.

Brand personality

Brand personality is the way a brand speaks and behaves. It means assigning human personality
traits/characteristics to a brand so as to achieve differentiation. These characteristics signify
brand behaviour through both individuals representing the brand (i.e. it’s employees) as well as
through advertising, packaging, etc. When brand image or brand identity is expressed in terms
of human traits, it is called brand personality. For instance - Allen Solley brand speaks the
personality and makes the individual who wears it stand apart from the
crowd.Infosys represents uniqueness, value, and intellectualism.

Brand personality is nothing but personification of brand. A brand is expressed either as a

personality who embodies these personality traits (For instance - Shahrukh Khan and Airtel,
John Abraham and Castrol) or distinct personality traits (For instance - Dove as honest, feminist
and optimist; Hewlett Packard brand represents accomplishment, competency and influence).
Brand personality is the result of all the consumer’s experiences with the brand. It is unique and
long lasting.
Brand personality must be differentiated from brand image, in sense that, while brand image
denote the tangible (physical and functional) benefits and attributes of a brand, brand personality
indicates emotional associations of the brand. If brand image is comprehensive brand according
to consumers’ opinion, brand personality is that aspect of comprehensive brand which generates
it’s emotional character and associations in consumers’ mind.

Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look
and feel of any communication or marketing activity by the brand. It helps in gaining thorough
knowledge of customers feelings about the brand. Brand personality differentiates among brands
specifically when they are alike in many attributes. For instance - Sony versus Panasonic. Brand
personality is used to make the brand strategy lively, i.e, to implement brand strategy. Brand
personality indicates the kind of relationship a customer has with the brand. It is a means by
which a customer communicates his own identity.

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Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures
immediate awareness, acceptability and optimism towards the brand. This will influence
consumers’ purchase decision and also create brand loyalty. For instance - Bollywood actress
Priyanka Chopra is brand ambassador for J.Hampstead, international line of premium shirts.

Brand personality not only includes the personality features/characteristics, but also the
demographic features like age, gender or class and psychographic features. Personality traits are
what the brand exists for.

Brand awareness

Brand awareness is the probability that consumers are familiar about the life and availability of the
product. It is the degree to which consumers precisely associate the brand with the specific product. It is
measured as ratio of niche market that has former knowledge of brand. Brand awareness includes both
brand recognition as well as brand recall. Brand recognitionis the ability of consumer to recognize
prior knowledge of brand when they are asked questions about that brand or when they are shown that
specific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or
heard. While brand recall is the potential of customer to recover a brand from his memory when given
the product class/category, needs satisfied by that category or buying scenario as a signal. In other
words, it refers that consumers should correctly recover brand from the memory when given a clue or
he can recall the specific brand when the product category is mentioned. It is generally easier to
recognize a brand rather than recall it from the memory.

Brand awareness is improved to the extent to which brand names are selected that is simple and
easy to pronounce or spell; known and expressive; and unique as well as distinct. For instance -
Coca Cola has come to be known as Coke.

There are two types of brand awareness:

1. Aided awareness- This means that on mentioning the product category, the customers
recognize your brand from the lists of brands shown.
2. Top of mind awareness (Immediate brand recall)- This means that on mentioning the
product category, the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to which
consumers make product-related decisions with the brand present or not. For instance - In a

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store, brand recognition is more crucial as the brand will be physically present. In a scenario
where brands are not physically present, brand recall is more significant (as in case of services
and online brands).

Building brand awareness is essential for building brand equity. It includes use of various
renowned channels of promotion such as advertising, word of mouth publicity, social media like
blogs, sponsorships, launching events, etc. To create brand awareness, it is important to create
reliable brand image, slogans and taglines. The brand message to be communicated should also
be consistent. Strong brand awareness leads to high sales and high market share. Brand
awareness can be regarded as a means through which consumers become acquainted and familiar
with a brand and recognize that brand.

Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another
brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive
buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent
to which a consumer constantly buys the same brand within a product category. The consumers remain
loyal to a specific brand as long as it is available. They do not buy from other suppliers within the
product category. Brand loyalty exists when the consumer feels that the brand consists of right product
characteristics and quality at right price. Even if the other brands are available at cheaper price or
superior quality, the brand loyal consumer will stick to his brand.

Brand loyalty

Brand loyal consumers are the foundation of an organization. Greater loyalty levels lead to less
marketing expenditure because the brand loyal customers promote the brand positively. Also, it acts as
a means of launching and introducing more products that are targeted at same customers at less
expenditure. It also restrains new competitors in the market. Brand loyalty is a key component of brand
equity. Brand loyalty can be developed through various measures such as quick service, ensuring
quality products, continuous improvement, wide distribution network, etc. When consumers are brand
loyal they love “you” for being “you”, and they will minutely consider any other alternative brand as a
replacement. Examples of brand loyalty can be seen in US where true Apple customers have the brand's
logo tattooed onto their bodies. Similarly in Finland, Nokia customers remained loyal to Nokia because
they admired the design of the handsets or because of user- friendly menu system used by Nokia

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phones.

Brand loyalty can be defined as relative possibility of customer shifting to another brand in case there is
a change in product’s features, price or quality. As brand loyalty increases, customers will respond less
to competitive moves and actions. Brand loyal customers remain committed to the brand, are willing to
pay higher price for that brand, and will promote their brand always. A company having brand loyal
customers will have greater sales, less marketing and advertising costs, and best pricing. This is because
the brand loyal customers are less reluctant to shift to other brands, respond less to price changes and
self- promote the brand as they perceive that their brand have unique value which is not provided by
other competitive brands.

Brand loyalty is always developed post purchase. To develop brand loyalty, an organization should
know their niche market, target them, support their product, ensure easy access of their product, provide
customer satisfaction, bring constant innovation in their product and offer schemes on their product so
as to ensure that customers repeatedly purchase the product.

Brand Associations are not benefits, but are images and symbols associated with a brand or a brand
benefit. For example- The Nike Swoosh, Nokia sound, Film Stars as with “Lux”, signature tune Ting-
ting-ta-ding with Britannia, Blue colour with Pepsi, etc. Associations are not “reasons-to-buy” but
provide acquaintance and differentiation that’s not replicable. It is relating perceived qualities of a
brand to a known entity. For instance- Hyatt Hotel is associated with luxury and comfort; BMW is
associated with sophistication, fun driving, and superior engineering. Most popular brand associations
are with the owners of brand, such as - Bill Gates and Microsoft, Reliance and Dhirubhai Ambani.

Brand associations

Brand association is anything which is deep seated in customer’s mind about the brand. Brand should
be associated with something positive so that the customers relate your brand to being positive. Brand
associations are the attributes of brand which come into consumers mind when the brand is talked
about. It is related with the implicit and explicit meanings which a consumer relates/associates with a
specific brand name. Brand association can also be defined as the degree to which a specific
product/service is recognized within it’s

product/service class/category. While choosing a brand name, it is essential that the name chosen
should reinforce an important attribute or benefit association that forms it’s product positioning.

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Brand associations are formed on the following basis:

• Customers contact with the organization and it’s employees;
• Advertisements
• Word of mouth publicity;
• Price at which the brand is sold;
• Celebrity/big entity association;
• Quality of the product;
• Products and schemes offered by competitors;
• Product class/category to which the brand belongs;
• POP ( Point of purchase) displays; etc
Positive brand associations are developed if the product which the brand depicts is durable,
marketable and desirable. The customers must be persuaded that the brand possess the features
and attributes satisfying their needs. This will lead to customers having a positive impression
about the product. Positive brand association helps an organization to gain goodwill, and
obstructs the competitor’s entry into the market.

Brand Promise - Our brand is a promise of what we deliver

Brand evokes the responses. There are many people who love their Apple iPod or love their car
etc. There are certain feelings that come to your mind when you think about your favorite brands.
People expect that these brands should demonstrate brand promises every time whenever they
are, encountered. Inconsistencies in the performance of services can lead to damage in further
relations. This can cause a customer to select some other brand.
Brand promise is what you say to the customer and what is to be delivered. If you are not able to
meet the expectations of the customer, your business will either flounder or die. If you are not
able to deliver the brand promise you will not be able to meet the expectations that have been
created in the customers mind.

There are three major mistakes that the business leaders make while executing and developing
the brand promise:

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The first mistake is when you refuse to recognize the customer expectations that are created in
customers mind before it comes in contact with that particular brand. The customers are very
easily able to realize your brand promise by the business you are dealing with. For example, if
you have a gourmet restaurant then the customers will have a image in their mind that it will
different from the local restaurant. This is one of the major reason, why one should work for
every smallest detail. For example, the image of a gourmet restaurant does not include plastic
menus or paper placemats.

The second major mistake is to implement a system which gives a negative experience to the
customer. Business leaders work on creating efficient results for saving time and money. Human
beings are self-centered creatures with a thought in their mind to save money and time for us. For
example, a customers asks do you accept credit card? Do you accept all credit cards or only
master card and visa? If you don’t accept these cards, does it make any difference in the cost? Its
just that you are losing sales. Then what are the other services you are giving to the customer in
place which is the attraction for the customers. Any small inconvenience which will force the
customer to say that “you are not completely service oriented” and encourages the customer to
some other brand.

The third major mistake is that when you are not able to hire the best candidate. You easily hire
anyone who applies and don’t even put some efforts to train them gives a really terrible
experience to the customers. Brand promises are delivered by the staff. If your goal is to be a
business leader you will invest time to train the staff. If you select a person who is very polite
and does not even know how to dress up for an interview then you competition should send a
thank you card for all the business you will send his way.
People who want to become the business leader understand they are a great product brands. They
are authentic, dependable and reliable. Their icon is their name. Delivering the best of
themselves is their brand promise. Do you want to become winner at working? Then, deliver the
brand promise.

Steps in Building a Brand Name Product or Service

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At times, organizations are often inspired by a variety of ideas to create products and services
which can be offered locally or globally. Generally, such products or services require the
establishment of a brand or company name. Often these brands include both logo and lettering
and can do a long way in advertising such products or services. Therefore, one of the most
important steps in building a Brand is decide upon a brand name for the product or service one
wishes to sell.

Branding is a process that allows an individual or a group of individuals the ability to provide a
brand image and lettering to an idea. Upon doing so, one has a better chance of selling such
items to a broader audience whether that be on a local or global level. Therefore, while the old
adage “nothing happens until somebody sells something,” still stands true to some extent, at
times almost seems as if the process of advertising and branding has overtaken the desire to sell.
Although branding generally identifies the company and philosophies behind same, it can also be
representative of those working for such a company. This is a good thing as it generates the right
type of audience to the product or service being sold based on personal relationships with those
running the company. Therefore, benefiting both the organizations selling the branded product or
service and the dealers buying same.

One of the most important steps in selling any product or service is the belief one holds in
relation to the item. Therefore, only those who strongly believe in the products and services
offered by the company are going to be good at selling same. Otherwise, one may want to work
from an advertising or graphic artist perspective in relation to advertising rather than sales when
it comes to time to market same.

Another step is to build a brand that maintains loyalty with its customer base and has a strong
customer service department. For, having such a department in today's world where one is both
experienced and knowledgeable when it comes to helping others can be a rare find. So,
companies who represent oneself has having a strong customer base and even stronger customer
service department are often more successful than those who do not.

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A very important step in marketing a brand is to identify the target audience before creating the
logo and lettering in relation to marketing. This is because different age groups react differently
to a variety of logo and lettering especially as so much is misrepresented by a variety of gangs
and others using such material inappropriately. Therefore, if one can define the brand name, logo
and lettering and present same to a marketing research review panel or the like, one may be able
to gain a better understanding of which audience one needs to direct their product or service to in
order to create the most sales. Still, if one can communicate the use of their product or service
clearly, establish trust within the community, be that locally or globally, aim marketing at the
right audience, build a base of buyers and customer loyalty and offer great customer service, then
one is on their way to not only creating and advertising an excellent brand but selling one as
well.
Therefore, when looking for steps in building a brand, there are many steps which one can
complete to help make the creation of such brand an easier task. These include, knowing your
audience, building your brand, finding a great logo and lettering to represent same, targeting the
appropriate audience and placing a number of ads in as many online and offline advertising
venues one can find. For, after doing so, one may just find that they are selling even more
products and services than one had ever dreamed possible.

Brand Equity - Meaning and Measuring Brand Equity

Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined
as the differential impact of brand knowledge on consumer’s response to the Brand Marketing.
Brand Equity exists as a function of consumer choice in the market place. The concept of Brand
Equity comes into existence when consumer makes a choice of a product or a service. It occurs
when the consumer is familiar with the brand and holds some favourable positive strong and
distinctive brand associations in the memory.

Brand Equity can be determined by measuring:

 Evaluating the Brand Image for various parameters that are considered
significant.
 Evaluating the Brand’s earning potential in long run.

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 By evaluating the increased volume of sales created by the brand compared to

other brands in the same class.
 The price premium charged by the brand over non-branded products.
 From the prices of the shares that an organization commands in the market
(specifically if the brand name is identical to the corporate name or the consumers
can easily co-relate the performance of all the individual brands of the
organization with the organizational financial performance.
 OR, An amalgamation of all the above methods.
Factors contributing to Brand Equity
 Brand Awareness
 Brand Associations
 Brand Loyalty

Perceived Quality: refers to the customer’s perception about the total quality of the brand. While
evaluating quality the customer takes into account the brands performance on factors that are
significant to him and makes a relative analysis about the brand’s quality by evaluating the
competitors brands also. Thus quality is a perceptual factor and the consumer analysis about
quality varies. Higher perceived quality might be used for brand positioning. Perceived quality
affect the pricing decisions of the organizations. Superior quality products can be charged a price
premium. Perceived quality gives the customers a reason to buy the product. It also captures the
channel member’s interest. For instance - American Express.

Other Proprietary Brand Assets: Patents, Trademarks and Channel Inter-relations are proprietary
assets. These assets prevent competitors attack on the organization. They also help in
maintaining customer loyalty as well as organization’s competitive advantage.
Brand Equity & Customer Equity
Brand Equity is defined as value and strength of the Brand that decides its worth whereas
Customer Equity is defined in terms of lifetime values of all customers.

Brand Equity and Customer Equity have two things in common-

Both stress on significance of customer loyalty to the brand

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Both stress upon the face that value is created by having as many customers as possible paying
as high price as possible.
But conceptually both brand equity and customer equity differ. While customer equity puts too
much emphasis on lower line financial value got from the customers, brand equity attempts to
put more emphasis on strategic issues in managing brands.
Customer Equity is less narrow alternative. It can overlook a brands optional value and their
capacity effect revenues and cost beyond the present marketing environment. Just as customer
equity can persist without brand equity, brand equity may also exist without customer equity. For
instance I may have positive attitude towards brands - McDonald and Burger King, but I may
only purchase from McDonald’s brand consistently.

To conclude, we can say brands do not exist without consumer and consumer do not exist
without brands. Brands serve as a temptation that utilizes other intermediaries to lure the
customers from whom value is extracted. Customers serve as a profit-medium for brands to
encash their brand value. Both the concepts are highly co-related.

Brand Extension - Meaning, Advantages and Disadvantages

Brand Extension is the use of an established brand name in new product categories. This new
category to which the brand is extended can be related or unrelated to the existing product
categories. A renowned/successful brand helps an organization to launch products in new
categories more easily. For instance, Nike’s brand core product is shoes. But it is now extended
to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to
a brand extension is referred to as parent brand. If the customers of the new business have values
and aspirations synchronizing/matching those of the core business, and if these values and
aspirations are embodied in the brand, it is likely to be accepted by customers in the new
business.
Extending a brand outside its core product category can be beneficial in a sense that it helps
evaluating product category opportunities, identifies resource requirements, lowers risk, and
measures brand’s relevance and appeal. Brand extension may be successful or unsuccessful.

Instances where brand extension has been a success are-

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i. Wipro which was originally into computers has extended into shampoo, powder, and
soap.
ii. Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of
chocolate.

Instances where brand extension has been a failure are-

i. In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand
for. It thought that taste was the only factor that consumer cared about. It was wrong. The
time and money spent on research on new Coca Cola could not evaluate the deep
emotional attachment to the original Coca- Cola.

ii. Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to
move away from its niche, it hasn’t had much success. When it experimented with fizzy
fruit drink “Oranjolt”, the brand bombed even before it could take off. Oranjolt was a
fruit drink in which carbonates were used as preservative. It didn’t work out because it
was out of synchronization with retail practices. Oranjolt need to be refrigerated and it
also faced quality problems. It has a shelf life of three-four weeks, while other soft-
drinks assured life of five months.
Advantages of Brand Extension
Brand Extension has following advantages:
1. It makes acceptance of new product easy.
a. It increases brand image.
b. The risk perceived by the customers reduces.
c. The likelihood of gaining distribution and trial increases. An established brand
name increases consumer interest and willingness to try new product having the
established brand name.
d. The efficiency of promotional expenditure increases. Advertising, selling and
promotional costs are reduced. There are economies of scale as advertising for
core brand and its extension reinforces each other.
e. Cost of developing new brand is saved.
f. Consumers can now seek for a variety.

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g. There are packaging and labeling efficiencies.

h. The expense of introductory and follow up marketing programs is reduced.
2. There are feedback benefits to the parent brand and the organization.
a. The image of parent brand is enhanced.
b. It revives the brand.
c. It allows subsequent extension.
d. Brand meaning is clarified.
e. It increases market coverage as it brings new customers into brand franchise.
f. Customers associate original/core brand to new product, hence they also have
quality associations.

Disadvantages of Brand Extension

1. Brand extension in unrelated markets may lead to loss of reliability if a brand name is
extended too far. An organization must research the product categories in which the
established brand name will work.
2. There is a risk that the new product may generate implications that damage the image of
the core/original brand.
3. There are chances of less awareness and trial because the management may not provide
enough investment for the introduction of new product assuming that the spin-off effects
from the original brand name will compensate.
4. If the brand extensions have no advantage over competitive brands in the new category,
then it will fail.

Co-branding - Meaning, Types and Advantages and Disadvantages

What is Co-branding
Co branding is the utilization of two or more brands to name a new product. The ingredient brands help
each other to achieve their aims. The overall synchronization between the brand pair and the new
product has to be kept in mind. Example of co-branding - Citibank co-branded with MTV to launch a
co-branded debit card. This card is beneficial to customers who can avail benefits at specific outlets
called MTV Citibank club.

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Types of Co-branding
Co-branding is of two types: Ingredient co-branding and Composite co-branding.
1. Ingredient co-branding implies using a renowned brand as an element in the production of
another renowned brand. This deals with creation of brand equity for materials and parts that are
contained within other products. The ingredient/constituent brand is subordinate to the primary
brand. For instance - Dell computers has co-branding strategy with Intel processors. The brands
which are ingredients are usually the company’s biggest buyers or present suppliers. The
ingredient brand should be unique. It should either be a major brand or should be protected by a
patent. Ingredient co-branding leads to better quality products, superior promotions, more access
to distribution channel and greater profits. The seller of ingredient brand enjoys long-term
customer relations. The brand manufacture can benefit by having a competitive advantage and
the retailer can benefit by enjoying a promotional help from ingredient brand.
2. Composite co-branding refers to use of two renowned brand names in a way that they
can collectively offer a distinct product/ service that could not be possible individually.
The success of composite branding depends upon the favourability of the ingredient
brands and also upon the extent on complementarities between them.

Advantages and Disadvantages of Co-branding

Co-branding has various advantages, such as - risk-sharing, generation of royalty income, more
sales income, greater customer trust on the product, wide scope due to joint advertising,
technological benefits, better product image by association with another renowned brand, and
greater access to new sources of finance. But co-branding is not free from limitations. Co-
branding may fail when the two products have different market and are entirely different. If there
is difference in visions and missions of the two companies, then also composite branding may
fail. Co-branding may affect partner brands in adverse manner. If the customers associate any
adverse experience with a constituent brand, then it may damage the total brand equity.

STRATEGIC BRAND MANAGEMENT PROCESS

It emphasizes the need to consider not just how to build and advertise brands, but how best to leverage
them, how to identify the position that they hold and how to protect past brand investment. The

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strategic management brand management process involves 4 steps;

1. Identifying and establishing brand positioning
Brand positioning is defined as the act of designing the company’s offer and image so that it occupies a
distinct and value place in the customer’s mind
Key concepts;
Points of difference convinces consumers about the advantages and differences over the
competitors
Mental map Visual depiction of the various associations linked to the brand in the mind of
consumers
Core brand associations Sub set of associations that is both benefits and attributes which best
characterize the brand
Brand mantra That is the brand essence or the core brand promise also known as the brand DNA.
2. Planning and implementation of brand marketing programs
Key concepts;
Choosing brand elements;
Different brand elements here are logos, images, packaging, symbols, slogans
Integrating the brand into marketing activities and the support marketing program; These
programs and activities make the biggest contributions and can create strong favorable and unique
brand associations in a variety of ways
Leveraging secondary associations; Brands may be linked to a certain source factors such as
countries, characters, sporting or cultural events. In essence the market is borrowing or leveraging
some other associations for the brand to create some associations of brand’s own and improve brand
equity

3. Measuring and interpreting the brand performance

Brand audit-is assessment of the source of equity of the brand and to suggest ways to improve and
leverage it.
Brand value chain-it helps to better understand the financial impacts of the brand marketing
investments and expenditure
Brand equity measurement system- is a set of tools using which marketers can take tactical

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decision in the short and long run.

Growing and sustaining brand equity.

Defining the brand strategy-captures the brand relationship between the various products or
services offered by the firm using the tool of brand product matrix, brand hierarchy and brand
portfolio.
Managing brand equity over time-requires taking a long term view as well as a short term view
of marketing decision as they will affect the success of the future marketing programs.
Measuring brand equity over geographic boundaries, market segments and culture- marketer
need to take into account international factors, different types of consumers and the specific knowledge
about the experience and behaviour of the new geographies or markets segments when expending the
brand overseas or into new markets segments

HOW TO BUILD STRONG BRAND

BRAND STRATEGY
Is how, what, where, when, and whom you plan on delivering on your brand messages.
Clear identity
Every strong brand has a clear image and identity that people can quickly recognize and identify
themselves. It is important to know exactly what to represent to the outside world

An exceptional quality of products and services

Providing the absolute best quality products and services that no one else can match in the market
place. One can create a brand that is unique and different, or brands that covers a specific niche’s
expectations in the way possible

Clear target audience

Usually brands have a small group of dedicated followers, who truly love and support it. They
understand the identity of the brand, the core message and what it stands for. If a brand has this core
group of people who are truly excited about everything that it is doing, then many others will usually
follow suit as well

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Having a higher purpose

A brand should serve a higher purpose to make the whole a better place with the products and truly
make a difference

Have a good story to tell

Many brands also have great stories to tell about how they first started, about how they become
successful, and about who were the initial founders of the company and how they lived their lives.
Exclusivity
As a brand, it is usually better to have it be somewhat exclusive and as something that you have to pay
a premium price for. People subconsciously believe that a product has a higher price will also have
better quality and more add-ons as well.

Listen to the needs of the customer

It is vital to make sure that product and services it provides are really built upon the needs, desires and
expectations of the customer, instead of what the business owners feel that the client should have to
buy.

Good customer’s services

Nowadays in addition to having good products and good services to offer, it is essential to do it in a
kind, respectful and friendly way to the end consumer. The better you treat the customer, the more
likely he/she is going to come back aswell.

Corporate social responsibility

Catering for the community, providing money to charities and foundation in order to aid communities
in which they do business in is very essential in building a strong brand. By supporting various
foundations and charities, the brand will show itself not only as a business to just make money for its
shareholders, but also as something that has a higher purpose to make a positive difference in the world
as well.

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CHOOSING BRAND ELEMENTS

A brand element is visual or verbal information that serves to identify and differentiate a product.
The most common brand elements are brand name, logos, symbols, characters, packaging and
slogans.
Brand elements can be chosen of enhance brand awareness or facilitate the formation of strong,
favourable and unique brand associations

Criteria for choosing brand elements

In general there are six criteria in choosing brand elements and these are; memorability,
meaningfulness, likability, transferability, adaptability and protectability.
The first three can be characterized as ‘brand building’ in nature and concern how brand equity can be
built through judicious choice of a brand element.
The later 3 are however more ‘defensive’ in nature and concerned with how the brand equity contained
in a brand element can be leveraged and preserved in the face of different opportunities and constraints.

Memorability
a necessary condition for building brand equity and achieve a high level of brand awareness to achieve
the goal brand elements can be chosen that are inherently memorable and therefore facilitating recall
and recognition in purchase and consumption settings examples the content and visual properties,
nature of names, symbols and logos make them more attention getting and easy to remember
Meaningfulness
brand elements can also be chosen for its inherent meaning that enhances the formation of brand
associations two dimension- general information about the nature of the product category descriptive to
what extent does the brand element suggest something about the product category
specific information about particular attribute and benefits of the brand

Likability
 fun and interesting
 rich visual and verbal imagery
 aesthetically pleasing

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Transferability
the less specific the name , the more easily it can be transferred across categories for example Amazon
connotes a massive South American river can be appropriate for variety of different type of products
non meaningful names translate well into other languages for example when coca cola shipped to china
they named the product that when pronounced sounded like coca cola but the problem was with the
characters which meant ‘ bite the wax tadpole’ they later changed to a set of characters that mean ‘
happiness is in the mouth’

Adaptability
Because of the changes in the consumers’ values and opinions or simply because of a need remain
contemporary brand elements often must be updated overtime The more adaptable and flexible the
brand element is, the easier it is to update

Protect ability
Legal protected on international and local basis
Formally registered with the appropriate legal bodies
This vigorously defend trade marks from unauthorized competitive infringements and reduce the likely
hood that competitor can imitate the brand
Options and tactics for brand elements

Brand names
Descriptive names which describe the function of the brand for example Zimbabwe airline, ivory.
Suggestive names, suggestive of the benefit for example standard chartered, Eveready
Compounds- combination of two or more, often unexpected words for example bon-marchie
Fanciful- coined words with no obvious meaning e.g. Kodak

Logos and symbols

The visual brand elements often play a critical role in building brand equity, especially in terms of
brand awareness. Logos are means to indicate origin, ownership or association
For example an apple for bon Marche

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Slogans These are short phrases that communicate descriptive or persuasive information about the
brand Play an important role in packaging and other aspects of marketing programs. For example TV
Sales and Home- Guaranteed quality furniture and appliances

Packaging
Packaging helps in brand identification, convey descriptive and persuasive information, facilitate
product transportation and protection, assist at home storage and aid product consumption.

COMMUNICATING THE BRAND

Brand can be communication internally and externally, internally it will be communicated to the
employees and eternally to the public. By internally the employees will be trained about the brand
through workshops. The employees have to know much about the brand before the public, as the
employees are the ones who will reflects the brand to the public. To the public the brand will be
communicated through the use of promotional mix tools which includes advertising, sales promotion,
personal selling and publicity.

Advertising is any paid, non personal presentation of information about a product, brand, company or
store. It usually has an identified sponsor. Advertising is intended to influence consumers’ affect and
cognitions their evaluations, feelings, knowledge, meanings, beliefs, attitudes, and images concerning
products and brands. In fact, advertising has been characterized as image management: creating and
maintaining images and meanings in consumers’ minds. Even though ads first influence affect and
cognition, the ultimate goal is to influence consumers’ purchase behaviour.

Advertisements may be conveyed via a variety of media the Internet, TV, radio, print (magazines,
newspapers), billboards, signs, and miscellaneous media such as hot-air balloons or T-shirt
imprints. Although the typical consumer is exposed to hundreds of ads daily, the vast majority of these
messages receive low levels of attention and comprehension. Thus, a major challenge for marketers is
to develop ad messages and select media that expose consumers, capture their attention, and generate
appropriate comprehension. For example; for many years, Nike Corporation used print ads and

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billboards featuring strong visual images of athletes Carl Lewis long jumping, Michael Jordan leaping
for the basket, or unknown ordinary people jogging and little else.
Sales promotions are direct inducements to the consumer to make a purchase. TV advertising may be
more glamorous, but more money is spent on sales promotions in the Zimbabwe. The many types of
sales promotions including temporary price reductions through coupons, rebates, and multipack sales;
contests and sweepstakes; trading stamps; trade shows and exhibitions; point-of-purchase displays; free
samples; and premiums and gifts make defining them difficult.
According to Parker Lindberg, past president of the Promotion Marketing Association of America, the
key aspect of sales promotions is to “move the product today, not tomorrow. A sales promotion gets
people to pick the brand and try it by offering something concrete a premium, cents off, or whatever.”
In sum, most sales promotions are oriented at changing consumers’ immediate purchase behaviours.

Coupons directed at consumers remain the most popular form of sales promotion, with cents-off
promotions in second place. Other forms of sales promotions, particularly coupons distributed in the
store (electronically at the checkout or via dispensers on the shelf), have increased in popularity, as has
the old standby, sampling (giving away free or trial samples of new products)

Personal selling involves direct personal interactions between a potential buyer and a salesperson.
Personal selling can be a powerful promotion method for at least two reasons. First, the personal
communication with the salesperson may increase consumers’ involvement with the product and/or the
decision process. Thus, consumers may be more motivated to attend to and comprehend the
information the salesperson presents about the product.Second, the interactive
Communication situation allows salespeople to adapt their sales presentations to fit the informational
needs of each potential buyer. Certain consumer products, such as life insurance, automobiles, and
houses, are traditionally promoted through personal selling. In retailing, personal selling has decreased
over the past 20 years as self-service has become more popular. However, some retailers, like Econet,
have established a differential advantage by emphasizing personal selling and customer service.
Besides lots of personal attention from a courteous sales staff, customers are coddled by pianos softly
playing in the store and champagne at fashion shows.

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Publicity is any unpaid form of communication about the marketer’s company, products, or brands.
For instance, an article in PC World comparing various brands of word processing software provides
useful product information to consumers at no cost to the marketers of the software. Similarly,
descriptions of new products or brands; brand comparisons in trade journals, newspapers, or news
magazines; or discussions on radio and TV talk shows provide product information to consumers.
Publicity can be either positive or negative. Nike received a bonanza of free publicity in the form of
favourable news stories about its billboard campaign. One TV news segment in Los Angeles concluded
with the reporter urging viewers to “give a honk for Nike, which has raised the billboard from visual
blight to at least camp art.” Exxon, on the other hand, received considerable unfavourable publicity
when a tanker spilled oil in a pristine bay in Alaska. Sometimes publicity can be more effective than
advertising because consumers may not screen out the messages so readily. In addition, publicity
communications may be considered more credible because they are not presented by the marketing
organization. Publicity is difficult to manage, however. Marketers sometimes stage “media events” in
the hope of garnering free publicity.

The promotion mix; Ideally, marketing managers should develop a coherent overall promotion
strategy that integrates the four types of promotions into an effective promotion mix. Major
environmental forces in the Zimbabwe over the past three decades have changed the balance of
marketing effort devoted to the various types of promotions. The share of total promotion dollars going
to media advertising has been decreasing since 1980, while spending on promotions has increased. In
2005, promotion spending was $342 billion, while ad expenditures were $143 billion.

A controversy continues in marketing about the relative importance of advertising versus sales
promotions. As you might expect, most advertising agencies argue that advertising is the best (only?)
way to create a strong consumer–brand relationship. Other marketers believe sales promotion can also
enhance the consumer–brand relationship and has more powerful effects on immediate buying
behaviours and eventual brand success. A long-range trend is occurring in which TV and print
advertising are no longer the centrepieces of a company’s promotion mix. Evidence indicates that
advertising is having a decreasing influence on consumers’ behaviours, partly owing to people’s

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increasingly hectic lifestyles and the resulting pressures on their time.

The promotion mix of the future is likely to be more eclectic with many more options, including event
sponsoring, sports marketing (e.g., Lexus sponsors tennis matches), direct marketing (sending coupons
to purchasers of a competitor’s brand), and public relations. These promotion types are being
developed partly because of the high costs of advertising and partly because of the need to target
customers more precisely.

7 STEPS TO BETTER COMMUNICATING YOUR BRAND’S STORY

1. Understand What Makes Messages Effective: A message is a succinct set of words and visuals
that conveys your values, mission, or point of view in a positive and easily understood manner.
Effective messages follow three simple guidelines. They are: easy to understand, memorable and
persuasive. Incorporating just one of these elements is often not enough; the most effective messages
take into account all three.

2. Understand What Makes Messengers Effective: Good messengers are like leaders. They need
followers or listeners they can persuade. The purpose of a messenger is to communicate key
organizational messages in such a way that listeners will hear them, understand them, and repeat them.
To be effective, focus on impactful, resonant, and real messages that drive action.

3. Practice and Repeat: When it comes to delivering effective messages across an organization, few
things are more important than practice. Some organizations with whom we work have come to chant
their “community statement” every morning, and others reserve a 30-minute block each week to
connect in person or online about the impact they’ve had in the previous five days. Keeping your
messages fresh and top of mind and reminding each other why your work is so critical is a necessary
component to ensuring that those messages become used organization-wide and not just by key
spokespersons.

4. Focus on Your Benefits, Not Your Feature: What problem do you help to solve? What critical
service do you provide? It’s more powerful to lead with your benefitsrather than with the features of
your organization (such as how many years you have been in existence or how many employees you

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have). Your features can often be found in general reading of your website, but your benefits why you
matter are often harder to find.
Getting to the true benefits of your organization can be hard to do, and many organizations falsely
assume they are clear to others. To get to the heart of why you do what you do, ask yourself the same
question five times: Why do you do what you do? But why? But why? And so on. With each answer
you write down, you’ll get closer to the real reason behind your work until you get to the heart of your
brand message.

5. Stick to the Foundation You Built: When building a home, it is critical that you lay a strong
foundation. Building an effective message framework is no different. Once you’ve established the vital
aspects of why you do what you do and you’ve found a way to deliver them effectively and with
resonance then stick to it.

6. Nail the Takeoff and the Landing: Any pilot will tell you that flying the plane isn’t that difficult
it’s the takeoff and landing that they need to practice. The same goes for communicating your brand
message. Engaging your audience early on such as with an interesting anecdote or an interactive
exercise that reinforces your main point is critical. That’s the takeoff. The landing is about re-engaging
them. You need to be able to recognize when it’s time to wrap things up. Whether you’ve reached the
end of your allotted time or the audience’s capacity, close your remarks with a tightly worded,
memorable and practiced statement.

7. Being On Message Doesn't Mean Being Robotic: Effective communication doesn’t mean you
become a robot and repeat the same message over and over. Rather, it means that you use all staff
meetings, public appearances, interviews and presentations as opportunities to deliver your messages
consistently, knowing that the more you repeat your key messages, the more your audience will
remember them.

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FACTORS THAT INFLUENCE BRAND POTENTIAL

Brand loyalty
Retailer loyalty is one retailer equity dimension which researchers such as Dick and Basu
(1994) have argued should be measured both behaviorally and attitudinally. Loyalty is a strong
commitment to rebuy or repatronise a particular product regardless of situation (Oliver,
1999).According to Aaker (1991) it is an attachment that a customer has to a brand. It reflects how
likely a customer is to switch to another brand when for example there is a change in price and
features. Brand loyalty represents a favorable attitude toward a brand resulting in consistent purchase
of the brand over time. It is the result of consumers’ learning that only the particular brand can satisfy
their needs. Loyalty implies a commitment to a brand that may not be reflected by just measuring
continuous behavior. A family may buy a particular brand because it is the low- priced brand on the
market. A slight increase in price may cause the family to shift to an- other brand. In this case,
continuous purchasing does not reflect reinforcement or loyalty. The stimulus (product) and reward
links are not strong. Brand loyalty can reflect a range from the habitual buyer to the satisfied buyer to
those that like the brand to the truly committed, generates value mainly by reducing marketing costs:
retaining existing customers is much less costly than attracting new ones. It is also difficult for
competitors to communicate to satisfied brand users because they have little motivation to learn about
alternatives

Brand awareness
It is the ability to identify the brand under different conditions linking the brand name, logo; symbol etc
to certain associations in memory (Keller, 2003). A recognized brand is more likely to be selected over
unknown brand. Brand awareness is the ability of a potential buyer to recognize or recall that a brand is
a member of a certain product category. A link between product class and brand is involved. Brand
awareness involves a continuum ranging from an uncertain feeling that the brand is recognized to a
belief that it is the only one in the product category. (Aaker 1991, 61–62) Brand awareness consists of
brand recognition and brand recall. Brand recognition relates to consumers’ ability to confirm prior
exposure to the brand when given the brand as a cue. In other words, brand recognition requires that
consumers correctly discriminate the brand as having been seen or heard previously. Brand recognition
is the minimal level of brand awareness. It is based upon an aided recall test. Brand recognition is

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particularly important when a buyer chooses a brand at the point of purchase. The next level of brand
awareness is brand recall. It relates to the consumers’ ability to retrieve the brand when given the
product category, the needs fulfilled by the category, or some other type of probe as a cue. The relative
importance of brand recognition and recall depends on the extent to which consumers make decisions
in the store versus outside the store. (Keller 1993, 3; Keller 1998, 87–92) Brand awareness can be
characterized according to depth and breadth. The depth of brand awareness concerns the likelihood
that a brand element will come to mind and the ease with which it does so. A brand that can be easily
recalled has a deeper level of brand awareness than one that only can be recognized. The breath of
brand awareness concerns the range of purchase and usage situations where the brand element comes to
mind. The breadth of brand awareness depends to a large extent on the organization of brand and
product knowledge in memory. (Keller 1998, 88) Brand awareness creates value in different ways.
Brand awareness provides the anchor to which other associations can be linked. Recognition provides
the brand with a sense of familiarity and people like the familiar.

Brand perceived quality

Perceived quality can be defined as the customer’s perception of the overall quality or superiority of a
product or service relative to alternatives. Perceived quality cannot necessarily be objectively
determined, because perceived quality itself is a summary construct. (Aaker 1991, 85–86) Perceived
quality is valuable in several ways. In many contexts, the perceived quality of a brand provides a
pivotal reason to buy. It is influencing which brands are included and excluded from the consideration
set and which brand is to be selected. A principal positioning characteristic of a brand is its location
within the dimension of perceived quality. A perceived quality advantage provides the option of
charging a premium price. The price premium can increase profits and/or provide resources with which
to reinvest in the brand. Perceived quality can also be meaningful to retailers, distributors and other
channel members and thus aid in gaining distribution. Channel members are motivated to carry brands
that are well regarded. In addition, the perceived quality can be exploited by introducing brand
extensions, using the brand name to enter new product categories. A strong brand with respect to
perceived quality will be able to extend further, and will find a higher success probability than a weak
brand.

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Brand associations
These are informational nodes linked to a brand node providing meaningful information about the
brand for consumers (Keller, 2003; Krishnan, 1996). Ultimately, the success of a brand and a retailer
depends on how closely the images of the selling organization and the brands meet the expectations of
the consumer. A brand association is any mental linkage to the brand. Brand associations may include,
for example, product attributes, customer benefits, uses, life-styles, product classes, competitors and
countries of origins. The association not only exists but also has a level of strength. The brand position
is based upon associations and how they differ from the competition. An association can affect the
processing and recall of information, provide a point of differentiation, provide a reason to buy, create
positive attitudes and feelings and serve as the basis of extensions. The associations that a well-
established brand name provides can influence purchase behavior and affect user satisfaction. Even
when the associations are not important to brand choices, they can reassure, reducing the incentive to
try other brands.

Other proprietary assets

These are patents, trade- marks and channel relationships.
Brand Performance
Brand performance relates to the ways in which the product or service attempts to meet customers'
more functional needs. Thus, brand performance refers to the intrinsic properties of the brand in terms
of inherent product or service characteristics. How well does the brand rate on objective assessments of
quality? To what extent does the brand satisfy utilitarian, aesthetic, and economic customer needs and
wants in the product or service category?
The specific performance attributes and benefits making up functionality will vary widely by category.

Brand Imagery
Brand imagery deals with the extrinsic properties of the product or service, including the ways in
which the brand attempts to meet customers’ more psychological or social needs. Brand imagery is
how people think about a brand abstractly rather than what they think the brand actually does. Thus,
imagery refers to more intangible aspects of the brand. All different kinds of intangibles can be linked
to a brand, but five categories can be highlighted:

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User profiles
The type of person or organization who uses the brand. This imagery may result in a profile or mental
image by customers of actual users or more aspirational, idealized users. Associations of a typical or
idealized brand user may be based on descriptive demographic factors or more abstract psychographic
factors. In a business-to-business setting, user imagery might relate to the size or type of organization.
Purchase situations
Under what conditions or situations the brand could or should be bought and used. Associations of a
typical purchase situation may be based on a number of different considerations, such as: Type of
channel for example department store, specialty store, or direct through internet or some other means,
Specific store, Ease of purchase and associated rewards, if any.
Usage situations
Under what conditions or situations the brand could or should be used. Associations of a typical usage
situation may be based on a number of different considerations, such as: Particular time of the day,
week, month, or year to use the brand; Location to use the brand (e.g., inside or outside the home); and
Type of activity where the brand is used (e.g., formal or informal).
Personality and values
As noted above, brands may also take on personality traits and values similar to people. Brand
personality is often related to the more descriptive usage imagery but involves much richer, more
contextual information.
History, heritage, and experiences
Finally, brands may take on associations to their past and certain noteworthy events in the brand
history. These types of associations may involve distinctly personal experiences and episodes or be
related to past behaviours and experiences of friends, family, or others. For example, take a brand with
rich brand imagery, such as Nivea skin cream in Europe. Some of its more intangible associations
include: family/shared experiences/maternal; mult-purpose; classic/timeless; and childhood memories.

Brand Judgments
Brand judgments focus upon customers' own personal opinions and evaluations with
Regard to the brand. Brand judgments involve how customers put together all the different
performance and imagery associations for the brand to form different kinds of opinions. Although

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customers may make all types of judgments with respect to a brand, four types of summary brand
judgments are particularly important:
1) Brand quality
Among the most important attitudes that customers may hold relates to the perceived quality of the
brand. Other notable attitudes related to quality pertain to perceptions of value and satisfaction.
2) Brand credibility
Customers may form judgments that transcend more specific brand quality concerns. Brand credibility
refers to the extent to which the company or organization making the product or providing the service
as a whole is seen as being:
1) Competent, innovative, and a market leader (brand expertise);
2) Dependable and keeping customer interests in mind (brand trustworthiness);and
3) Fun, interesting, and worth spending time with (brand likeability).
3) Brand consideration
Consideration deals with the likelihood that customers will actually include the brand in the set of
possible options of brands they might buy or use. Consideration depends in part on how personally
relevant customers find the brand, i.e., the extent to which customers view the brand as being
appropriate and meaningful to themselves.
4) Brand superiority
Finally, superiority relates to the extent to which customers view the brand as unique as and better
than other brands. Do customers believe that the brand offers advantages that other brands cannot?

Brand Feelings
Brand feelings are customers' emotional responses and reactions with respect to the brand. Brand
feelings also relate to the social currency evoked by the brand. What feelings are evoked by the
marketing program for the brand or by other means? How does the brand affect customers’ feelings
about themselves and their relationship with others? These feelings can be mild or intense and be
positive or negative in natur

a) 8 KEYS TO BRANDING EXCELLENCE

Today businesses and consumers are placing increasing importance on brands .Brands give use
identity, stimulate our senses and enrich our life experiences. It is a human need to affiliate and

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surround ourselves with things we know, trust and aspire to be. Strong brands with unique
appeals championed by passionate leaders are becoming the body and soul of the 21st century
businesses. Strong brands create profitable business. A strong brand is characterised by a unique
brand promise and an outstanding brand delivery.

1. Commitment to consumer understanding

One of the key success factors an organisation needs is serious commitment in understanding the
customers. While it is the responsibility of the marketing department to drive market research,
the commitment to understand their customers is also embraced by senior management staff
including the CEO. This can be implemented by regular visits by the management team to the
homes of its products’ users and the retail stores to understand the user’s product experience. In
addition, the management team can also sit in the company’s interviews and dialogues with their
customers although the market research work might be outsourced to vendors. Hence, by being
in touch with their customers, the CEO would hardly be caught by surprise from changes in
consumers’ behaviour.

To institutionalise its disciplined focus on branding, an organisation should reveal that the CEO’s
position in the organisation is typically filled by key staff from the marketing department in the
organisation and not recruited externally. This is the strong branding-centric culture in the
company which is vital in ensuring success in an organisation’s branding efforts. Therefore the
company’s culture and approach towards branding cannot be easily duplicated by other
companies even if the organisation’s middle level managers join their competitors.

2. Pushing brand innovation

The company should believe in product innovation to stay competitive, it should prefer to seek
out big innovative ideas to develop and market its products rather than spreading its resources
across many smaller ideas. The marketing team can adopt a ‘Funnel of Idea Generation’
approach which involves pulling together information on consumers’ usage habits, their
understanding of human emotions and their insights on the consumer goods industry, in active
brainstorming and rigorous debate to arrive at game changing ideas. Thereafter, the big idea can
be implemented across product development, packaging, advertising, at each stage of the

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development. More importantly, the initiative can be considered successful only when the
consumers acknowledge the incremental development to the brand through rewarding the brand
with increased sales.

3. Brand-Building with a Purpose

An organisation should believe in developing purpose- inspired brands that touch and improve
the lives of its customers. It is important to give ‘Soul’ to the brand by clearly articulating how it
serves the needs, wants, motivations or eliminate the frustrations of its customers. For any brand
to be well-received, it must develop deeper into human insights by seeking to meet the
unfulfilled needs of consumers instead of just focusing on product consumption. Equally
important is a good understanding of the local conditions where the product is marketed. As an
example, An organisation such which is involved in hair up keeping materials can highlight how
the ‘Head & Shoulders’ brand for dandruff can be revived as a result of appealing the product to
the deep-seated needs of consumers living in temperate climates. The product can be developed
to treat dandruff condition but then consumers truly desire to have healthy & beautiful hair to
enhance their attractiveness. Since marketing the medical efficacy and the aesthetics benefits of
the product at the same time might dilute the brand messaging, The organisation can decide to
develop 2 commercials to highlight the duo-benefits of the product. It can then engage an
attractive dermatologist to endorse the medical efficacy of the product in one commercial and
then feature a celebrity actress going out on a date during winter in another.

It has been observed that dry weather climate typically aggravate the dandruff condition and
people dread seeing specks of white dandruff on their dark-coloured clothing. In the latter
commercial, the weather condition can be played to the brand’s full advantage as it demonstrated
that beautiful dandruff-free hair is possible despite the dry climate. The celebrity can play an
attractive female character with beautiful hair in the commercial and will be absolutely at ease at
having her partner stand close to her without him spotting dandruff on her clothes. Thus an
intimate understanding of consumers’ needs coupled with thoughtful marketing execution can
eventually propel ‘Head & Shoulders’ as the No. 1 Dandruff Brand.

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4. Building Market Ready Capabilities

Consumer products companies, rely very much on the support from their retail partners,
agencies and suppliers to help their products succeed in the marketplace. Hence, an organisation
can believe in investing in mutually rewarding relationship with its partners as it could help
improve its competitive market advantage and maintain standards of excellence for all parties.
Organisations can do that by building on its capabilities to add value to their partners as it aims
to be a business partner of choice. Some of the capabilities an organisation can use to win the
confidence of their partners include having clear company strategy, strong business
fundamentals, innovative marketing programmes and owning reputable and reliable brands in its
product range.
5) Exploiting economies of scale advantage
An organisation can enjoy economies of scale from mass production as its business spans across
the globe. It was able to create scale advantages by allocating resources more strategically and
efficiently than any individual business. While it’s the nature of the consumer products industry
to keep rejuvenating its products through product enhancement & packaging, An organisation
can succeeded in applying the scale advantage to the production of seemingly different products.
For example Le Sel can point to the adoption of clever product design to the shampoo &
conditioner bottles in many of its product lines. The shampoo & conditioner bottles can be
inverted copies of each other they can share the same bottle cap design which will allow Le Selto
reap the cost benefits from its mass production.

An organisation can also apply its scale advantage in its media & marketing contracts in its
agency appointments. In marketing its brands across different geographical regions,
organisations might require their agency to produce localised versions of its media campaign for
different markets and to work on it quickly. Through contract arrangements, organisations can
work quickly with the local office to launch and/or review its marketing programmes for the
location instead of referring the project back hence saving on time & travelling expenses for the
company.
6) Memorable Logo Design
Brands are not built overnight and the benefits of brand building is usually realised in the longer
term. In the short term, it helps to have a memorable logo design to increase the mindshare of the

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

brand. Various organisations have very interesting logo design. A memorable logo design
creates brand awareness. Brand awareness is defined as the customers’ ability to recall and
recognise the brand, as reflected by their ability to identify the brand under different conditions
thus linking the brand, the brand name, logo and symbol. Promotions, specifically advertising
play a critical role in creating brand awareness. In developing awareness, brand name and image
are important in affecting perceptions attitudes (Aker, 1996) that results from appropriate
memorable logo .Thus a memorable logo influences positively and directly the brand knowledge
and finally the consumers’ response, the brand logo influence positively and directly all
components of the retail brand image. In conclusion when a brand is well known, has high brand
awareness, it is easily recognised in the market place and is easily recalled when faced with a
brand-related need. A high level of awareness with the target market is a necessary dimension for
a strong brand.
7) Dedicated employees
Many large organisations like Virgin and Nike have succeeded in cresting strong brands with
powerful band promises. Through listening to customer needs and via consultation with
employees they have been able to identify brand values which form the backbone of how they do
business with the customer and how employees are managed. If an organisation recruits
employee customer-oriented people who can sell the brand with commitment, the brand is likely
to succeed Employees cannot be brand advocates if they do not understand the brand .Therefore
it is important to communicate the organisation’s brand to employees. Employees put a face on
corporate brand to consumers, the community and prospective employees.
8. Efficient and Effective Communication
Communication is simply transmitting ideas, information messages, experiences between two
parties that is the sender and receiver. An organisation should implement efficient and effective
communication, that uses all the target group touch points and synchronising all actions.
Branding your products and effectively communicating is essential in determining success in
marketing and building value for your products and organisation. Effective communication can
be attained by advertising. Advertising informs, persuades and reminds the consumers directly or
indirectly about the brand available. Advertising also bears the burden of building strong brands.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

a) BRAND HIERARCHIES AND HOW TO PROFIT FROM THEM:

Brand hierarchy is the structure of brands within the organization entity. It is the way in which
the brands within a company portfolio are related to and differentiated from one another. The
hierarchy should define leagues of branding within the organization, how the corporate brand
and the sub brands relate to and support each other and how the sub brands reflect or reinforce
the core purpose of the corporate brand to which they belong. Often decisions about brand
hierarchy are concerned with how to manage a parent brand and a family of sub brands (kotler
2008). It can also be referred to as brand architecture.

Where architecture fits

Brand Architecture is part of corporate strategy. It should be established prior to creating a brand
strategy.
 Produces better long-term strategy that is customer-insight driven and encompasses brand
platforms with long-term growth potential
 Minimizes waste and inefficiency by building fewer stronger brands with less overlap
 Actively manages the linkages between brands to leverage credibility in support of new
opportunities

When to revisit brand architecture

Brand architecture is revisited when companies change strategic direction, or reach key turning
points in the business
 Sizable business unit is acquired or sold
 Existing portfolio or structure hinders the effective pursuit of future growth opportunities.
 Brands are losing relevance in the marketplace
 Brands have been stretched beyond their credibility and effectiveness
 Too many or too few brands in the portfolio to achieve business objectives
 Co-branding opportunity presents itself.

Potential levels of brand hierachy

Corporate/ master brand: these are consumer facing brands used across all firms activities It is
characterised by a single and unique brand level, often the corporate name, and that of the
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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

company itself this name is how they are known to all their stakeholders thus consumers
employees shareholders partners suppliers and other parties.example Econet

Umbrella brand: is characterized by a single brand level: the products are not given a daughter
brand. They may possibly be given code names, but only with the aim of identifying them in
catalogues or price lists.
Individual brand: the individual brands are presented to consumers and the parent company
name is given little or no prominence. example pot o gold
Family brand:
How to profit from brand hierachy
there are three main ways in which a company can brand its product when introducing a new
product
1. Companies can develop a new brand individually chosen for the new product
2. Companies can apply in some way one of its existing brands
3. Or it can use a combination of the two an existing and a new brand

Brand hierarchy strategies

Product to brand strategy
It is widely known that a brand is at the same time a symbol, a word, an object and a
concept: a symbol, since it has numerous facets and it incorporates figurative symbols such as
logos, emblems, colours, forms, packaging and design; a word, because it is the brand name
which serves as support for oral or written information on the product; an object, because the
brand distinguishes each of the products from the other products or services; and finally, a
concept in the sense that the brand, like any other symbol, imparts its own significance – in other
words, its meaning. The product–brand strategy involves the assignment of a particular name to
one, and only one, product (or product line) as well as one exclusive positioning. The result of
such a strategy is that each new product receives its own brand name that belongs only to it.

Line brand strategy

the line responds to the concern of offering one coherent response under a single name by
proposing many complementary products. This goes from variations of the offer. It should be

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

clear that the line involves the exploitation of a successful concept by extending it but by staying
very close to the initial product The disadvantages of the line strategy lie in the tendency to
forget that a line has limits. One should only include product innovations that are very closely
linked to the existing ones.

Endosing brand strategy

The endorsing brand gives its approval to a wide diversity of products grouped under product
brands, line brands or range brands. The brand endorsement can be indicated in a graphic manner
by placing the emblem of the endorser next to the brand name or (when signed above, it acts as
maker’s mark) by simply signing the endorser’s name. Each particular product name evokes a
forceful image and has a power of recall for the consumer. There is little image transfer to the
endorser. for example When Nestlé puts its name on the chocolate Crunch and Galak, on the
bars Yes, Nuts and Kit Kat and on Nescafé, Nesquik, etc, the corporate brand is endorsing the
quality of the merchandise and acts as a maker’s mark. The Nestlé name dispels the incertitude
that certain products can create. Nestlé takes a back seat position. The product itself is the
driver of the consumers’ choice; it is the hero to the extent that few customers of Crunch
attribute it to Nestlé.
Umbrella brand strategy
The umbrella brand strategy is characterized by a single brand level: the products are not given a
daughter brand. They may possibly be given code names, but only with the aim of identifying
them in catalogues or price lists.
Brand hierarchy benefits
 Provides competitive advantage via optimal market coverage
 Clarifies strategy by identifying gaps and overlaps
 Provides leverage through marketing efficiencies for existing brands and line extensions
 Eases planning by prioritizing investments and showing what to do with acquired
brands
 Facilitates development of visual identity systems

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

b) 3 KEY DRIVERS OF BRAND EQUITY

The three key drivers of brand equity are brand image, brand trust and brand satisfaction.
This study is aimed to investigate the relationship between brand image, brand trust, brand
satisfaction and brand equity. Brand equity is something that is characterized as an intangible
asset and a hidden value which is inherent from a well known brand (Yasin et al., 2007).

A Consumer would be willing to pay more for a brand which holds higher brand equity this all is
because of attractiveness of the name attached with a product (Bello and Holbrook, 1995).It was
found that brand trust, brand image and brand satisfaction are the significant factors of the brand
equity. Brand equity makes an emotional linkage or bond between brand and customer; this is
the most important asset for each and every organization. The value of a brand to consumer is
generally referred as customer based brand equity (Keller, 1993). This study is using three
measures to analyze brand equity these three measures are brand image, brand trust and brand
satisfaction.

Brand Image includes what are the consumer opinion, experiences, and attitudes toward a
company or organization and their brand as compared with that of competitors. A well-
communicated image could enhance the brand’s market performance (Shocker and Srinivasan
1979). While Trust is defined as the confidence that one will find what is desired from another,
rather than what is feared (Deutsch, 1973) and the most important determinant of brand equity is
customer satisfaction. Satisfaction can be broadly characterized as a post-purchase evaluation of
product quality given pre-purchase expectation. (Emrah Cengiz, 2010).

DESIGNING AND IMPLEMENTING A BRAND EQUITY MEASUREMENT SYSTEM

Brand equity measurement system is a system designed to effectively measure source and
outcome of branding strategies there by providing a set of information which can be given to
decision makers to act on, available at www.managementstudyguide.com. There are two ways to
designing a measurement system, one of which is an indirect method were emotional changes
in consumers are sorted and recorded. The other system relies on direct measurement method
which measures consumer’s response towards a brand in terms of sales (these are measured and
analysed).

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Our approach to measuring brand equity is customer-based, concentrating on measures related to

the consumer mindset; that is, the associations, evaluations and relationships customers have
toward the brand. A brand's foundations are, therefore, composed of peoples' intangible mental
associations about it. In placing a value on a brand, we are placing a value on the strength and
resilience of those associations". The brand equity model has been developed to fulfil four main
requirements. First, the model should be logical, well integrated, and well founded. Further, the
model should be based on state-of-the-art thinking within branding, from an academic as well as
a practical point of view. Second, the model should be simple, yet sufficiently comprehensive to
include the most important brand strength topics. Third, the model should be applicable to all
possible types of brands and industries to ensure comparability of the measurements. Fourth, the
model should be diagnostic and actionable, i.e. the model’s estimates should provide relevant
information to support brand management strategy and decisions.
The whole process starting from finalizing of marketing program to end result in the form of
financial cash flow is evaluated through the value chain:
 The first value step is to setup a marketing investment were the current brand equity is
analyzed and program designed. Here particular attention is given to quality of program
design by asking relevant questions.
 After execution of the program, consumer mindset in new environment is analyzed to see
whether there has been any expected impact.
 One can also then look at the competitors reaction and understand how the market has
reacted to the program. The immediate action would be to see how consumers have
reacted to the brand (their behaviour): positive if marketing program has hit the mark and
vice-versa. If positive it can be seen by definite creation of shareholder value in terms of
improved profit and increase in stock price.
 It is good to conduct an audit to track efficiency and measure proper utilization of
investor money. This tracking can be done in respect of product brand, usually a survey
after any purchase. This is a tracking for brand performance and brand appeal. Next it
tracks overall feeling associated with the brand purchase and specific attributes which
have created an impression.
 Another form of tracking is corporate brand tracking which is a sort of umbrella
tracking where you track everyone in the family. These tracking activities are likely to

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

generate a lot of information for decision making processes which will lead to the setting
of a brand equity report thereby creating a perfect brand equity measurement and
management system.
I.e. Brand equity report provides descriptive and diagnostic information as to what is
happening with a brand and why.

e) EFFECTIVE BRAND EXTENTION STRATEGIES

Brand Extension is the use of an established brand name in new product categories. This new
class to that the brand is extended are often related or unrelated to the present product classes. A
renowned/successful brand helps a corporation to launch product in new classes with ease. An
existing brand that offers a brand extension is termed as parent brand. If the parent brand is
extended to multiple products through brand extensions, then it is going to even be referred to as
family brand.
Brand extensions broadly fall under two different categories:
Line extensions: When marketers apply the parent brand to a new product that targets new
market segment within a product category the parent brand already serves is called line extension
(Surf – Surf Excel, Surf Excelmatic).
Category extensions: When marketers apply the parent brand to enter a different product
category from the one it currently serves (like Parachute hair oil to Parachute body lotion).
Brand extension strategies are used largely by companies because they believed that the brand
extension strengthens the positioning of brand, increases the brand awareness, enhances the
association with quality, and enhances the trial rate by reducing the perceived risk involved in
the new product. India reports more than eighty percent of new products additions using brand
extensions methodology. A brand that is being extended into same product and new product
category enhances and improves their market share and brand equity in the long run (Lane and
Jacobson, 1995).
Steps involved in choosing brand extension strategy:
1. Describe actual and desired knowledge about the brand: 2. Identify possible extension
opportunities 3. Evaluate the potential of the extension possibilities a. To create equity – three
factor model b. To study the effects – four factor model 4. Consider possible competitive
advantages as perceived by consumers and possible reactions initiated by the competitors 5.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Design Marketing campaign to launch extensions 6. Evaluate extension success and effects on
parent brand equity
The article will focus more on step 5 which deals with developing an effective marketing
communication and campaign that will maximize the equity of brand extension as well as the
equity of the parent brand.

ommunicate messages/benefits associated with the

line extension. To accomplish this, a common tactic is to use the parent brand name to convey
credibility and to transfer those parent brand benefits and values that will enhance the appeal of
the line extension. And, of course, from a sales perspective, the intention is usually to build
overall brand sales while minimizing cannibalization.
Advertising a Line Extension:
As per research across a wide range of campaigns has identified three basic creative strategies
that are employed in the launch advertising for line extensions. Each strategy has inherent
strengths and weaknesses in its ability to generate engagement, effectively communicate the
brand and its benefits, and to successfully create awareness and trial. An examination of the
likely performance of campaigns of each of these three types can prove useful in identifying the
strategy most likely to succeed for your line extension, and in suggesting specific steps to
overcome possible weaknesses that accompany each strategy.

Strategy 1: UTILIZE THE PARENT BRAND CAMPAIGN

Incorporating the line extension into the existing brand campaign enables an advertiser to
capitalize on pre-existing campaign equities, and may provide a means to build awareness of the
line extension without the expense of funding an entirely new campaign. Parle Agro has
employed this strategy in advertising the Fizz line of beverage products. Initially the product was
launched in tetra pac as Appy and then relaunched as Appy Fizz with tag line “Cool Drink to
Hang Around With”. Parle’s Fizz with its distinct bottle shaped similar to champagne and smart
advertising, succeeded in making a Fizz in the target segment, which is the Indian Youth.
Demand surged in the college canteens for this drink, Appy Fizz caught the fancy of the early
adapters. Later the brand was extended with the introduction of Grappo Fizz.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

In a TVC of the brand, Appy Fizz introduces his cousin, Grappo Fizz to everyone. As always,
Appy Fizz has maintained its hip and happening image in this ad, probably a ‘Fizz family’
tradition. The new entry of purple colored drink from the fridge and then a cool hand shake – a
perfect mixture of everything that pulls the youth. Having positioned its product variant, Fizz as
a cool and happy drink, now Parle Agro has done the same for its newly launched product
variant, Grappo Fizz.

In general, this strategy tends to be effective at generating high levels of engagement and brand
linkage because people are already familiar with the campaign. However, integrating a line
extension into an existing campaign also comes with a serious risk of failing to communicate
either the identity of the line extension or its unique benefits versus the parent brand. In order for
this strategy to be effective, the advertiser should create a strong focus on the line extension and
the benefits that differentiate the new product from the parent brand. After studying many of the
line extension advertising, this strategy–while often generating strong engagement and building
usage of the parent brand–has the lowest chance of the three strategies in generating trial of the
line extension. The main reason for failure: the tendency of the consumer to link a campaign
with which they are already familiar with the parent brand and not the line extension.
Strategy 2: EXECUTE A COMPLETELY NEW CAMPAIGN
Another option is to create an entirely new campaign for the line extension. This strategy is often
perceived to require a substantially greater financial investment, given the developmental,
production and media costs associated with a new campaign launch.

A recent campaign that utilized this strategy was Nestle’s launch of the Nestea brand. This
campaign looked nothing like traditional Nestle’s Nescafe advertising, with Nestea positioned
not as an extension of the brand, but as a lifestyle product for the youth. The brand stands for
being modern and comfortably fits in the gap between soft drinks and hard drinks. The tagline
for Nestea is 'Lighten Up with Refreshingly Light Lemon Iced Tea!' and addresses the multi-
tasking, impatient consumer to take it easy with this chilled drink.
In general, creating a completely new campaign for the line extension offers the strongest way to
communicate and differentiate the new product’s benefits. However, this strategy carries more
risk than does utilizing a campaign with some familiar elements. As such, completely new

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

campaigns on average tend to have less success at generating engagement than launches that use
at least some existing campaign equities.
And because parent brand equities are not being exploited, new campaigns for line extensions
are also at a clear disadvantage in generating brand linkage, as is true with advertising for new
campaigns and new brands in general.

Strategy 3: DEVELOP A NEW CREATIVE APPROACH, BUT BUILD IN KEY

EQUITIES FROM THE PARENT BRAND CAMPAIGN
The third option is a blended approach: employing specific brand equities from the parent brand
advertising, while making a brand new campaign that focuses on the distinctive benefits of the
line extension. This approach typically uses spokes people, musical signatures, story types, and
other brand campaign elements that have overtime, been successfully linked in the mind of the
consumer with the parent brand. However, the specific focus of the line extension executions is
on line extension benefits; as such, specific stories, creative approaches and/or other elements are
adapted or re-created.
For years, Dettol has been a well-known brand of antiseptic lotion. The brand name has been
extended to number of related products such as Dettol Soap, Dettol Handwash and Dettol
Sanitizer by reinforcing the germ killing positioning and the tagline "Be 100% sure". Using
hygiene at its core, Dettol is trying to enhance the usage of the product among the households.
Dettol is in a position to ride this wave only because of its high brand equity.

When well-executed, this strategy can capitalize on both the parent brand equities and the unique
benefits of the line extension. On average, this blended approach that utilizes core brand
campaign equities has the highest chance of gaining correct brand associations for the line
extension and is also most likely to produce trial of the line extension. However, hitting the right
balance is crucial, as a significant risk of mis-associations with the parent brand may present for
this type of campaign.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

MANUFACTURER VS RETAILER BRANDS

Manufacturer brands
Manufacturer brands are created by producers and bear their chosen brand name. the producer is
responsible for marketing the brand. The brand is owned by the producer.
Manufacturer brands are designed, produced and marketed by a vendor and sold by many
retailers. They are often widely recognized by consumers because of large national advertising
campaigns. Manufacturer brands are trusted by retailers because they help them to build their
image and increase traffic flow. Olivine, ProBands and Red Seal are examples of manufacturer
brands. Branding applied to goods that are produced and sold by a manufacturer who owns the
rights to the brand is manufacturer branding. Manufacturer brands are created by producers and
bear their chosen brand name.

Manufacturer brands can play different roles for brand architecture of retailers. When customers
have strong preferences for and are loyal to certain manufacturer brands, it is important for
retailers to include these brands in their assortments inorder to meet customer expectations
manufacturer brands can also be used to build traffic for example, by luring customers into stores
by having certain products on offer.

The marketing effort of a manufacturer's brand is to attract customers loyal to the manufacturer's
name. For example, many successful clothing designers, operating on this principle, have
licensed their manufacturer's brand name outside the clothing category to include cosmetics,
perfumes and even jewellery.
Advantages
 A manufacturer brand can place a premium price for a product as well as retain
customers for life.
 They are often widely recognized by consumers because of large national advertising
campaigns.
 Manufacturers gain wide spread distribution (for example by retailers who want to sell
the brand) and build customer loyalty.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Disadvantages
 Manufacturer brands are available in several competing chains and this increases
completion and lowers sales in the retail stores.
 A shopper might conceivably have no choices between stores if the same manufacturer
supplies all the stores in one area.

Retail brands
A retail brand is a product or service that either carries the brand of the retailer or a separate
brand name that is controlled by the retailer. These were sometimes called private labels. They
refer to those products promoted and carrying a name associated with the retailer or wholesaler,
but of the manufacturer. Supersaver in TM and, Shoppers Choice in OK are examples of private
label store brands.
Advantages
 Whereas manufacturer brands are included to an extent to maintain competitive parity,
retail brands can help differentiate the retailer from its competitors because the retail
brands are only available in the store of one particular retailer, while manufacturer brands
are typically available in several competing retail chains.
 According to Davies (1998), retail brands can be used to create brand equity for the
retailer or retailers can transfer brand equity from their store to the brands they create and
sell.
 Own brands help to stimulate competition and innovation between retailers for example,
by providing an additional dimension on which retailers can compete with each other.
Innovation such as the introduction of niche sub-brands, allows retailers to win customers
by differentiating their offerings from rival chains.
 Retail brands provide new routes to market for small suppliers and they allow retailers to
work more closely with their suppliers to source the products that consumers demand.
They can also help retailers to achieve better terms and lower input prices from both own
brand and branded suppliers.
 Own brands help customers to deliver new products and value for money. Customers of
own brands benefit indirectly were increased competition from own brands forces

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

branded alternatives to compete more vigorously in terms of offering higher quality,

increased levels of innovation or lower prices.
Disadvantages
Development costs
Unlike in the case of supermarkets it is not easy to develop own brands in the clothing industry
because it is difficult to negotiate to develop your brands for example it is easy for OK
Zimbabwe with Irvines and agree on a template that will be used in packaging shoppers Choice
eggs but Edgars can do the same with its suppliers because clothes comes in various ranges and
assortment. Thus Edgars faced the above mentioned challenge as they had to develop their own
brands themselves and the development costs are high.
It is not immediately known by the customers who the manufacturer is.

STRATEGIC SIGNIFICANCE OF RETAIL OWN BRANDS

A retail own-brand is a product or service that either carries the brand of the retailer or a separate
brand name that is controlled by the retailer. These are developed and managed by retailers.
Therefore retailers make significant investments in designing merchandise, managing
production, creating awareness and developing a favorable image, (Levy and Weitz, 2006).
Retail own-brands offer a lot of benefits to the retailer, consumers and suppliers.
Consumers
New products and value for money
Own-brands provide benefits to consumers, for example by helping to deliver new products and
value for money. In addition to the direct benefits to consumers of own-brands, consumers of
other brands benefit indirectly where increased competition from own-brands forces branded
alternatives to compete more vigorously in terms of offering higher quality, increased levels of
innovation and lower prices.
Quality goods
Own-brands represent choice and the opportunityto regularly purchase quality products and
services at considerablesavings compared to buying national brands. Own brands are made of the
same or comparable ingredients as the national brands and because it will carry a retailers name
or symbol on the package, the consumer is assured that the product is manufactured to your

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

store’s qualitystandards and specifications. To consumers high quality is much more important
than lower prices.
Retailers
Stimulate competition and innovation
Own-brands help to stimulate competition and innovation between retailers. For example by
providing an additional dimension on which retailers can compete with each other. Own-brand
innovation such as the introduction of niche sub-brands, allows retailers to win customers by
differentiatingtheir offerings from rival chains.
Allows a closer relationship with the suppliers
Own-brandsallow retailers to work more closely with their suppliers to source the products that
consumersdemand. They can also help retailers to achieve better terms and lower input prices
from both own-brand and branded suppliers. In the case of own-brand suppliers in particular,
lower input prices for retailers may be result of improvedretailer bargaining power, but may also
result from reduced supplier costs such as scale efficiencies and the absence of brand
development costs. To the extent that retailers can achieve better terms from suppliers, it is more
likely to be of benefit to retailers and ultimately consumers.
Enhance image
Own-brands will enhance the image of theretailer and strengthen the relationship with customers.
Customers can buy a national brand anywhere, but they can only buy your own brand at your
store.
Customer loyalty
Retailers use own brands to increase business as well as to win the loyalty of their customers.
The exclusivity of a retail brand assist in building customer loyalty and decreases store switching
behavior because store brands are store specific.
Competitive advantage
Innovation and quality have become major elements in the retail own brands. With innovative
features or superior quality retail own brands are clearly distinguished from other types of brands
and can therefore be said to possess a degree of product advantage that creates a competitive
advantage for retailers. This competitive advantage then differentiates the retailer from its
competitors.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Own- brand performance

Own- brand performance refers to the financial benefits own- brands bring to retailers, such as
profitability and market share. A brand’s performance is positively associated with its product
quality (Aaker, 2004). Quality retail own- brands have achieved success in battles with national
brands. The gross margin of retail own- brands can be twenty to fifty percent higher than
national brands. Higher sales or higher gross margins increase the profits of the retailer.
Suppliers
New routes to market
The existence of retail own-brand provides new routes to market for small suppliers to produce
for mass markets which they may otherwise struggle to access given the costs and risks involved
in developing a new brand.

STRATEGIC PERSPECTIVES OF OWN BRANDS

Private labels currently constitute an important marketing tool, and retailers tend to develop their
private label products for various reasons or objectives. Each of these objectives is analyzed
below:
Cost Perspective
Private labels do not compete for shelf space, and, in these brands, slotting allowances and
distribution payments are not considered. Private labels can provide high profit margins, as they
are better presented in the store and are sold at lower prices than are national brands. By
controlling the advertising and promotion costs of private label products in the market, retailers
can offer discounts to consumers in great quantities. Private labels offer lower prices, owing to
their manufacturing costs, inexpensive packaging, minimal advertising, and lower overhead
costs.

There is also a relationship between economic conditions and consumers’ preference for private
label products. For retailers, private label products will be influenced less by negative economic
conditions. The development of private label products has followed a periodic term. In negative
economic conditions, consumers’ discretionary income falls and the demand for private label
products rises. However, the popularity of national brands increases when the economy gets
better.Also there is high promotional costs for own brands.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Relationship Perspective
Retailers develop their private label products by taking into account consumers’ wants and
needs. Private labels, as a part of strategic marketing plans, provide a better focus for consumers
and differentiate the retailer from its rivals. Retailers are the same as one another in their
merchandise resources, colors, styles, assortments, and also usually prices and presentations.
However, retailers that present their private labels using branding techniques separate themselves
from the competition and differentiate themselves. Private labels are considered a fundamental
tool for a successful differentiation strategy. Thus, retailers that give consumers a different
choice with their private label products are able to have a different position in the market.
Retailers have the power of high pricing for their private labels due to their rivals’ selling only
national brands. Retailers primarily have to take account of the fact that a brand has an image
and that that image is in consumers’ minds. They also have to look at which brands have which
positions in consumers’ minds. If they want to compete successfully, the action point must be
consumers’ minds. Thus, it will be possible to reach more consumers, and retailers that get a
position in consumers’ minds with their private label products will be able to occupy a different
position in the market compared with their rivals. Retailers wish to be not only sellers that sell
products produced by manufacturers, but also to be the businesses whose private labels are
chosen by consumers and produced by themselves.

Private labels also allow retailers to fill the gaps in their product assortments that the
manufacturers have neglected. Clearly, retailers use private labels in order to reinforce the store
image and to get a position in the consumer’s mind. This has resulted in diverting loyalty from
the brand to the store. If the retailer is successful with its private label products, or if its private
label products are chosen by consumers, they will have to return to the same store to buy private
label products. This is because private label products are only sold in the store of the retailer who
owns the brand. The retailers that develop relationships between consumers and private label
products and gain an advantage over their rivals will also support efforts toward developing new
products. Because the feedback process of learning consumers’ reactions toward private label
products works in retailers’ favor, this period carries with it important data that the retailers will
use in developing new products.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Retailers utilize not only a low pricing strategy, but also give importance to other factors like
product quality, product development, packaging, and better presentation of the product in the
store. As manufacturers of nationally branded products, retailers also have to understand
consumers, determine their wants and needs, and develop brands that can present several benefits
to consumers and that have considerably different characteristics than other brands.
differentiation, loyalty, and profitability. For instance, OK actively markets its private label
products and positions these products as high-quality alternatives to national brands. OK seems
to understand that positioning private labels on the basis of lower prices may signal lower quality
rather than greater value

Market-Based Perspective
When the national branded manufacturers increase their products’ prices without a reason,
retailers can increase their control of shelf space by enlarging it, and can thereby compete with
national brands. Retailers, by marketing their private labels, reduce the number of national
brands in the shelf space. Retailers also have the advantage of presenting low-cost private label
products and introducing more price alternatives to consumers. Consumers receive savings if
they prefer private labels. However, the most important factor in private labels is the
development of the products’ quality. Retailers present product variety to consumers with their
private label products, and, compared with national brands, they offer the chance of buying
quality products cheaper. At the same time, retailers use private labels as a tool in order to
control the channel and lessen the dependence of the store on national brands . Through this
practice, developing and marketing private label products against national brands (and also
manufacturers), retailers increase their bargaining power.

Retailers that cannot be easily imitated by rival retailers and that can build a different store image
will have also obtained an important competitive position. From this point of view, the store
image (being the result of functional and psychological characteristics) for the retailers
influences the buying decision period and consumers’ behavior. Some studies have shown that
consumers have positive attitudes towards private labels if they have a positive image of the
retailers that constitute their product assortments with high quality national branded products and
have a good image can also reinforce their image by presenting their private label products. If

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

they have high-quality private label products in stock that are wanted by consumers, they can
reinforce their image. Although retailers have a powerful image, they cannot build a brand image
that is less desired by consumers, or even not desired by them at all. Retailers must have this fact
in their consciousness. Besides, stocking these high-quality national branded products in addition
to private labels can develop consumers’ preferences about the retailer’s image and also both of
them can obtain the retailer as a brand over time.

In addition, retailers must pay attention to other cues about product quality associated with
private labels, like the attractiveness of packaging, labeling, and brand image, as well as the
image of the store itself which may transfer to consumers’ perceptions of private label quality.
Meanwhile, the name or the retailer’s logo may be put on the products’ packages. Thus,
consumers’ interest can be attracted not only to products, but also to retailers Private label
products with retailers’ names placed prominently on the packages become a means of
advertising for the retailers’ own stores and carry the retailers’ name to consumers’ homes .For
this reason, retailers may grow as a brand by using their names and logos on the products’
packages .

REATAIL OWN BRANDS IN ZIMBABWE

There are a few companies in Zimbabwe who have their own brands for example: OK
Zimbabwe, TM supermarket, SPAR, Edgars, Barbours and Greatermans, Econet, Telecel and
Netone.
 OK ZIMBABWE- the company is the leading supermarket retailer whose business
covers three major categories which are groceries, basic clothing and textiles and
household products. The company has developed its own brands through the Pot ‘O’
Gold, OK Value, Shoppers’ Choice and Bon Marche’ Premier Choice labels. Examples
of products sold with own brands are tissue paper, sweets, eggs etc.
 TM and Pick n’ Pay supermarkets- the company is amongst the leading supermarket
retailers in Zimbabwe with more than fifty branches nationwide. It sells groceries and
household products. The company has its own brands called Super saver and Real Value
respectively. Examples of products sold buy own brands include tissue paper, mealie-
meal, eggs, bread etc.

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 Edgars – the company specialise in selling basic clothing and shoes, school wear and
facial products. It has its own brand called Kelso and almost all its products are from
their own brand.
 Barbours and Greatermans- these are the leading departmental stores nationwide. They
sale clothing wear, furniture, electric appliances, school wear, cosmetics etc. The
company has its own brand called Meikles and its products are in the clothing sector
only. The products include leggings, viscose sporting wear and casual trousers.
 Econet- the company is the leading telecommunications provider in Zimbabwe. It
provides solutions in mobile and fixed telephony, internet access and payment solutions.
It has its own brands for example, Buddie, Ecocash and Business partna.
 Telecel- the company is amongst the leading telecommunications provider in Zimbawe. It
has its own brands like Mega Juice and Telecash.

Selection of retail own brands

There is no one right type of name for every brand in the world, but in many cases a myth
prevails that prevents companies from selecting the name that will do the most of the and with
less effort and money expended. Above any other brand asset, the name is the most essential to
prove the road to distinction. The name is the entry point and retailers should pick a name that
reflects their brand identity. They must ensure that it is properly registered and protected for the
long-term.
There are certain points that should be considered by retailers before selecting their own name,
which are:
 How will your name look? – ( as part of a logo)
 what connotations does it evoke- (does it reflect your business culture and does it appeal
to your market)
 Is it unique- (pick a name that has not been claimed by others)

Retailers can start by deciding what they want their name to communicate, the brand name
should reinforce the key elements of the business. The more the name communicates to
consumers about the business, products or services, the less effort the retailer exerts to explain it.

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Consumers prefer words they can relate to and understand. After considering the above points
retailers then need to select brand names that have the following characteristics:
 The name should be descriptive and suggestive of benefits and qualities
 It should be easy to pronounce, recognize and remember
 It should be able to be registered as a trademark
 It should be easily translated
 It should be transferable- within cross product categories, across geographical
boundaries and cultures
 It should be adaptable, flexible and updateable
 It should appeal to you and to the kind of customers you are trying to attract
 It should be comforting or familiar that brings up pleasant memories so that customers
respond to your business, products or services in an emotional level
 It should be short and not confusing
Some experts believe that the best names are abstract, a blank slate upon which to create an
image. Others think that names should be informative so customers know immediately what your
business is. Some believe that invented or made-up words are more memorable than real words.
In reality any name can be effective if it is backed by the appropriate marketing activities. There
are five types of brand names a retail organization can select from when selecting its own name.
These include generic, descriptive, suggestive, arbitrary and fanciful names.

Generic or functional names

These state the function of the product. Generic names identify an entire class of products or
services. They are the weakest of all names and cannot be granted trademark protection.
Examples of such are milk, bread, dog food, salt, eggs among others. In supermarkets generic
names identify low-cost products that are not supported by advertising.

Descriptive names
A descriptive name “immediately conveys an idea of the ingredients, qualities or characteristics
of the goods or services”. The beauty of these names and why they are far and away the most
commonly embraced name type is the fact that they require little thought, little explanation and
little effort to build understanding of what the offering actually is. If descriptive names are
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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

successful they acquire a “secondary meaning” which occurs “when consumers begin to
associate the descriptive name of a product or service with only one source or maker”.
Companies often choose descriptive names even though they are weak because there are
marketing benefits associated with the name that describes the product or service. Examples of
these names are All Bran Cereal, Whole-wheat bread. What is too often overlooked though is
the fact that in their simplicity they pave the way to daunting brand challenges, like competitor
encroachment, loss of trademark, lack of distinguishing identity and consumer apathy.

Suggestive names
Suggestive names suggest meaning rather than asserting it. They “evoke or suggest a
characteristic of the underlying good”. For example Greyhound for a bus company suggests the
speed of racing dogs. Suggestive names open the door to creativity, originality and
differentiation, without losing sight of essential communication. They go beyond telling you
what the brand is and does instead they show you. They are evocative, experiential and
memorable, below are the benefits of suggestive names:
 They provide an association- they represent something bigger and more accessible than
the brands themselves. Making them more memorable, relatable, approachable and
likable. This can also pave the way to a voice and personality that set in motion a more
compelling brand identity.
 They make you think- a 2005 Wharton study about consumer preference of different
types of crayon color names in a simulated purchase decision demonstrated that
consumers place real value on typical names, attributed to the experiential enjoyment of
solving naming mysteries. A curiosity that makes us think about brands on a deeper level
a level where most descriptive names never invite us to go. The result was that
“consumers will react favorably to unusual color or flavor names for example blue haze
or Alpine snow, because they expect marketing messages to convey useful information. If
the message is not informative or does not conform to expectations consumers’ search for
the reason for the deviation. This search results in additional (positive) attributions about
the product and thus a more favorable response…”
 They fight- in a crowded competitive environment particularly one with parity products,
the brands with uniquely suggestive names routinely outperform their peers. Suggestive

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names are an intrinsic leg-up on the competition in the way that they establish instant
accessibility and likability while simultaneous paving the way to understanding
 They define- consumers prove over and over again an ability to understand naming
concepts that are not literally apparent.

Arbitrary names
These are “real” (dictionary) words used out of context, for example Shell for an oil company,
Apple for a technology company, Pot ‘O’ Gold for grocery products. Arbitrary names are even
more likely than suggestive names to receive trademark protection. They require more
storytelling to make their case. Good arbitrary names have a loose relationship to suggestiveness
in that same quality evoked by the name applied to the thing being named.

Fanciful names
These are invented names and have no inherent meaning other than the one assigned to them.
Kodak is one example. Fanciful names are considered the easiest names to protect legally.

REASONS BEHIND RETAIL OWN BRANDS

A retail own brand is a product or service that either carries the brand of the retailer or separate
brand name that is controlled by the retailer. It encompasses merchandise sold under retail stores
own name or brand name created exclusively by the retailer for that store for example Pot ‘O’
Gold brand for Ok products .Using own brands have got some economic benefits attached to it.
Retailer own brand is a product or service that either carries the brands of the retailer or a
separate brand name that is controlled by the retailer. Over time own brands have become
increasingly sophisticated rather than simply adding labels to generic products. Historically own
brands were sometimes referred to as private labels with typical examples being generic grocery
items simply labelled with the grocery retailers branding.
Retailers began by expanding their own brand ranges to offer a range of good, better and best
price/quality combinations and latter added further sub brands and niche ranges

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BENEFITS OF USING OWN BRANDS

- own branded products force branded products to compete vigorously on the market. Its a
way of differentiating itself from its competitors
- own brands help to stimulate competition and innovation between retailers and allow
retailers to work more closely with their suppliers to source the product that customer
demand
- retail own brands provides new routes to market small suppliers whilst own brands may
give retailers additional bargaining power. Retailers have no interest in forcing efficient
supplier out of the market which they benefit.
- also own brands contribute to consumer confidence, consumer loyalty
- own branded product is another way of enhancing growth and success retailers use own
brands to increase business and to win loyalty of their customers
- own brand will enhance your image and your relationship with your customers
.Customers can buy a national brand anywhere but your brand at your shop only

CHALLENGES OF RETAIL OWN BRANDS

1. The lack of ability of development and design products
Relative to the manufacturer, the retailer's expertise is timely to put forward marketable product
design ideas in according to first-hand information. But limited by production capacity and
production technology, they often can not find a suitable manufacturer, together with the monitor
production or control system is incomplete, the quality of the products may not meet their
targeting criteria, and thus undermine its own brand's reputation.

2. The lack of quality control ability

Retailer brand product quality control in the early general lack of support of science and
technology, OEM products is often a lack of technical guidance and technical control, and
therefore quality control and brand management has a gap.

3. The risk increases

As the retail brand is the variety of goods to share one or very few brands, the risk is great. In
fact, the supermarket own-brand products is their business reputation, security, described as

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"harmed, or prosperity," If any one commodity problems will more or less damage the whole
supermarket own-brand or the reputation of the Group. In addition, areas involved in expanse,
which have extended to the production from the circulation area, the scope of its risk is also from
the circulation into the production area.

4. Poor awareness of the development of own brands

Many retailers will focus on the strategy of selection of suppliers, the whole image publicity.
Efforts are not enough on brand development strategy shown in the varieties of own-brand
goods, low commercial value and no significant difference between the qualities of the goods,
which reduced the impact of its own brand.

5. Own brand name is too single

Most domestic retailers select store name as its own brand name, such as in Zimbabwe many
supermarkets use their own name as brand name. Using the same brand name has great
disadvantages. Firstly, when there is a problem of own-brand products it is easy to damage the
brand reputation of retailer; secondly, different types of products share a private brand name
which is easy for brand positioning fuzzy. Various name strategies can be used, such as creating
different products for different types of own brands, or retailers name combined with a single
product name, or the use of individual brand names, and more.

6. Low degree of consumer brand awareness

For a private own brand to be successful and profitable to the organisation, it has to be well
known by customers. If the degree of consumer brand awareness is low, then the organisation is
heading for disaster. Therefore, retailers should increase own brand access to customer
identification.

7. Substantial size
A considerable scale is the so-called retail business area, business projects and sales should reach
a certain size, only with a considerable scale, to reflect the significance of economies of scale.
Therefore, the own-brand strategy generally does not apply to all business enterprises, but it is
applicable to large commercial enterprises, especially large-scale retail enterprises.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

8. Sufficient strength
Own brand strategy implementation is a very complicated systematic project, the retailer should
do such work as brand development, design and management, market research and product
select. Otherwise, it should organize OEM production; determine commodity prices, commodity
markets and marketing strategies. Small and medium sized retailers that do not have enough
strength cannot afford all the work.

9. Good reputation
Improve the quality of goods and services give companies a good reputation, good reputation is
the main part to cultivate its own brand value. If the retailer has good corporate image and high
reputation in the mind of the consumer, then own brand from the date of the birth of will have
many features easily recognized and accepted by the vast number of consumers. While in recent
years large retailers in Zimbabwe, including the rapid development of chain business, really
achieved the scale of operations and economies of scale are not many; in recent years, new
opened shopping malls is shrinking the size in the competition or even closed, there are also
many failures, it is difficult to form a good reputation even for the domestic part of large retailers
and to develop own-brand products is only in recent years. Most retailers do not have the
capabilities of market information collection, product development, quality control and brand
strategy management.
1. Service retail brands
 Challenges of this brands
 Distinctive nature of services
 Branding of services
Service retail brands
The American Marketing Association offered the following definition of a service brands as an
entity that deals in intangible services the organization solely exist to provide the aspects of life
we cannot physical touch or see like we do with products . Services are intangible, they are
produced and consumed simultaneously. Services cannot be stored. Services are difficult to
standardize.

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Customers participate in the production process. In general, a service product is an experience

related to service consumption. Intangibility relative to products we can hold, use and consume
people find it more challenging to intangible service offerings such as checking account, internet
connection, education, energy providers consulting firms or life assurance in Zimbabwe such
examples are like Old Mutual, Econet, Google, ZBC, Psmas, MSU.

Challenges of this brands.

Intangibility

It is difficult to bring a close association with service as you cannot hold one physical. All of the
levels of the organization are involved in creating the customer experience. Unless the
organization and all of its employees are aware of the company values and messages, the service
experience will not fly. Therefore, in order to deliver a consistent service experience and be able
to do successful marketing efforts, internal communications need to be taken care of, being a
vital element in service branding success. The goal here is to express the brand in terms of verbal
and visualy

Commoditization

Sustainable points of difference based on unique benefits are especially rare in service
categories. With today’s technological advances, competitors can copy a service offering in just
weeks. Meaningful points of difference that do exist tend to perish quickly, which reinforces
parity perceptions in most service categories. Services bands cannot be measured or stored by
consumers which make them more difficult for consumers to use these brands
Complexity
To battle the commodity problem retailers often seek to differentiate themselves by adding
complexity and nuance to their core value. Yet often at times the added layers result in service
offering that goes beyond the consumers’ personal expertise and comprehension and they simple
cannot see or appreciate the added value

Inconsistency

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A service is experience based which illuminates what may be the key challenge there is no way
or it is very difficult to replicate the exact experience for each new customer. A detailed
description of the desired experience at each touch point is a must but still you can’teliminate
human inconsistency.one of the organisation which failed to maintain their consistence is
Midland’s hotel which was rated 5 star hotel in the early 80s and now it’s being rated as 3 star
hotel because they failed to be consistent
Real time
Thousands of times a day service retailers face moments of truth. Real time consumer
interactions that are opportunities to strengthen the brand by exceeding expectations or weaken it
by under delivering. To be true ambassadors the front line employees must be able not only to
translate it to the brand right behavior in their day to day moment to moment customer
interaction.
Attitudes
A service is experienced between two people thus it is difficult to determine the mood both
parties are in. some customers are naturally rude and it is difficult to socialize with some clients.
If employees are disgruntled they can be a nerve to bad service delivery for instance take
workers at NRZ the service delivery is pathetic.

Distinctive nature of Service

In services, a distinction must be made between inputs and resources. For services, inputs are the
customers themselves, and resources are the facilitating goods, employee labor, and capital at the
command of the service manager. Thus, to function, the service system must interact with the
customers as participants in the service process. Because customers typically arrive at their own
discretion and with unique demands on the service system, matching service capacity with
demand is a challenge.
For some services, such as banking, however, the focus of activity is on processing information
instead of people. In these situations, information technology, such as electronic funds transfer,
can be substituted for physically depositing a payroll check; thus, the presence of the customer at
the batik is unnecessary. Such exceptions will be noted as we discuss the distinctive

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characteristics of service operations. It should be noted here that many of the unique
characteristics of services, such as customer participation and perishability, are interrelated.

Customer Participation in the Service Process

The presence of the customer as a participant in the service process requires an attention to
facility design that is not found in traditional manufacturing operations. The presence of the
customer on-site requires attention to the physical surroundings of the service facility that is not
necessary for the factory. For the customer, service is an experience occurring in the front office
of the service facility, and the quality of service is enhanced if the service facility is designed
from the customer’s perspective. Attention to interior decorating, furnishings, layout, noise, and
even color can influence the customer’s perception of the service. An important consideration in
providing a service is the realization that the customer can play an active part in the process. A
few examples will illustrate that the knowledge, experience, motivation, and even honesty of the
customer all directly affect the performance of the service system:

Simultaneity
The fact that services are created and consumed simultaneously and, thus, cannot be stored is a
critical feature in the management of services. This inability to inventory services precludes
using the traditional manufacturing strategy of relying on inventory as a buffer to absorb
fluctuations in demand. An inventory of finished goods serves as a convenient system boundary
for a manufacturer, separating the internal operations of planning and control from the external
environment. Thus, the manufacturing facility can be operated at a constant level of output that is
most efficient. The factory is operated as a closed system, with inventory decoupling the
productive system from customer demand. Services, however, operate as open systems, with the
full impact of demand variations being transmitted to the system.

Inventory also can be used to decouple the stages in a manufacturing process. For services, the
decoupling is achieved through customer waiting. Inventory control is a major issue in
manufacturing operations, whereas in services, the corresponding problem is customer waiting,
or “queuing.” The problems of selecting service capacity, facility utilization, and use of idle time
all are balanced against customer waiting time.The simultaneous production and consumption in

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services also eliminates many opportunities for quality-control intervention. A product can be
inspected before delivery, but services must rely on other measures to ensure the quality of
services delivered.

Perishability
A service is a perishable commodity. Consider an empty airline seat, an unoccupied hospital or
hotel room, or an hour without a patient in the day of a dentist. In each case,a lost opportunity
has occurred. Because a service cannot be stored, it is lost forever when not used. The full
utilization of service capacity becomes a management challenge, because customer demand
exhibits considerable variation and building inventory to absorb these fluctuations is not an
option.
Consumer demand for services typically exhibits very cyclic behavior over short periods of time,
with considerable variation between the peaks and valleys. The custom of eating lunch between
noon and 1 P.M.

Intangibility
Services are ideas and concepts; products are things. Therefore, it follows that service
innovations are not patentable. To secure the benefits of a novel service concept, the firm must
expand extremely rapidly and preempt any competitors. Franchising has been the vehicle to
secure market areas and establish a brand name. Franchising allows the parent firm to sell its
idea to a local entrepreneur, thus preserving capital while retaining control and reducing risk.
The intangible nature of services also presents a problem for customers. When buying a product,
the customer is able to see it, feel it, and test its performance before purchase. For a service,
however, the customer must rely on the reputation of the service firm. In many service areas, the
government has intervened to guarantee acceptable service performances. Through the use of
registration, licensing, and regulation, the government can assure consumers that the training and
test performance of some service providers meet certain standards. Thus, we find that public
construction plans must be approved by a registered professional engineer, a doctor must be
licensed to practice medicine, and the telephone company is a regulated utility. In its efforts to
“protect” the consumer, however, the government may be stifling innovation, raising barriers to
entry, and generally reducing competition.

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Heterogeneity
The combination of the intangible nature of services and the customer as a participant in the
service delivery system results in variation of service from customer to customer. The interaction
between customer and employee in services, however, creates the possibility of a more complete
human work experience. In services, work activity generally is oriented toward people rather
than toward things. There are exceptions, however, for services that process information (e.g.,
communications) or customers’ property (e.g., brokerage services). In the limited customer-
contact service industries, we now see a dramatic reduction in the level of labor intensiveness
through the introduction of information technology.
Even the introduction of automation may strengthen personalization by eliminating the relatively
routine impersonal tasks, thereby permitting increased personal attention to the remaining work.
At the same time, personal attention creates opportunities for variability in the service that is
provided This is not inherently bad however unless customers perceive a significant variation in
quality A customer expects to be treated fairly and to be given the same service that others
receive. The development of standards and of employee training in proper procedures is the key
to ensuring consistency in the service provided It is rather impractical to monitor the output of
each employee except via customer complaints.

The direct customer—employee contact has implications for service (industrial) relations as well.
Autoworkers with grievances against the firm have been known to sabotage the product on the
assembly line. Presumably, the final inspection will ensure that any such cars are corrected
before delivery. A disgruntled service employee, how- ever, can do irreparable harm to the
organization because the employee is the firm’s sole contact with customers. Therefore, the
service manager must be concerned about the employees’ attitudes as well as their performance.
J. Willard Marriott, founder of the Marriott Hotel chain, has said, “In the service business you
can’t make happy guests with unhappy employees.”4 Through training and genuine concern for
employee welfare, the organizational goals can be internalized

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Branding of services
In essence branding is adding value to what you have or you intend to market. In most articles of
branding there is a generally argument if there’s a difference between the traditional product
branding and service branding.
For service branding to be successful one has to look at the following attributes carefully

Choosing the brand name

The choosing of names must be taken carefully at it has an important impact on the success off
the brand. Names which are artificially and have no direct meaning with the service usually do
not stand out well names play an important role in the success like Nyaradzo

Process
It is an element of service that sees the customer experiencing an organization offering it is best
viewed as something that your customer participates in at different points in time.

Physical evidence
The element of physical evidence is about the environment in which the service is offered or
consumed or provided it is about the customer feeling. As for the branding service the physical
evidence is closely related to the personality of the brand. To give the service a differentiation
advantage it is important to create adistinguable atmosphere that the customer can relate to the
service provider. This can be done through brand signs corporate colours themes for outlets

People
People are often important in providing of services. The right selection and proper training of
employees make assuresthere’s a good delivery of high quality service. It is up to the people to
give the process more reliability and thus assure a high homogeneity between the quality of the
service and personality and message of the brand. Furthermore people communicate so
employees have to know the objectives so that they can communicate them to the customers

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Reach, Recognition and reputation.

Reach the right audience by picking the right targets only large companies are broad based
awareness and recognition is important to front load very large sales and funnel the need to
communicate to the entire market.

Reality and relationships

Sales cycles for service are often long. It often takes a number of months or years to nurture a
prospect into a client. This calls for an extremely deep relationship that can only be established
through direct integrated and sustained contact

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Biblography
Kotler, P., Armstrong, G., Saunders, J. andWong, V. (1996), Principles of Marketing, The
European Edition, Prentice-Hall, Hemel Hempstead, p. 556.

Keller, K.L., Aperia, T., Georgson, M. (2008), Strategic Brand Management: A

EuropeanPerspective, Pearson Education, Prentice Hall

R. C. Cohen, R. McBridge, R. Thornton, and T. White, Letter Mail System Performance Design:
An Analytical Method for Evaluating Candidate Mechanization, Report R- 168, Institute for
Defense Analysis, Washington, D.C., 1970.

James A. Fitzsirnmons, “The Use of Spectral Analysis to Validate Planning Models,” Socio-
Economic Planning Sciences, vol. 8, no. 3, June 1974, pp. 123—128.

www.msu.ac.zwaccesed on 1 April 2014

www.businessdictionary.com accessed on 1 April 2014

G. M. Hostage, “Quality Control in a Service Business,” Harvard Business Review, vol. 53, no.
4, July—August 1975, pp. 98—106.

Fitzsimmonds and Fitzsimmonds, Service Management 4th Edition, 2004, McGraw Hill.(pp21-
25),

MANAGING BRAND LIFE CYCLE

Managing the lifecycle of a brand has historically meant maximizing marketing investment for
launch and sustaining a level of investment through peak, only to let the brand go from boom to
bust as patent expiry looms.
Laying the Foundations
Optimizing the opportunity for the brand comes down to maximizing and maintaining the key

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brand variables—positioning, personality, brand name and identity. Establishing clear and
strategic foundations, therefore, is fundamental to underpinning the development of any brand.
The blueprint of great brands can be seen to meet four key criteria:
 Relevance. Understanding the existing brand dynamics of the therapy area, the needs in
the market, the hearts and minds of both prescriber and patient target audiences, is crucial
to determining the relevance of the window of brand opportunity.
 Credibility. The paradigm shift in patient power has created a compelling push-pull
dynamic, which has forever changed the way in which a pharmaceutical brand is brought
to market. Brand cues and communications, therefore, need to be taken into consideration
and be credible across all target audiences. Brands need to speak the patient’s language as
much as the prescriber’s language.
 Differentiation. It is vital that the branding foundations being put in place are defined for
differentiation.
 Stretch. Ultimately, those branding foundations should be sufficiently flexible, to
accommodate changes in the market and for the post-patent life of the brand.
Getting the branding right will never compensate for a poor product; but getting the branding
wrong, or failing to unlock the true potential of a brand, can make the difference between good
brand recognition and loyalty and great brand recognition and loyalty.
Brand Maintenance
Optimizing opportunity for the brand is something that should never go out of focus throughout
the lifecycle of the brand. Whilst considerable time and investment are made in creating and
developing a brand in the lead up to launch, important consideration needs to be given to
maintaining and managing the opportunity for that brand following the launch.
Again, the holy grail of Relevance, Differentiation, Credibility and Stretch should be applied
continually to check and monitor the health of a brand. As the market changes, brand managers
need to be proactive in pre-empting and responding to those changes, anticipating and
accounting for new competitors and laying the foundations for new indications and formulations.
The essence of brand lifecycle management, therefore, increasingly needs to take the form of
brand "guardianship," with responsibility for managing, maintaining and extending the potential
of that brand throughout its lifecycle.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Building brand lifecycle management into the fabric of a company necessitates an associated
change in the approach to the value of brands in the industry no longer with a sense of
resignation in the face of patent expiry, but with a clear and strategic vision for the long-term,
commercially viable potential of that brand. Brands are by no means and can never be a panacea
for better products coming to market with improved benefits, nor, for generic entrants offering a
cheaper alternative. Brand equity, however, can play a considerable and substantial role in
helping to maintain a premium position and, ultimately, in slowing erosion of sales and market
share by subsequent entrants.
Extending the Brand
Managing the lifecycle of a brand means anticipating and preparing for brand "after-life." Line
extensions, innovative methods of delivery, next generation products are fast becoming the new
"after-lifeblood" of the industry. The brand name will remain constant throughout the life cycle
of a brand
Positioning, packaging and communications are all subject to variance and change but the brand
name will endure. A great name encapsulates the brand, ignites consumer recognition, helps
define personality, and differentiates from competitors in the marketplace. The brand name can
be leveraged to create awareness and start to build product pull. Equally, in seeking to extend the
life of existing brands, equity that has been established in a brand name during its on-patent life
can provide a solid platform for line extensions, new indications and new formulations.
Equity in the brand name, therefore, should not be underestimated. As equity in the brand name
can be leveraged, so can equity in the brand identity as a whole, including the visual components
of the brand, such as use of color and shape.
What is brand awareness. Demonstrate how it can drive store value
Discuss the strategies that retailers can use to communicate their brand position

INTRODUCTION
Brand awareness
Is the extent to which a brand is recognised by potential customers and is correctly associated
with a particular product. Expressed usually as a percentage of the target market, brand
awareness is the primary goal of advertising in the early months or years of a product’s
introduction. It is related to the functions of brand identities in consumers memory and can be

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

reflected by how well the consumers can identify the brand under various conditions.
Aarker(2000)
Brand awareness include brand recognition and brand recall performance. Brand recognition
refers to the ability of the consumers to correctly differentiate the brand they previously have
been exposed to. It means that consumers can respond to a certain brand after viewing its visual
packaging images. Brand recall is the ability of the consumers to correctly generate and retrieve
the brand in their memory. Keller(2003)
Brand awareness can drive store value in that when your products and services are well known
by your customers, this will make them to recall you more when they need a service or products
that you offer therefore leading to more sales hence more profits which will increase store value.
Moresover brand awareness will increase market share by attracting more and more people. It
will enable customer retention provided we deliver satisfactory service when customer visits. It
also encourages repeat purchases.
Brand awareness will drive store value in that it will generate more sales. The product that
maintains the highest brand awareness compared to its competitors will usually get the most
sales. For example in the soft drink industry consumers are aware of the brands and coca cola
unlike Fanta and sprite. This higher rate of brand awareness equates to higher sales and also
serves as an economic channel that prevents competitors from gaining more market share.
In addition to that if brand awareness is successful more profits will be generated in
organisations. For example in the category of washing powder surf is well known by a lot of
people but there are other washing powders such as sunlight, boom, marc. But surf did its brand
awareness well such that a lot of people will think that the only washing powder is surf. Also
under floor polishes cobra is well known unlike sunbeam, jewel andchitai tai.
Moreover brand awareness will drive store value in that retailers will be well known and there
will be repeated purchases. For instance you are in a hurry and want to grab a bite at a fast food
restaurant. It is impossible for you to drive around and make a decision. You need to retrieve
different fast foods brands in your memory, you choose one and go there directly. For example
most people will go and make a purchase at chicken inn because it did its brand awarenesswell
such that all the people know its brand. Because of its successful brand awareness it will have
more sales therefore driving its store value. Moreover chicken inn has created brand awareness

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

by kombis that are labelled chicken inn, staff members wear uniforms that are labelled chicken
inn. All these will help their brand to be well known by people.
b)If brand is a collection of perceptions in the mind of consumers then brand positioning is
creating , mantaining and developing a unique perception. It aims at making a brand occupy a
distinct position relative to competing brands , in the mind of the customer .Brand position can
be said to be the easiest way to revive a failing brand, the fastest way to increase sales and the
least expensive way to increase sales.
Position is that one descriptive sentence or slogan a brand is known for .For example :
SPAR Spar good for you
COVERLINK We have got you covered
ECONET Inspired to change your world
OK Were everyone shops and saves
TM Real value always
It is that one idea that comes to mind about the product .That one characteristic that sets the
service apart from its competitors. For example:
If one wants to make a grocery shopping he has the following major options in town .
OK Quality , pleasant shopping environment and variety
TM Convinience to transport and parking
DCK Cheap prices , long queues, and unpleasant shopping environment
There are various ways in which an organization can communicate its brand position to the
consumers.They can be categorized as Visual and Personal strategies.
VISUAL STRATEGIES
Sales Literature
It is the collection of materials used by businesses to educate customers and help them to make
buying decisions ,for example brochures,catalogues and press release.
Advertising Campaigns
It is a series of advertisement messages that share a single idea and theme which make up an
Intergreted marketing communication .
Letterhead
It is a printed heading on stationery stating a person’s or organisation’s name and address .
Email Signatures

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

It is a small bit of information that one attaches to the end of an email message .Organisations
typically put their name and contact details in the email signature .It can be plain text or fancy by
having color and pictures.
Invoices
It is a commercial document issued by a seller to a buyer relating to a sale transaction and
indicating the products ,quantities and agreed prices for products or services the seller has
provided the buyer.
Logos
It is a symbol used by organization that differenciates a product from other similar products.

PERSONAL STRATEGY
Everyone in the company should understand and practice the organisations defined brand
strategies. Organisations such as Coca Cola and Inn scor require employees to represent their
brand well.It is a job requirement.
Employees represent their brands through uniforms .It is a distinctive clothing worn by members
of the same organization for example Inn scor .
The staff should be professional ,friendly and able to perform tasks in time so as to potray a
positive image of the brand .Hence the company has a responsibility of effective recruitment of
quality task force together with offering continuous training services to keep its employees uo to
the game.
CONCLUSION
Brand awareness is the process of ensuring that people know you exist .Brand positioning is that
one characteristic that sets the service apart from competitors and it is enforced by a slogan that a
brand is known. Brand Awareness leads to increases sales and repeat purchases. People prefer to
buy from names they trust and can identifies .It is however important that when brand awareness
is built the organization maintain it by fulfilling its brand promise.Organisations use advertising
campaigns ,personnel,sales literature and letterheads to communicate their brand position to the
consumers .Brand awareness plays a vital role in determining store value by increasing
customers hence sales hence higher profits .

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

REFERANCE LIST
Aaker,D. (2000)Brand Awareness, New York:The Free Press
Keller,K.L(2003)Strategic Brand Management 2nd Edition,Pushp Print Service: India

Introduction
To compare and contrast our brands of two leading stores from the following categories;
Grocery, Fashion and Furniture, we used the following criterion:

Brand awareness
Brand awareness is the extent to which a brand is recognized by potential customers. It includes
brand recognition and brand recall performance. In other words, it is the ability in which
customers can correctly differentiate the brand they previously have been exposed to.
Promotional marketing
This relates to raising customer awareness of a brand, generating sales and creating brand
loyalty.
Brand engagement
Brand engagement is the process of forming an emotional or rational attachment between a
person and a brand.
Market share
Market share is the percentage of a market accounted for by a specific business entity. Market
share is used as an indicator of how well the firm is doing against its competitors.
Identity
Brand identity is the way in which a business wants consumers to perceive its product.

Grocery Store
The two leading brands in the grocery sector we selected are OK Zimbabwe and SPAR
Zimbabwe.

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a) Brand Awareness
Comparison
SPAR is an organisation that provides its customers quality service and value for money. SPAR
is passionate about retailing and is driven by committed independent retailers who win the trust
and friendship of their community. The grocery category includes Butchery, Delicatessen,
Bakery and Fruit and Vegetable sections.
OK Zimbabwe Limited competes primarily by offering a combination of high-quality products
and superior customer service. The groceries category includes butchery, delicatessen, takeaway,
bakery, and fruit & vegetable sections.
Contrast
OK Zimbabwe Limited trades under five highly recognized brands, namely: OK Stores, Bon
Marche' Stores, OK Express Stores, OK Mart and Top Notch whereas SPAR Zimbabwe operates
as SPAR or SPAR Express.
b) Promotional marketing
Comparison
The OK Grand Challenge Jackpot Promotion, a promotion done by the OK Zimbabwe Limited
in conjunction with its suppliers which sets to create the best relationship with valued customers
and at the same time improving sales volumes which are always low during the months of April,
May and June.
SPAR holds a HOZA Summer Promotion during the months of September; October and
November after the OK Grand Challenge to recover lost sales during their promotion.
Contrast
The OK Grand Challenge is the most famous national promotional activity as compared to the
Hoza Summer Promotion. The OK Grand Challenge has existed for more years than the Hoza
Summer promotion and they offer more unbeatable prizes than any other brand in Zimbabwe.

c) Brand Engagement
Comparison
SPAR Zimbabwe and OK Zimbabwe both engage in corporate social responsibility activities to
give back to members of their community. Through this, they create an emotional bond with
current and potential customers.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

d) Market share
Comparison
SPAR and OK stores target both low and high income earners. SPAR Express and OK Express
target all customers on the high way.

Contrast
In Zimbabwe, SPAR is made up of 10 corporate stores and 60 locally owned independent
retailers across the country.
On the other hand, as of March 31, 2008, all operations of OK Zimbabwe were carried out
through a nationwide branch network that comprised 39 OK stores and 10 OK Express stores.

e) Identity

Comparison
OK Zimbabwe and SPAR Zimbabwe are brands easily identified by consumers. Whenever
consumers relate to these two brands they think of having a good shopping experience.
Contrast
However, when consumers relate to these two brands, they perceive them differently. If
consumers are to be asked what they think about OK as a brand, they say affordable, convenient
and value for money. When they respond to the brand SPAR they think of expensive, quality
service and freshness guaranteed.
Furniture
There is wide range of furniture retailers in Zimbabwe that offers the same product but what
distinguishes them is the quality of merchandise,types and quality of services and the
prices.They offer their products on hire purchase terms,cash payments and lay buys.
TN Harlequin lux ire as a brand
It has been in business since 1955 as Federation furniture’s it used the acquisition of other
furniture stores as a growth strategy like Spring master and Harlequin furniture.It is well known
for its quality and strong furniture. This has been achieved by TN Harlequin through the
ownership of saw mills that enables them to mill, dry and laminates hardwoods into timber

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board.TN Harlequin is well known for its quality furniture although at and higher price as
compared to TV sales . Their deposits and interest are a higher so they serve mostly the medium
and high income earners.
Promotional activities
As a retail brand that has been in the retail industry for more than 5 decades there is need for
promotional activities to able to continue on the market upon the rise and entry of new furniture
retailers.TN Harlequin carries promotional activities like advertising on the public media,through
offering of magazines and vouchers to the public.They also,run a website that is
updatedregularly and they also have a face book page that they use to communicate with their
customers hence they develop their product suiting customers desires since the customers give
their opinions and suggestion.TN Harlequin also offers discounts to customers who buys
furniture during the festive season and also upon prompt payment of goods bought on credit.It
also offers free delivery services within a radius of 25km from the place of purchase.
Market share
TN Harlequin has a grater market share because it offers both home and office furniture. It has
good customer loyalty and offers delivery and after sales services as a measure of retaining its
customers.
Brand identity
Offers furniture from its manufacturing plant In Bulawayo and also offers brands from other
manufacturers.
TV SALES AND HIRE
It is one f the largest and most popular furniture retailer that offers high quality and affordable
home furniture and appliances. It ventured into the industry as selling and hiring company of TV
sets and a wide range of audio visual products and accessories. It has since expanded to offer
appliances which include fridges,stoves,cookers,washing machines, lounge and dining room
suites and bedroom suites.It offers its products on cash and on credit.
Promotional marketing
In order for TV sales to stay competitive in the industry it carries out promotional activities. TV
sales has dedicated in an after sales service and quality aspect of their product so as to ensure that
the warranty is kept. Also, it offers magazines and vouchers showing the merchandise they offer
whilst highlighting the products price, warranty, terms of payments and the promotions

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

available.TV sales also advertise their products on their website on which they endeavor to
make sure that the prices reflected o the website are up o date with the stores.
Brand engagement
TV sales are a member of Inscor Africa group of companies. Inscor sponsors sporting events and
have a family fun day for the public were games are played and prices awarded.
Market share
A TV sale is a well known furniture retailer which has been in business for decades and has
managed to be one of the major suppliers of home furniture and appliances? It has a greater
market share with a market share that approximately around twenty five percent .It has branches
nationwide in the big cities and towns. Due to the quality of products, services and affordable
goods it has managed to retain and attract new customers.
Brand identity
TV sales and hire as a brand sells furniture and appliances from recognized brands like Philips
appliances like television, radios, fridges microwaves to name others but a few, defy, Capri.

Question: In this highly competitive retail environment, retailers need to build brand
equity and increase revenue.
a) Outline and describe 5 dimensions that influence retail image
b) Describe how one retailer of your choice has implemented these dimensions

The American Marketing Association’s definition of a brand entails that a retail brand identifies
the goods and services of a retailer and differentiates them from those of competitors. A retailer’s
brand equity is the power of the brand that is built in the minds of the consumers on the basis of
what they have learnt, seen, felt and heard about the brand (Keller 2003). The image of the
retailer in the minds of the consumers is the basis of this brand equity.
The five dimensions are access, in store atmosphere, price and promotion, cross category
product/service assortment and within category brand/item assortment.
Access
The basic criteria in consumers’ store choice decisions is the location of the store and the
distanced that have to be travelled to shop there. According to Bell etal (1998), location in

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today’s world is somewhat less central as store choice criteria due to the increased use of cars,
price sensitiveness, the level of literacy and choices among others. However, consumers’ store
choice maybe based upon different criteria depending on the nature of the trip. For instance,
small basket, fill in trips are very unlikely to be made to distant or inconvenient locations.
Location is a key component in consumer’s assessment of total shopping costs and retailer who
wish to get a substantial share of wallet from fill in trips and small basket shoppers.
Store atmosphere
Mehrabian and Russel (1974) note that the response that atmosphere elicits from consumers
varies along three main dimensions of pleasantness, arousal and dominance. This response, in
turn, influences behavior, with greater likelihood of purchase in more pleasant settings. Elements
of in store environment such as design, lighting, layout, and ambience features like music and
smell can influence customer’s perception of a store’s atmosphere, whether or not they visit the
store, how much time and money they spend there.
Although the in store atmosphere improves customer’s perceptions, factors such as physical
design can significantly affect consumer’s perception of merchandise price, merchandise quality
and employee service quality. The ability of the retailer to create a strong in store personality and
rich experience can play a crucial role I building retailer brand equity.
Price and promotion
Price represents the monetary expenditure that the consumer must incur in order to make a
purchase. The following areas and findings are crucial for retailers who want to build their brand
as they highlight the levers that the retailers can use to influence their price image and the impact
of their price promotions.
Store price perceptions
A retailer’s price image should be influenced by attributes such as average level of prices, how
much variation there is in prices over time, the frequency and depth of promotions and whether
the retailer positions itself as everyday low price(EDLP) or high low promotional price(HILO).
Consumer’s perceptions of store prices change with prior beliefs and information about how
frequently a store has a price advantage on the set of products and the magnitude of that price
advantage.
Retail pricing format

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A retailer’s price format which is on the continuum between EDPL and HILO also influences
customers’ store choice and shopping behavior. Average prices are higher in HILO stores and
average purchase quantities are lower which is effective in enticing shoppers to make more
frequent visits whereas EDPL decreases shopping frequency but generates higher revenue per
unit time.
Price promotion induced store switching
Bucklin and Lattin (1992) show that retail promotions in any one category do not directly
influence a consumer’s store choice decision but directly affects where the category is purchased
as consumers typically shop in more than one store. The impact of promotions will be higher in a
pleasant atmosphere because the longer the consumers stay in a shop, the more likely they are to
notice promotions and buy more than planned.

Cross- category assortment/ service assortment

Consumer’s perception of the breadth of different products and services offered by a retailer
under one roof significantly influence store image. Shoppers constantly say that retail
assortments affect their store choice decisions, ranking it 3rd in importance behind convenient
locations and low prices as a choice criterion. The greater the breadth of product assortment, the
greater the range of different situations in which the retailer is recalled and considered by the
consumer hence the stronger the salience. As consumers are time constrained and the increase in
unplanned purchases, the retailers are pressurized to broaden their assortment and offer one stop
shopping convenience.
Within- category assortment
Consumer’s perception of the depth of a retailer’s assortment within a product category is an
important dimension of store image and a key driver of store choice. Greater perceived
assortment of brands, flavours and sizes does influence store image, store choice and satisfaction
with the store, but a greater number of SKUs need not directly translate to better perceptions.
Retailers can reduce the number of SKUs substantially without adversely affecting consumer
perceptions as long as they pay attention to the most preferred brands, the organization of the
assortment and the availability of diverse product attributes.
How OK has implemented these dimensions
Background of OK Zimbabwe

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OK Zimbabwe Limited has been in existence since 1942 and has established itself as a customer
oriented retail organization, providing comprehensive access to a broad range of retail products
and allied services developed in response to its customers’ requirements for convenient and
value. Its business covers three major categories, comprising, groceries, basic clothing and house
ware products. It trades under three highly recognized brand names, OK stores, Bon Marche
stores and OK Mart mega stores.
Access
The OK stores brand has45 outlets throughout Zimbabwe, 24 in Harare and 21 in major towns
and cities around the country. The OK stores cater for the widest range of customers, the up
market clientele being catered for by branches in the low density suburban areas and some city
centre locations in the key cities. The Harare city centre stores cater for mainly for the middle
income band and are plated strategically on route to various public transport locations. The mass
market is catered for by the large number of stores located in various high density suburbs areas
as well as parking space. The convenient location of OK stores in residential areas makes it
favourable as it reduces costs of going to stores which are far.
Store atmosphere
With the realization that customers have become vocal, appreciating that they need to get value
for their money, the store ambience of OK has moved from a “nice to have” to a “must have” as
they began to refurbish and rebrand their stores. Factors such as store outlook, customer service
and in store atmosphere have become key determinants of store patronage. The return on this
investment has been evidenced through increased traffic, a positive change in customer profile
and sales figures. The new generation of stores has been applauded for their fresh and vibrant
colouring, the friendly atmosphere, assisted by state of the art lighting, signage that clearly marks
each category and the international feel. People purchase in more pleasant settings of
intermediate arousal level, they spend more time there which increases the likelihood of
purchasing more goods. OK’s appealing store atmosphere has crafted a unique store image and
established differentiation.
Price and promotion
OK stores conduct the OK grand challenge jackpot promotion that caters for all market segments
which is run annually between April and June. Suppliers of OK participates in the promotion by

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proving cars or offering instant prices as well as agreeing to reduce prices and the retailer pushes
for volumes.
Store price perception
OK’s price image is characterized by attributes such as competitive prices. Its store design and
atmosphere gives the consumers the perception of quality merchandise which costs more than
the real prices.
Retail pricing format
OK uses competitive pricing strategy in all its target market segments. There are able to
negotiate low prices or discounts with suppliers as they push for volumes on the manufacture
brands. Its pricing format is also differentiated with each segment with the upper class paying
more in its Bon Marche stores and the middle and lower class paying slightly less in the OK
stores
Price promotion induced store switching
Compared to promotions from other grocery retailers, OK’s promotion have greater breadth and
depth as it runs for months and the participation of many companies in it who offer cars to be
won and instant prices. With its promotion being the largest in the whole of southern Africa, it
encourages store switching from other , encourages customers to spend more and keep them
loyal.
Cross- category assortment
Shoppers consistently report that retail assortments affect their store choice decisions. OK
carefully studies consumer preferences of different segments it targets, using a variety of data
compiled from numerous market research surveys to guide the type of assortments they carry. It
aims to provide its customers with the broadest range of products. OK’s store image is
significantly increased due to the greater breadth of different products and services it offers in
different segments.
Diversified product offering
The company’s offering borders three major categories, groceries ,basic clothing and textiles and
house ware products. The groceries category includes butchery, delicatessen, takeaway, bakery,
and fruit and vegetables sections.

Household brands

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OK group developed and provides its own brands namely , OK value, Bon Marche’ Premium
Choice and Shoppers Choice.

Within category assortment

In the midst of the economic crunch, OK has to balance between feeding consumer hunger for
personal variety while bulking up margins through operational efficiency and store brand sales.
The number of brands in a category and the presence of household’s favourite brands increase
the household’s probability of choosing a store.

NOTES ON; Service retail brands

 Branding of services
 Distinctive nature of services
 Challenges of service branding

Introduction
According to Scott Bedbury, branding is about taking something common and improving upon it
in ways that make it more valuable and meaningful. Branding is the use marketing and
communication tools to create a perception of value in the minds of your given customers.
Service retail brands refer to brand representing a specific service or family of services.

Reasons for service branding

 Services have a changing level of quality
 They are intangible and not storable
 The consumer has to become involved in the consumption of services actively

Distinctive nature of services

The four main characteristics of services which set them apart from tangible goods are
intangibility, inseparability, heterogeneity and perishability.
Intangibility
Services can not be touched, felt, seen or tasted before purchase. They are performed experiences
rather than objects. The lack of tangible attributes causes the service quality to be harder to

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evaluate. Due to intangibility, communication about services is difficult and requires special
consideration in company strategy and creativity. Because of their intangibility and complexity,
it is hard for the customer to distinguish between offers from the wide range of service
companies operating in that same market. Services lack the tangibility that allows packaging,
labeling and displaying hence less brand credibility.
Inseparability
Inseparability indicates that production and consumption are performed at the same time. Unlike
goods that are normally produced, sold and consumed, services are produced and consumed at
the same time.
Heterogeneity
This factor deals with inconsistencies in service quality as services are offered by people who
vary in temperament, behavior and values. The performed service can vary greatly from
producer to producer, from day to day and from customer to customer. Services being delivered
from the same individual can also vary due to the fact that people have good and bad days hence
perform in an inconsistency way.
Perishability
Services can not be stored, saved for a later occasion like inventories. If an airplane seat is not
sold it is lost forever.

The service marketing mix

The service marketing mix identifies people, process and physical evidence as three critical
marketing considerations unique to service business. Services often address complex multiple
needs in buying situations. Inconsistency in the service process is inherent because people
delivering services are unique or motivated differently. Branding through traditional marketing is
either supported or countered by real time consumer experiences and the word of mouth
messages they carry.

Applying services elements

 You must have top quality people, train for consistency, quality service and promote the
value of your people.
 Emphasize the aspects of your service process that benefits your customers

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 Provide physical evidence to validate your brand

 Many service companies do this through testimonials
 You must also provide proof of service brand with consistent delivery to customers
 Brands that inspire and endure, that creates a measureable market place advantage and
lasting uniqueness.

Challenges of service branding

These are what makes services a hard selling area.
 Commoditization- differences based on unique benefits are especially rare in service
categories as competitors can copy a service offering in no time. For instance, when
Netone introduced one wallet, Econet and Telecel soon followed with ecocash and
telecash respectively.
 Intangibility- Relative to products that we can hold use and consume, people find it far
more challenging to attach meaning to an intangible service offering such as checking an
account, an internet connection or life assurance. Due to this difficult of expression,
service brands have slogans to make the service feel real.
 Standardization is difficult- Standardization into routines and procedures is difficult since
human factor is involved. A service brand by definition is an experience based brand,
there is almost no way to replicate the exact same experience for each time for each
customer. One person can be highly motivated or empowered than the other which can
diminish the quality of service, for instance, airhostesses.
 No inventories- Tangible products can be stored where there is fluctuating demand
unlike services, for example, long queues of bill deposits month ends, banks have to hire
extra staff.
 Complexity- To battle the commodity problem, service brands seek to differentiate
themselves by adding complexity to their core offering. Yet often times the added layers
result in a service offering that goes beyond the consumer’s personal expertise and
comprehension and they simply can not appreciate the added value.

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QUESTION: Outline and briefly discuss the top term character of a good brand name. You are
to consider venturing into the retail sector in outline the factors you consider when naming your
retail outlet.

A brand is a unique design, sign, symbol, words, or a combination of these, employed in creating
an image that identifies a product and differentiates it from its competitors. Over time, this image
becomes associated with a level of credibility, quality, and satisfaction in the consumer's mind
“When a brand is the combination of a name and an image, a successful brand is what the
consumer believes the closest match to own needs (or desires) through uniqueness”(Laforet
2010).
Ten characteristics of a good brand name include:
The Name Should be Simple
The desirable brand name characteristic ofsimplicity is frequently cited in the marketing
literature. Relevant characteristics oftenlisted in such literature include short: easy tosay, easy to
spell, easy to read, and easy tounderstand for example O.K and T.M. Often consumers
themselves will simplify a more complex brand name. For example even in products Coca-Cola
becomesCoke
Justification for the desirability of simplicityin a brand name is directly related tothe basic
psychological principle that a simplebit of information is more easily learned andrecalled. .The
memory advantage of a simple brandname is thought to be the result of two basiccognitive
processes. First, the consumer haslimited attention capacity. Since less of thislimited capacity is
required for simple information, there is a higher probability of bothattracting and maintaining
consumer attentionwith a simple brand name. Attraction of attention,in turn, increases the
probability of higher-order information processing occurring, andmemory for the name is thus
enhanced.

Transferable
The name should be transferrable between even beyond geographical boundaries without losing
its credibility the same meaning in the Southern African is the same with the one in Zimbabwe
for example Barclays and Standard Chartered bam

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The brand should be capable of registration and legal protection a brand name cannot be
registered if it infringes on existing brand names

Meaningful

Other things being equal, a brand name that has some meaning to the consumer will be more
easily recalled. The brand name should be relevant to its industry for example Chicken INN once
a consumer hear this name the first thing to come into the mind is food. A widely cited desirable
characteristic also related to meaningfulness is that the name be reflective of product benefits to
the extent that the product benefit is actually sought by the consumer, a name reflecting that
benefit would certainly become meaningful.
The Name should beconsistency

Brand consistency involves the communication of messages in a way that doesn’t take away
from the core brand proposition. While certain aspects of branding might change, the core
message shouldn’t change. For example, the SPAR logo has changed numerous times since
SPAR was founded. However, SPAR brand proposition – to be innovative and providing quality
products and services – has never changed.

Brand consistency requires attention to detail. Successful brands communicate in a consistent

voice across all mediums, have a consistent look to their communications, use collateral
materials that support their brand messaging, and enter into partnerships that build on their brand
value proposition.
Unique within its industry

A good brand name doesn’t need to be weird or clunky, but it does need to not sound like all the
rest of your direct competitors. To stand out among competitive alternatives, the brand name
must be unique in ways that matter to customers Manysuccessful brands seem to have mastered
the concept of differentiation – they’ve created the perception that there is no other brand on the
market quite like theirs. And even if you don’t utilize their products or services, you know
exactly who they are.

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Differentiating your brand is not just about the words you say, it’s what you do and how you do
it differently than any other brand. It’s how you deliver those customer benefits in some unique
and extraordinary way. A unique brand name leaves a room for charging a premium price for
example Apple,

It should be adaptable to new products:

Along with increasing customer demand for a brand, a good brand name improves the brand and
the organizational image. Adding a new line of environmentally friendly products may not
instantly generate high rates of return for a company, but it is profitable because it enhances the
brand as being earth-friendly. While a brand can succeed for a while without being innovative,
ultimately, given today’s hyper-competitive environment, brands must anticipate customer needs
and surprise and delight their customers with a constant stream of relevant innovations Phillips
was good brand name for TVs and VCRs but when it is extended to refrigerators and washing
machines, it still maintained its brand image because the brand name was adaptable to new
products therefore enhancing innovativeness. Hotline was a good name for gas stoves, but
definitely not a suitablenamefor TVs this is because the brand name could adapt to new products.

Will not age quickly

A good brand name will not fade away quickly. It should be able to withstand competition from
other rival brand names. For example in the apparel industry retail brands like Nicks existed for a
while and now they are extinct whereas other retail brand like Edgars are still in existence. As
mentioned a good brand name fights competition and remain competitive.

Emotional Connection

. Today’s competitive market is filled with similar products. When an innovative product or
solution is introduced, the marketplace is quickly flooded with copycats. The company that
wishes to retain the connection to its customers must make an emotional connection between its
brand and the customer. Emotions play a large role in the decision to make a purchase;
customers want to feel as though they are connected to a larger entity. A brand name without

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emotional connections will quickly be surpassed. A good brand must make the customers
emotionally attached to it so that for example when a customer thinks of grocery shopping he or
she would think of one brand only which can be SPAR. This connection makes customers to
become loyal to the brand

Well-known

Without awareness, nothing else counts; a brand can’t be in people’s purchase consideration sets
unless they are aware of the brand. While brand names can be overexposed and certain exclusive
brands thrive on their exclusivity, in general, strong brand names are perceived to be very
popular, much sought after and possessing positive momentum. A well managed brand name
needs to hardly introduce itself. Within the target market people would already the know the
brand, its personality and the promise it make to customer all based on what they have heard
through the marketing of the brand for example Nokia

Profitable

One of the key objectives of every business is to make profit so as to expand and survive. A
profitable brand name is one that easily attracts ideal customers and a consistent income to the
business because the company would have built a powerful brand platform that establishes the
company as the authority, delivers on your brand promise and consistently communicates value
to the customers. A good brand makes a business competitive. A profitable brand drives an
organization towards innovation and success. For example Spar brand name is profitable since it
has grown to be franchise now the organization will benefit loyalty from all the Spar franchises

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b) You are considering venturing into a retail sector then outline the factors that need to be
considered when naming a business.

Most businesses have their own names. A company name is easily recognizable and is important
to good branding. New startups and small businesses face many challenges in coming up with a
company name and among the challenges, it’s very difficult to find a good name and an available
domain because many short names have already been taken. However, plenty of successful
businesses have proven that there are many different ways to create a company name. For
example, many successful companies use real words (Adobe, Amazon, Apple, Yelp), some use
misspelled words (Google), compounds (Facebook, Firefox, WordPress), phrases (LinkedIn,
SecondLife) and other variations.When you start thinking about building your brand, ask
yourself the following questions:

 What do you hope to accomplish with your company?

 What do you expect your potential customers to think about your company?
 What do you want your customers to think when they think of your company?
 How do you differentiate yourself from your competitors?

The above questions are important for selecting a strong company name and also for selecting a
strong logo. There are many factors that need to be considered when naming a business.

Domain name

There is need for a domain name because if one I do not get one, it is going to kill my greatest
name. “.coms” is the most recognized domain suffix in the world and I can tell from research
that there is not much left available. There are retail outlet names like flickr, reddit and blogr,
they were supposed to be Flicker and Read It and Blogger but were already taken years ago. This
shows that there is need to be creative when naming a retail outlet. In addition think of your
target market,your product or service and the image that needs to be projected shows that it is
better for a name to be functional or creative.

Similar names

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As one starts to build retail outlet be it any type of business, one does not need to hassle of trying
to fight the confusion of your relation with another company. Fussy searches on google are
necessary and see what comes up. And there are chances that those companies with names
similar to mine, will have a page one listing on google well before you get there. And it is not a
good thing for customers to think that’s you.

Mispronunciation

A complicated name is hard to pronounce. There are some names that even after five years of the
retail outlet operating people still cannot pronounce it clearly. Mispronunciation can lead to loss
of clients as they might think that it is a different company.

Spelling

If customers cannot pronounce the business name correctly then there is likely to be problems of
spellings. A wrong spelling will lead a client to another retail outlet with a similar name.
Therefore there is need to consider the spelling of the name. A wrong name can project an
unclear identity about the business, whereas a strong brand names can accelerate brand
awareness.

Acronym

One of the factors that need to be considered closely is a meaning name. There is need of a name
that can easily and quickly be recognized by the community, clients, country and world as a
whole. The first thing a customer will notice about a business is its name. Creating the first right
impression is essential, but not as easy as it looks. All effective business names project a strong
image that sticks in the mind of customers. Whether renaming a developed retail outlet or
starting a new one, the name one choose could make a serious difference to your chances of
success. A name that has relevance identifies the company clearly.

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Legal constraints

Before committing to a name, a research at the national business register is necessary to check
the suggested new name has not been registered or trademarked by another business and that the
website address is available. In addition there are certain words that need to be avoided such as
“chartered, Royal or National’. If the business owner is a sole trader or partnership, they should
include ‘limited”, “ltd” or “plc”.

REFERENCE
Laforet, S, Managing brands, (2010), 1sted, Managing Brands, Prentice Hall, London,USA
Levy, M and Weitz,B,M, (2009), Retailing Management,9thed,Mcgraw Hill, Carlifornia,USA
Verma, HV,( 2006), Brand Management, 2ndedition,Mcgraw Hill, NY,USA
Cravens, D and Piercy,N , (2009), Strategic Management, 1STed, Mcgraw Hill, California, USA

Brand architecture

Brand architecture is a structure of brands within an organisation entity.lt is the way in which
the brand within company portfolio are related to different from one another. Brand architecture
are concerned with how to manage a parent brand and a family of sub brands. The recent
example of brand architecture in action is the re organisaning of the general motors brand
portfolio to reflect its new strategy .It is a system that organises brands products and services to
help audience access and relate to a brand .succesful brand architectureenables consumers to
form opinions and preferences for an entire family brand.
Established brand architecture is an important guide for brand extensions, sub brand and
development of new products .it involves also a road map for brand identity development and
design and remind consumers of the value proposition for the entire brand family

The most common types of brand architecture are

1. Branded house which offers a very logical path extension and new brand in a branded house.
The master brand is away present is transferred easily to extension. A good example is Fedex

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2. House of brands these insulates and protects master brand from brand extensions ...brands
from each other. A house of brands allows for a master to have competing brands in the same
segments.
3. Hybride or endorsing brands very flexible these provides an option to use the master brand to
... able to utilise further segmentation through endorsement. A good example is Toyoya of Lexus

Types of brands under brand architecture.

 Ambassador brands
These brands that reflect the image of the company. Success or failure of those brands affects
the favourable or unfavourable opinion respectively of the company eg Colgate toothpaste, the
market leader in can be rightly called Ambassador.
 Piggy back brands
The nature of these brands are not profit generates but build their image and gain manage by
riding on the back of Colgate toothpaste.
 Budget brands
These are brands that are welcomed in every home.

Brand portfolio
This is when large business operates under multiple different brands, services and companies a
brand has its own separate trademark and operates movements an indroved business entity.
however for marketing purposes brand portfolio is used to
Advantages of brand portfolio
It reduces confusion in inefficiency which might prevail from operating brand which are
completely separate from one another
By utilising brand portfolio the business is able to focus on the big picture causing resources to
be better allocated to where they can do most good.
Brand portfolio management
This is the ability to organise all the firms’ brands into coherent brand portfolio and manage the
complex interrelation among brands in those portfolios. This has become crucial for every
company with multiple brands because the objective is to ensure not only that indrordwal brands
are successful but the firm’s brands are well coordinated. it also helps to avoid confusion of

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consumers to ensuring internal efficiency by preventing investments in overlapping product

development.
Companies managing brand portfolios must address two primary tasks
1. Optimising the structure of the brand portfolio so that existing brands meet consumer
preferences and enhances the firm`s preferences
2. Adapting the firm`s brand portfolio to changes in the market
Management of brand portfolio requires constant monitoring of the brand portfolio to avoid
cannibalisation among brands while enhancing synergistic effects between company brands
Brand managers should adapt a competitive portfolio to the constantly changing business
environment requires that they should integrate at strategic decision and environmental
information.
Three fundamental options are available
1. Reorganising portfolio by repositioning brands
2. Rationalising the portfolio through election of existing brands
3. Expanding the portfolio by adding new brands

Brand Licensing
Licensing means renting or leasing of an intangible asset. It is a process of creating and
managing contracts between the owner of a brand and a company or individual who wants to use
the brand in association with the product, for an agreed period of time within an agreed territory.
Licensing is used by brand owners to extend a trade mark or character on to products of a
complete different nature. An arrangement to license a brand requires a licensing agreement
,according to Ritz Carlton
Reasons why companies license their brands.
Brand licensing enables companies whose brands have high preference to unlock a brand`s latent
value and satisfy pent up demand that exists.
Licensing the ipod brand enabled many companies to produce all kinds of terrific products to
make the ipod more user friendly and enhance the listening experiences.
The benefits to licensees is that he or she lease rights to a certain property for incorporation into
their merchandise but traditionally they do not share ownership in it. Having assess to major
national and global brand,the logos and trademarks assossiated with those brands gives the

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licensee significant benefits they previously did not possess.The most of these is the marketing
power the brand bring to the licensee`s products.
The company which licences a brand gains immediate access to all the positive brand and image
building that went before it . the licensee also takes with them the reputation of the licensor.
Often these hallow effect can translate many intangible and immesuarable benefits such as
returned calls, an aggrement too meet or simply the benefit of the doult.
Companies also use licencing to enter new catergories. Often brand managers will enter or extent
their brands into new product catergories to drive steady growth.
Brand structure
Brand structure is when branding or brand names are used as a tool to express how a company is
organised, wheather it is centralised, decentralised, part of a larger operation or a single
entity.Using one of the following three brand structures will achieve this

 Monolithic
when the company uses one name, logo and colour scheme throughout.
 Endorsed
when the company owns a group of companies that each have their own identity but are
endorsed with the parent company`s identity.

 Branded
where a company has a number of different identities that it uses to market its goods or
services. These identities generally have no obvious links to the parent company.

The above types of brand structures are a basic guide and in many instances companies
use different variations of each for example a multinational company like News
Corporation use a combination of the branded and endorsed structures. A company`s
brand strategy is determined by the diversity or conversely the interrelatedness of the
product businesses in which the firm is involved.

International brand structure

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The central role of branding in defining the firm`s identity and its position in international
markets means that it is critical to develop an explicit brand architecture.This implies
identifying the different levels of branding within the firm, the number of brands at each
level as well as their geographic and product market scope.

The significance of various issues depends to a substantial degree on how a firm has
expanded internationally and how its international operations are organised.Some firms
such as P & G and Coca- Cola have expanded through leveraging their domestic “power”
brands in international market.The determinants of international brand structure are
product market structure , market dynamics and firm characteristics.

New Brand strategy

It is a long term plan for the development of a successful brand in order to achieve specific goals.
A well defined and executed brand strategy affects all aspects of a business and is directly
connected to consumer needs, emotions and competitive environments.
New branding strategies helps a product within the market and to build a brand that will grow
and mature in a saturated market.
Brand strategy brings competitive position to life and works to position as a certain something in
the mind of your prospects and consumers. A new brand strategy is also when each product has
an identity that communicates to a participation audience that has no obvious links to the
company that makes it.

The mostly common used branding strategies are, the use of company name in this case a strong
name is made for example Mercedes bens.
Individual branding-each brand has a separate name putting in into a defacto competition against
other brands from the same company.
Attitude branding-this is the choice to present a larger feeling which is not necessarily connected
with the product or consumption of the product.
No –brand branding-recently a number f companies have successfully pursued no brand
strategies by creating packaging that imitates generic brand simplicity.

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Derived brand-some suppliers of key companies may wish to guarantee its own position buy
promoting those components as a brand in its own right.
Private branding-also called own brands or store brands, these have become increasingly
popular.

REFERENCES

Rajagopal; Romulo Sanchez (2004). "Conceptual analysis of brand architecture and

relationships within product categories". Journal of Brand Management: 233–247.

-Branding into
Brand Architecture

Brand Architecture: A
Conceptual Framework. Marketing Theory Approaches to Brand Architecture « Merriam
Associates, Inc. Brand StrategiesGeneral Motors: A Reorganized Brand Architecture for a
Reorganized Company « Merriam Associates, Inc. Brand Strategies

Brand Architecture: Strategic Considerations « Merriam Associates, Inc. Brand

Strategies[unreliable source?]

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REFERENCES
1. Keller, Kevin L., Strategic Brand Management – Building, Measuring and Managing Brand
Equity, 3rd edition, Pearson Education, Inc. and Dorling Kindersley Publishing, Inc., Delhi,
2008, Pg 511-567.
2. Ramaswamy V.S. &Namakumari S., Marketing Management – Global Perspective Indian
Context, 4th edition, Macmillan Publishers India Limited, New Delhi, 2009, Pg 437-442.
3. Belch, George E. & Belch Michael E., Advertising and Promotion – An Integrated Marketing
Communication Perspective, 6th edition, Tata McGraw-Hill Publishing Company Limited, New
Delhi, 2003, Pg 249-250, 523-525.
4. Aaker, David A., Myer John G. &Batra R., Advertising Management, 5th Edition, PHI
Learning Private Limited, New Delhi, 2008, Pg 316-328.
Research Papers:
1. Aaker, David A. & Keller, Kevin L., ‘Consumer Evaluations of Brand Extensions’, Journal
of Marketing, Vol. 54, 1990, Pg 27-41
Kotler, P and Gertner, D (2002) Country as a brand, product and beyond, Journal of Brand
Management, 9 (4–5), Apr, pp 249–61
Kapferer, J-N (2003) Corporate and brand identity, in Corporate and Organizational Identities,
ed
B Moingeon, Routledge, London

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The conceptual distinction between the two types of brands is done accordingly to the technical
literature (Zentes & Swoboda, 2001, p. 197) depending on the legal holder of the ownership
rights over them. Thus, if the holder is a producer, we refer to registered industrial or producer
brands. While when the holder is a retailer or a retail chain we refer private labels or own brands.
Private labels may also belong to professional associations or to other organizations. Many
private labels or own brands in Zimbabwe have seen success due to the flexibility in production
and little capital requirements to start. Meikles department stores and OK Zimbabwe limited are
some of the stores that utilised such opportunities and provides their own brands or private
labels.

Meikles stores originated in 1892 in Fort Victoria now Masvingo, the stores were formed by the
Meikles brothers Thomas, Jack and Stewart. The store provides a range of competitively priced
goods for families and homes and hardware products. The Meikles department stores group
currently operates seven major department stores in Zimbabwe under three brand names
Barbour’s, Greatermans and Meikles all being located in the major city centres in Zimbabwe. In
addition there is also Meikles hardware. The department store group managed to come up with
their own private label and the private label exist in the men’s department only. The private label
is known as Meikles Man (MM), it was introduced late last year in 2012. The private label is
available is available in a variety of men’s clothing items namely pyjamas, formal trousers,
formal shirts, boxer shorts and handkerchiefs. Meikles stores own private labels brands come in
high quality clothing texture with engraved label MM for Meikles Man, the private labelled
brands are relatively low priced as compared to its own producer brands and target high income
earners. These own brand have experienced some challenges, these challenges are explained
below.

Stock Outages
Meikles private labelled brands are not always available to customers, thus there is no
consistence in the private label. The stores are experiencing stock outages as the private brands
are moving fast. The stores are facing challenges in ensuring adequate availability of Meikles
Man stocks as the warehouses are currently reported to be out of stock in March and April 2013.
Liquidity crunch

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With the currently prevailing unstable political environment, many investors decides to hold
back their investments which results in liquidity challenges to finance various operations.
Furthermore there are high interest rates being charged by banks which worsen the situation. The
liquidity challenges prevents the store from venturing into new markets or product categories
efficiently and effectively

Advertising
Meikles Man brands are advertised only using the cheapest channels and target a specific
audience. The challenge is that less funds are located to advertising their private brands hence
they only made use of in-store adverts and displays and their website when the private brands are
available.

Shrinkages
This is the loss of stock due to theft, this is one of the challenges that both producer brands and
private label brand are experiencing. There stores experienced an increase in stock theft as the
products are exposed to pilferage. More security guards and sensors were introduced to help
reduce pilferage.

Damages and obsolete

Private labelled brands and producer brands are exposed to damage and obsolete. There has
been an increase in damaged goods and number of obsolete brand, the result is that such brands
will be sold at cost or below cost at the Emporium Department.

The store mange its brands in different ways from its competitors so that their private labelled
brands and producer brands stay competitive. The stores ensures competitive pricing strategies,
selective distribution channels, high customer service and after sales services and proper
merchandising of their products as explained below.

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Competitive Prcing
Meikles Man (MM) brands are relatively low as compared to its own manufacturer brands but
higher than those of its competitor namely Edgars to mention a few. The brands are of high
quality hence the principle price for quality take precedence. Thus Meikles Man brands stay
competitive because of the high quality and prices

Selective Distribution channels

Meikles Man brands are made available to customers through it designated branches, all
Meikles store. The private brands are made available to high income earner hence all the
department stores are located in major cities in Zimbabwe. This helps their private brands to stay
competitive as they are perceived to be of high value

Customer service and after sales service

In acquiring Meikles brands customers are assisted by trained personnel were possible in
acquiring such products. Furthermore there are also after sales service, if the brand did not
perform as per customer expectation or there are faults with the products, the store accepts
returns. The customer is also provided with information on how to maintain the product. With
such hospitality the customers experience in acquiring such brands increases customer
satisfaction hence the brands stay competitive

Merchandising
This is the way in which Meikles Man brands are made available or presented to customers in
the stores. The store ensures there are shinny surfaces and shelves, proper lighting and displays.
Colours blocking for their private brand is ensured, products are arranged or grouped by colours
and then by sizes in their categories. Proper merchandising helps to add value to their products
and thus they stay competitive.

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OK Zimbabwe limited is also one organisation that manages its own brands. OK Zimbabwe
started in 1953 and was incorporated as Spring master cooperation, in 1984 it changed its trading
name to Deltrade limited then subsequently changed to its current name in 2001. The Group is
one of the leading supermarket retailers whose business covers three categories, namely
groceries, basic clothing and textiles and house ware products. OK Zimbabwe trades under three
highly recognised brand name, namely OK stores, Bon Marche’ stores and OK Mart. These
stores are specifically profiled in terms of design product, product range, services and other
offerings in ways that caters for specific requirements in the low, middle and high income
consumer categories. The group developed and provides its own brands namely OK Pot ‘O’
Gold, OK value, Bon Marche’ Premium Choice and Shoppers Choice. These brands experience
some challenges that might have resulted from the external environment or internal challenges as
explained below

Power Cuts
There has been an increase in OK’s net operating expenses which was largely attributable to an
increase in electrical tariffs as well as the costs of running generators during periods of power
cuts. The costs allocated to each brand will increase including their own brands. These power
cuts affect their own brands from the development stage and when they are in store. This reduce
the margins of their own brands due to increase in costs

Foreign competition
Most of OK’s products available in various stores were imported as the local manufacturing
base has not yet sufficiently recovered to satisfy demand. The import products compete in many
ways, by price, designs, taste and time period to be prepared to mention a few. These imports are
much more competitive and are available in other competitive stores, this reduces the market
share of OK’s own brands resulting in slow or stable growth in their own brands. From an
analysis obtained between 2011 and 2012 there was a decline in stock turn to 9.6 from 10.5 time
which results imported products. Moreover foreign products are made at the lowest possible
costs hence they are cheaper as compared to local products, thus these foreign products competes
intensively by prices and there is no just noticeable difference between such brands in terms of
price

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Liquidity crunch
Due to the liquidity challenges that are persisting in the environment as witnessed from last
year, that is, 2012. The retail supermarket will not be flexible enough to venture in to new
product categories so that they keep up with customers expectations. Thus there is need to
maintain their stock levels while venturing into new product categories so that they ensure high
customer satisfaction

However there are also ways and measures that OK Zimbabwe ensure in managing their own
products so that they stay competitive. This include brand awarenesses and promotions, ensuring
employees participation, customer service, monitoring stock levels, merchandising and also
segmenting their brands

Brand awareness and (or) promotions

OK Zimbabwe carries out brand awareness activities and promotions for its own brands. Its
brand awareness helps customers to recognise or to recall their own brand under different
conditions by making use of various brand elements, for example Pot ‘O’ gold brands are
labelled in a gold colour when packaging, also shelve displays and signs. Their own brands are
also promoted during their promotional activities such as OK Gland challenge

Employee participation
Employees directly engage with customers, thus OK Zimbabwe ensures employees
participation. This helps to provide information on how customers view their own brand, what
they want the product to be, that is, addition and subtraction with regards to its own brands. This
information will help in managing the brand and help improve product performance so that they
stay competitive

Customer service
To ensure customer service employees are trained on how to interact with customers and to gain
product knowledge through such trainings. Thus the store provides management development

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trainings and comprises of the internal management trainees and graduate management trainees.
This helps sharpens their skills and competence in delivering customer service

Monitoring Stock level and sales

The store ensures that there is adequate stocks both in manufacturer brands or own brands to
stay competitive. This has been seen from an analysis from 2011 to 2012 as there was an
increase in stock levels by 35% between such periods from the previous sales. Thus they monitor
stock levels and sales so as to ensure that the product offerings to their customers remain
adequate and at a competitive price

Merchandising
These include all practises which contribute to the sale of products to the retail consumer’s.
Their own brands are made available to their customers in their relevant shelves, properly priced
and grouped in an orderly manner. There is regular cleanings of both shelves and products at
given intervals. Thus this helps their own brands to stay competitive

Segmenting their own brands

OK Zimbabwe group channels of distribution include OK stores, Bon Marche’ stores and OK
Mart allows the group to target all segments of the desired market. OK stores are specifically
profiled in some designs, product range, service and other offering. Thus OK stores own brands
include OK Pot ‘O’ gold, Bon Marche’ Premium choice labels for Bon March stores and
Shoppers Choice for OK Mart. These products are segmented the specific requirements of the
market in the low, middle and high income consumer categories so that their products stay
competitive

In conclusion, private brands or own brands are brands placed on products that a large
manufacturer has created for the retailer. The retailer then places their own private brand labels
on the final good created by the third part manufacturer. Private brand provides a cost effective
way to gain to producing a product without requiring large manufacturing or design teams.

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REFERENCE

JOURNALS

Pitta, D.A. and Katsanis, L.P. (1995), `Understanding brand equity for successful brand
extension'', Journal of Consumer Marketing, Vol. 12 No. 4, pp. 51-64.

Keller, K.L.(1993), ``Conceptualizing, measuring, and managing customer-based brand

equity'',Journal of Marketing, Vol. 57, pp. 1-22.

BOOKS

Kotler, P., Armstrong, G., Saunders, J. andWong, V. (1996), Principles of Marketing, The
European Edition, Prentice-Hall, Hemel Hempstead, p. 556.

Keller, K.L., Aperia, T., Georgson, M. (2008), Strategic Brand Management: A

EuropeanPerspective, Pearson Education, Prentice Hall

INTERNET
OK Zimbabwe 2012 annual report, www.okziminvestor.com, obtained on 28th of March 2012

Meikles Department Stores, www.meiklesstores.com, obtained on the 28th of March 2012

Farquhar (1998) defined brand equity as the ‘added value’ with which a given brand endows a
product. Brand Equity is also defined as the marketing effects or outcomes that accrue to the
product or service with its brand name, as compared to the outcome if that same product or

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service did not have the brand name (Keller, 1993). Econet brand equity is its promise to deliver
a delightful user experience to its customers.
Econet was the first to introduce Prepaid Lines into the telecommunications industry where they
were already existing players namely Telecel and Net One but they were selling contract lines.
This Econet from the onset build its brand equity after it managed to identify a gap in the market
and managed to fill the gap by introducing Buddie Prepaid Lines. Contract lined targeted the
adults who had their monthly incomes but not flexible to the youth who did not have fixed
income. In addition to contract line Econet introduced Buddie Prepaid lines and managed to lure
all the age groups including the young who did not have fixed income at the end of the month.

Econet was the first service provider to be listed on the Zimbabwe Stock Exchange market three
months after it was launched. This gave Econet a competitive advantage as this attracted more
investors and started to undertake its activities in a more professional way as it complied with
Zimbabwe Stock Exchange rules and regulations. Furthermore Econet was able to expand its
market as it ventured in international markets. It expanded its operations in Africa, Europe,
South America and Eastern Asia thereby creating strong brand equity.

Econet was also the first service provider to introduce the concept of Branding in the
telecommunication systems. It introduced the brand name ‘Buddie’ for its own product were as
all the other competitors were using the term ‘contract lines’ for their products. This move
helped Econet in building positive brand equity by creating a sense of ownership in the minds of
its customers.

Moreover, Econet used the motto ‘your cellular network’ in which the motto further strengthens
a sense of ownership in the minds if of the customers and helped to lure more customers. This
move assisted Econet in increasing its customer’s base.

The motto was then changed to ‘inspired to change your world’ as it mainly centre on its
products and services. This motto shows that Econet will continually provide goods and services
that are driven by vision. For example it introduced fibre optic for powerful internet services that
definitely changed the world of many people including the youth as they made use of social

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networks. Ecocash has also been introduced and changed the way in which people or some
organizations transact or exchange money amongst each other. This has also contributed in
building a strong brand equity for Econet.

Furthermore, Econet was able to differentiate its products and targeting specific markets from its
brands namely Buddie, Business Partna and Liberty. Buddie was targeted for the youth as they
did not have fixed incomes as it controls over usage. Business Partna was for the adults who did
not control their usage because they will be busy with their jobs. They tried to outline the
concept that one can never be everything to everyone; therefore one should create products to the
meet specific needs of different customers.

Under the wings of Econet there are also social responsibility programmes, these programmes
have also contributed in building positive and strong brand equity for itself. This programme
falls under the name ‘Econet in the Community’. Econet in the Community branches in to the
following sub-programmes The Zimbabwe National Health Care Trust, Joshua Nkomo
Scholarship Funds, Capernaum Trust, H.I.V and A.I.D.S policy and Christian Community
Partnership Trust. All these programmes provides support to different people in schools,
orphanages, in hospitals and clinics and also church’s in the community of Zimbabwe. This has
created an emotional attachment in the minds of the customer towards Econet products and
services thereby building positive brand equity. This also shows to the customers that Econet is
not in for the objective of making profits but also for conserving its environment and giving back
to the community.

Econet made use of captivating and incorporating humor in their adverts so that people can
remember them. The adverts were repeated to reinforced the messages for example the
statement “Eco chii” had eventually become the way of life for the people. These reinforcements
of messages reminded people of Econet.
More so Econet managed to get consumer attention to customers through tailor made adverts.
Thus Econet has identified the most common mode of communication which is sending
personalized messages through texts and also posting information on face book the most

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common social network. This made its products sell fast and also contribute in creating strong
brand equity.

B) Strategies Employed
Strategies employed by Econet a methods or plans chosen to bring about a desire future, such as
achievement of a goal or solutions to a problem. From 1998 Econet has employed a number of
strategies, these strategies are explained below in detail.

Introducing a Quality Products

Econet managed to introduce quality products and managed to maintain and differentiate them
from other competitor on the market. One example is when they introduced Buddie a prepaid
line which was fit for the purpose of satisfying many people’s needs. They also made use of
different marketing strategies in supporting quality products and differentiation by
communicating to the customers the distinct benefits and the relevance of the product to the
needs and wants.

Consistency and reliable products

Econet has also managed to build brands that were consistent and reliable and these include
Econet Broad Band and Buddie. Consistency and reliability create a sense of trust in Econet
brands and they are mostly attracted towards that brand. The brand is also consistent in the sense
that it has continuity it its brands through brand extensions, for example Eco-cash and Econet
solar just to mention a few.

Performance
Econet has continued to enhance it products performance over its life time. It has managed to
meet and maintain customer expectations high by improving or enhancing its product in many
ways which include the use of fibre optic and increasing the number of Booster for powerful
internet and network coverage. Buddie product performance has been continually been improved
with programmes like Buddie beats, Buddie zone and call back ringtone to mention a few. There
were also improvements in customer service and social responsibilities.

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Ploughing back to the community

Another strategy use by Econet is ploughing back to the community, customers will create an
emotional connection towards the organization. This is mainly through social responsibility
programmes for example the Capernaum trust helping victims in cyclones and other tragedies
and also providing scholarship.

Engagement
Econet has been involved in awareness campaigns, these campaign are for conserving energies
and the environment. This has been possible through the Econet Solar lamp that helps avoid
smoke emitting lamps that may be hazardous to our healthy

Value- Marketing Mix

The pricing strategy of Econet has been different as compared to its competitor though higher
than those of its competitor. It relies on the principle ‘value for money’ as it has wider network
coverage and powerful internet services. Econet has also been providing a variety of promotions
country wide, the current and common one is Buddie zone with 99% discounts. Econet products
and services have also been place in different places country wide, for example Eco-cash service
has been made available almost in every city. Econet also monitor its products and services as
they were new product, product extension and product strimme lining. The marketing mix has
been used interchangeable in creating value to Econet.

C) Major successes and pitfalls of Econet

Econet has countless achievement and less pitfalls, below are successes Econet which are then
followed by its failures or pitfalls.

Attainment of Social Responsibility Programmes

Econet undertakes a variety of social responsibilities in Zimbabwe under the brand name
‘Econet in the Community’. This programme covers The National Health Care Trust, Joshua
Nkomo Scholarship Fund, and Capernaum Trust, H.I.V and A.I.D.S policy and Christian

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Community Partnership Trust. For example in 2008 they were involved in the fight against
Cholera and also spread awareness by printing anti-cholera messages and in2006 up to now it
has been taking care of orphans and has succeeded in its operation.

Venturing into International Markets

Econet is now a diversified telecommunications group with operations and investments in
Africa, Europe, South America and East Asia Pacific rim offering products and services in core
areas of mobile and fixed telephony services, Broad Band, Satellites and Fibre Optic. Thus its
operations have been successful in international markets, thereby integrating the globe into one
market.

Market Leaders
Econet is one of the largest companies on the Zimbabwe Stock Exchange market in terms of
market capitalization. For example by 2010 Econet has had 73% share of the Zimbabwean
Mobile market with over 4 million subscribers. Thus Econet success also been successfully listed
the stock exchange market three months soon after it has been launched.

Innovative and Reliable products and services

Econet is inspired to change the world as it continues to create, develop and improve its
products and services. There are a wide range of products and services which includes Eco-cash,
Econet Broad Band, Econet solar, Buddie and Econet in the community. These are the major
products and services and they successfully serve as the main source of revenues in Econet.

However there are also pitfall or failures by Econet in the telecommunication industry and they
are explained below

Traffic Congestion

It is defined as "The condition of a network where the immediate establishment of a new

connection is impossible owing to the unavailability of network element". It may happen

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momentarily for an unusually high traffic. Econet on some interval experience congestion
especially times of system upgrade. Individuals will be inconvenienced during such moments.

Econet Infrastructure

Econet is the market leader in the telecommunications industry on a national level but on
international level it is trailing behind. The infrastructure used at Econet is not compatible with
other devices or cell phone for example the current infrastructure does not allow video calling in
Zimbabwe but in South Africa it has been used for years.

Buddie, Libertie and Business Partna

The three different line from the same mobile provider Econet once was serve in the market at
the same time, they served to confuse subscribers in such a way that subscribers felt that one was
superior over another. This served as a failure as it resulted in problems

How Brands are affected by the SRA and SAZ

Are these Organisations Satisfied?
What Standards expected on them

Standards
The term standard refers specifically to a specification that has been approved by a standards
setting organization. These standards are mandatory and are said to be followed as the have been
stated by the legal practitioners. This can also be called the protocol that has achieved
widespread use and acceptance, sometimes without being approved by any standards
organization, only to receive such an approval only after it has already achieved widespread of
use. Standards can be global, national, regional as well as organisational / internal standards.
How Brands are affected by the SRA and SAZ

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Using standards can offer a set of powerful brand and marketing tools for retail and logistics
organizations of all sizes. As brands are promises, SRA and SAZ standards can be used to fine-
tune performance and manage the risks faced while operating in more efficient and sustainable
ways. These standards allow to demonstrate the quality of what retail or logistic brand can do to
its customers. They also help retailers and logistical organisations see how to do best business
practices which improves Brand image and equity of the organizations.
 Innovation-Participation in standards development exposes retail and logistic businesses to
the expertise and research of other organizations within the same industry or sector. This
increased networking and knowledge transfer translates into enhanced designs, brand image
and new ideas. If an idea is authorised by the SAZ and SRA it then becomes very easy to
convert the idea into service or product. For example Eco Cash, Tele Cash, mobile banking
of CABS, etc. This improved the brand images of the active players.
 Expanded markets-Increasingly, conformance to SAZ and SRA standards eases the entry
into domestic markets of foreign retail and logistical brands, e.g. Choppies and Pick n Pay. It
also contributes to reducing technical barriers to trade. Many international trade agreements
support the use of international standards and the mutual recognition of conformity
assessment results, e.g. Schweppes beverages they can exploit the global market as their
products are certified by SAZ hence their markets are unlimited especially for Mazoe
beverages.
 Risk management-Standardization provides retail and logistical businesses with tools to
better manage risk. Not only are they increasingly adhering to standards to ensure the
quality, safety and efficiency of their own practices and products, they are seeking suppliers
who do the same as this improves their images.
 SAZ and SRA Standards ensure that products and services are safe, reliable and are of good
quality. For example in 2006, where the market was flooded by 14 containers of counterfeit
toothpaste bearing the Colgate name, SAZ can through the ISO test for quality of each of the
different types of the toothpaste circulating thereby coming with the required one that is
protecting the rights of all stakeholders.
 [ISO is derived from the Greek isos, meaning equal. Whatever the country, whatever the
language, we are always ISO. It is a global network that identifies what international

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standards are required by business, government and society, develops them and delivers
them to be implemented for worldwide use.
 It is an approach aimed at meeting the needs of all stakeholders from government, non-
government authorities and consumers, therefore it means that all national bodies for
standards for example SAZ Zimbabwe, SAS in South Africa and BOZ in Botswana do
things the same way and they form a federation of bodies that recognise any organisation
that conformed to the standards set.]

 As SAZ and SRA offers information services on national, foreign national and international
standards. An annual catalogue of national standards is published and specific subject
listings and promotional fliers are widely disseminated. Customer standards holdings lists
are updated upon request. A selective dissemination of information services is offered which
matches customer standards information profiles with appropriate standards. This enables
retail and logistical companies to quickly conform to the standards that is maintaining their
brands as the most viable and superior.

 And SRA and SAZ undertakes regular checks on market products and services to verify
continuous compliance to the standards. This is mainly done to check counterfeit brands
who will not be certified and taking opportunities of using the competitor’s name. A good
example is a 2006, conflicting case of three identical Colgate’s which were on the market.
When SAZ detect this issue they held a meeting and according to the laboratory experiments
two types of them were condemned to be harmful to healthy.

 As SAZ and SRA and under ISO, the country’s representation in international activities and
at forums that deal with standards ensure that the country’s standards are in compliance with
the international standards, thereby providing networking opportunities for local retail and
logistic brands with other companies or countries who are advanced. For example, Econet
Wireless now have deep relations with advanced international companies like Mozilla
Firefox, Google etc.

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Are these Organisations Satisfied?

 Reducing business risk- retail and logistics businesses today simply can’t afford to take an
improvised, reactive approach to risk. Using standards helps them to identify the risks and
minimize them.
 Becoming more sustainable- SAZ and SRA standards helps companies to take a close look
at how they’re using their energy and resources. That is using these standards can save
money and improve the brand image while benefiting the environment.
 Cost savings and increased revenue-The use of recognized standards such as SAZ and SRA,
whether related to the design of a specific product, the management of the delivery of a
service, makes businesses more efficient and cost-effective. In many cases, standardization
can reduce the burden of regulatory compliance, e.g. when Lyons maid complied with the
400ml regulation on cascade juice bottles, they have served 100mls of drink as well as the
container reduced in size making it easier for them to transport their products everywhere in
the country.
 Improved Brand performance-Success is all about how the company performs at every level
of the organization. These standards promote a culture of continual improvement.
 Confidence and Status -Standardization is a means for organizations of all types and sizes to
show and practise social and environmental responsibility in their business and society. This
can positively impact public perception and consumer confidence in their products, systems
and services e.g. Econet they do sponsorships, scholarships as well as giveaways to
customers as part of its mandate that they should give back to the public as they know the
power of PR as a marketing tool.
 Competitive edge -Active participation in standards-related activities equips businesses with
relevant information on emerging trends and changing practices, which can translate into a
competitive business advantage and superior brand image e.g. Econet participate in the
global market and this makes it to be the market leader in the networking service.

What Standards expected on them

The main functions of SRA and SAZ includes:

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 Preparation and promulgation of national standards- Standards are documents or a

list of requirements which looks at how best an activity can be done. For example when a
company is producing a product, there are various activities involved and those should be
focused solely on producing quality standards. These may include management system
standards, quality management standards, and environments standards. For example each
retailer by law supposed to have a shelf of local brands instead of only foreign ones, to
promote competitiveness between brands. Another example, recently Easy-go has been
issued an ISO certificate and SAZ has given it a stern warning to adhere to standards or
risk losing the certificate.
 Promotion of the implementation of standards by industry- This is done to guarantee
quality through offering training services, and awarding companies during the Company
Annual Awards program. Training helps to strategies and place organization ahead of its
competitors as it get first-hand information during the process. The courses covers,
awareness, implementation and internal auditing. This is mostly done to facilitate
increase of exports among industry.
 Certification of products- Operates on product certification scheme under which goods
produced under proper control are licensed as in compliance with appropriate standards
and carry the SAZ mark of approval. SAZ also offers management system certification
schemes to quality (ISO 9001) and environmental (ISO 14001) standards. SAZ avails to
producers and consumers laboratory facilities for testing of manufactured goods and raw
materials to demonstrate their compliance with standards. SAZ certify products according
to standards set by the Ministry of Health and Child Care. As part of the process towards
certification, companies involved are required to meet the minimum requirements set by
the Ministry of Health.
 SAZ and SRA provides information on standards and related technical matters, with
regard to both national and international standards which companies are expected to
comply with or risk lose their certifications.

Keller, A.(2003) defined brand equity as the marketing effects or outcomes that accrue to a
product given its brand name compared with those that would accrue if the same product does

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not have the brand name. Brand equity has increasingly been defined in customer-based
contexts, which defines brand equity as the value of a brand to the customer.

Brand awareness
Brand awareness is a key determinant of brand equity. It is defined as an individual's ability to
recall and recognize a brand (Aaker, 2000;Keller, 2003).Awareness can affect customers
‘perceptions, which lead to different brand choice and even loyalty. A brand with strong brand
recall (unaided awareness) and top of mind can affect customers’ perceptions, which lead to
different customer choice inside a product category.

Brand association
Brand association contains the meaning of the brand for consumers (Keller, 1993). It is anything
linked in memory to a brand (Aaker, 2000). Brand associations are mostly grouped into a
product-related attribute like brand performance and non-product related attributes like brand
personality and organizational associations. Customers evaluate a product not merely by whether
the product can perform the functions for which it is designed for but the reasons to buy this
brand over the competitors.Organizational associations include corporate ability and social
responsibility associations (Aaker, 2000; Chen, 2001). Consumers will consider the organization,
which is related to people, values, and programs that lies behind the brand.

Brand Loyalty
Aaker (1991) defines brand loyalty as ‘the attachment that a customer has to a brand. Brand
loyalty helps to answer questions such as how likely are consumers to continue to
choose/repurchase the brand. How likely are consumers to recommend the brand to a friend
associate Brand loyalty emerges as a consequence of brand equity rather than its predecessor
(Erdem, 2001).Greater customer retention indicates a more stable customer base that provides a
somewhat predictable source of future revenue as customers return to buy again, and is less
vulnerable to competition and environmental changes. Brand loyalty convinces a customer to
make a decision even if thebrand of product price is higher than the other brand of the product
that offer similar benefits.

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Perceived Quality
(Erdem et al., 2001) identifies another dimension of measuringbrand equitywhich is known as
brand attitudes or Perceived quality of the brand in terms of quality and satisfaction it generates.
Brand equity is not essentially affiliated only with high-quality products. Equity depends on the
credibility of the quality claims. When a company ‘‘cheats’’ consumers by promising high
quality but delivering low quality, they will lose return on their brand investments, their
reputation for high qualityOnly high-quality companies may preserve a high price because
signalling high quality but delivering low quality is not likely to be successful in the long run
(Erdem, 2001). Some brands have higher brand equity because of their price value. Honda cars
have brand equity because of their performance compared to price, whereas Lexus cars have
their equity with the help of their high performance and social image (Lasser, 1995).

Other Proprietary Assets

Aacker, S.A. (2000) identifies another dimension whicha lot of authors did not identified as a
measure of brand equity (other Proprietary assets). Examples of Proprietary Assets are patents,
and intellectual property rights, relations with trade partners, and airlines landing slots (the more
proprietary rights a brand has accumulated, the greater the brands competitive edge in those
fields)

B)MFSGROUP is a retail organization which has specialty shops which are

hardware,stationery,wholesale,supermarkets,appliances and agriculturalsupplies. The
organization has fifteen branches countrywide and is still looking to expand. In the effort to
create its brand equity, the organization has done following:

Brand awareness
MFSGROUP as an organization in its efforts to create brand awareness as part of building brand
equity the organization has embarked a system whereby it holds roadshows and promotions
every two weeks. These promotions are held with supplier participation who supply from all
their different specialty shops. This creates attention from the customers and they also benefit
from low prices charged on the products on such occasions. The company apart from putting up
large signs at the shops that have the company logo and name, the company has erected

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billboards along the major highways advertising their products and name. The company name
and logo have also been placed on the company vehicles especially delivery trucks. All these
efforts are meant to keep the company name and logo in the customer eyes so that they
familiarize with it and differentiate it from its competitors.

Brand association
The company is a Kingdom company build on Christian principals and this is communicated to
the customers and the company aims to operate on Christian principals such as not trading in
alcohol and cigarettes. This is part of the organizational culture which is portrayed to the
customers and customers who are more conscious about their beliefs especially Christians find it
easy to relate and do business with the company and this creates the brand equity in the long run.
The organization has bible verses written on the walls in the shops and part of the culture. This
culture is not only a culture that is written on walls but also practiced such as the way they do
business as they value honesty and transparency which are also proper business ethics. The
organization has made it its priority to give back to the community which means that it conducts
business at a way that makes the community benefit in the long run in terms of low prices and
making available products. With this in minds of consumers this creates an levels of association
between the brand and consumers as they know that the relationship that is being natured is has
their interests at heart and they are the ones who gain and to the organization Brand equity is
built in the long run.

Brand Loyalty
The company has embarked on loyalty programs to make that consumers become loyal to the
organisation. There is a Net Club which was built to educate traders who do business with the
organisation as these are called in for a whole day at the MFS premises and are given
professional advice on the areas that they may be facing challenges in the market and are helped
to come up with solutions on how to overcome them. This also creates a platform where they can
raise issues that are affecting them and how the organisation can help to solve them to the mutual
benefit of both parties involved. This maintains a relationship between the company and the
traders who are also their major business partners hence loyalty is build and maintained. The
organisation also runs promotions through loyalty card holders who make purchases and they

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earn points on every purchase that they make which can be redeemed for discounts and also
makes them eligible to enter competitions. They also enjoy benefits such as free carrier’s bags
when they make their purchases.
Perceived Quality
Since the company does not perform any manufacturing it makes sure that it gets supplier
backup on all the products that they sell incase that they fail to perform well the products can be
replaced with a proper one. But the company tends not to favour the idea of making the shopping
experience of its customers a nightmare and prolonging it for no good reason that is why they
sell specialized equipment which are authentic and have guarantees such as Hausquavanna
,Gardena and Tandem which a suppliers of top quality products.
Other Propriety Assets
MFSGROUP has also made strategic alliances with big suppliers as part of building its brand
equity within the retailing industry. The organisation is a Key Distributor (KD) for all Unilever
products in Manicaland.This means that all Unilever Products can be obtained from the
organisation at Wholesaler Prices. This makes it possible for the organisation so sell all Unilever
products at low prices and be a supplier to all those who sell Unilever products as they get the
same prices on offer by the Supplier in Harare. This creates brand equity and positions the
organisation as a major player in the market.

References

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AekaaD.A(1991),Managing Brand Equity;capitalizing on the value of the brand name.The Free

Press,New York
Erdem, T. (2001) Brands as Signals: A Cross-Country Validation Study. Journal of Marketing,
70, p. 34-49
Keller, K.L.andLehmann, D.(2003). How Do Brands Create Value? Marketing Management.
May/June, p.26-31
Lasser, W.,Mittal, B.andSharma, A.(1995). Measuring Customer-Based Brand Equity. Journal of
ConsumerMarketing, 12, p.11-19

QUESTION:
A) Outline and discuss the five dimensions that influence the overall brand image
B) Describe how one retailer of your choice has implemented these dimensions

Cut throat competition has emerged in the twenty first century and companies have head to come
up with vibrant strategies in order to stay in business one of these strategies is to differentiate
their products from your competitors products through branding. According to Mintel (2005)
own product labels are defined as any products over which a retailer has exercised total sourcing
and marketing control. Large retailers in the Zimbabwean context have also established own
brands as a survival strategy and this include OK Zimbabwe limited and Edgars stores limited.
Challenges faced by the above mentioned retailers with their own brands will be explained first
and strategies employed by the companies will also be discussed.
OK Zimbabwe limited was first incorporated as Springmaster in 1953, the name was changed to
Deltrade limited in 1984 its current name was effected in 2001.OK Zimbabwe limited’s store
brands include OK conventional stores. OK Mart stores, OK express and Bon Marche, its
product brands include OK value brand, Pot ‘O’ Gold and their recent brand is Shopper’s choice.
OK Zimbabwe has also developed a service brand called shop easy card which is a debit card
that customers can use to purchase goods, OK mart also offers a wedding service called the OK
mart dream weddings.
Challenges being faced
Competition from well established brands

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Developing your own brand is often challenging due to the existence of well established brands
in the market for example in the case of Pot ‘O’ Gold it struggled because of established brands
from companies such as Probrands, National foods and Olivine to mention a few. It is very
difficult to compete with brands that are already well established thus Pot ‘O’ Gold has failed to
compete with well established brands. However it can be argued that the marketing team at OK
Zimbabwe did not give Pot ‘O’ Gold the marketing attention and commitment they are now
giving to their latest brand Shopper’s choice.

Development cost
Coming up with an own brand is often expensive as they are many aspects to be effected.
Retailers often encounter the challenge of high development costs OK ‘s shoppers choice brand
is being established on many products lines for example toilet papers, salad creams, baked beans,
eggs ,chicken cuts to mention a few and this implies that the cost in terms of packaging and other
marketing cost will be immense. OK Zimbabwe has faced challenges of high development costs.
Consumer’s with low disposable incomes
Most consumers in the Zimbabwean market have low disposable incomes and they are very
rationale in their spending and they are not willing to try new brands because of high switching
cost and OK Zimbabwe has faced this challenge when developing own brands Pot ‘O’ Gold was
the most affected because the economy experienced challenges during the Zimbabwean dollar
era.
Changing consumer’s taste and preferences
Consumer’s taste and preferences are not constant they are always changing and OK Zimbabwe
has also experienced this challenge with their own brands. OK was forced to completely remove
some of its products lines under the Pot ‘O’ Gold brand due to changes in consumers preferences
for example the “Soya nyamas” popularly known as chunks where once a favorite products with
consumers during the economic downturn era but in recent times they have been completely
eliminated in the market because of changing consumers preferences thus changes in consumers
taste and preferences can have a negative effect on the development of own brands by retailers.
External competition

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Retailers also face challenges when developing their own brands due to competition from
products from external markets for example the own brands suffered from duty free convenience
products that flooded the Zimbabwean market.

Meeting the required standard

OK Zimbabwe has also faced challenges in meeting the required standard in terms of quality of
products and packaging of their own brands for example the recently introduced OK economy
bread has poor packaging and the bread does not last in terms of freshness as compared to other
types of bread in the market such as Baker’s Inn bread and Proton bread. Thus most retailers lack
the knowledge and expertise required for them to develop viable brands.
Risks involved in tempering with available performing lines
OK Zimbabwe has often faced dilemmas when marketing their own brands as it is often risky to
temper with already established non private brands and focus on developing your own brands. In
practice it is difficult for OK to replace a brand like Baker’s Inn bread and try to fully market OK
economy bread because Baker’s Inn bread is a profitable line for OK Zimbabwe.
Less adventurous consumers
As mentioned earlier on OK Zimbabwe also has a service brand called the shop easy card which
acts as a debit card and it is meant to provide the consumers with convenience and safety for
their money as they will no longer carry any money when shopping. However this service brand
has faced challenges because most consumers are not adventurous they are not willing to
accommodate new methods.
Challenges beyond the control of the organisation
OK Zimbabwe has also faced challenges that are beyond the control of the organisation when
developing their own brands, these are challenges in the macro environment for example the
hyper inflation that affected the economy in 2008 and the flooding of duty free imports in the
economy.

HOW THEY MANAGE THEIR OWN BRANDS TO STAY COMPETITIVE

OK Zimbabwe has adopted different strategies in managing their brands, they have managed
their store brands by consistently caring out store renovations and internal studies have proved

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that they is a positive relationship between the renovation of a store and sales. Strategies that
have been employed to manage product brands are explained in paragraphs below.
Promotions
OK Zimbabwe has used promotions in managing their own brands and this has helped in
enhancing the success of their brands. However l urge the organisation to increase the number of
own brands in their major promotions for example during last year’s grand challenge promotion
they was only one Pot ‘O’ Gold line on promotion and three shopper’s choice lines.
Merchandising
OK has also adopted merchandising strategies where preferences such as more shelve space is
given to some own brands for example shoppers choice tissues maybe given a more visible
shelve end and space and this helps in increasing sales from the own brand and enhancing its
success.
Product availability
OK Zimbabwe has also strived at making product availability of its own brands always and they
have classified their own brands under what they have termed AA lines (always available lines)
at it is a company requirements that these lines should always be available under normal
circumstances and this has helped in maintaining the consistence of their own brands and
branches rarely have stock outs of own brands.

Pricing
OK own brands by their nature are relatively cheap as compared to suppliers brands such as
Probrands because the organization negotiates with suppliers and establish a standard design or a
template that is used for the packaging of the own brand and it becomes cheaper. OK Zimbabwe
has thus benefited from having cheaper own brands. The company has also managed pricing of
their own brands by carrying out monthly price comparisons with their competitors and this has
helped them to have fair pricing and to stay competitive.
Customization of products and services
OK Zimbabwe has also customized its products and services for example the OK mart dream
weddings service and the shop easy card are customized service.

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Advertising
OK Zimbabwe has also aimed at getting consumer’s attention by utilizing both the print and
electronic media in advertising their products and this has also helped in increasing customer
awareness. However the organizational can be urged to fully utilize e-advertising as this can also
go a long way in reaching a large target market.
Social responsibility
OK Zimbabwe has also aimed at establishing a positive corporate image by engaging in social
responsibility programmes for example the world AIDS day campaign and this will go a long
way in enhancing the acceptance of the companies own brands by consumer’s.

Edgars stores limited

It was founded by Sydeny Press and the first store opened in 1946 the company went public in
1976.It is involved in the clothing retail industry and it has many branches across the country.
Store brands that fall under Edgars stores limited include Edgars stores, Jet, Edgars financial
services and Carousel which is the groups manufacturing hub. The clothing industry is very
competitive and Edgars has also faced challenges, the group’s product brands include Jet labeled
products, Edgars labeled product and excusive labels such as Du Date.
Challenges faced

Competition (internal and external)

Edgars brands have also faced stiff internal and external competition. The influx of flea markets
in most central business districts has also made it difficult as most customers are low to medium
earners thus they will opt for cheaper products which are available in the flea markets. Edgars
brands have also faced stiff competition from other retailers in the clothing industry who also
offer quality clothes and these include Topics, Barbour’s and Greatemans to mention a few
.Zimbabwe’s trade policies have also made it difficult for Edgars for example the policy of duty
free imports has provided Edgars with stiff competition as fabrics from the neighboring countries
such as South Africa can be easily imported.
Pricing versus the rational consumer
Edgars has also faced challenges due to the prices of their own brands, they mostly emphasis on
quality thus they charge high prices the problem will arise from the fact that majority of the

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customers are low to medium earner’s thus they will opt for cheaper products although Edgars
brands will be of high quality.

Development costs
Unlike in the case of supermarkets it is not easy to develop own brands in the clothing industry
because it is difficult to negotiate to develop your brands for example it is easy for OK
Zimbabwe with Irvines and agree on a template that will be used in packaging shoppers Choice
eggs but Edgars can do the same with its suppliers because clothes comes in various ranges and
assortment. Thus Edgars faced the above mentioned challenge as they had to develop their own
brands themselves and the development costs are high.
How they manage their own brands

Credit facilities
As mentioned earlier on Edgars products are relatively of high prices thus the company has
developed sound credit facilities where customers can open individual accounts where they can
buy clothes on credit and pay in monthly installments. Sound credit facilities have given Edgars
own brands a competitive advantage as they can also satisfy the low to medium earners who
strive for quality

Consistency
Edgars has also strived to continuously cater for the needs of their customers without any
disruptions and they have their own manufacturing company Carousel private limited and it
supplies a wide range of own of Edgars and Jet brands thus by having a manufacturing division
the company has hedged on the risk of stock outs and this will enable customer retention.
Edgars philosophy is based on quality and they have successfully excelled on this aspect, the
company has a quality assurance team at their manufacturing division in Bulawayo and any
clothes that do not meet the company quality standards will be removed from the batch before
the batch is dispatched to branches thus Edgars has established a competitive advantage by
having a quality assurance team.

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Targeting
Edgars has also used targeting strategies to increase the effectiveness of their own brands by
targeting different type of consumers ranging from kids to adults for example they have targeted
men through what they called the “Charter Club” which is exclusively for men formal clothes
and the “Merien hall” which is exclusively for ladies formal and this helps the organisation by
fully satisfying the needs of consumers through customized products.

Promotions
Edgars has also come up with promotions to enhance the success of their own brands and to
maximize sales and their current promotion the Easter specials where there was 20% of sale
discount on selected merchandise and this goes a long way in enhancing the success of own
brands.

Advertising
Edgars has also adopted advertising strategies and this has also enhanced the performance of
their own brands as advertisements will increase consumer awareness and getting the attention of
respective target consumer’.
Social responsibility

Edgars has also strived at developing emotional attachments with its customers by engaging in
social responsibility programmes for example the My Zimbabwe My responsibility campaign
and this helps in creating a positive image for the company and consumer’s are likely to try
Edgars products because they will be emotionally attached to the organisation.
Edgars has also sought to improve its appeal to customers by renovating their stores and this also
helped the organisations in increasing the number of customers who visit their shops.

Conclusion
In the twenty first century the needs for retailers to develop own brands has fast become a need
rather than a luxury due to the stiff competition in the operating environment and the need to cut
costs. However the success of own brands is dependent on the organization’s ability to meet the
consumer needs and coming up with quality products that differentiate them from competitors.

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References
Retail marketing management David Gilbert 2nd edition
Retail marketing Malcolm Sullivan and Dennis Adcock1st edition
Ying Huang, Patricia Huddleston, (2009) "Retailer premium International Journal of Retail &
Distribution Management, Vol. 37 Iss: 11, pp.975 – 992

L.E. Wells, H. Farley, G.A. Armstrong, (2007), International Journal of Retail & Distribution
Management, Vol. 35 Iss: 9, pp.677 – 690

Gary Davies, Eliane Brito, (2004), European Journal of Marketing, Vol. 38 Iss: 1/2, pp.30 - 55
OK Zimbabwe Business report 2011
www.edgars.co.zw (22 March 2013)
www.okzim.co.zw (23 March 2013)

Question:
Most retailers in Zimbabwe now have their own brands, identify two major retailers listed on the
Zimbabwe stock exchange. Discuss the challenges they face with their own brands, how do they
manage their own brands to stay competitive (30)

a)Brand equity in transportation logistics

Business environments over the years have increasingly recognized the significance of brand
equity as a means of competitive advantage, which have consequently attracted scholarly interest
in recent times. Brand equity has been defined by Aarker as value added or incremental utility
enjoyed by a product because of its brand name. Keller (1993) defines brand equity as “The
differential effect of brand knowledge on consumer response to the marketing of the brand”. He
suggests that consumer assessments concerning a product with a brand name should be
compared to an unnamed product (without brand). Comparing these two products could then
explain the preference, the intention to buy, or even the final consumer choice. With reference to
www.marketingresearch.org, brand equity is a construct that is designed to reflect the real value
that a brand name holds for the products and services that it accompanies. Brand equity is
considered important because brands are believed to be strong influencers of critical business
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outcomes, such as sales and market share. In simpler terms it is the value and strength of the
brand that decides its worth.

If the brand's equity is positive, the company can increase the likelihood that customers will buy
its new product and services by associating the new product with an existing, successful brand.
Keller (2003) argued that the power of a brand lies in the minds of the customers and what they
have experienced and learned about the brand over time. There are five dimensions which
influence transportation logistics overall brand equity namely brand awareness, brand
association, perceived quality, brand loyalty and brand trust. The following are the brand equity
dimensions which are diagrammatically shown below.

brand
awareness

percieved brand
quality association
brand
equity

brand brand
identity loyalty

Brand awareness
Brand awareness is the probability that consumers are familiar about the life and availability of
the product. Keller also suggests that brand awareness refers to customers' ability to recall and
recognize the brand under different conditions and link to the brand name, logo and jingles to
certain associations in memory. For example DHL’s brand name is in bold capital letters also its
logo is red and yellow in colour, two bright and easily identifiable shades. As consumers are
repeatedly exposed to the brand, they become more familiar with it. The degree of customer
brand awareness depends on their ability to recall any promotional messages and the brand’s

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availability .Once consumers become familiar with the brand, their perceptions of it become
more detailed.
Brand awareness is constituted of brand recall and awareness, brand recall is the potential of
customer to recover a brand from his memory when given the lines that the transportation
logistics company offers whilst brand recognition is when consumers can clearly differentiate the
brand as having being earlier noticed or heard. However, Davis et al (2008) suggests that it is
generally easier to recognize a brand rather than recall it from the memory. For example, if one
come across a brand such as SWIFT transport having it in blue capital letters one will easily
recognize it rather recall.

There are two types of brand awareness which are aided awareness and top of mind awareness.
Aided awareness means that on mentioning the product category, the customers recognize the
brand from the lists of brands shown whilst top-of-mind awareness occurs when a brand is what
pops into a consumers mind when asked to name brands in a product category (immediate brand
recall).

Brand awareness can be induced into customers through the use of various renowned channels of
promotion such as advertising, word of mouth publicity, and social media like blogs,
sponsorships and launching of events. When creating brand awareness it is important to create
reliable brand image, slogans and taglines (brand elements). Strong brand awareness leads to
high sales and high market share. For example Swift transport’s tagline or slogan is “delivering a
better life”. Therefore if consumers come across this they will be really driven to continue doing
business with the organization because of the notion that life would be better and easier with
SWIFT.

Brand loyalty
Aaker (1991) defines brand loyalty as ‘the attachment that a customer has to a brand’. Brand
loyal consumers are the foundation of an organization. Brand Loyalty can also refer to a situation
whereby the consumer fears purchasing and consuming service from another brand which he
does not trust. It is measured through methods like word of mouth publicity, repetitive buying,
price sensitivity, commitment, brand trust, customer satisfaction and the like. Brand loyalty is the

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extent to which a consumer constantly buys the same brand within a service category. For
instance, if a manufacturer transport its products to the retailer using NFB logistics’ trucks, when
there is a need to transport perishable products such meat it still uses NFB Logistics refrigerated
trucks. The consumers remain loyal to a specific brand as long as it is available. They do not buy
from other suppliers within the service category. Brand loyalty exists when the consumer feels
that the brand consists of right product characteristics and quality at right price. Even if the other
brands are available at cheaper price or superior quality, the brand loyal consumer will stick to
his brand.

Greater loyalty levels lead to less marketing expenditure because the brand loyal customers
promote the brand positively. For example, Swift transport hardly advertises its services because
its loyal customers are the ones doing the advertising. Also it acts as a means of launching and
introducing more services that are targeted at same customers at less expenditure. It also restrains
new competitors in the market. Brand loyalty is a key component of brand equity. As brand
loyalty increases customers will respond less to competitive moves and actions. Brand loyal
customers remain committed to the brand, are willing to pay higher price for that brand, and will
promote their brand always. A company having brand loyal customers will have greater sales,
less marketing and advertising costs, and best pricing. This is because the brand loyal customers
are less reluctant to shift to other brands, respond less to price changes and self- promote the
brand as they perceive that their brand have unique value which is not provided by other
competitive brands. Brand loyal consumers are the foundation of an organization. Greater loyalty
levels lead to less marketing expenditure because the brand loyal customers promote the brand
positively.

For example DHL Freight set out to enhance customer experience by bringing the voice of the
customer into the organization, improving customer interactions and developing an organization-
wide customer-driven vision, common purpose and value proposition. By so doing DHL has
become one of the most leading logistics company because of brand loyalty.
Brand associations
Brand association is anything which is deep seated in customer’s mind about the brand. Brand should

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be associated with something positive so that the customers relate your brand to being positive. Brand
Associations are not benefits, but are images and symbols associated with a brand or a brand benefit.
It is relating perceived qualities of a brand to a known entity. Brand associations are the attributes of
brand which come into consumers mind when the brand is talked about. It is related with the implicit
and explicit meanings which a consumer relates/associates with a specific brand name. For instance
Swift transport uses an image of a superman as shown below to clearly shows that it is powerful and

faster than the other companies.

Positive brand associations are developed if the store which the brand depicts is marketable and
desirable. The customers must be persuaded that the store possess the features and attributes
satisfying their needs. This will lead to customers having a positive impression about the
organization. Positive brand association helps an organization to gain goodwill, and obstructs the
competitor’s entry into the market.
Perceived quality
Perceived quality is defined as the customer’s judgment about logistics company overall
excellence or superiority in comparison to alternative's transportation logistics companies and
overall superiority that ultimately motivates the customer to purchase with the brand, Aaker,
(1991). Perceived Quality refers to the customer’s perception about the total quality of the brand.
They are likely using quality attributes like reliability, flexibility and accountability of the
services provided and the availability of services information. For example customers will then
prefer to do business with DHL Freight than J&J transport companies because of its reliability.
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While evaluating quality the customer takes into account the brands performance on factors that
are significant to them and makes a relative analysis about the brand’s quality by evaluating the
competitors brands also. Thus quality is a perceptual factor and the consumer analysis about
quality varies. Superior quality services can be charged a price premium. Perceived quality gives
the customers a reason to buy the service.
Brand Attitudes
The brand attitudes corresponding to consumers’ overall evaluations of a brand are important
because they can explain consumer behavior for example brand choice. They are also related to
service attributes, functional and experiential benefits and symbolic benefits. A correct
specification or identification of associations is difficult, and the real attitude concept can be
misidentified. Thus, researchers suggest separating attitude from the other associations. Multi-
attribute models of consumer preference have then been built to include a general component of
attitude towards the brand. However positive attitudes of customers towards the brand are a key
factor in overall logistics brand equity.
b)LOCAL AND GLOBAL CHALLENGES OF BRANDING IN LOGISTICS
Challenges in the internal environment

Internal branding is a cultural shift within an organization, where the employees become more
customer focused and more business focused. A logistical company might face the following
challenges of branding internally;
 The inability to cross the value boundaries fluidly -The lack of alignment between
employees’ values and company values emerged as a challenge this is according to the
CMA survey which states that, “The low proportion (7%) of respondents who think their
brand values provide guidance as to how to treat other employees suggests that brand
values do not address human interrelationships in a meaningful manner.” As a result the
company will face the challenge of branding especially if the values of an individual do
not agree with those of the organization. For example, if an individual is of the Seventh
Day Adventist church who take Saturday as their day of Sabbath, and that same
individual is to be employed at UPC, an organization which operates on a Saturday and it
is customer oriented believing in 24/7 excellent service, the individual is likely to

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retaliate because of the values they hold most dear. Thus creating a challenge for the
oragnisation to effectively brand and deliver their promise.

 Poor communication of the organizational values and goals to the whole

organization- When the values and goals of an organization are not effectively
communicated it means that the employees are likely going to do things that contradict
with the organizations focus which becomes a challenge in effective branding. According
to Maquardi, Golicic and Davis (2015), firms in commodity industries such as the
logistics service industry cannot rely on differences in product attributes to develop brand
meaning. Rather, they should focus on developing distinctive customer experiences with
the brand by encouraging meaningful employee-customer interactions. Such
differentiated value propositions based on superior customer experiences build brand
awareness and enhance the brand’s meaning with current and prospective customers,
thereby increasing brand equity. Therefore there should be sufficient communication with
the employees about the brand, its values and what it stands for so that they deliver
effectively the service the customer needs.

 Being different- Being different in the logistics and transport industry can be difficult
since the services to be offered are the same. However it is not impossible. The challenge
that most logistics companies face is that they treat the brand as an asset to deliver short
term financial results and neglect the process of building the asset, as a result being
different becomes a challenge. According to Aaker (2014), a brand vision needs to
differentiate itself, resonate with customers and inspire employees. It needs to be feasible
to implement, work over time in a dynamic workplace and drive brand building
programs. Visions that work are usually adaptable to different contexts. They employ
concepts such as brand personality, organizational values, and a higher purpose and in
general they simply move beyond functional benefits. DHL has successfully overcome
such challenge locally by acknowledging that they are an international company that has
made it to the vast parts of the world. The company makes press releases on pages like
“Insight into business in Africa” where in 2014 the document was headlined “How we

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made it in Africa is because no one knows Africa like we do.” Therefore because DHL
dares to be different it succeeds in effective branding.

Challenges in the external environment

External branding is the sum of all marketing activities created to influence the mind-set and
purchase behavior of customers and prospective customers for your company’s product or
service, topsail.com (2015).

 Technology advancement and inability to cope-Ring and Tigert (2001) came to similar
conclusions when comparing the Internet offering with the conventional ‘bricks and
mortar’ experience. They looked at what consumers would trade away from a store in
terms of the place, product, service and value for money by shopping online. Thus
branding challenges that are likely going to be faced by transport and logistics companies
include that of technological advancement. Many consumers are conforming to online
purchasing rather than straight from the retailer. This is reducing the web of travel as
well as business for transport companies. This can be illustrated diagrammatically as
follows;

Before

manufacturer supplier retailer customer

consumer
manufacturer

Now

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The web transportation and logistics as according to Fernie and Sparks is getting smaller
because now the consumer through online purchasing can simply call the manufacturer
and have the goods delivered on their doorstep. Thus if a company was a third party
logistics company like NFB, business has been lost as well as the chance to create a
positive brand image to the consumer.
 Also the inability of the logistical companies to cope with advancement in technology
reflects inefficiency and incompetency which becomes a challenge in branding; since
branding is about creating a positive image. For example Perspective Distributors, a local
logistics company which focuses on road transportation has not yet adapted to the
refrigerated trucking system which is now wide spread. Therefore, if ever a customer was
to have the need to transport goods that need the refrigerated trucks and they discover
that this company in question cannot provide the required service they would look for a
substitute which goes a long way to negatively affect the brand image of the
organistaion. According to Cole, (2009), as with overall society, the transportation and
logistics Industry has been dramatically impacted by the introduction and use of new
technologies. Technology has changed and transformed just about every position, from
CEO to Operations Manager to Driver to Fork Lift operator. Technology has changed
how companies and individuals operate. Staying in tune with new technology and being
open minded for change is critical for logistics companies to maintain competiveness in
the industry as well as to build and maintain an effective brand.

 Economy- Due to the decade long imbalance in Zimbabwe’s economy, creating and
maintaining steady brand names has proved to be a challenge in the country. Slow and
little economic growth and political instability has led to a clampdown in spending by the
locals which is catastrophic for the logistics industry. Companies like Tenhence logistics
saw threw their closure whilst business for companies like Biddulphs dwindled.
Therefore economical instability makes local branding challenging in logistics because
organization will fail to deliver their promise which is the overall function, delivering a
promise.

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 Competition-Firms around the world are entering a new era of business competition.
The convergence of forces such as the globalization of markets, the escalating pace of
technological change, and increasing economic turbulence provides a catalyst for the
emergence of a network paradigm which recognizes that competition occurs increasingly
between global networks of firms rather than on the traditional firm-to-firm basis (Achrol
1997; and Kotler 1999). Competition is now everywhere and anywhere and it is only
those companies that rise to the challenge that are able to stay in business. In
Zimbabwean context it has proved to be challenging for most logistical companies to
come to loggerheads with the industries gurus like DHL and SWIFT. Whilst DHL has is
be force to reckon internationally, most local logistics companies have found it
challenging to cope with local competition let alone cross international borders. A global
customer base certainly presents a lucrative target however, it also provides a new set of
challenges for logistics service providers accustomed to providing standard logistics
solutions to a homogeneous regional customer base.

 Inability to cope with a crisis- Crisis is where the negative event centers on one
particular brand or a set of brands belonging to the same company. When a brand crisis
breaks out, consumers and other stakeholders are likely to raise questions about the
affected brand and why the crisis happened. The challenge thus comes when the company
faced with a crisis is unable to cope with the crisis to restore consumer trust in the brand.
Consumers will begin to look for substitutes and competitors often see of a great
opportunity to steal consumers away from the affected brand. For instance, in 2014
Strauss Logistics Zimbabwe was involved in a fraud scandal, where by a ministers son
was said to have taken 1.7 million liters of diesel from the company which was meant to
be delivered to a Chinese company which was meant to assist in the refurbishment of the
Victoria Falls Airport. Though the company is still fully functional, the incident left a
dent on the brand image because the company did not fully and effectively address the
crisis

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In conclusion, though external forces might be difficult to control an organization can maximize
on the internal factors. If one is to build and maintain a successful brand in logistics there should
be room to consider these challenges and how best to curb them.
Illustrate with the Zimbabwean context
a) brand equity in the transportation and logistics industry.
b) local and global challenges of branding in logistics.
REFERENCE LIST
Aaker, D.(2014), The 10 Most Branding Challenges, available at www.prophet.com accessed
08/10/15
Aaker, D.(1996),“Measuring Brand Equity across Products and Markets”, New York, Free Press
Aaker,D. (1991), Managing Brand Equity. The Free Press, New York.
Cole , W.(2009), The constantly changing logistics industry, available at www.answercole.com,
accessed 08/10/ 15
External Branding, www.topsail.com Accessed 08/10/15
Keller, K. L. (2003). Strategic Brand Management, 2nd ed., Prentice Hall, Upper Saddle River,
New Jersey.
Kottler P (2006) Marketing Management, London: Pearson Education
www.marketingresearch.org, (accessed on 08/10/15 @ 1320 hours)
Maquardi, A. Golicic, S.And Davis, D. (2015), B2B Services Marketing In Logistics, Journal Of
Service Marketing. Vol 25;48-57

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QUESTION: Discuss the pros and cons of brand extensions with realistic examples. How
can they be used in a newly established operating logistics company?
Cooper(2005) defines brand extensions to the use of a successful brand name to launch a new or
modified product in the same broad market for example Nike’s core product is shoes but it has
now extended to soccer balls, golf equipment and even sunglasses.
Advantages of brand extensions
Reduce risk perceived by customers
The strong brand used to promote a new product makes it less risk and critical to create
awareness and imagery. The association with the main brand is already done and the main task is
communicating the specific benefits of the new innovation .for example when Econet introduced
brand extensions such as eco-cash, eco-health and eco-school it was a success since Econet was
already a well-known brand with a good reputation, they only had to explain how these brand
extensions worked and their benefits.
Avoid cost in developing a new brand
Compared to launching a new brand, brand extensions strategy is cheaper especially because the
new product use the name of an already well-known brand.it also Reduce costs of introductory &
follow-up marketing program. For example when Econet introduced Eco-sure services it did
advertise through sending messages to all Econet line users which is cheaper than for example if
they had introduced a totally new brand.
Enhancement of brand visibility
When a brand appears in another field it can be a more effective and efficient brand building
approach than spending money on advertising. In addition the relationship with loyal customers
will be strengthened because they will use the brand in other context and it is expected that
customers would rather choose that brand unlike that of competitors. For example when Eco-
cash started most customers started using Econet more than other network providers such as
Netone and Telecel since Eco-cash allowed customers do their banking at home or at their local
areas.
Consumer trust
The existing of a well -known strong brands represent a promise of quality and useful features
for the consumer. Thus the extension will benefit from this fame and this good opinion about the

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brand to create a compelling value proposition in a new segment or markets. Consumers are
more likely to try a new product from a brand they know.
Improve brand image
A brand image especially when the brand is a bit tired is expected to be reinforced by the
extension. Indeed brand extensions gives energy to the brand because it increases the frequency
in which the brand is associated is associated with good quality, innovations and large range of
products. The presence of the brand on a wider number of products should improve the
popularity of the brand and brand memorization.

Disadvantages of brand extensions

Dilution of the existing brand image
Cooper (2005) underlines that the extensions are using the most important asset of the company
that i.e. its brand name. It can be a major advantage for the extension but it represents as well a
huge risk for the existing brand because the brand image can be diluted, said that those positive
and negative consequences are “reciprocity effects” and defined as “a change in the initial
customer’s behaviour regarding the brand, after an extension”. She explains that a brand
extension can damage the brand. A dilution of the brand capital can happen by the occurrence of
undesirable associations or by the weakening of the existing associations. An accident occurring
with a product can lead to tarnish the image of the all brand. In addition, it is sometimes difficult
to associate one brand to two products without weakening the brand position in the customer’s
mind. Points this problem when he argues that “the associations created by an extension can fuzz
a sharp image that had been a key asset, and at the same time reduce the brand’s credibility
within its original setting”. So he claims like the former authors that companies have to be
careful of the confusion in the customer’s mind when making extensions.
Aaker (2004) adds that when a brand benefits are ensure by the fact that it is not “for or available
to everyone”, doing too much extensions could reduce this image of brand selectivity. He takes
the example of the overuse of the name Gucci – at one moment there were 14,000 products
Gucci- was a part of the factors leading to the “fall of that brand”.

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Cannibalization:
Aaker (2004) states that the extensions can cannibalize the existing products of the brand when
there are positioned in a close market. It means the extensions sales are increasing while those of
the existing brand’s products are following the opposite curved. Aaker (2004) underlines that
these good sales figures for the extensions cannot compensate the damage produced to the
original brand’s equity. He argues that this situation is however better than seeing this happening
with a competitor’s brand. Cooper (2005) listed as well this risk and he says like Aaker that this
situation can happen when range extensions are “brand clones” i.e. they cannot be enough
differentiate from the existing products. He gives the example of the brand Crest which was
launching for years new toothpaste twists –e.g. gum protection and whitening, tartar control. Its
share fell from 50 with one product to 25% with 50 products. Thus, “each introduction competed
for the same usage occasion and introduced novelty value but not enough added values to create
Incremental growth” Cooper (2005). And Cooper continues his reasoning by saying that people
wanted an “all-in-one version” successfully provided by Colgate i.e. Colgate Total.

A disaster can occur

Aaker (2004) explains that a disaster which cannot be controlled by the firm –e.g. that Firestone
tires used for the Ford Explorers were potentially unsafe- can happen to any brand. The more
extensions the brand made, more important the damages will be. This occurred to Audi when the
Audi 5000 cars were suspected to have sudden-acceleration problem. Adverse publicity started
to appear from 1978 and continue to the extent that it was mentioned on CBS’s “60 minutes” in
November 1986. Audi did not make efforts to change this situation and as a consequence its
sales fell from 74000 in 1985 to 23000 in 1989. Audi needed fifteen years to recover while it was
manufacturing good cars.

B) For newly established company part of its objectives is to make profit and another is most
likely to grow in the market in which it operates to be able to fight competition and be a big
player. The company can pursue various growth strategies to accomplish these objectives. Given
that the company has created a strong brand in the market it would be justifiable for the company
to use brand extension as a growth tool. Aaker and Keller (1990) define a brand as a symbolic
embodiment of all the information connected to a Company, Product or Service. It serves to

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create associations and expectations from products made by a producer, in the mind of the
consumer.

For a newly established logistics company aiming at brand extension within its parameters of
business can achieve this through variation of the basic areas in which in conducts business such
as time to deliver the parcel, the type of loads being delivered, the weight of the loads and the
charge. Using Swift as an example the company has done brand extension over the years and
have successfully done so in six ways.

They came up with Swift Courier express as a service package in which they operate overnight
to primary and secondary destination. They guarantee delivery within 48hrs.The weight that they
accept for this package ranges from 0 to 20 kg. For this package they allow parcels and
documents and delivery by 10 am at a business address.

Another extension to opt for as Swift did is to come up with Swift Express in which they offer
overnight to major destinations only. They guarantee delivery within 48 hrs. For this service
package exclusive to 21 kg to 100 kg and parcels only. Those parcels with personal addresses
can be collected at the Depot and business addresses are delivered by 10 am. Medical and
perishables are given preference.

The brand extension embarked by Swift is Swift Freight which is for 101 kg to 6 tonnes.
Delivery is guaranteed within 48 hrs. With this package consolidated loads are accepted and they
offer specialised trailers depending on the type of loads.

Swift Full loads is also another brand extension which is targeted for loads which vary from 6 to
34 tonnes but should however be one load. This is exclusive to major destination and delivery is
guaranteed within 48 hours.

SkyNet-Worldwide express is another brand extension which is operated on seven continents

within two hundred and one countries. This is meant for parcels express both imports and
exports. The service package includes airfreight for export and import parcels. This also works
within the country offering door to door deliveries at a premium rates.

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A rather mover versatile approach to brand extension Swift came up with Swift Mutakuri Crop
Transport which is for tobacco movement countrywide. It provides overnight carriage to the
sales floors in Harare. With this package cash advance is paid to the producers and they provide
safe, secure transport which has security detail to the sales floors. They also provide stop-orders
on advance payments which means that tobacco growers can move their produce when they do
not have cash.

These are some of the ways that a logistic company can implement as part of brand extension as
brand extension is merely the introduction of a new or modified product or service using the
same brand. The main reasons for brand extension is to reduce cost of launching a new brand,
increase promotional efficiency and increase consumer benefits.

To conclude the ideology of brand extension it is imperative to stress that brand extension is
appropriate when prior brand equity already exists, when consumers see the same
communication between the new product and parent product and when the proposed new
product enhances the brand equity of the already established parent brand.
Reference
Aaker, D.A., & Keller, K.L. (1990). Consumer Evaluations of Brand Extensions,
Journal of Marketing Vol. 54.

Broniarczyk, S.M., & Alba, J.W. (1994). The Importance of the Brand in Brand Extension.
Journal of Marketing Research, Vol. XXXI, pp 214

Cooper, R.G. (2005).Product Leadership: Pathways to Profitable Innovation.2nd Edition.

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Brand Management
The market is crowded with Nokia, Motorola, and Ericsson fighting it out at the top. However,
Nokia replaced all its competitors and it is now the number one brand in many markets around
the world, effectively dislodging Motorola from that position However, Nokia replaced all its
competitors and it is now the number one brand in many markets around the world, effectively
dislodging Motorola from that position.
So what made Nokia special from othesrs? Why did customers choose Nokia? The answer lies in
what the ‘brand Nokia’ means to customers.
So what made Nokia special from others? Why did customers choose Nokia? The answer lies in
what the ‘brand Nokia’ means to customers.
It escalated its position to become the number one brand in several markets around the world
Nokia Group, a Finland-based manufacturer of mobile phones, has been steadily and consistently
working on its corporate brand name over the years.
These efforts of creating a ‘brand’ image in the customer’s minds paid off for Nokia
Nokia has successfully built a corporate brand that associates ‘trust’ and ‘strong technology’
with the word ‘Nokia’.

What is a Brand
Brand is the seller’s promise to deliver the same bundle of benefits/services consistently to
buyers.
A product is any offering by a company to a market that serves to satisfy customer needs and
wants. A product can be an object, service, idea, etc.
On the other hand a name becomes a brand when consumers associate it with a set of tangible
and intangible benefits that they obtain from the product or service.
Brands are not the same as Products

Why do Brands Matter

Brands have become important drivers of growth for any organization, good or service.
The main reason consumers flock to some brands and ignore others is that behind the brand
stands an unspoken promise of value
A Brand is a promise that the product will perform as per customer’s expectations

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A brand helps make a mark and differentiate a good or service from others in marketplace.
A strong brand makes people aware of what the company represents and about the different
offerings of the company
Brands help customers to connect to the product or service on an emotional level.
Why do Brands Matter?
• Customers use brands as a means to show “This is what I stand for” and hence, use
brands to express themselves.
• The customers remain loyal to brands and they become advocates for those brands.
• Thus, you can see that people connect emotionally with brands that stand for things that
are important to them.

Brands for Consumers and Sellers

Source of product- Consumers can easily make a purchase decision based on brands. Consumers
usually find brands which satisfy their need.
Lower risk - Brands mean lower purchase risk to consumers as they are dealing with a product or
organization that they trust.
Less cost of searching for a choice-If the consumers recognize a particular brand and have
knowledge about it, they make quick purchase decision and save lot of time. Also, they save
search costs for product
Symbol of quality- Consumers see ‘brands’ as a symbol of quality and remain committed and
loyal to a brand as long as they believe that the brand will continue meeting their expectations
and perform in the desired manner consistently.
Symbolic device- Brands play a significant role in signifying certain product features to
consumers
Brands for Consumers and Sellers

Sellers
Means of Competitive Advantage -A brand helps the firms to provide consistently a unique set
of characteristics, advantages, and services to the buyers/consumers.
Legal protection of products’ features -Brands help to protect the unique features/traits of
products by legal copyrights.

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Satisfied customer -Brand represents values, ideas and even personality and hence leads to an
assortment of memories in customers’ mind and hence satisfied customers.
Means of profits- Brands form the basis of purchase decision among consumers and thus are a
means of financial profits.
What makes a Brand Strong?
It is important that in order to make a strong impact, a brand should be strong. There are a few
characteristics that make a ‘strong’ brand, which are as follows:
A strong brand is a major driver of shareholder value.
A strong brand is like an asset. It can be used as collateral for financial loans , buying and selling
as an asset.
A strong brand has strong attributes, values and personality that the consumers associate with the
brand.
A strong brand is a means of attaining higher customer loyalty.
A strong brand always delivers the benefits that customers truly desire.
A strong brand makes use of and coordinates full range of marketing activities to build equity.
A strong brand has the right blend of product quality, design, features, costs and prices.
A strong brand is properly positioned and occupies a particular niche in consumers' minds.
A strong brand compels consumers to willingly pay a substantial and consistent premium price
for the brand versus a competing product and service.
What is Brand Management?
Now, that you have learnt about ‘brands’, let us see what is brand management.
Brand management is the process of building, managing and improving a brand.
It begins by having a thorough knowledge of the term “brand”.
Hence, brand management includes developing a promise, making that promise and maintaining
it.
It means defining the brand, positioning the brand, and delivering the brand. It is an art of
creating and sustaining the brand.
The tangibles for product brands include the product itself, its characteristics, features, price,
packaging, etc.
The intangibles are made up of the emotional connections with the product / service.

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Branding is assembling of various marketing mix medium into a whole so as to give the product
an identity.
The tangible and intangible characteristics of brand are managed through Brand management.
Whereas, in case of service brands, the customers’ experience forms the tangibles.
Thus, you can see that brand management is all about Branding.
It is building a brand name that captures the customer’s mind.
Purpose of Brand Management
The main aim of branding is to differentiate a company’s products and services from its
competitors.
Branding aims to convey a brand message vividly, create customer loyalty, persuade the buyer
for the product, and establish an emotional connectivity with the customers and form customer
perceptions about the product.
Brand management plays a crucial role to form brands. The brand management strategies also
provide good support to the brand so that it can sustain itself in long run.
Also, through brand management, brands are managed and brand equity is built over a period of
time. It helps in building a corporate image. Thus, only a competent brand management system
can create a successful brand.
Brand Equity Concept
Brand Equity is the value, both tangible and intangible, that a brand adds to a product/service;
the added value a brand name identity brings to a product or service beyond the functional
benefits provided.
The concept of brand equity is measured in two terms:
Customer based- The customer – based brand equity focuses exclusively on the relationship
customers have with the brand
Market based-The market – based brand equity aims at producing measures in dollars, euros or
yen.
Strategic Brand Management Process --The Strategic Brand Management Process consists of the
following four steps:
Step 1-Identifying and Establishing Brand Position
Step 2-Planning and Implementing Brand Marketing Programs
Step 3-Measuring and Interpreting Brand Performance

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Step 4-Growing and Sustaining Brand Equity Processes

Step 1-Identifying and Establishing Brand Position

Customer Based Brand Equity

The Brand position can be identified and established by determining the customer-based brand
equity using the pyramid.
• Brand Salience: This relates to aspects of awareness of the brand.
• Brand Performance: This relates to ways in which product/ service meets customers’
needs.
• Brand Imagery: It’s how customers visualize a brand abstractly, with no relevance to
what the brand actually does.
• Brand Judgments: The customers’ personal opinions and evaluations with regard to the
brand.
• Brand Feelings: The customers’ emotional responses and reactions with respect to the
brand.
• Brand Resonance: The ultimate relationship &level of identification that the customer
has with the brand.
Building a Strong Brand: Four Steps of Brand Building
The Four Steps of Brand Building are as follows:

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• Identity (Who are you?)

• Meaning (What are you?)
• Response (What about you?)
• Relationship (What about you & me?)
Brand Positioning
The Brand Positioning is further divided into two parts –
• Identify and Establishing Brand Position
• Positioning Guidelines
Let us look at each one in detail.
Basic concepts
It is necessary to decide:
• Who the target consumer is
• Who the main competitors are
• How the brand is similar to these competitors
• How the brand is different from these competitors
The Target Market can be decided based on two considerations:
• Segmentation Bases: a) Behavioral b) Demographic c) Psychographic d) Geographic
• Segmentation Criteria: a) Identifiability b) Size c) Accessibility d) Responsiveness
Positioning guideline
The following are some of the positioning guidelines that firms should follow for an effective
brand positioning:
• Defining and Communicating the Competitive Frame of Reference
• Choosing Points of Parity and Points of Difference
• Establishing Points of Parity and Points of Difference
• Updating Positioning Over Time
Step 2: Planning & Implementing Brand Marketing Programs
Leveraging Secondary Brand Associations to Build Brand Equity ie co branding, licensing,
celebrity endorsements
Designing Marketing Programs to Build Brand Equity ie product strategy, pricing strategy,
channel strategy,

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Choosing Brand Elements to Build Brand Equity ie Criteria for Choosing Brand Elements,
Options and Tactics for Brand Elements
Choosing Brand Elements to Build Brand Equity
Brand Elements are sometimes called ‘Brand Identities’. They are the trademark devices that
help to identify and differentiate brands.
For example, the logo of tick mark of Nike, the Indian Maharaja of Air India, the rings of Audi
etc. are brand elements.
Choosing Brand Elements to Build Brand Equity is further divided into two parts:
• Criteria for Choosing Brand Elements
• Options and Tactics for Brand Elements
Let us look at each one in detail.
Brand elements
The following criteria should be met to choose relevant brand elements such as:
• Memorability – Easily Recognized, Easily Recalled
• Meaningfulness – Descriptive, Persuasive
• Likability – Fun and Interesting, Aesthetically Pleasing
• Transferability – Within Cross Product Categories, Across Geographical Boundaries and
Cultures
• Adaptability – Flexible, Updateable
• Protectability – Legally Protected, Competitively Protected
Options and tactics for brand elements
The following are few options and tactics for Brand Elements:
1. Brand names- descriptive brand names in which the function is described literally in
brand name. Suggestive brand names in which the name is suggestive of a benefit
provided by the brand to the customer.
2. URls- Keep the URLs as simple as possible, Avoid clichés, Use a new term for the
real word, Use catchy phrases
3. Logos and symbols-various kinds that can be used ie family shields, fonts, symbols,
abstract, shapes and images
4. Characters- Characters can also be used as brand elements.

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5. Slogans- Slogans are short phrases that are descriptive or persuasive in nature and
provide more info about the brands.

6. Jingles packaging- These are musical slogans that help in reminding by repetition.
Examples: The axe song and O Fortuna, the Old Spice Theme Song.

7. Packaging- Packaging is an important brand element. It helps to identify the brand,

convey descriptive and persuasive information through labelling, allows protection,
transportation, storage and consumption of product.

Designing Marketing Programs to Build Brand Equity

Brand Equity can be built by focussing on designing effective marketing programs keeping the
following in consideration:
• Product Strategy
• Pricing Strategy
• Channel Strategy
Let us look at each one in detail.
Product strategy- Businesses should ensure that they have an effective product strategy to remain
competitive in the cutting edge markets. An efficient product strategy would ensure that the
product remains updated with the latest features, technology and enhancements and has
something extra to offer to the customers.
Pricing strategy- Businesses can ensure profitability and longevity by paying close attention to
their pricing strategy. An efficient pricing strategy helps companies to best position themselves
within the market.
Channel strategy- Channel Marketing is the practice of applying appropriate marketing methods
to distribution channels to reach customers. It involves developing go-to-market plans, educating
channel marketers or middlemen about products or services, and motivating the members of the
marketing channel to promote products and services. Hence, marketing and sales alignment is
critical to an effective channel strategy.
Leveraging Secondary Brand Associations to Build Brand Equity

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The Leveraging Secondary Brand Associations to Build Brand Equity is further divided into
three parts –
• Co-branding
• Licensing
• Celebrity Endorsement
Let us look at each one in detail.
Co branding- Co-branding occurs when two or more existing brands are combined into a joint
product or are marketed together in some fashion. A few examples are: Sony Ericsson, Yoplait
Trix Yogurt, Nestle’s Cheerios Cookie Bars
Licensing- Licensing involves contractual arrangements whereby firms can use the names, logos,
characters, and so forth of other brands for some fixed fee. A few examples are: Entertainment
(The Matrix, Shrek, etc.), Television and cartoon characters (Mickey Mouse), Designer apparel
and accessories (Gucci, Armani, etc.)
Celebrity endorsement- Firms can also use a celebrity to endorse their brands to help build brand
equity. Celebrity endorsement helps to draw attention to the brand and to shape the perceptions
of the brand. A celebrity should be greatly popular and have a high level of visibility. He or she
should also have a rich set of useful associations, judgments, and feelings associated with
him/her by the general public. Eg Mtukudzi with FBC and Roy and Royce endorsed nugget
Measuring and interpreting performance
 Qualitative Research Techniques
 Measuring Sources of Brand Equity -- Quantitative Research Techniques
 Measuring Outcomes of Brand Equity-- Comparative Methods , Holistic Methods
 Developing Brand Equity Measurement & Management System --- Brand Value Chain ,
Designing Brand Tracking Studies , Establishing a Brand Equity Management System
Developing a Brand Equity Measurement & Management System
The Developing a Brand Equity Measurement and Management System is further divided into
three parts –
• Brand Value Chain
• Designing Brand Tracking Studies
• Establishing a Brand Equity Management System
Let us look at each one in detail.

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Developing a Brand Equity Measurement & Management System

Brand Value Chain .

Brand Tracking Studies

Brand audits provide in-depth information required for setting long-term strategic direction.
However, for more short-term tactical considerations, less detailed brand-related information
should be collected. This can be done by conducting on-going tracking studies. Tracking studies
involve information collected from consumers on a routine basis over time. Tracking studies
help to understand, where, how much and in what ways brand value is being created.
Establishing a Brand Equity Management System
A brand equity management system are a set of organizational processes which are designed to
improve the understanding and use of the brand equity concept within a firm. There are two
useful tools that is used to used to establish a brand equity management system which are:
Brand Equity Charter:

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Brand equity charter formalizes the company view of brand equity into a document. This
document should:
• Clearly define the firm's view of the brand equity concept.
• Describe the scope of key brands in terms of associated products.
• Specify what the actual and desired equity is for a brand at all relevant level of the brand
hierarchy.
• Provide strategic guidelines.to manage brand equity
Brand Equity Report:
The brand equity report provides descriptive and diagnostic information as to what is happening
with a brand and why. It contains details of all internal and external measures of brand
performance. Also, details of sources and outcomes of brand equity, a summary of consumer
perceptions on key attribute or benefit associations, preferences, and reported behavior. This
report is distributed to management on a regular basis such as monthly, quarterly, or annually.
Measuring Sources of Brand Equity: Capturing Customer Mind-Set
There are two methods that are used for measuring the sources of brand equity or to capture the
customer’s mind-set, which are as follows:
• Qualitative Research Techniques
• Quantitative Research Techniques
Let us look at each one in detail.
Experiential Methods:
Such methods help the researchers to improve the effectiveness of their qualitative approaches.
The researchers are able to elicit more meaningful responses from consumers by tapping more
directly into their actual home, work, or shopping behaviors.
Projective Techniques:
It is defined as, “Diagnostic tools that help to uncover the true opinions and feelings of
consumers, when the consumers are unwilling to or unable to express themselves on the subject
matter(s).”
It employs two methods to gather information:
Completion and Interpretation Tasks: This is a “Fill in the Bubble” approach for analysis.

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Comparison Tasks: In this method, the consumers convey their impressions by comparing brands
to people, countries, animals, activities, and so on. The brand imagery/associations is indicated
by such responses.
Free Association:
Free association aims to identify the range of possible brand associations in consumers’ minds in
terms of favourability, relative strength and uniqueness of brand associations. The questions
should be framed so as to give relevant feedback.
Brand Personality and Values:
Brand Personality can be easily measured by asking open-ended questions linking the brand to
persons, animals, objects and gather information from the responses.
The following factors of brand personality were reflected, known as ‘The Big Five’, which are:
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
Awareness
Brand awareness is related to the strength of the brand in memory. Brand awareness is reflected
by consumers’ ability to identify various brand elements.
The following factors must be taken into consideration while measuring brand awareness:
• Recognition: This relates to consumers’ ability to identify the brand under different
circumstances.
• Recall: ‘Unaided recall’ means the identification with minimal cues. ‘Aided recall’
means various cues were used to assist recall.
• Corrections for Guessing: The research data collected for measure must consider the
issue of consumers ‘making up’ responses or ‘guessing’. These may affect strategic brand
decisions.
• Strategic Implications: It is important that researchers understand that recognition and
recall is essential in analyzing formation of consideration sets and product decisions
made by consumers.
Image

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The image of a brand relates to the lower-level consumer perceptions of specific performance
and imagery attributes. The different types of specific brand associations making up the brand
image can be identified by using the quantitative research approaches. The following two
methods are employed for determining the brand image associations:
• Scaling Considerations: Different scales can be constructed such as absolute or
comparative, spatial or numerical etc.
• Other approaches: More complex methods such as Multidimensional scaling, Conjoint
Analysis, and Perceptual Mapping, are also used for the purpose of assessing brand
image associations.
Brand Responses:
The higher level considerations such as judgments and feelings are measured to assess and find
out how consumers combine lower-level considerations about the brand in their minds to form
different types of brand responses/evaluations.
Researchers have proved through studies on consumer behaviour that purchase intentions are
most likely to be predictive of actual purchase when there is correspondence between any two of
the following categories:
• Action(buying for own use or as gift)
• Target (specific product or brand)
• Context (type of store based on prices)
• Time (within week/month/year)
Brand Relationships
The following dimensions need consideration while considering brand relationships:
• Behavioral Loyalty: The brand loyalty can be measured by asking questions about the
previous purchases of the brand and the planned next purchases of the brand. These
measures could be open ended, dichotomous, or multiple choice, or rating scales.
• Brand Substitutability: The greater the number of repeat purchases, the greater is the
brand equity, and lesser is the chance of brand substitutability.
Measuring Outcomes of Brand Equity: Capturing Market Performance
There are two methods that are used for measuring the outcomes of brand equity or to capture
the market performance, which are as follows:
• Comparative methods

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• Holistic methods
Let us look at each one in detail.
Comparative Methods:
There are three types of methods used to measure the outcomes of brand equity which are as
follows:
Brand based comparative approaches- In this approach, the target brand is compared to a
competitor’s or a fictitious brand. Hence, one panel of consumers responds to an element of the
marketing program attributed to the target brand. Another panel responds to the same element
but attributed to a competitive or fictitious brand.
Marketing-Based Comparative Approaches -- This approach uses experiments in which
consumers respond to changes in elements of the marketing program or marketing activity for
the target brand or competitive brands.
Conjoint Analysis --- This is a survey-based multivariate technique. It allows the marketers to
profile the consumer decision process with respect to products and brands.
Measuring outcome of brand equity
Holistic Methods:
The Holistic Methods attempt to place an overall value on the brand in either abstract utility
terms or concrete financial terms.
There are two approaches that are used in holistic methods:
Residual approach-This approach attempts to examine the value of the brand. This is done by
subtracting consumers’ preferences based on physical attributes alone for the brand from their
overall brand preferences.
Valuation approach-This approach attempts to place a financial value on brand equity. This value
is used for accounting purposes, mergers and acquisitions, or other such reasons.
4 Growing and sustaining brand equity
Designing and implementing brand strategies-includes brand architecture and brand hierarchy
Introducing and naming products and brand extensions-includes new products and brand
extensions, note advantages of extensions and disadvantages of extensions
Managing brand overtime includes revitalising brands and reinforcing brands
Designing and Implementing Branding Strategies

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Most brands are part of a wider organization. The Designing and Implementing Branding
Strategies is further divided into two parts –
• Brand Architecture
• Brand hierarchy
Let us look at each one in detail.
Brand Architecture
It is the structure and organization of brands.
Breadth of Product Mix: Three factors determine the inherent attractiveness of a product
category:
1. Aggregate market factors
2. Category factors
3. Environmental factors
Depth of Product Mix: An important rule to remember to decide the depth of the product mix
is: “A product line is too short if the manager can increase long-term profits by adding items; the
line is too long if the manager can increase profits by dropping items”.
Depth of a Branding Strategy:
Flankers: Flanker brands are used to create stronger points of parity with competitors’ brands.
Cash Cows: In firms, there are some brands that retain loyal customers and generate healthy
profits with virtually no market support.
Low-end Entry-level / High-end Prestige Brands: The first category low-end entry-level are
called “traffic builders” and they are able to “trade up” customers to the higher-priced brands.

Brand Hierarchy
It is a means of summarizing the branding strategy by displaying the number and nature of
common and distinctive brand elements across the firm’s products. It helps to reveal the explicit
ordering of brand elements.
Potential Levels of Brand Hierarchy:
A simple representation of possible brand elements and thus, potential levels of a brand
hierarchy might be as follows:
1. Corporate brand e.g. Chrysler-Daimler
2. Family brand e.g. Mercedes-Benz

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3. Individual Brand e.g. 1000 SEL

4. Modifier (designating item or model) LX / VX
Brand Hierarchy Built within a Firm:
Brand hierarchy is a means of summarizing the branding strategy by displaying the number and
nature of common and distinctive brand elements across the firm’s products. It helps to reveal
the explicit ordering of brand elements.
Let us now look at how brand hierarchy can be built within a firm. This can be done in two
ways:
By Building Equity at Different Hierarchy Levels
By Creating Corporate Image Dimensions
Introducing and Naming New Products and Brand Extensions
The Introducing and Naming New Products and Brand Extensions is further divided into three
parts –
• New Products and Brand Extensions
• Advantages of Extensions
• Disadvantages of Brand Extensions
Let us look at each one in detail.
New Products and Brand Extensions
There are three ways in which a firm can brand a product when a firm introduces a new product.
These are:
1. It can develop a new brand, individually chosen for the new product.
2. It can apply in some way, one of its existing brands.
3. It can use a combination of a new brand with an existing brand.
A brand extension is when a firm uses an established brand name to introduce a new product.
Brand extensions can be broadly classified into two general categories:
1. Line Extension: The parent brand is used to brand a new product that targets a new
market segment within a product category currently served by the parent brand.
2. Category Extension: The new brand is used to enter a different product category from
that currently served by the parent brand.
Let us now look at the Ansoff’s Growth Share Matrix that helps to decide the strategy to be
employed while deciding on extensions.

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Advantages of extensions
If the extensions are well-planned and well-implemented, then they can offer a number of
advantages to marketers. The following are some of the advantages of extensions:
1. Extensions that facilitate new product acceptance can:
• Improve brand Image
• Reduce risk perceived by customers
• Increase efficiency of promotional expenditures
• Reduce costs of introductory & follow-up marketing program
• Avoid cost of developing a new brand
• Allow for packaging and labelling efficiencies

2. Extensions that provide feedback benefits to the parent brand and company can:
• Enhance the parent brand image
• Bring new customers into brand franchise and increase market
coverage
• Revitalize the brand
Disadvantages of extensions
The following are some of the disadvantages of brand extensions:
• It can confuse or frustrate consumers
• It can encounter retailer resistance
• It can fail and hurt parent brand image
• It can succeed but cannibalize sales of parent brand
• It can succeed but diminish identification of any one category

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• It can dilute brand meaning

• It can cause the company to forgo the chance to develop a new brand
Managing Brands over Time
It is very important to understand the long term effects of marketing activities on the brand
equity. Firms should carefully consider the consumer response to past marketing activities, the
brand awareness and image, as well as the customer response to current marketing activities and
to predict the response to future activities. Analyzing this information will help firms to manage
the brands over a long period of time. There are various strategies that are used to manage the
brands over a long period of time which are as follows:
• Reinforcing Brands
• Re-vitalising Brands
Let us look at each one in detail.
Reinforcing Brands
There are various ways in which the brands can be reinforced over a period of time to maintain
their power.
Maintaining brand consistence- It is important to maintain brand consistency throughout and to
continuously improve the brand to build and sustain the brand equity.
Protecting sources of brand equity-It is important to protect and maintain consistently the sources
of brand equity, as sustaining the sources will ensure the sustenance of the brands over the long
term.
Fortifying versus leveraging-It is vital that the strengths of the brand should be leveraged upon
and the weaknesses should be fortified against any kind of pitfalls.
Fine tuning the supporting marketing program-The supporting marketing programs should be
fine-tuned so that they cater to both the marketing needs of a brand- the Product-Related
Performance Associations and the Non Product-Related Imagery Associations.
Revitalising Brands
It is very essential that the brand should be rejuvenated from time to time to maintain its impact
and freshness.
Expanding brand awareness-Brand awareness among the customers should be expanded by
identifying additional or new usage opportunities of the brand. The customers will feel a new
experience of the brand and the brand will be rejuvenated in the minds of the customers.

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Improving brand image-The Brand Image should be improved by repositioning the Brand in the
market. The brand should be placed to occupy a new niche in the market. The brand elements
should be changed to achieve this.
Entering new markets-Revitalising of brands can also be done by venturing into new markets and
exploring the possibility of establishing the brand in completely different arenas.

Brand management guidelines-

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Brand extensions/ brand stretching

Brand extension/ brand stretching is a marketing strategy in which a firm marketing a
product with a well developed image uses the same brand name in a different product
category. (Verma 2002)
Refers to leveraging the values of the brand to take the brand into new markets.
http://brandsbyovo.com/
It is using leverage of a successful brand name in category to launch a new or modified
product in another product. www.brandimage.com.pk
Any effort to use a successful brand name to launch a product modification or additional
products. (Laforet 2010)
The following is an example of Samsung brand extension

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Types of Brand Extension

There are basically two types of brand extension
• 1) Extension into related categories
• 2) Extension into unrelated categories

Brand extension dimensions

• Brand can be extended in many ways. Brand extension may be done either in the same
product category or different product category. Thus, it can be either vertical or
horizontal extension.
A) Horizontal Extensions: When an existing product’s name is assigned to a new

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• product in the same product category altogether new to the

• Company, it is called horizontal brand extension. According to Aaker and Keller (1990),
• based on their focus, there are two varieties of horizontal brand extensions viz.; line
• Extensions and franchise extensions. In line extension a current brand name is used to
• enter a new market segment while in franchise extensions a current brand name is used
• to enter a product category new to the company (Tauber, 1981).
B) Vertical extensions: Vertical extension means introducing related brand in the
• same product category in either of two directions, i.e., upscale extension, where a new
• product with higher price and quality characteristics, than the original, is introduced;
• Or downscale extension, where a new product with lower quality and price points, than
the original, is introduced. For example, in automobiles, higher or lower versions of the
same brand are introduced to attract different market segments.
Advantages of brand extensions
• The acquaintance of the consumers with a brand increases the chances of
accepting a new product by them, under the same brand name. Thus, brand extension
reduces the risk associated with launching a product under new brand in the market.
In fact the brand equity of an established brand makes the of a new entry inexpensive.
(Verna, 2002).
• Brand extension increases the visibility of brand.
• In times of intense competition, to cover every niche, the best strategy available to
companies is to go for brand extension.
• In case of brand extension where a new product launched under the same brand
gets benefit of the advertising done for a product already existing under that brand
name. Thus, it can be said that brand extension need less advertising support in
comparison with new brand launches. (Laforet , 2010).
Disadvantages of brand extensions
• Brand extension in unrelated markets may lead to loss of reliability if a brand name is
extended too far. An organization must research the product categories in which the
established brand name will work.
• There is a risk that the new product may generate implications that damage the image of
the core/original brand.

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There are chances of less awareness and trial because the management may not provide
enough investment for the introduction of new product assuming that the spin-off effects from
the original brand name will compensate
An example of brand extensions in the logistics industry
DHL Express is a division of the German logistics company Deutsche Post DHL providing
international express mail services. DHL Express's global headquarters are part of the Deutsche
Post headquarters in Bonn Germany and it is the world's largest logistics company operating
around the world. DHL is a world market leader in sea and air mail. Hillblom put up a portion of
his student loans to start the company, bringing in his two friends Adrian Dailey and Robert
Lynn as partners, with their combined initials of their last names as the company name (DHL).
DHL Express have the following brand extensions:
DHL Freight Transportation DHL Warehousing and Distribution
DHL Industry Sector Solutions DHL Customs Services

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Reference
Aaker D.A. and Keller K.L. (1990), “Consumer Evaluations of Brand Extensions”, Journal of
Marketing, Vol. 54(1), pp. 27-41
Verma Harsh V., Brand Management. Excel Books. New Delhi. 2002,
Laforet S., Managing brands.McGraw-Hill.London.2010
www.brandimage.com.pk/brand-extension/ Accessed 23/08/15
http://brandsbyovo.com/brand -extension/ Accessed 23/08/15

Question: Brand Equity: Factors affecting retail and logistics brand equity; Building and
Managing Brand Equity; Dealing with Brand Crisis; Key drivers of Brand Equity.

Business environments over the years have increasingly recognized the significance of brand
equity as a means of competitive advantage, which have consequently attracted scholarly interest
in recent times. Brand equity has been defined by Aarker as value added or incremental utility
enjoyed by a product because of its brand name. Keller (1993) defines brand equity as “The
differential effect of brand knowledge on consumer response to the marketing of the brand”. He
suggests that consumer assessments concerning a product with a brand name should be
compared to an unnamed product (without brand). Comparing these two products could then
explain the preference, the intention to buy, or even the final consumer choice. With reference to
www.marketingresearch.org, brand equity is a construct that is designed to reflect the real value
that a brand name holds for the products and services that it accompanies. Brand equity is
considered important because brands are believed to be strong influencers of critical business
outcomes, such as sales and market share. In simpler terms it is the value and strength of the
brand that decides its worth.

Factors Affecting Retail and Logistics Brand Equity

 Brand awareness

Brand awareness is the probability that consumers are familiar about the life and availability of the
product. It is the degree to which consumers precisely associate the brand with the specific product. It is
measured as ratio of niche market that has former knowledge of brand. Brand awareness includes both

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brand recognition as well as brand recall. Brand recognition is the ability of consumer to recognize
prior knowledge of brand when they are asked questions about that brand or when they are shown that
specific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or
heard. While brand recall is the potential of customer to recover a brand from his memory when given
the product class/category, needs satisfied by that category or buying scenario as a signal. In other
words, it refers that consumers should correctly recover brand from the memory when given a clue or
he can recall the specific brand when the product category is mentioned. It is generally easier to
recognize a brand rather than recall it from the memory.

Brand awareness is improved to the extent to which brand names are selected that is simple and
easy to pronounce or spell; known and expressive; and unique as well as distinct. For instance
the first name that comes to mind in grocery retailing OK.

There are two types of brand awareness:

1. Aided awareness- This means that on mentioning the product category, the customers
recognize your brand from the lists of brands shown.
2. Top of mind awareness (Immediate brand recall)- This means that on mentioning the
product category, the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to which
consumers make product-related decisions with the brand present or not. For instance - In a
store, brand recognition is more crucial as the brand will be physically present. In a scenario
where brands are not physically present, brand recall is more significant (as in case of services
and online brands).

 Brand loyalty

Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another
brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive
buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent
to which a consumer constantly buys from the same brand within a range of different brands. The
consumers remain loyal to a specific brand as long as it is available. They do not buy from other
suppliers within the product category. Brand loyalty exists when the consumer feels that the brand

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consists of right product characteristics and quality at right price. Even if the other brands are available
offering cheaper prices or superior quality, the brand loyal consumer will stick to his brand.

Brand loyalty can be defined as relative possibility of customer shifting to another brand in case there is
a change in product’s features, price or quality. As brand loyalty increases, customers will respond less
to competitive moves and actions. Brand loyal customers remain committed to the brand, are willing to
pay higher price for services from a brand, and will promote their brand always. A company having
brand loyal customers will have greater sales, less marketing and advertising costs, and best pricing.
This is because the brand loyal customers are less reluctant to shift to other brands, respond less to price
changes and self- promote the brand as they perceive that their brand have unique value which is not
provided by other competitive brands.

Brand loyalty is always developed post purchase. To develop brand loyalty, an organization should
know their niche market, target them, support their product, ensure easy access of their product, provide
customer satisfaction, bring constant innovation in their product and offer schemes on their product so
as to ensure that customers repeatedly purchase the product.
 Brand associations

Brand association is anything which is deep seated in customer’s mind about the brand. Brand should
be associated with something positive so that the customers relate your brand to being positive. Brand
associations are the attributes of brand which come into consumers mind when the brand is talked
about. It is related with the implicit and explicit meanings which a consumer relates/associates with a
specific brand name. Brand association can also be defined as the degree to which a specific
product/service is recognized within its product/service class/category. While choosing a brand name, it
is essential that the name chosen should reinforce an important attribute or benefit association that
forms it’s product positioning.

Brand associations are formed on the following basis:

• Customers contact with the organization and its employees;
• Advertisements;
• Word of mouth publicity;
• Prices of services which the brand offers;
• Celebrity/big entity association;
• Quality of the product;

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• Products and schemes offered by competitors;

• The class/category to which the brand belongs;
• POP ( Point of purchase) displays; etc
Positive brand associations are developed if the product which the brand depicts is durable,
marketable and desirable. The customers must be persuaded that the brand possess the features
and attributes satisfying their needs. This will lead to customers having a positive impression
about the product. Positive brand association helps an organization to gain
goodwill, and obstructs the competitor’s entry into the market.

MANAGING AND BUILDING BRAND EQUITY

Many factors influence the strength of a particular product or brand. If you understand these
factors, you can think about how to launch a new product effectively, or work out how to turn a
struggling brand into a successful one. The concept behind the Brand Equity Model is simple: in
order to build a strong brand, you must shape how customers think and feel about your product.
You have to build the right type of experiences around your brand, so that customers have
specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it. When you have
strong brand equity, your customers will buy more from you, they'll recommend you to other
people, they're more loyal, and you're less likely to lose them to competitors. In brand equity
building, certain models have been developed and implemented in building many successful
brands in different organisations. In this case, we are going to be using Keller’s Model of Brand
Equity.
Keller's Brand Equity Model is also known as the Customer-Based Brand Equity (CBBE)
Model. Kevin Lane Keller, a marketing professor at the Tuck School of Business at Dartmouth
College, developed the model and published it in his widely used textbook,
"STRATEGIC BRAND MANAGEMENT."

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The model, seen in Figure 1, illustrates the four steps that you need to follow to build strong
brand equity.
The four steps of the pyramid represent four fundamental questions that your customers will ask
– often subconsciously – about your brand. The four steps contain six building blocks that must
be in place for you to reach the top of the pyramid, and to develop a successful brand.
STEP 1: BRAND IDENTITY: WHO ARE YOU?
In this first step, your goal is to create "brand salience," or awareness – in other words, you need
to make sure that your brand stands out, and that customers recognize it and are aware of it.
You're not just creating brand identity and awareness here; you're also trying to ensure that brand
perceptions are "correct" at key stages of the buying process.
Application
To begin, you first need to know who your customers are. Research your market to gain a
thorough understanding of how your customers see your brand, and explore whether there are
different market segments with different needs and different relationships with your brand.
Next, identify how your customers narrow down their choices and decide between your brand
and your competitors' brands. What decision-making processes do your customers go through
when they choose your product? How are they classifying your product or brand? And, when
you follow their decision making process, how well does your brand stand out at key stages of
this process?
You are able to sell your product because it satisfies a particular set of your customers' needs;
this is your unique selling position, or USP. You should already be familiar with these needs, but
it's important to communicate to your customers how your brand satisfies these. Do your clients
understand these USPs when they're making their buying decisions?

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By the end of this step, you should understand whether your clients perceive your brand as you
want them to, or whether there are specific perceptual problems that you need to address – either
by adjusting your product or service, or by adjusting the way that you communicate your
message. Identify the actions that you need to take as a result.
STEP 2: BRAND MEANING: WHAT ARE YOU?
Your goal in step two is to identify and communicate what your brand means, and what it stands
for. The two building blocks in this step are: "performance" and "imagery."
"Performance" defines how well your product meets your customers' needs. According to the
model, performance consists of five categories: primary characteristics and features; product
reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and
design; and price.
"Imagery" refers to how well your brand meets your customers' needs on a social and
psychological level. Your brand can meet these needs directly, from a customer's own
experiences with a product; or indirectly, with targeted marketing, or with word of mouth.
A good example of brand meaning is Patagonia®. Patagonia makes high quality outdoor clothing
and equipment, much of which is made from recycled materials.
Patagonia’s brand performance demonstrates its reliability and durability; people know that their
products are well designed and stylish, and that they won't let them down. Patagonia’s brand
imagery is enhanced by its commitment to several environmental programs and social causes;
and its strong “reduce, reuse, recycle” values make customers feel good about purchasing
products from an organization with an environmental conscience.
APPLICATION
The experiences that your customers have with your brand come as a direct result of your
product's performance. Your product must meet, and, ideally, exceed their expectations if you
want to build loyalty. Use other models to identify your customers' needs, and then explore how
you can translate these needs into a high quality product.
Next, think carefully about the type of experience that you want your customers to have with
your product. Take both performance and imagery into account, and create a "brand personality."
Again, identify any gaps between where you are now and where you want to be, and look at how
you can bridge these.

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STEP 3: BRAND RESPONSE: WHAT ABOUT YOU? - – WHAT DO I THINK,OR FEEL,

ABOUT YOU?
Your customers' responses to your brand fall into two categories: "judgments" and "feelings."
These are the two building blocks in this step.
Your customers constantly make judgments about your brand and these fall into four key
categories:
 Quality: Customers judge a product or brand based on its actual and perceived quality.
 Credibility: Customers judge credibility using three dimensions – expertise (which
includes innovation), trustworthiness, and likability.
 Consideration: Customers judge how relevant your product is to their unique needs.
 Superiority: Customers assess how superior your brand is, compared with your
competitors' brands.
Customers also respond to your brand according to how it makes them feel. Your brand can
evoke feelings directly, but they also respond emotionally to how a brand makes them feel about
themselves. According to the model, there are six positive brand feelings: warmth, fun,
excitement, security, social approval, and self-respect.
Application
First, examine the four categories of judgments listed above. Consider the following questions
carefully in relation to these:
 What can you do to improve the actual and perceived quality of your product or brand?
 How can you enhance your brand's credibility?
 How well does your marketing strategy communicate your brand's relevancy to people's
needs?
 How does your product or brand compare with those of your competitors?
Next, think carefully about the six brand feelings listed above. Which, if any, of these feelings
does your current marketing strategy focus on? What can you do to enhance these feelings for
your customers?
Identify actions that you need to take as a result of asking these questions.
STEP 4: BRAND RESONANCE: HOW MUCH OF A CONNECTION WOULD I LIKE TO
HAVE WITH YOU?

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Brand "resonance" sits at the top of the brand equity pyramid because it's the most difficult – and
the most desirable – level to reach. You have achieved brand resonance when your customers
feel a deep, psychological bond with your brand.
Keller breaks resonance down into four categories:
 Behavioural loyalty: This includes regular, repeat purchases.
 Attitudinal attachment: Your customers love your brand or your product, and they see it
as a special purchase.
 Sense of community: Your customers feel a sense of community with people associated
with the brand, including other consumers and company representatives.
 Active engagement: This is the strongest example of brand loyalty. Customers are
actively engaged with your brand, even when they are not purchasing it or consuming it.
This could include joining a club related to the brand; participating in online chats,
marketing rallies, or events; following your brand on social media; or taking part in other,
outside activities

Application
Your goal in the last stage of the pyramid is to strengthen each resonance category.
For example, what can you do to encourage behavioural loyalty? Consider gifts with purchase, or
customer loyalty programs.
Ask yourself what you can do to reward customers who are champions of your brand. What
events could you plan and host to increase customer involvement with your brand or product?
List the actions that you could take.

Dealing with Brand Crisis

A crisis has the potential to destroy a brand extremely quickly. According to a study conducted
by Rhee and Haunschild (2006), firms with a good reputation suffer more and are more
susceptible to crises than to those with poor reputations, when they make mistakes. What then is
a crisis? According to Bernste (2013) a crisis is any situation that is threatening to a business,
with the ability to seriously interrupt its operations as well as significantly damage its reputation.
Furthermore, Nostrad (2010) says, “In this day and age of complex, multidimensional

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corporations that manufacture and market a diverse range of products, brand crisis is almost
inevitable. At some point, a brand will likely be faced with some crisis that threatens its integrity
to some degree.”
Meyers (1986), cited in Grundy& Moxon (2013) identified nine types of business crises: crises
in public perception, sudden market shifts, product failure, top-management succession,
finances, industrial relations, hostile takeovers, adverse international events, and regulation and
deregulation. If the above are not handled or managed, they have potential to run a brand straight
into the ground. Therefore, crisis management is needed. A well-managed crisis could improve
the corporate image, assigning the image of a socially responsible company.Brand crisis
management occurs in three stages , that is prior to the crisis, during the crisis and post crisis.

Prior to the Crisis

Contingency crisis management plans need to be put in place before one actually occurs. This
contingency plan will help the organisation (the brand) prepare for unforeseen events that may
threaten its existence. As a part of the plan, the organisation should put in place experienced
public relations personnel, who will execute the plan. This stage can also be known as the
Prodromal stage, as suggested by Ritchie 2004), in which early warning signals of the crisis are
discovered. This stage is proactive and requires the personnel put in place to plan on how to
manage the crisis should it occur. There is need for training of personnel and devising emergency
drills that can be practiced before a crisis actually occurs. For example, in the case of British
Airways, they need to train personnel how to respond if there is a plane crash (an example of
product failure). Having a plan in place will help them respond quickly and allow them to
maintain their brand equity during a crisis.
During the crisis
Compensating the Injured
Before even addressing the public of the brand, It is important to express warm regards to the
family ( families) for the incident that occurred. This is so that they know that the brand is
sympathetic and wants to take responsibility of the accident that has occurred. Compensation of
the injured and their family (families) for their traumatic experience by paying for any surgery
undergone, hospital bills and medication prescribed, will also be necessary. The same need to be
assured that certain measures of safety will be tightened. In all this, one of the members of the

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brand’s Senior Management will need to express their regards. This is so that the customers will
be assured that they are valuable to the organisation and that it is truly sympathetic concerning
the incident. Furthermore, as a kind gesture, would be needed like giving the family (families)
free air tickets to a local resort.
Communicating through the Media
Thereafter, a press release to address the brand’s publics which include potential and current
customers, potential and current investors, government, employees and the community will need
to be organised. This will be to address the issue at hand and express regards, as well as take
responsibility for what happened. The use of both local and international newspapers, television,
radio, social networks and our website to apologise for the incident and take responsibility,
should be used so that it is clear that the organisation is apologetic.
A public apology to the family (families) of the injured through the above mentioned forms of
media, will need to be given for the unfortunate incident and wish the injured a speedy recovery.
In this, the assistance to be given to the injured can be highlighted.
The brand’s PR representatives will need to brief the public about the incidence and make them
fully aware of what happened to the customer(s) and the reaction to the situation. Letting the
puclics in on the contingency plan ,in place, highlighting that such incidents can happen but
assuring the public that these are rare, would be necessary. Blame will need to accepted as well
as responsibility for the faulty system. Thereafter, the publics will need to be informed them
about how there will be tightening of the loose ends of the system . This will help the
organization maintain its brand equity and even increase it.
Consistently communicating with reporters to give them information about the is needed,
because they can get wrong information from other sources. The other sources may distort the
information and ruin the image of the organisation, leading to a decline of customer confidence.
Resultantly, this will negatively affect the brand equity of the company.
After the Crisis
As an organisation there is need to revisit policy and to tighten the loose ends. As a manner of
tightening the loose ends, strategies will need to be implemented internally and externally.

Internally, paying well, recognising and rewarding employees so that they are motivated to do
their job well, will be necessary. Retraining of personnel on how to deal with these or similar

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situations will be needed. Ensuring that there is an efficient warning system that will alert the
personnel and the paramedics (if needed) is key.
A consistent check on the products, in the case of British Airways, on the planes will be needed.
There is need to check their engines and all the parts to ensure that accidents are minimised.
Externally, customers will be educated on how to act in the event of a plane crash to lessen the
impact of the accident. Communicating these strategies to publics so that they will know that the
brand is taking action and not just folding its hands, will be needed.
Convincing Publics to Trust the Organisation Again
The organisation will need to use a press conference, this time with the injured’s family to speak
to the public and assure them that the organisation has compensated them and put in measures to
minimise injury during the crisis. This is to assure the publics that the brand is still worthy of
their trust and confidence and that even the best of the best can go through such a situation. If the
brand equity of the brand had declined, this process of convincing publics will help the company
build its brand equity again.
Key Drivers of Brand Equity
The key drivers of brand equity are brand awareness, brand image and personality. These form
the basis upon which a brand can command a premium price in the market.
Brand Awareness
Formally, brand awareness refers to the customers’ ability to recall and recognize the brand.
Brand awareness is more than just customers knowing the brand name and having previously
seen the brand, perhaps even many times. Brand awareness also involves linking the brand—the
brand name, logo, symbol, and so forth—to certain associations in memory. Brand awareness
can be distinguished in terms of two key dimensions: Depth of brand awareness refers to how
easily customers can recall or recognize the brand; breadth of brand awareness refers to the range
of purchase and consumption situations in which the brand comes to mind. Ideally, a brand
would have both depth and breadth of brand awareness. Higher depth of brand awareness leads
to increased sales if consumers are more likely to think of the brand when the need arises. Higher
breadth of brand awareness leads to increased sales if consumers are more likely to think of the
brand across a variety of settings when it could be employed. For example, when a consumer is
craving delicious fast food they quickly think of fast food retailers like Chicken Inn, KFC and
Nandos.

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Brand Image
Brand awareness is an important first step in building brand equity, but it usually is not
sufficient. For most customers in most situations, other considerations, such as the meaning or
image of the brand, also come into play. Enhancing brand image involves creating brand
meaning and what the brand is characterized by and should stand for in the minds of customers.
Several types of associations related broadly to more functional, performance-related
considerations or more abstract, imagery-related considerations may become linked to the brand.
In particular, to create brand equity, it is important that the brand have some strong, favourable,
and unique brand associations. For example, Faithwear has a positive brand image in which
consumers consider it as a retailer with good quality and unique products. Therefore, its products
can command a premium price in the market.
Brand Personality
Brands may also take on personality traits and values, similar to people. Brand personality is
often related to the more descriptive user or usage imagery but involves much richer, more
contextual information. One often-cited dimension of brand personality is sincerity. The
personality of a brand is also among key drivers of equity because it influences particular
consumers to purchase the brand’s product. For example, Faithwear has a Rugged personality
which appeals to the youth as well as the sport’s man. Therefore, its personality drives brand
equity in that particular niche.

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In conclusion a firm can build its brand equity by ensuring that it understands the factors that
affect brand equity, how to deal with crises, managing the equity as well as maximizing on the
aspects that drive equity.

Lessons From The World’s Strongest Brands

According to Jerry McLaughlin(2000), “a brand is the perception someone holds in their head
about a retailer, a product, a service, an organization, a cause, or an idea. Strong brand
building is thus the deliberate and skillful application of effort to create a desired perception in
someone else’s mind.”
How does one classify a brand to be strong
 The market share it commands
 The profit it incurs or breaking even
 High brand loyalty from the consumers
 Favorable brand preference vs. the other competitors
 Positive brand awareness from the consumers
COCA COLA COMPANY
The Coca-Cola Company is an American multinational beverage corporation and manufacturer,
retailer, and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered
in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in
1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and
brand was bought in 1889 by Asa Griggs Candler, who incorporated The Coca-Cola Company in
1892. The company operates a franchised distribution system dating from 1889 where The Coca-
Cola Company only produces syrup concentrate which is then sold to various bottlers throughout
the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in
North America, Coca-Cola Refreshments. Its stock is listed on the NYSE and as of 2015, its
chairman and CEO is Muhtar Kent.
Branding lessons from COCA COLA
 Choose a catchy memorable name
The Coca Cola name is well known world over and timeless, mainly because of the two
“co” that start the name of the brand. They are catchy thus making it easy to memorize.

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 Choose a catchy memorable design

The Coca Cola design is distinctive and outstanding making it easily recognizable, something
a brand needs to boost brand awareness. It stands out in bright red with a wavy and curly font
design – a design of simplicity yet excellent, quickly recognizable and hard to forget
 Consistently deliver quality products
With Coca Cola, quality is consistently delivered. In order to become and stay a strong
brand like Coca Cola, quality must not be compromised but be deliverable at every time
a consumer comes into contact with the product.
 A mission statement with a difference
Coca cola company’s mission statement reads, “To refresh the world, to inspire moments
of happiness, to create value and make a difference.” A mission statement like this is
likely to stick to the consumers mind which helps create memorability, essential in brand
awareness because it is focusing not on making profit or money but rather on something
more important –happiness, something that everyone longs after
 Maintaining a cohesive brand image
Throughout different countries Coke is seen sponsoring various events helping the brand
maintain a cohesive brand image. For instance internationally, Coca Cola sponsors the
world cup for football. In Zimbabwe it sponsored a music show called Coca Cola on the
beat. This helps the organization attain and maintain a good competitive image.
 Personalising the experience with coke
Coke has been seen as the company that solely seeks to make its consumers satisfied thus
they have adopted personalizing experience with the product. They have achieved this
through personalizing the packaging that is the coca cola bottle whereby people’s names
are written on the bottle. They have also been able to engage their customers through the
social media, for example you see the company replying to tweets made by consumers, as
well as creating a fan page on facebook written “share a coke, share your experience” a
platform were millions of people share their experiences in life.
The Apple Inc
Apple Inc., formerly Apple Computer, is a multinational corporation that creates consumer
electronics, personal computers, computer software, and commercial servers, and is a digital
distributor of media content. The company also has a chain of retail stores known as Apple

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Stores. Apple's core product lines are the iPhone smart phone, iPad tablet computer, iPod
portable media players, and Macintosh computer line. Founders Steve Jobs and Steve
Wozniak created Apple Computer on April 1, 1976, and incorporated the company on
January 3, 1977, in Cupertino, California. With the introduction of the successful iPod music
player in 2001 and iTunes Music Store in 2003, Apple established itself as a leader in the
consumer electronics and media sales industries, leading it to drop "Computer" from the
company's name in 2007. As of 2012, Apple is the largest publicly traded corporation in the
world by market capitalization, with an estimated value of US$626 billion as of September
2012. Apple Inc's market cap is larger than that of Google and Microsoft combined. Apple's
worldwide annual revenue in 2010 totaled US$65 billion, growing to US$127.8 billion in
2011 and $156 billion in 2012.
Lessons from Apple Inc.
 Understand your values
Innovation and being different are core components of Apple's culture. Understanding
this, helps create a guideline for operations since they know that everything they are to do
must be different and innovative. Steve Jobs is quoted saying “ I would rather miss the
mark than make a me too product”
 Be different
Do not be afraid to be remarkable or different in your branding. Differentiation is Apple’s
and Job’s major philosophy. Jobs is quoted saying “it’s fun to be a pirate than a sailor.”
 Find your niche
For premium products it is advisable not try to be all things to all people. Instead, pick
one market niche where you can excel by offering something that no one else is offering.
Understand your buying personas and how to connect with them.
 Employing the right marketing strategy(The running out marketing strategy)
Apple always runs out of product long before the initial launch end. Why make less
stock than the guaranteed demand? Scarcity keeps its retailers like AT&T, Vodafone and
O2 onside by restricting their supply. It also ensures a vital additional hit of publicity as
media coverage of retailers selling out of iPhones underlines both the massive demand
for the new product and the continued success of Apple. The anticipated scarcity also
drives thousands of consumers into store to pre-order their iPhone, success factor for the

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product. If retailers want their brand to have equity especially in high end products,
according to Ristol (2010), they must avoid the perception that the product is available in
unlimited quantities and to everyone. People in the upper class society who mostly afford
the high end products usually do not want to have what everyone else has. For instance
people with an iphone 6 , they tend to feel they have something rare and special than the
rest of the world. Therefore the lesson is employing the right marketing strategy for a
brand

OK ZIMBABWE
OK Zimbabwe Limited has been in existence since 1942, and has established itself as a
customer-oriented retail organization providing comprehensive access to a broad range of
retail products and allied services developed in response to its customers' requirements
for convenience and value.
LESSONS
 Rebranding with change to create an identity
OK Zimbabwe was previously known as Springmaster Cooperation operating under
Delta Corporation. When the de-meger occurred it thus became OK Zimbabwe.
 Diversification
OK Zimbabwe Limited trades under three highly recognised brand names, OK Stores,
Bon Marche' Stores, and OKmart. The diversified distribution channel allows the Group
to target all segments of the market. In this regard the group has specifically postioned
its stores in terms of design, product range , services and other offering in a way that
specifically caters for the requirements in the low, middle, high income market
categories.
 Own brand development
The Group has developed its own brands through the OK Pot 'O' Gold, OK Value, Bon
Marche' Premier Choice and Shoppers’ Choice labels which have helped the group to
maintain its position as one of the dominant supermarket retailers in the countries
competitive retail sector, despite the effect of liquidity constraints and low disposable
income. The brands are reasonably affordable and thus appealing to consumers.
KEYS TO BRAND EXCELLENCE

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Today businesses and consumers are placing increasing importance on brands .Brands give
identity, stimulate our senses and enrich our life experiences. It is a human need to affiliate and
surround ourselves with things we know, trust, and a strong brand is characterised by a unique
brand promise and an outstanding deliver Lamb 2010.
Brand with a Vision
For any brand to be well-received, it must develop deeper into human insights by seeking to
meet the unfulfilled needs of consumers instead of just focusing on product consumption. A
brand purpose sets how a company change the world for the better, a brand with the purpose ,
this is when the business does not look at the profit maximisation but seek to improve and satisfy
,other needs of the customers ,for starters the Econet as an example, with the slogan , inspired to
change your world , it has manage to be corporate responsible as it sponsors the Mqabuko
scholarship, whenever one seek to buy the Econet brand ,two things come into mind, satisfying
yourself and helping someone I need.
The Econet company was so innovate to establish mobile banking ,that is the Eco cash ,sending
money to our beloved ones was made to very possible ,no matter how remote the place is ,one
can send money without even necessarily going there and also paying bills.
Pushing brand Innovation
The company should believe in product innovation to stay competitive, it should prefer to seek
out big innovative ideas to develop and market its products rather than spreading its resources
across many smaller ideas Google succeeded by managing and improving their brand, Google
established a research engine in 1996, they were other research engines being used, but today
however, they are very few other being used with an estimate 70% of all searches going through
google.
REFERENCE LIST
Aaker, D.(1996),“Measuring Brand Equity across Products and Markets”, New York, Free Press
Keller, K. L. (2003). Strategic Brand Management, 2nd ed., Prentice Hall, Upper Saddle River,
New Jersey.
Kottler P (2006) Marketing Management, London: Pearson Education
www.marketingresearch.org, (accessed on 30/03/2016 @ 1320 hours)

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Question
You are a manager of a newly established logistic organisation. Outline the brand positioning
strategies you can implement to gain competitive advantage.
Brand positioning
It refers to an activity of creating a brand offer in such a manner that it occupies a distinctive
place and value in targeted customer’s minds, Liebmann, Zentes, and Swoboda (2008). Brand
positioning is a medium through which an organization can portray its customers with what it
wants to achieve for them and what it wants to mean to them. A strong brand positioning directs
marketing strategy by explaining to the customers: 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. It is the single feature that sets your service apart from your competitors.

Positioning helps establish a company’s product or service identity within the eyes of the
consumer. A company's positioning strategy is affected by a number of variables related to
customers' motivations and requirements, as well as by its competitors' actions, thus before
positioning of a product or service, one should answer the these strategic questions about the
market, products and services: 1. What is the customer really buying from you? 2. How is the
product or service different from those of your competitors? 3. What makes your product or
service unique?

Therefore as a Manager I would use the positioning strategies outlined below in trying to gain
competitive advantage over others:

Problem and solution positioning

Positioning a brand as the solution to a consumer's problem is also a powerful strategy. The idea
is to demonstrate that your company has the power to relieve customers from an ongoing
problem they may be facing, both quickly and efficiently.
Benefit ppositioning
Communicating the unique benefits of a product or service has been a popular brand position.
With this strategy, the goal is to highlight your company's most powerful attributes that no
competitor can claim and that are valuable and satisfactory to the consumer.

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Quality positioning
The quality of a given product is one of the most important components of a strong brand, and
can be combined with other positioning strategies rather easily. Since every business is trying to
emphasize its commitment to quality, a good way to distinguish yourself from competitors is to
narrow your focus to one area of expertise, thereby branding the company as a high-quality and
trusted specialist.

Example for the strategy is that where DHL provides security to all goods in transit, such that
they will be liable for any damages though it is charged for. But by doing this it ensures quality
of their service and uniqueness.

Celebrity-Driven Positioning

A celebrity is a well-known and famous person in any activity of life, these can be influential
when a company wants to market or position itself in the minds of its target consumers. Hiring
celebrities as spokespeople or to endorse a company's product or service is a popular way to
position a brand.

The goal is to garner brand awareness and recognition by associating the company with a
glamorous individual. While this is an expensive route to take, the consumer tends to trust
celebrities implicitly because she's familiar with their faces. This familiarity inspires buyers to
follow the celebrity's lead or to emulate him, making this strategy ideal where a service is
provided.
Differentiation
Differentiation means that a company offers products or services, which separate them from
what their competitors offer. The products must be unique or special, to make the consumer
willing to buy them Dibb et al, (2001). A company can use their product, service, personnel or
image to differentiate themselves on the market Kotler et al, (2002). Factors that can contribute
to make a product special are for example trademark, technique, and product quality or customer
service. Differentiation does not necessarily mean that just one of these factors is being used.
They are often combined and that makes the differentiation successful Roos et al, (2005).

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For example a logistic service is a logistic service people may assume, but looking at how DHL
and Swift differentiate their services, they offer different side activities in terms of how their
services are provided, where DHL offers security on each and every good on transit and also
their prices differ in accordance with quantities.
Differentiation can be seen as the key to successful marketing Dibb et al, (2001). The reason why
companies often need to differentiate themselves is that consumers usually want a product that
gives them the greatest value. The major issue of companies is to understand the consumers and
to deliver more value than their competitors do. That is why companies must always strive to
deliver what is expected from them. If they claim to offer the best quality of their products they
must also do so Kotler et al, (2000).

Cost Leadership Strategies

A cost leader is a company that mostly offers the same products or services at a lower cost than
its competitors. To be a cost leader and gain such a position on the market, the company must
concentrate on lowering costs but at the same not disregarding quality and service. Since the
companies have lower costs than their competitors they could receive the same or higher profit,
Roos et al, (2005). This in-turn will help the company appeal to its targeted group of consumers.
A good example is that of DHL, where its services are priced lower than those of its competitors
like Swift but at the same time their cost in terms of business operations are low.

High-Price Strategy
Some companies price their products or services higher than their competition to create a
perceived value. Consumers wonder why a particular company is able to sell its product for more
or why their fellow consumers are willing to pay more for the product. In the end, they may
believe that the higher-priced product or service is worth more. An example of this strategy is
Swift which has a transportation cost of $10 more from Harare to Gweru than its rival DHL.

Conclusively, positioning distinguishes a company from its competitors and it is a way to

communicate benefits to possible consumers. Thus a well-positioned company will beat the
competition that has a comparable offering. The company that clearly articulates what it does,

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why it is relevant and how it is different helps customers make better and faster buying
decisions.
QUESTION: Discuss the pros and cons of brand extensions with realistic examples. How
can they be used in a newly established operating logistics company?
Cooper(2005) defines brand extensions to the use of a successful brand name to launch a new or
modified product in the same broad market for example Nike’s core product is shoes but it has
now extended to soccer balls, golf equipment and even sunglasses.
Advantages of brand extensions
Reduce risk perceived by customers
The strong brand used to promote a new product makes it less risk and critical to create
awareness and imagery. The association with the main brand is already done and the main task is
communicating the specific benefits of the new innovation .for example when Econet introduced
brand extensions such as eco-cash, eco-health and eco-school it was a success since Econet was
already a well-known brand with a good reputation, they only had to explain how these brand
extensions worked and their benefits.
Avoid cost in developing a new brand
Compared to launching a new brand, brand extensions strategy is cheaper especially because the
new product use the name of an already well-known brand.it also Reduce costs of introductory &
follow-up marketing program. For example when Econet introduced Eco-sure services it did
advertise through sending messages to all Econet line users which is cheaper than for example if
they had introduced a totally new brand.
Enhancement of brand visibility
When a brand appears in another field it can be a more effective and efficient brand building
approach than spending money on advertising. In addition the relationship with loyal customers
will be strengthened because they will use the brand in other context and it is expected that
customers would rather choose that brand unlike that of competitors. For example when Eco-
cash started most customers started using Econet more than other network providers such as
Netone and Telecel since Eco-cash allowed customers do their banking at home or at their local
areas.
Consumer trust

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The existing of a well -known strong brands represent a promise of quality and useful features
for the consumer. Thus the extension will benefit from this fame and this good opinion about the
brand to create a compelling value proposition in a new segment or markets. Consumers are
more likely to try a new product from a brand they know.
Improve brand image
A brand image especially when the brand is a bit tired is expected to be reinforced by the
extension. Indeed brand extensions gives energy to the brand because it increases the frequency
in which the brand is associated is associated with good quality, innovations and large range of
products. The presence of the brand on a wider number of products should improve the
popularity of the brand and brand memorization.

Disadvantages of brand extensions

Dilution of the existing brand image
Cooper (2005) underlines that the extensions are using the most important asset of the company
that i.e. its brand name. It can be a major advantage for the extension but it represents as well a
huge risk for the existing brand because the brand image can be diluted, said that those positive
and negative consequences are “reciprocity effects” and defined as “a change in the initial
customer’s behaviour regarding the brand, after an extension”. She explains that a brand
extension can damage the brand. A dilution of the brand capital can happen by the occurrence of
undesirable associations or by the weakening of the existing associations. An accident occurring
with a product can lead to tarnish the image of the all brand. In addition, it is sometimes difficult
to associate one brand to two products without weakening the brand position in the customer’s
mind. Points this problem when he argues that “the associations created by an extension can fuzz
a sharp image that had been a key asset, and at the same time reduce the brand’s credibility
within its original setting”. So he claims like the former authors that companies have to be
careful of the confusion in the customer’s mind when making extensions.
Aaker (2004) adds that when a brand benefits are ensure by the fact that it is not “for or available
to everyone”, doing too much extensions could reduce this image of brand selectivity. He takes
the example of the overuse of the name Gucci – at one moment there were 14,000 products
Gucci- was a part of the factors leading to the “fall of that brand”.

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Cannibalization:
Aaker (2004) states that the extensions can cannibalize the existing products of the brand when
there are positioned in a close market. It means the extensions sales are increasing while those of
the existing brand’s products are following the opposite curved. Aaker (2004) underlines that
these good sales figures for the extensions cannot compensate the damage produced to the
original brand’s equity. He argues that this situation is however better than seeing this happening
with a competitor’s brand. Cooper (2005) listed as well this risk and he says like Aaker that this
situation can happen when range extensions are “brand clones” i.e. they cannot be enough
differentiate from the existing products. He gives the example of the brand Crest which was
launching for years new toothpaste twists –e.g. gum protection and whitening, tartar control. Its
share fell from 50 with one product to 25% with 50 products. Thus, “each introduction competed
for the same usage occasion and introduced novelty value but not enough added values to create
Incremental growth” Cooper (2005). And Cooper continues his reasoning by saying that people
wanted an “all-in-one version” successfully provided by Colgate i.e. Colgate Total.
A disaster can occur
Aaker (2004) explains that a disaster which cannot be controlled by the firm –e.g. that Firestone
tires used for the Ford Explorers were potentially unsafe- can happen to any brand. The more
extensions the brand made, more important the damages will be. This occurred to Audi when the
Audi 5000 cars were suspected to have sudden-acceleration problem. Adverse publicity started
to appear from 1978 and continue to the extent that it was mentioned on CBS’s “60 minutes” in
November 1986. Audi did not make efforts to change this situation and as a consequence its
sales fell from 74000 in 1985 to 23000 in 1989. Audi needed fifteen years to recover while it was
manufacturing good cars.

B) For newly established company part of its objectives is to make profit and another is most
likely to grow in the market in which it operates to be able to fight competition and be a big
player. The company can pursue various growth strategies to accomplish these objectives. Given
that the company has created a strong brand in the market it would be justifiable for the company
to use brand extension as a growth tool. Aaker and Keller (1990) define a brand as a symbolic
embodiment of all the information connected to a Company, Product or Service. It serves to

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create associations and expectations from products made by a producer, in the mind of the
consumer.

For a newly established logistics company aiming at brand extension within its parameters of
business can achieve this through variation of the basic areas in which in conducts business such
as time to deliver the parcel, the type of loads being delivered, the weight of the loads and the
charge. Using Swift as an example the company has done brand extension over the years and
have successfully done so in six ways.

They came up with Swift Courier express as a service package in which they operate overnight
to primary and secondary destination. They guarantee delivery within 48hrs.The weight that they
accept for this package ranges from 0 to 20 kg. For this package they allow parcels and
documents and delivery by 10 am at a business address.

Another extension to opt for as Swift did is to come up with Swift Express in which they offer
overnight to major destinations only. They guarantee delivery within 48 hrs. For this service
package exclusive to 21 kg to 100 kg and parcels only. Those parcels with personal addresses
can be collected at the Depot and business addresses are delivered by 10 am. Medical and
perishables are given preference.

The brand extension embarked by Swift is Swift Freight which is for 101 kg to 6 tonnes.
Delivery is guaranteed within 48 hrs. With this package consolidated loads are accepted and they
offer specialised trailers depending on the type of loads.

Swift Full loads is also another brand extension which is targeted for loads which vary from 6 to
34 tonnes but should however be one load. This is exclusive to major destination and delivery is
guaranteed within 48 hours.

Sky Net-Worldwide express is another brand extension which is operated on seven continents
within two hundred and one countries. This is meant for parcels express both imports and
exports. The service package includes airfreight for export and import parcels. This also works
within the country offering door to door deliveries at a premium rates.

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A rather mover versatile approach to brand extension Swift came up with Swift Mutakuri Crop
Transport which is for tobacco movement countrywide. It provides overnight carriage to the
sales floors in Harare. With this package cash advance is paid to the producers and they provide
safe, secure transport which has security detail to the sales floors. They also provide stop-orders
on advance payments which means that tobacco growers can move their produce when they do
not have cash.

These are some of the ways that a logistic company can implement as part of brand extension as
brand extension is merely the introduction of a new or modified product or service using the
same brand. The main reasons for brand extension is to reduce cost of launching a new brand,
increase promotional efficiency and increase consumer benefits.

To conclude the ideology of brand extension it is imperative to stress that brand extension is
appropriate when prior brand equity already exists, when consumers see the same
communication between the new product and parent product and when the proposed new
product enhances the brand equity of the already established parent brand.

PRESANTATION. a) How do retailer prepare and conduct negotiations with vendors?

b) Give reasons for building strategic relationships with vendors?
c) List 10 logistic companies in Zimbabwe briefly discuss their terms of reference?

There are many logistics companies in Zimbabwe that are categorized into different categories
such as passengers ,freight as well as haulages .Terms of reference for these logistic companies
include their logos ,tagline ,slogans and symbols .The terms of reference for these companies are
going to be discussed below .

Zimbabwe United Passenger Company (ZUPCO) is a logistic company that has mandated
itself to provide rural and urban road transport for passengers with its head office located in
Belvedere in Harare. Terms of reference for this company are mainly noticed on the following.
Logo – The logo for ZUPCO is the Zimbabwean bird which is the national emblem of our
country .This logo communicates a lot to the customers and stakeholders of ZUPCO, it
communicates that it is a Parastatal and it is a company that was developed to serve a nation.

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This logo can be simply memorable, likable, and meaningful, however this logo is very difficult
to protect since it is a national emblem.
Slogan – the slogan for ZUPCO is “A commitment to safe and reliable travel “.Considering this
slogan ZUPCO has managed to keep up with this promise since it is widely known of delivering
passengers to their destination in time .However it has filed to commit itself to safety of
passengers since it is involved in accidents in many cases although they have an insurance cover
that was designed to cover passengers Colors – the colours for ZUPCO is orange and blue hence
it makes ZUPCO to be easily identified from any other logistic companies.
NFB is a logistic company that is owned by Dairy board holdings limited and is meant to
transport dairy products or perishables for Dairy board and Lyons that need refrigeration.
Logo – the logo for this company is a stylished capital letters that are NFB that is covered by a
blue colour .This logo is symbolic in nature hence it communicates a symbolic message about
the name of the company to its customers and stakeholders .Its simplicity also makes it
memorable
Slogan – the slogan for NFB is “Your logical choice ” .In considering this slogan it is suggestive
in nature since it is suggesting that it is logical to choose NFB when transporting perishable
products .This slogan is also short which makes it memorable and it is also emotional since it
touches the logic part of the consumers.
Colours- Blue and red are the colours that are used by NFB and these colours makes it easily
identifiable among its competitors
STRAUSS LOGISTICS LTD – this is logistic company that specializes in transporting bulk
fuels with the largest fleet that operates throught Zimbabwe and the Southern Africa.
Logo – its logo is small letters Strauss logistics that are boldened and stylished hence this logo is
symbolic in nature .It really symbolizes the name of the company to its customers and
stakeholders.
Slogan – the slogan for Strauss is “We are on the move “ .In considering this slogan ,it has
clarity in its message and it is also simple to be heed by the customers and stakeholders. This
slogan is also short when it comes to length which makes it memorable to the customers.
SWIFT - Operating within Zimbabwe for nearly 70 years, Swift Transport is a proudly
Zimbabwean, well-established national transport company specializing in courier, freight,
transport, distribution and logistics sectors.

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Logo – this company uses capital letters SWIFT in blue that are stylished and underlined by the
word express in red .The logo for swift is flexible, transferable, adaptive, simple and short that
makes it memorable to the customers .As described above this logo is also symbolic in nature
since it symbolizes the name and colours that are used by the company hence it can be easily
identifiable. However this logo is also suggestive.
Slogan – their slogan is “A local hero delivering nationwide “ Each word in this slogan
communicates something hence it is short and clear in terms of message .It also reflect the
business philosophy and it can motivate customers to choose SWIFT as the local hero as well as
informing customer about something special about itself. It also communicates the business
philosophy as well as touching the emotional part of the customers.
AIR ZIMBABWE – it is a flag carrier airline that is headquartered on the Harare international
airport. It is in the business of transporting passengers and goods to wherever in the globe .
Logo – the logo for air Zimbabwe is a Zimbabwean bird that is flying in the flag colours of
Zimbabwe .This logo is attractive to its customers because of its colours .It is also simple which
makes it memorable by the customers .
Slogan – its slogan is “Zimbabwean hospitality in the sky” this slogan is emotional in nature and
communicates the business philosophy in the minds of the customer although it sounds selective
BLUESTAR LOGISTICS PVT LTD – it commenced operations as a department primarily
involved in the transportation of sugar from the refineries into the market. Today, it is one of the
leading transporters in the haulage industry, both locally and regionally.
Logo –its logo is a Star that is colored brown and blue .This logo is symbolic and it
communicates the name and the colours of Bluestar as a company hence it is memorable because
of its simplicity.
Slogan – “The power of partnership” This slogan communicates that Bluestar is an evidence of a
powerful partnership and is specific and clear in terms of its message
HIGHBEN INVESTMENTS –it’s in the business of providing truck and haulage services in
Zimbabwe and South Africa .Its Logo is a blue Truck which is a sign that this logo is descriptive
.This logo also communicates the message about identification since it shows the colour blue. Its
slogan is “Excellent service, nice people, a pleasure to do business with “.However as far as this
slogan is motivational it is too long to be remembered by the customers.

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DHL – this is an international company that is in the business of postal and logistics .It is
concerned with shipping guidelines ,drop offs and collection points as well as shipments .In
Zimbabwe its head office is at cnr central and 4th street in Harare .
Logo – the logo for DHL is the letters DHL in the colour Red that are stylished in a more
attractive way .Considering this logo it is simple which makes it memorable to the customers
.This logo is also adaptable to across national boundaries of different cultures since it is an
international company. It also communicates the official colours of the company that are red and
orange.
Slogan – this company has many slogans but the well-known is “Excellence .Simply delivered
“.Considering this slogan it is simple to be memorable and remembered by everyone else in the
market .It also communicates the philosophy of the business to the customers.
J &J AFRICA – this was founded by Mr. Jen Jensen and it is in the business of providing
transport of containerized and dry bulk cargoes via Beira ,Malawi ,Zimbabwe ,,Zambia and
Eastern DRC .It is located in Graniteside Harare.
Logo – the logo for this company is the letters J & J that are in a red circle .However this logo
symbolizes the name of the company and point it out to the owner J for Jen another J for Jensen
.It also communicates a message about the colours red and white that are officially used by the
company .Moreso this logo is simple which makes it memorable and adaptable across Africa
where the business is operating
BIDULPHS – This is the South African company that has a head office in Southerton Harare
that specializes in removals, stoarage and shipping .It offers door to door services with direct
routes in the southern Africa

Negotiations are attempts to reach an agreement not a contest to see who can win. Retailers
usually negotiate with vendors on various issues which may include price discounts, shelf space
and reverse logistics. When preparing and conducting negotiations retailers have go with a win-
win alternative , meaning that both parties the retailer and the vendor both have to benefit for the
negotiations to be fruitful.
As part of preparing for the negotiations the retailers must first have a solid understanding of
what is it that they really want to negotiate? After noting what they want to negotiate they have

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to identify the vendor whom they will negotiate with. The retailers must have a clear background
of the vendor they want to negotiate. Also as part of preparing for negotiations the source
information from other competing vendors so that are in a position to know and to bargain in
negotiations.
When negotiating with vendors, it is of paramount importance to be honest, terms contracts of
the contacts should be clearly stated and well communicated. For example when O.K Zimbabwe
is negotiating with Probands on credit facilities, the retailer must be able to pay the amount due
on the specified date.
It is also important that retailers when negotiating with vendors they follow the proper channels
of communications and also keep records of the contracts negotiated. Retailers must know the
mode of communication when negotiating with vendors for example they should know whether
they must use emails, telephones or use representatives.
When negotiating retailers must also be able to quote multiple suppliers, for example when DCK
wants to negotiate on price discounts with National Food, the retailer must be able to quote other
suppliers like Probrands and Blue Ribbon, this will help the retailer in bargaining for better
deals.
When a retailer is conducting negotiations with a vendor, they must also evaluate the terms and
conductions of the contracts, the retailer must make sure that negotiations are fair and will not
interfere with the smooth running of the business.
After negotiations have been carried out the retailer review all contracts from time to time, this
can be done monthly, quarterly or even yearly depending on the nature of negotiations.
b)
In order for retailers to be successful they ought to create strategic relations with vendors. Since
retailers and vendors are interdepended good relationships promotes the smooth running of
business between the two parties. Retailer build strategic relationship with vendors so that they
may get favourable payment terms, favourable reverse logistics, prompt deliveries and also that
vendors may assist the retailers with promotions and in store merchandisers
Retailers may build strategic relationships with vendors so that they may get favorable payments
terms and discounts. When retailers builds good relationship with their suppliers they will be
able to get products on credit from the vendors. For example O.K Zimbabwe gets most of the
products on credit, this is to say they get products and pay for them later. The retailer usually

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benefit from this because they will be able to pay for the goods after they have realized some
sales.
Another reason why retailers build relationship with vendors is so that they will be able get
favorable reverse logistics terms. If retailers have good relationships with their suppliers they
will be able to retain those broken products back to the suppliers, this will help the retailer in
reducing the rate of shrinkage.
When retailers build strategic relationships with vendors, the retailer will be able to benefit the
services of in store merchandisers provided by the vendors. These in store merchandisers help in
promoting the vendors products in retail outlets, this benefits the retailer in increasing sales.
Also when strategic relationships are built, the retailer will be able to benefit sponsorship from
vendors. Vendors can help sponsor the retailers’ promotions, for example when O.K Zimbabwe
is hosting it grand challenge promotions vendors may assist this promotion by providing give
away prize.
It is very important that retailers built strategic relationship with vendors since the two parties are
interdependent with each other. These strategic relationship also help the retailers in archiving
their goals , thus increased sale and reduced shrinkage.

Question: Discuss pre-conditions for successfully operating a logistics company?

b)Outline and discuss strategies that are used by DHL to gain competitive advantage?

Gardner and Levy (1955) referred to brand image as beliefs, perceptions, feelings, and attitudes
towards a brand. Frazer (2001) and Mudd (1998) argued that brand image is more strongly
related to intangible aspects, such as social meanings and symbolic value than physical features
of products. Based on brand image definitions from previous studies and following Roberts‘
(2004), the present study views brand image as an encapsulation of a consumer‘s direct or
indirect brand experience, with a focus on intangible aspects of the brand. Moreover, the present
study proposes that brand mystery, sensual experience, and customers’ intimacy represent facets
of the cognitive, sensory, and emotional dimensions of brand image.
Brand Mystery

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The cognitive dimension of brand image reflects mental thoughts of a brand, whichconsumers
establish by considering product attributes, service, performance, andsymbolic or psychological
meanings of a brand (Gardner & Levy, 1955). The personal meanings linked to memoryof past
brand experiences lead consumers to create a distinct perception towards a brandin their mind
(Roberts, 2004).
Mystery captures the cognitive experience, shaped by past and presentinteractions with a brand
as well as future dreams and aspirations reflecting a certain lifestyle (Roberts, 2004). As sub
components of mystery, Roberts included thetelling of great stories, which taps into a culture‘s
myths, iconic characters, and dreams;instils inspiration; and combines past, present, and future.
Roberts (2004)believes that a firm delivers brand identity by telling a story of the brand. Great
storiesformed through brand experience may entail favourable myths and iconic
characteristicsthat stimulate positive feelings and perceptions within consumers.
Positive associationswith the brand may result from the personal dreams, aspirations, or
inspirational spiritexpressed by the story. Consumers’ past brand experiences may influence their
presentand future perception towards a brand..
Elements of Roberts’ Mystery Concept are; Telling great stories, Combining the past,present,
and future, and Tapping into naturalmyths and iconiccharacters.
Telling great stories; A firm tells a story to reflect brand identity.Brand stories are a self-
reflection of consumers.Great stories shaped by impressive experiences with brands,products,
and retailers change consumer emotion or action.
Tapping into natural myths and iconic characters;The brand captures memorable global myths
and icon. The logistics company can use celebrities who are viewed as icons by the society.
Tapping into dreams; The brand is associated with aspiration, such as a strong desireor
ambition.The brand taps into personal dreams, which requiresunderstanding of consumers‘
lifestyle.
Building on inspiration; The brand offers inspiration, or a sudden brilliant idea, whichhave the
power to transformlives.An inspirational spirit for example, the motto for Dhl which is living
responsibility.
Combining the past, present, and future; Meaning is shaped by the past and present.The past
shapes the present.
Sensual Experience

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The sensory dimension of brand image refers to brand experiences, shaped through aconsumer‘s
physical senses that are vision, smell, sound, touch, and taste. Sensualityreflects pleasant sensory
experiences (Roberts, 2004). Music in the store or on a Website,a colour scheme or design style,
and the smell of the store‘s environment are examples ofthe sensory experiences that may lead to
sensuality. Roberts (2004)proposes that visual elements of a product, such as a display, logo
design, packages, andbeautiful colours, music, olfactory stimulation, and variety in textures,
foster emotionalexperiences. Other practitioners (Gardner & Levy, 1955) agreed thatproviding
sensory experience is very important for generating positive perceptions of abrand.
Elements of Roberts‘ Sensuality Concept are; Vision, Smell, Sound, Touch, and Taste
Vision; Visual product presentation, logo design, packages, and colourscheme prompt particular
emotions.
Smell; Scent is a direct, personal, and specific experience, because scentis not transformed by
judgments or beliefs.Attractive olfactory stimulation increases sales.Smell is intertwined with
taste.
Sound; Quiet retail environment or certain tunes or tones or rhythms or melodies and volume in a
store leads to specific moods or feelings.
Touch; Smooth, rough, hard, soft, wet, dry, hot, and cold texturestimulates senses.
Taste; Sour, sweet, salty, and bitter are types of taste that entail specificmoods or feelings.
Customers Intimacy
The emotional dimension of brand image refers to brand experiences involved aconsumer‘s
feelings of interacting with a brand. Intimacy captures the affective andconnective experiences
between consumers and brands (Roberts, 2004). For example, afirm‘s understanding of
consumers’ opinions and preferences, consumer‘s long-termcommitment, and consumer‘s
enjoyment of interaction with a brand may foster positiveemotions and perceptions towards the
firm or its offerings. Researchers inpsychology (Sternberg, 1997) and marketing (Fournier, 1998)
have indicated the importance of intimacy in evoking positive emotions andperceptions for a
romantic partner or for a brand or firm, respectively.Intimacy Concept are; Firm‘sempathy,
Consumer‘s commitment, and Consumer‘senjoyment
Firm‘s empathy; Empathy is an understanding of and solid support for consumersby listening to
their opinions.Empathy is an understanding of consumers’ aesthetic preferences.Empathy is
connections with consumers, remembering personalevents. For example a birthday.

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Consumer‘s commitment; Commitment is consumer‘s preferable attitudes towards the

brand.Consumer‘s long-term commitment maintains a relationship.
Consumer‘s enjoyment; Enjoyment of interaction is consumers’ strong positive feelings.
Enjoyment of interaction can transform the most insignificantproduct into a must-have
item.Enjoyment of interaction keeps the relationship going longer.
Brand associations
Another dimension of brand image is other informational nodes linked to the brand node in
memory and contain the meaning of the brand for consumers. One way to distinguish between
brand associations is by their level of abstraction, that is, by how much information is
summarized or subsumed in the association (Gardner & Levy, 1955). In line with this criterion,
Keller (2010) classifies brand associations into three major categories: attributes, benefits and
attitudes. Attributes are those descriptive features that characterize a brand, such as what a
consumer thinks the brand is or has and what is involved with its purchase or consumption.
Benefits are the personal value consumers attach to the brand attributes, that is, what consumers
think the brand can do for them. Brand attitudes are consumers' overall evaluations of a brand.
The associations related to the functions represent a greater degree of abstraction than those
referring to the attributes, and so are more accessible and remain longer in the consumer's
memory (Alba, 2009).

Brand personality.
Brand personality helps brand image to come alive. It makes the brand accessible and touchable.
It helps brand to differentiate itself from other brands or non-brand or generics. It provides a
depth and breadth image to the brand (Keller, K. L. (2010). Alba. F, (2009) states that, Brand
personality delivers credibility and likeability. Some brands have a personality that triggers
charisma – trust that goes from loyalty to advocacy. It also brings about culture of the brand,
which is the value system that directs every aspect of the enterprise, its principles, attitudes, and
characteristics. Which is a commitment made to customers, associates, and suppliers.

b)Brand position

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The brand position is the part of the brand that describes what your organization does and for
whom, what your unique value is and how a customer benefits from working with you or your
product/service, and what key differentiation you have from your competition. Dhl has gained a
mind share of customers by the use positioning statements such as ‘we move the world all the
way’. Dhl does not only move the world around in continents but inter-nations and locally. As it
not only facilitates the movement of documents but of goods as well through the use of shipping
at sea, semitrailer trucks, dodge sprinter even airplanes which facilitates safe delivery of
international purchases and any cargo delivery to meet the needs of targeted stakeholders.Its
motto is ‘living responsibility’. They also help manage disaster around the world (GoHelp),
promoting education (GoTeach). These are social responsibilities that the company undertake to
help position itself in the market.

Brand Promise

The Brand Promise is the single most important thing that the organization promises to deliver to
its customers EVERY time. To come up with a brand promise, consider what customers,
employees, and partners should expect from every interaction with the organisation. Every
business decision should be weighed against this promise to be sure that a) it fully reflects the
promise, or b) at the very least it does not contradict the promise. The DHL Company promises
the safe delivery of goods to its customers. It also promises to deliver the goods on time. DHL
ensures that it keeps the promises to its customers thereby ensuring the brand promise. This has
helped the company over the years as it has aided the firm in retaining its customers and also
attracting new customers to its brand. In line with meeting its promise to the customers DHL
provided an online results tracking system providing a detailed progress of shipment which gives
customers real time when tracking.

Brand Personality

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Brand Traits illustrate what the organization wants its brand to be known for. Think about
specific personality traits you want prospects, clients, employees, and partners to use to describe
your organization.Dhl has highly trained employees in order to meet the company’s requirements
thereby in turn meeting customer needs. Dhl also provide online querry forms which are filled in
by the customers. This is done to know the problems faced by the customers when getting a
service from the customer. All this is done by the company to ensure that its brand is recognised
for time and efficiency by its customers. To aid efficiency the firm provides a tracking system
for its goods.

Brand Story

The Brand Story illustrates the organization's history, along with how the history adds value and
credibility to the brand. It also usually includes a summary of the organisations products or b

Brand Associations

Brand Associations are the specific physical art-facts that make up the brand. This is your name,
logo, colours, taglines, fonts, image. Your brand associations must reflect your brand promise,
ALL of your brand traits, and support your brand positioning statement. The firm uses Red and
Yellow as its colours. The brand name is distinct.

QUESTION: Midlands State University (MSU) has strong brand equity. What strategies
have they used to build and maintain it. Give example
Brand equity is defined as the tangible and intangible value that a brand provides positively or
negatively to an organization, its products, its services, and its bottom-line derived from
consumer knowledge, perceptions, and experiences with the brand. It is based on consumer
attitudes about positive brand attributes and favourable consequences of brand use (Yasin et al.,
2007). Positive brand equity can help a company in a variety of ways. Brand equity can include
the monetary value or the amount of additional income expected from a branded product over
and above what might be expected from an identical, but unbranded product the intangible value
associated with the product that can not be accounted for by price or features and the perceived

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quality attributed to the product independent of its physical features. A brand is nearly worthless
unless it enjoys some equity in the marketplace. Without brand equity, you simply have a
commodity product. The most common is the financial benefit which enables a company to
charge a price premium for that brand. Positive brand equity can also help to expand a company
through successful brand extensions and expansions. And not only can brand equity help
increase sales and revenues, but it can also help reduce costs. For example, there is little need for
awareness promotions for a brand that has deep, positive equity. Marketing budgets can be more
strategically invested in initiatives that will drive short-term results. A company with strong
brand equity is also positioned for long-term success because consumers are more likely to
forgive bumps in the road when they have deep emotional connections and loyalties to a brand.
Positive brand equity helps a company navigate through macro-environmental challenges far
more easily than brands with little or negative brand equity can.

One of the fastest growing sectors in Zimbabwe over the past one and a half decades has been
higher education. The country has managed to establish at least a state university, teacher
training college, a polytechnic and a vocational centre in each of its ten provinces. Although the
number of aspiring students is high each year, the competitive terrain appears to be getting
rougher and rougher as these institutions are now competing with other private and international
institutions for better students and staff. Institutions now need to differentiate themselves on a
number of attributes for them to be perceived as better brands Midlands State University is a
strong brand and has managed to build strong brand equity over the years. Brand equity is built
on that customer's direct experience with your product or service. This experience, repeated over
time, creates equity or value in your brand. And it serves as a shorthand in the buyer's mind that
separates you from everyone else. Brand equity is what creates loyalty that carries beyond price
or the occasional product or service bump in the road. It is the quality that motivates your
customers to recommend their friends or colleagues to you.

In today’s increasingly complex and rapidly changing environment, universities have to turn to
branding as a solution to the highly competitive marketplace. The universities need branding as a
tool for differentiation. The other reasons for branding of state universities are to improve image
and reputation in light of public funding, to attract high quality students and staff in the midst of
competition from well funded private universities and to instill sense of institutional pride. In
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trying to build strong brand equity Midlands State University has implemented and used a
number of strategies to build strong brand equity as an institution.

The first strategy they used is that of building a strong brand image and various brand
attributes, marketability or quality of the programme and ability to complete the programme
within the stipulated time are considered as the core brand attributes. On marketability of the
programme the university offers a programme that allows students to be absorbed by the job
market as soon as they complete that programme. It emerged clearly that in this highly
competitive environment, the relevance of the curriculum to the needs of the industry and the
country was key in positioning the programme of study and the university offering it. The ability
to complete the programme within a stipulated period of study was viewed to be comparably
critical with marketability of the programme.

The tangible brand attribute considered by the stakeholders was the learning environment and
consists of the quality of staff, physical structures (such as quality and availability of lecture
rooms, student accommodation and sporting facilities, IT, laboratory and library facilities), level
of tuition fees, location of the university and brand name of the university. Stakeholders
“psychological cues” because they portray a cosmetic make-up of the institution and can easily
attract potential students to the institution. Continuous programme reviews and relationship with
key stakeholders such as the industry and professional bodies were identified as brand attributes
that prolong the brand presence and dominance. A programme of study can only remain relevant
if it is still contributing to the meeting of needs of the society. For instance introduction of new
programmes by the institution like the change of our programme to Retail and Logistics
Management to suit the retail and logistics sector of the Economy in Zimbabwe

Corporate social responsibility, sometimes called corporate social investment, reflects

excellent public relations that is referred to by Grunig (2001). Corporate social responsibility has
got six salient aspects namely; community involvement, development and investment,
involvement and respect for diverse cultures and disadvantaged people, corporate philanthropy
and employee volunteering, customer satisfaction and adherence to principles of fair
competition, anti-bribery and anti-corruption measures, accountability, transparency and
performance reporting and supplier relations for both domestic and international institutions.

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MSU as an institution has managed to be so much involved in CSR (corporate social

responsibility).The institution takes part in a non-profit organisation, SIFE which operates in
Zimbabwe under the purview of a relatively new phenomenon called BOOST, which brings
together students from across the world with the aim of creating economic opportunities for
individuals in their home countries, to share learning experiences. In the year 2012, Midlands
State University represented Zimbabwe at this prestigious competition and came fourth. The
university has managed to also be involved in Trade fairs thus the representatives are Brand
ambassadors of the institution and thus a strong brand equity.
A staff retention strategy is the other strategy the institution has used to build a strong brand
equity. Midlands state university appreciates excellent work done by staff in terms or in the form
of an award. Through their mission statement as an institution they say, “Commitment to the
recruitment, motivation and retention of staff in an environment of a caring institution”. There
also is open communication about the institution’s goals and values that is why there are always
departmental meetings or staff meetings which constantly communicates the aims of the
institution. Midlands state university is known to be one of the organisations with good
remuneration schemes in the country and thus has attracted highly skilled staff. This helps retain
staff and thus makes the quality of education obtained from the institution competitive as
compared to other institutions. The benefits that are given to employees at MSU are segment
specific. These include cars, housing and cell phones for the top segments and transport
allowance, housing allowance, medical and funeral cover contribution from employer,
educational benefits, and car and housing schemes for all the segments. The university has
clearly defined development and career opportunity strategies. The acceptable minimum
teaching qualification is a relevant Masters degree. Departments which do not have a full
complement of staff may identify candidates with good passes at Bachelors level and recruit
them for staff development. Those with Masters Degrees are mandated to enrol for PhD
programmes which are fully sponsored by the university. There is a staff development committee
which reports to the Academic Board and coordinates the recruitment and supervision of the staff
development fellows. The institution offers competitive wages which renders it an organisation
of choice to its staff. Attraction of highly qualified staff transmits to high quality of education
obtained by students all things being equal.

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Building a successful brand requires using creative marketing and branding strategies to create
strong brand equity. In today’s competitive market, a brand can only achieve success if it can
connect with consumers and effectively communicate its unique qualities in a way in which they
create a positive impression in the minds of consumers. However a service cannot generate
brand equity on its own – this requires marketers to develop creative efforts that result in
consumers bestowing on the service and the desired brand image. Monitoring Trends of
Competitors – A strong brand has the ability to adapt to changes in the marketplace in order to
stay relevant. To achieve this, marketers must monitor industry trends and market conditions.
Midlands state university is constantly monitoring its competitors like Chinhoyi University of
Technology and they are always taking innovative measures in trying to remain with the
competitive advantage. MSU has established campuses in Harare and is also moving to
Zvishavane trying to cover a much greater radius in terms of location and thus enhancing the
brand image thus strong brand equity.

Conclusively MSU has gained a competitive advantage and built strong brand equity over the

QUESTION
Identify and discuss strategies to rejuvenate retail or logistic brands to maintain freshness. Use at
least 2 models.

Thompson. S. (2004)stated that rejuvenation of a retail or logistical brand is done when

consumer research signals the time is right, or sales have either come to a plateau, or begun to
slump, or it’s just an essential component of ongoing retail or logistical brand management.
Rejuvenating a retail or logistic brand contemporizes and gives new life to what could have been
perceived as a tired, and aging brand. Finally, rejuvenation strategies plays around brand
personality, brand extension, brand image, brand awareness and brand relationships and
supporting marketing programs which are effective brand strategies for rejuvenating ageing
brands (Aaker, D. 1996).
Noel. J. (1997) said the main objectives of rejuvenation are:
 Rejuvenation aims at revival of retail or logistic brand. The intention is to breathe some
new life into a brand that may be showing signs of decline.

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 Even healthy, successful retail or logistic brands may need occasional rejuvenation.
Because of competition, some re-formulation and refinement become necessary from
time to time. The brand has to be updated. It ensures the steady success of the going
brand.
 It helps keep the retail or logistic brand live and in focus.
Expanding Brand Awareness. With a fading brand, often it is not the depth of brand awareness
that is a problem- consumers can still recognize or recall the brand under certain circumstances.
Rather, the breadth of brand awareness is the stumbling block-consumers only tend to think of
the brand in very narrow ways. Therefore, one powerful means of rebuilding brand equity is to
increase the breadth of brand awareness, making sure that consumers do not overlook the brand
and that they will think of purchasing or consuming it in those situations in which the brand can
satisfy consumers' needs and wants (Thompson. S. 2004)
New Uses that Revitalize Old Brands. This is increasingly researching and developing ways to
market new uses for their Brand. In order to increase the frequency of usage, additional
applications of the services, either within the situational category or across category, provides an
ample opportunity for increased sales (Lederer. C. 2001). Econet has come up with Eco Cash,
Eco Sure etc. to implement new uses of their Brand.
Improving Brand Image. Although changes in brand awareness are probably the easiest means
of creating new sources of brand equity, more fundamental changes are often necessary. A new
marketing program may be necessary to improve the strength, favourability, and uniqueness
brand associations making up the image. As part of this repositioning to the existing positioning
any positive associations that have faded may need to be reinforced, any negative associations
that have been created may have I be neutralized, and additional positive associations may have
to be created(Young & Rubicam 1994),. Econet has marketed and proud itself with quality, fast
voice and internet connectivity in the world, that is neutralising the previous (2001-2008) bad
associations of network connectivity problems out of Harare and other big cities.
Repositioning the Brand. Repositioning the brand requires establishing more compelling points
of difference. This may simply require reminding consumers of the virtues of a brand that they
have begun to take for granted. Econet always reminds their customers of the superiority of their
brand, quality and reliable services and their inspiration to change the world.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Changing Brand Elements. Often one or more brand elements must be changed to either
convey new information or to signal that the brand had taken on new meanings because some
other aspect of the marketing program has changed. The brand name is the most difficult to
change. Designs, logo and other characters may be changed(Bucklin, R and Lattin. L. 1991).
Entering New Markets. Bucklin, R and Lattin. L. (1991) said, Positioning decisions require a
specification of the target market and the nature of competition to set the competitive frame of
reference. The target market or markets for a brand typically do not constitute all possible
segments that make up the entire market. In some cases, the firm may have other brands that
target these remaining market segments. In other cases, however, these market segments
represent potential growth targets for the brand. Effectively targeting these other segments,
however, typically requires some changes or variations in the marketing program, especially in
advertising and other communications, and the decision as to whether to target these segments
ultimately depends on a cost-benefit analysis. Econet has entered into mobile banking through
Eco Cash, Life Assurance and Medical Insurance through Eco Sure, Internet provision through
offering internet via dongles or modems and mobile network.
Keller's Brand Equity Model
Keller, K. L, (2005) said the four steps of the pyramid represent four fundamental questions that
your customers will ask – often subconsciously – about your brand. The four steps contain six
building blocks that must be in place for you to reach the top of the pyramid, and to develop a
successful brand.

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Applying the Model

Step 1: Brand Identity – Who Are You?
In this first step, the goal is to create "brand salience," or awareness – in other words, the brand
needs to stands out, and that customers recognize it and are aware of it. It’s not creating brand
identity and awareness only, it’s also trying to ensure that brand perceptions are "correct" at key
stages of the buying process.
Application
To begin, the company first needs to know who its customers are. Research of market to gain a
thorough understanding of how the customers see the organisation’s brand, and exploring
whether there are different market segments with different needs and different relationships
with the company’s brand.
Next, the retailer or logistic firm has to identify how customers narrow down their choices and
decide between its brand and the competitors' brands. What decision-making processes do
customers go through when they choose the company’s product or services? How are they
classifying the company’s brand? And, when following their decision making process, how well
does company’s brand stand out at key stages of this process?
Step 2: Brand Meaning – What Are You?
The goal in step two is to identify and communicate what the retailer’s or logistical firm’s brand
means, and what it stands for. The two building blocks in this step are: "performance" and

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"imagery." E.g. performance of Econet services, e.g. mobile network, internet speed,
convenience of Eco cash, Eco sure and other services.
"Performance" defines how well the product or services meets customers' needs. According to
the model, performance consists of five categories: primary characteristics and features; product
reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and
design; and price.
"Imagery" refers to how well the brand meets customers' needs on a social and psychological
level. The retail or logistics brand can meet these needs directly, from a customer's own
experiences with a product or service; or indirectly, with targeted marketing, or with word of
mouth.
Step 3: Brand Response – What Do I Think, or Feel, About You?
Customers' responses to brand fall into two categories: "judgments" and "feelings." These are the
two building blocks in this step. Customers constantly make judgments about retail or logistics
brand and these fall into four key categories:
Quality: Customers judge a brand based on its actual and perceived quality.
Credibility: Customers judge credibility using three dimensions – expertise (which includes
innovation), trustworthiness, and likability.
Consideration: Customers judge how relevant your products or services is to their unique needs.
E.g. Eco Sure, Eco Cash etc.
Superiority: Customers assess how superior the retailer’s or logistical brand is, compared with its
competitors' brands.
Customers also respond to retail brand according to how it makes them feel. The brand can
evoke feelings directly, but they also respond emotionally to how a brand makes them feel about
themselves. According to the model, there are six positive brand feelings: warmth, fun,
excitement, security, social approval, and self-respect.
Application
First, examining the four categories of judgments listed above. Consider the following questions
carefully in relation to these:
What can the retailer do to improve the actual and perceived quality of its brand? How can it
enhance the brand's credibility? How well does its marketing strategy communicate the brand's

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relevancy to people's needs? How does the retailer’s brand compare with those of its
competitors?
Step 4: Brand Resonance – How Much of a Connection Would I Like to Have With You?
Brand "resonance" sits at the top of the brand equity pyramid because it's the most difficult – and
the most desirable – level to reach. The retailer have achieved brand resonance when the
customers feel a deep, psychological bond with the brand. Keller breaks resonance down into
four categories:
Behavioural loyalty: This includes regular, repeat purchases.
Attitudinal attachment: the customers love retailer or logistical brand or products and services,
and they see it as a special purchase.
Sense of community: customers feel a sense of community with people associated with the retail
or logistic brand, including other consumers and company representatives.
Active engagement: This is the strongest example of brand loyalty. Customers are actively
engaged with retail or logistic brand, even when they are not purchasing it or consuming it. This
could include joining a club related to the brand; participating in online chats, marketing rallies,
or events; following your brand on social media; or taking part in other, outside activities. People
do follow Econet on social media.
Application
The goal in the last stage of the pyramid is to strengthen each resonance category. For example,
what can the retailer do to encourage behavioural loyalty? Consider gifts with purchase, or
customer loyalty programs. E.g. Econet data bundles, monthly messages for US$3 etc.
The Boston Matrix.

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Lederer. C. (2001), said, although there are a vast number of strategies on the table for the brand
managers. The Boston matrix tool used in marketing provide a framework of the stages of the
brand cycle in relation to market share and market growth which are the major determinants of
rejuvenating a brand in the short/long run. If correctly used the tool will help identify where best
to use marketing and branding strategies in order to leverage profit from a product/service
management as policy makers will know the stage and alternatives available.
The natural cycle of business brand started as a problem child and as it is accepted by the market
it achieves brand awareness and hence equity, star. Afterwards, as the competition mature from
global retailers offering the same merchandise and market growth slows they become a cash
cow. On this stage the brand will move to be a dog or it will be a star when it is
rejuvenated/revitalized. Boston matrix provide strategies to boost the retail brand of building a
market share (Noel. J. 1997).
 Making further investments in promotional activities like public relations of making brand
awareness and recall, slogans (problem child).
 Value addition services and divesting which usually involves removing dogs and other
hindering factors.
 Investing in Brand associations and associations which have a high equity such as problem
child/stars.

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QUESTION: ANALYSE RETAIL BRANDING STRATEGY IN SPECIFIC PRODUCT

CATEGORY IN A CONCEPT OF A RETAILER DEALING WITH
(a) EXCLUSIVE PRIVATE LABEL
(b) MULTIPLE BRANDS
(c) COMBINATION OF PRIVATE BRANDS AND MANUFACTURER BRANDS.

Branding strategy is about what makes a particular brand unique, inspiring, believable,
trustworthy and likeable or even admirable (Conn, 2005).

(a) Exclusive brands

These are brands developed by a national brand vendor, often in conjunction with a retailer and
sold exclusively by the retailer (Levy, Weitz and Beitelspacher).
Types of exclusive brands
a) The manufacturer may assign different model numbers and has different exterior features
for the same basic product sold by different retailers but manufactured under
manufacturer’s brand. Eg a Huawei cell phone from Econet welcomes you with the
message Econet inspired the world whilst the one from sunshine doesn’t have such
uniqueness, just a simple phone from the manufacturer with the similar features.
b) Alternatively the manufacturer develops exclusive product category for a retailer and it is
marketed under a brand name that is exclusive to the retailer.

Alliances
-for exclusive brands to be produced the vendor and the retailer must form an alliance.
-The product must be found in that retailer only or be differentiated from those of manufacturer
to create customer loyalty as it avoids comparison.

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-Also the supplier must consistently supply the product to build customer loyalty.
-The supplier can get more shelf space in the store in return and keeps out a competitor from
using this opportunity.
Creates uniqueness
Through differentiation of a firm’s products from those of competitors, a competitive edge is
created through more dependence on retailer by the customers as they cannot find the product
elsewhere.
Promote patronage-The customer who wants a boss ice tea will come every time thereby giving
opportunity to other product to be bought by the same customer as he or she wants to make one
stop shopping. This will increase sales in return.

Capitalisation of opportunities
Product provides a need based on a want, where products were missing within the category.
Eg ethnic foods, diet foods, sugar free foods and so on.
Disadvantages

-Brand association- it’s the retailer who will be blamed if any faults happened with the product
because is the one who is associated with the brand.

-Previous product failures could effect the whole private label range in a store e.g. if their cereals
aren’t good, then their jam will be the same.

-On price differentiation-if the product is cheaper than the competitors then customers perceived
it to be poor.

.
b)Multiple branding
The depth of a branding strategy concerns the number and nature of different brands marketed in
the product class sold by a firm. The primary reason relates to market coverage. The main reason
to adopt multiple brands is to pursue multiple market segments. These different market segments

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may be based on all types of considerations—different price segments, different channels of

distribution, different geographic boundaries, and so forth.

In many cases, multiple brands have to be introduced by a firm because any one brand is not
viewed equally favourably by all the different market segments that the firm would like to target.
Some other reasons for introducing multiple brands in a category-include the following
 To increase shelf presence and retailer dependence in the store
 To attract consumers seeking variety who may otherwise switch to another brand
 To increase internal competition within the firm
 To yield economies of scale in advertising, sales, merchandising, and physical
distribution

Advantages of a Multi-branding strategy

 The firm can distance products from other offerings it markets

 The image of one product is not associated with other products the company markets
 The products can be specifically targeted
 If the product fails, the effect on other products is minimized

Market segmentation
SPAR Private Label branded products offer good value for money, supported by a “Double Your
Money Back” guarantee. SPAR Deli range is a premium range offered to discerning customers
across the SPAR group. SPAR Snax brand is competitively priced and offers value for money.
SaveMor offers consumers a range of products that are competitively priced, but do not
necessarily compromise on quality. Since these brands are also family brands they may be found
at all Spar formats that cater for different market segments. Hence this dilutes the relevance of
market segmentation.

Corporate reputation
The consuming public checks labels and does research to identify the company behind the brand.
They want to know where their money is going and who they are supporting when they buy. If

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something that goes wrong with a brand that infects the rest of the company and results in
weaker brand diluting strong brand. In actual fact the weaker brands since it underperforms will
require more attention for improvement which may require support of outperforming brands and
thus how stronger brands become diluted by weaker ones. In contrary a successful brand
enhances good company image like in the case of Spar the above multiple brands are easily
associated with Spar stores since they all brands share the name of retailer.
Risk bearing
By having multiple brands, the company can offset the negative effects of its unprofitable brands
by identifying cash cow brands, star brand, dogs and wildcat brand ( Delta beverages). A “cash
cow” brand possesses a large market share, but its market growth potential is limited (Coca-
Cola), “star” brand possesses a large market share, and at the same time, its market growth
potential is promising, “dogs” are brands lacking both market share and growth potential
(Zambezi Larger) and a “wildcat” brand has a small market share but good growth potential
(CHIBUKU brand); it has the potential to become a “star” or a “dog”.

Ensure the brands don’t compete

Retailers don’t want to cause confusion by any chance, so they try to keep the multiple brands in
different categories (SPAR Private Label, SPAR Deli, SPAR Snax and SaveMor). However
multiple brands may compete against each other if they are found in similar categories like
brands that are found in the clothing industry. Jet’s Legit, Network, Niara, Revolution, Nxt
Generation can be seen venturing in menswear, ladies wear, boys wear and girls wear
concurrently. This result in brands of the same company yielding different revenues that is some
being low in one category but high in another making it difficult to associate performance of
single brand with its revenue.
(a) Combination of private and manufacturer brands.
This is a compromise between manufacturer and private branding, thus a unique relationship
between manufacturer brands and retailer brands, of being in a state of coexistence of the two
types of brands in the categories.

Battling competition

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The retailer may use combination of both brands to fight competition by becoming the one stop
shop since it offers broad assortment of manufacturer and private label brands.
Despite the level of manufacturer and retailer cooperation there may be intense competition
among participating brands, including competition between manufacturer brands and retailer
brands. Private brands were originally developed to compete with manufacturer brands in order
to give a retailer a competitive advantage. Coexistence of the two will make it difficult to stop
internal competition even when they are being sold, under one roof. In relation to the
manufacturer brand, the retailer brand is seen as benefiting from the special status of the retailer
being customer and competitor, as well as owner of point of sale.

Promotion
The retailer will always want to market their merchandise in order to generate high sales.
Marketing of private brands of manufacturer brands is usually supported by manufacturer
advertisements and thus require limited retailer investment in marketing. Private brands will
always have to be marketed by retailers and hence they bear all the costs of doing so. Retailers
may also take advantage of manufacturer brands by allocating shelf space of private brands
closer to manufacturer brands that motivate customer traffic. This will enable promote impulse
purchase for private brands as the customers want to try the unfamiliar brand.
Innovation
Relationships between brands owned by manufacturers (manufacturer brands) and those owned
by retailers (private brands) in the categories, and that product innovation is a key activity area
that has the potential to affect these relationships.

The inherent interdependence between manufacturer and retailer brands in the category
management set-up allows manufacturer brand innovation to act as an enhancer of retailer brands
in the categories. Retailers have largely been followers of manufacturer brands on innovation as
manufacturer brands are leading the way and setting the standard on innovation. Manufacturers
are generally considered to be more experienced than retailers in this regard.

Manufacturer brand innovation is perceived as posing a competitive threat to the retailer brand in
the categories either by way of bringing about products that are superior and more appealing to

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consumers or by way of staying ahead of the retailer brand on innovative activities, or through
intensifying innovative activities in order to reverse the gains of the retailer brand.

Seizing of opportunities
Private brands mainly capitalise on filling those market gaps which national brands are not
capturing or weak in. For example health issues like diabetic or diet foods. BEAUTY KISS
(body care products), Pascarel (basic textiles) or Pretty Baby (baby items).

Variety
-The combination of the two private brands and manufacturer brands provides a wider
assortment of products thereby giving customers a wider range of selecting. Through variety
customers will be attracted as they want to make comparison as well as one stop shopping. Also
if one brand fails customers can easily switch to the other

QUESTION: CARRYOUT A BRAND AUDIT OF A LOGISTICS ORGANISATION OF

YOUR CHOICE.
A Brand Audit describes and evaluates the current state of a brand and its effectiveness in
achieving a company’s business objectives. This assessment is the first step in brand strategy
development and is used as a diagnostic tool for determining where the brand strengths lie and
for identifying its potential vulnerabilities or shortcomings. It is the foundation on which the
other steps depend.

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Brand Audit Inputs

BRAND AUDIT OUTLINE FOR PIONEER CORPORATION AFRICA TOTAL

TRANSPORT AND LOGISTICS SOLUTIONS
Company or business unit’s strategic direction
Business unit’s strategic direction can be used for brand audit for instance the growth objectives
of Pioneer Ltd which reads “to become the most preferred one-stop shop and best known reliable
brand in the transport, consolidations and logistics market in Zimbabwe and the rest of Africa by
2015”. This implies that Pioneer Corporation Africa Ltd is strategically positioning its brand in a
competitive market as well as evaluating its benchmark performance.
Pioneer Ltd offer direct service to customers in Zimbabwe and other countries in Africa.

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Its Strategic initiatives and implications for brand can be supported from unmatched world class
efficient transport services to its selected valuable customers at all times and all countries of
operation.
Core competencies and personality. Pioneer Ltd has dedicated, motivated and professional
employees who provide quality services to their customers hence making the brand to be strong
and competitive in the market.
Consumer wants and needs
Another area of interest in contacting a brand audit include consumer needs and wants. Target
market for pioneer ltd is passengers who travel city to city in Zimbabwe and also regional cities.
Customers are satisfied by this logistics company because the brand is managed to withstand
itself in a competitive market which have other logistics brands like Bravo, City link. Of prime
importance the brand has managed to live to its promise in the mind of its customers.

Market definition and attractiveness

Pioneer ltd is into transport and logistics industry and this industry has proved to be attractive
even though the economy is not stable. According to the chairman of Pioneer Corporation Africa
ltd.’s statement the Group's operations have been significantly affected by the challenging
environment and limited liquidity which has prevailed in Zimbabwe for the past few years, with
the current year being no exception. The Group maintained the same revenue level of USD
26,686 million compared to USD 26,417 million last year. Operating profit of USD 37,000 was
recorded compared to USD 236,000 in 2011.
The brand audit also assessed industry/category competitiveness that is industry concentration,
number of competitors and the research proved that the industry is highly competitive, other
operators include Eagle Liner, Pathfinder, Pangolin and many others

Salient brand attributes or descriptors of Pioneer Corporation Africa Ltd include the fact that it is
well known brand in transport and logistics in Zimbabwe and the region. Its reliability is also one
of the key drivers of this brand to its customers. In addition to this the brand has managed to
maintain its promise in transportation and logistics as one of the most preferred and leading
brands.

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Pioneer Corporation Africa Ltd as a brand has its perceived strengths and weaknesses. The
strengths among others is that it is well known brand which is withstanding stiff competition
within the transport and logistics sector, also they have got dedicated employees with vast
knowledge in logistics. The major weakness is of liquidity crunch which have negatively
affected customers to access the services offered by Pioneer Corporation Africa Ltd.
Current brand image
The brand known for being reliable fast and efficient in logistics services and this shows that
Pioneer Corporation Africa Ltd has a strong brand image relative to its competitors like City
link.
Brand attributes / customer associations of Pioneer Corporation Africa Ltd shows that it is
associated with brand reliability, brand expectation as per customer’s perception. It is also a
promising and growing brand.

In terms of current positioning that is through taglines, brand visuals/symbols the brand audit
findings point out that the logo of the company is simple and can be easily memorized by the
customer, it is just bold printed words (Pioneer Corporation Africa Total transport and Logistics
Solutions.). The log also clearly entails the business which the company is undertaking.
QUESTION: Discuss the ten characteristics of a good brand and apply them to a logistics firm?
A good brand consists of a mixture of one to a multiple of characteristics and some of these
being the following: Awareness, Relevant, differentiated, Customer-centric, trustworthy,
Innovative, likeability, accessibility, popularity and valuable these will be discussed and their
applicability related to Dhl a logistic company started in Germany 1969 which has developed in
global markets in over 220 countries Zimbabwe included being managed by Mr. Jeff Phiri.

Well-known / Awareness
Without awareness nothing else counts, for a brand cannot be in people’s purchase consideration
unless they are aware of the brand.According to Keller (2009), brand awareness refers to the
customer’s ability to recognise and/or recall a brand under different conditions. The contribution
of brand awareness to brand equity lies in the strength of the brand’s presence in the customers
mind (Balaji 2011), as strong brand presence can positively influence customers future brand
decisions (Kim et al. 2008). In the highly competitive environment where new entrance dilute the

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awareness of brand, logistic firms increase information attribute and benefits of the brand known
by consumers. This is so consumers no longer just merely know or recognize the brand, but also
learn more and know much about the brand and product. Thereby maintaining and retaining the
mind share of customers to increase their focus on to none other than the firm’s brand which is
brand knowledge.

Furthermore the use of intensively communication agencies creates a certain perception or

something to associate to form a certain image about the brand in the consumers’ mind (that is
called brand image). This in the industry persuade consumers to have direct contact with the
brand, so that consumers have specific experience related to the brand which form new meanings
and feelings associated with the brand as well as strengthening the image of the brand. This stage
is called brand experience. Combination the two, a positive image and exciting experiences that
give good meaning and special feeling, ultimately strengthen the position of the brand in the
minds and hearts of consumers, which allows the logistic firm to gain market share as that the
brand has good equity and tend to be favoured by consumers. A brand that is favoured and has
good equity tends to bind the consumer's loyalty so that the consumer is not easy to switch to
another brand thereby wining the market’s heart. At the end, the consumers are not only loyal to
a brand, but also have a strong sense of belonging to the brand and them share and broadcast to
other consumers, so other consumers can also feel and experience as they did.

Most people have the knowledge of dhl through its persistent existence as it has thrive with in
Zimbabwe. The experience of the brand benefits and service exposure allowed customer to bear
witness and be ambassadors of the DHL brand. Dhl has gained a mind share of customers by the
use positioning statements such as ‘we move the world all the way’. This is shown by how they
can move goods and documents from point of origin to the point of destination for example a
movement of a purchased phone from china to Zimbabwe. This lead to its growth out leading
competitors as it gained loyalty by the use of its service internationally. Hence, when customers’
think of sending, receiving parcels of any kind from any location DHL comes to mind.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

Relevant
It’s indisputable that most successful brands are also often the most relevant. Relevant brands are
perceived positively by customers especially when compared to those that fail to coup with the
changing environment. However in the dynamic environment that’s ever subject to change,
industry of retail logistics brands staying relevant is something becoming difficult as this result
in changing consumer’s hopes, needs and desires. Furthermore the industry is subject to new
entrance and substitutes which provide the same function that make it hard for firms to achieve
staying relevant to customers. The firm achieves this by adapting to these trends within the
market which means an increased focus on consumers enhancing and delivering a constant
experience to stay relevant. However the brand must constantly search the unmet needs in the
market, the hearts and minds of both organization and consumer target audiences

Dhl does not only move the world around in continents but inter-nations and locally. As it not
only facilitates the movement of documents but of goods as well through the use of shipping at
sea, semitrailer trucks, dodge sprinter even airplanes which facilitates safe delivery of
international purchses and any cargo delivery to meet the needs of targeted stakeholders.

Differentiated
Brand differentiation entails the degree to which customers consider a brand as being different
from competing brands (Kimpakorn & Tocquer 2010: 379). However with the increased use of
media and technology customers are not only aware but to an extent lack the clarity to
differentiate the brand compared to competitors in terms of service and experience. With this
steep competition in brand position in the customers mind firm need not only to stand out among
competitive alternatives but also the brand must be unique in ways that matter to customers.

To attain brand differentiation, Dibb, Simkin, Pride and Ferrell (2012: 63) emphasise that the
brand should have a unique edge over competitors, which can be realised by highlighting aspects
such as the brand’s strengths, features and advantages. Brands with differential advantages tend
to benefit from customer preferences which helps building brand equity, (Lu, Kadane &
Boatwright 2008: 318).

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Firstly DHL has a distinguished brand name and brand color of red and yellow. In the market of
Zimbabwe it has Differentiated itself by increasing efficiency and reliable in 2013 as it increased
flights which carry big cargo and air routes to ZIMBABWE.

Customer-Centric
customer wants and needs change therefore the organization trading in the logistic industry
should not only find innovation that give organization solutions only but further keep customer at
heart. According to Kayaman (2007) that is when the brand knows its customers and their needs
well it enables to deliver an ordinary service extraordinarily well which increases loyalty through
exceptional purchase and usage experiences. To attain this firms invest time in research and
customer development activities that give insight on both collaborative activities that benefit
customers and meet the brand values and identity.
Dhl Zimbabwe provided an online results tracking system providing a detailed progress of
shipment which gives customers real time when tracking. Further it put customers first by
offering one stop shop solution to all customers’ needs by providing broader services global
scale local presence.

Popular –
Popularity is not associated with sales as a brand can low the cost so as to increase volume.
However a popular brand is the most enjoyed and supported brand by many people locally and
stretches out to other global international markets. These are ratings on the brand by groups or
individuals quantified what is best liked and not only search but further talk positive about the
brand. This is achieved by brands thriving in being consistent to outperform in the industry. Also
by the use of media to post articles on the internet and ratings platforms for audiences to rate the
services. This allows the brand to evaluate on its brand performance and adjust the fault
technicalities in the brand experience. The brand possessing this positive momentum is perceived
to be very popular which increase loyalty as customers instantly associate with it as they trust it
satisfies their needs.
DHL gained popularity by its ability to penetrate in new markets and being in existence for long
time. Further its publicity by sponsoring the Zimbabwe ruby union in 2014.

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Trustworthy
Delgado-Ballester and Munuera-Alemán (2005) fundamentally describe brand trust as the
customer’s belief that the brand has properties that convey consistency, competency, honesty and
reliability. This trustworthy brand encourages loyalty and repurchase intentions amongst
customers as the customer is confident that the specific brand favours his/her best interests
(Belaid & Behi 2011)

The brand must always deliver on its promises however this is impossible as there are other
inconveniences that are unavoidable that can mislead the trust of customers. This can include
theft and accidents which may cause a lot of disturbances in achieving time utility and position
utility. Firm find other ways to assure their customers by providing tracking systems which allow
customers to see and anticipate for the time of delivery and also insurance policies that give
customer’s assurance of recovering the product which all this enhances on the brand trust. Also
not only provide advice on theft but secure the purchase lines and security. Furthermore this
trustworthiness when developed customers tend to have positive behaviours such as brand
loyalty, brand trust, brand preference and brand choice towards strong brands with high equity
firms subsequently benefit from these positive behaviours in that they can charge price premium
according to the economic situation, maintain a competitive advantage, simplify brand
extensions and ultimately minimise brand management cost (Kuikka & Laukkanen 2012). Dhl
has built trust through communicating with its customers when goods have arrived that they are
ready for collection and also using thins like pass codes at collection

Innovative
A brand can succeed for a while without being innovative, but it being subject to competition
and new entrance this means new ideas, innovation in to the market. Given today’s hyper-
competitive environment in Zimbabwe and other global markets brands can lose their market
share without being innovative. Being innovative in the industry calls firms also to stay relevant
to anticipate customer needs, surprise and delight their customers with a constant stream of
relevant innovations. This innovation need a well established logistic company as it is expensive
to conduct.

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 RLM 401 ….BRAND MANAGEMENT IN RETAIL AND LOGISTICS

In terms of innovation the company not only delivers documents but goods as well and offers a
tracking service to the customer so as to keep instep of the were abouts of the documents and
goods whilst still in transit.

Likeable
As brands do create emotional connections with their customers they have to be admirable not
insight but further appealing in values. Hence these values mean nothing to the firm’s
stakeholders if they are not lived to be experienced (Bamert, 2005. Logistics firm train and
recruit employees that communicate and give consumers the values. These values can be shared
and communicated through employees dressing and behaviors towards delivering the brand
services. Possessing these admirable qualities make the brand likeable and easy to work with
targeted audiences. DHL has recruited and trained experienced employees that deliver good
customer service and for businesses it has an online submission form to attend to any query and
enquiry.

Accessible –
A brand in order to be consumed should simply be available were consumers have easy access.
This is to convert brand preference into brand purchase making brands easy to find and purchase
in terms of location and convenience. In today's highly technological advancement brands use
the internet and informing the brand location centre to achieve accessibility. This saves
customers transportation cost of acquiring the service and delivers convince in the comfort of
their homes as customers can acquire the brand services.
In relation to Dhl they have placed an office in most major cities and aim to extend to other small
cities as well.

Valuable
The growing brand has a perceived image and impression in the mind of its customers. However
with this turbulent economic environment a good brand must not only provide a brand’s
functional, emotional, experiential and self-expressive customer benefits but weigh these against
the cost which include money and time of customers acquiring and using the brand (Belaid &
Behi 2011). This is difficult as price and time are very sensitive to economic conditions and

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customs policies that delay procedures respectively. Logistic firms achieve this by forming
strategic alliance with the partners with in the supply chain and the country so as to adhere to the
country polices so as to deliver time utility and a good excellent perceived value to its customers.
Dhl leaves up to this by consistently valuing what its customers’ value an example is time and
efficiency i.e. it increased the number of planes and airlines they work with so as to make
delivery flexible around the clock in the entire globe.

QUESTION
a. Discuss issues that retailers consider when sourcing out private brands
b. Explain the factors that contribute to the success of private label brands
Own- brand performance
Own- brand performance refers to the financial benefits own- brands bring to retailers, such as
profitability and market share. A brand’s performance is positively associated with its product
quality (Aaker, 1991). Quality retail own- brands have achieved success in battles with national
brands. The gross margin of retail own- brands can be twenty to fifty percent higher than
national brands. Higher sales or higher gross margins increase the profits of the retailer.

Price

Price is another important component considered when sourcing own brand. The price must
compare favourably to competing name brands while also enabling both the manufacturer and
the retailer to maximise profit. In general, private label sales provide high volume but tight
margins, so price calculations are crucial. McCune claimed that private label goods are usually
priced 20 percent or more below the market leader. In addition, the retailer generally expects to
see a profit margin on private label goods that is 8 to 10 percent higher than it receives with
name brands. When calculating the final sales price for private label items, manufacturers must
be sure to consider any costs that are incurred especially for the private label line. These may
include tailoring the product to meet retailer specifications, or designing special packaging for
each retailer.
b. Brand positioning
Brand positioning is identifying and attempting to occupy a market niche for a brand, product or
service utilizing traditional marketing placement strategies. Brand positioning is how a product
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or service is perceived in the mind of the consumer in relation to competitors brand in the
consumers mind over and against competitors in terms of characteristics and benefits that the
brand does and does not offer. According to Keller (2003), positioning is the act of designing the
company’s offering and image to occupy a distinctive place in the target market’s mind.
Positioning starts with the product, but positioning is not what you do to the product. Positioning
is what you do to the mind of the prospect. Firms can position on the basis of attributes attached
with product or service, high tech image of the company, category of user using this product,
comparison with competitors and entire range of services.

Brand image
According to Keller (2003) the core purpose of any identity marketing program is creating a
strong image among existent and potential customers, image which is depicted through intensity,
clearness and durability. Brand image relates to the consumer’s perception of the brand being
define as a set of beliefs held about a particular brand or as a set of associations, usually
organized in some meaningful way. Implicit in all the above definitions is that brand image is a
consumer-constructed notion of the brand. Consumers form an image of the brand based on the
associations that they have remembered with respect to that brand. Brand image represents an
entrance barrier to any market, as in their buying decisions process consumers include mainly
brands with a strong image in their considered set. A strong image can convey several
advantages for any firm as follows facilitates personnel-customers interaction, minimizes
defames towards the corporate name, positively affects the internal climate of the firm, facilitates
hiring of valuable employees, attracts investors etc. Considering all the above, it is logical for
any firm to firstly establish and develop the main dimensions of brand identity and then
communicate it among consumers so as to eventually generate a favourable brand image.

MANUFACTURER AND RETAIL OWN BRANDS

1a) Brand as a sign of ownership

A Brand is consisted of labels, logos, signs and Packaging (Brand elements) that can signify who
owns a certain brand for example if you see a product with a red OK you will simply attribute
that product to OK .

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Brand ownership history emanates from the word burning whereby recalling the practice of
producers or manufacturers burning their mark onto the product hence this was done to signify
ownership. However, for example if a product labelled “Shoppers Choice” or Pot “O” Gold it
simply means it is owned by OK

9 SERVICE RETAIL BRANDS

According to Jones and Sasser, (1995).service brands are brands that are tied to the delivery of
some type of service – educational services, health care services, energy services, engineering
services, consulting services, etc.

CHALLENGES OF SERVICE BRANDS

Copycat Companies
When running a service-based business, the owner and employees are the business. In order to
protect against copycat companies coming along and stealing customers, the service provider has
to become the expert. Commoditization as a difficulty in establishing uniqueness due to the
availability of technology making it easier for competitors to copying other service providers’
successes ‘What does Barclays offer which is different from Commercial Bank of Zimbabwe?
The large majority of consumers cannot differentiate significantly between the brands of major
banks, building societies and insurance companies.

Demonstrating Authority

When dealing with people, they want to really connect with the service provider and the
provider’s ability to perform. There is a level of trust and personal connection. One way to close
the deal is to exemplify how the provider is the authority figure in the industry based on
accolades, experience, testimonials and anything else that will demonstrate that.

Inconsistency
A service brand is by definition an “experience-based” brand which illuminates what may be the
key challenge: there is almost no way to replicate the exact same experience each time for each

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customer. A detailed description of the desired brand experience at each touch point is a must,
but still it can’t eliminate human inconsistency.
Service brands are about people. People who represent the organization lose their tempers, get
tired and anxious, and sometimes have just had enough that day. If the person representing the
brand doesn’t perform properly, the relationship between the brand and the customer may
collapse. The implication of this is that service-based organizations have to focus on their
internal employees to a far greater extent
Therefore time must be invested in educating them on what their brand stands for, employees
will realize that everything they do reflects on the brand. They will begin to feel brand ownership
and do their best to contribute to its success – each in their own capacity.

Real-Time

Thousands of times a day service brands face moments of truth – real time consumer
interactions that are opportunities to strengthen the brand by exceeding expectations or weaken it
by under-delivering. Which is why service brands must look at their brand-building resources
and efforts through the lens of “real-time brand-building” moments. To be true brand
ambassadors, front line employees must be able to not only articulate the brand promise, but be
able to translate it to the “brand-right behaviour” in their day-to-day, moment-to-moment
customer interactions.

Recognisability

Recognisability is impacted by logos and design elements; there are other factors to consider.
The physical location and how it looks, how it’s furnished, will impact on recognisability of the
service brand. Consultants who travel to client locations, for example, are themselves a key
component of the brand – including how they dress and the type of vehicle they drive and how
well maintained it is.

(b)DISTINCTIVE NATURE OF SERVICES

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Service is an act of performance that one can offer to another that is essentially intangible and
does not result in the ownership (Kotler et al.). Its production may or may not be tied to a
physical product''.

Intangibility
We cannot touch them as they are not physical objects. Hence there is no opportunity to see,
touch, hear, smell or taste a service. Mobile network providers like Econet, Telecel and Netone.
Services are hard to explain and display. They can only be experienced until they are purchased.
Therefore the provider has to concentrate on satisfaction and benefits derived from using the
service. The goal for most service marketers: make sure the brand promise can be expressed in
terms – verbally and visually – that make the service feel real – if not tangible.
Perishability and irreversibility
Value of a service exists at the point when it is required. Service last for a specific time and
vanish as soon as they are used. Hence unused capacity cannot be stored for later use or sale.
During the peak there is an abnormal increase in demand of services. In addition when service
has been rendered to the user irreversibility vanishes as it has been consumed.
Inseparability
Services cannot be separated from service provider thus the service provider becomes part of
service. Taxi operator drives taxi, and the passenger uses it and hence production and
consumption goes hand in hand. Users end up having higher expectations which may result in
disappointment. The service provider; must preparatory assign resources and systems and
actively keep up appropriate service delivery readiness and capabilities.
Heterogeneity/ Variability
The quality of a service cannot be standardised since it varies depending on who provides it,
where it is provided, when it is provided and how it is provided.

Absence of transfereability of ownership

Users only have access while ownership remains with providers. (Membership of a gym) The
service cannot be resold or owned by somebody, neither can it be returned from user to provider.
Simultaneity

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Services cannot move through channels of distribution and cannot be delivered to the potential
customers and user since production, distribution and consumption are concurrent. Either users
are brought to the services or providers go to the user. (Electronic service repair and
maintenance, by Zimbabwe Electricity Distribution Company.)
Qualitative measurement
Service providers cannot quantify what they offer therefore they serve behaviour of stuff,
hygiene, good atmosphere and convenience. Services are measured in terms of service level.

REFERENCE
Jones, T.O., Sasser, W.E., 1995. Why Satisfied Customer Defect?. Harvard Business Review, 73
(6), 88-100.
Kolter P,Keller L(2012),Marketing Management,Englewood Cliffs NU,Prentice Hall.

PRESENTATION
SERVICE RETAIL BRANDS
A) CHALLENGES OF SERVICE BRANDING
B) DISTINCTIVE NATURE OF SERVICES
Brands represent a sign of ownership and that’s the main reason why they are protected by the
patent and copyright law .For example TM as a brand is particularly owned by Tomas Meikles
and it is heavily protected by the patent and copyright laws.
However a paradigm shift in brand ownership supports the idea that brand ownership have
shifted from single owned to multiple ownership Keller (2003)

Definition for retail own brand

Retail own brand or label refers to a line of strategically branded products by a retailer within a
single brand identity for example Shoppers Choice for OK and Super Saver for TM PICK ‘N’
PAY .It can be also defined as the product manufactured by one company and sold by another
company’s name for example KDV bedding manufactures beds which are specifically for
Teecherz Furnishers.
b) Reasons for retail own brand or label

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 More freedom and flexibility in Pricing – Since the products are owned by the retailer
there is much more flexibity on pricing without the interference of the manufactures.
Retailers may just feel independent to make price decisions basing on the demands of the
customers at the expense of manufactures.
 More Control over product attributes, quantity and quality– By having their own brand
retailers may have unquestionable authority over how much to produce in relation to
customer demands as well as controlling quality and assume responsibility on the
physical attributes of the product.
 Means of competitive advantage - A brand helps the firms to provide consistently a
unique set of characteristics, advantages, and services to the buyers/consumers that gives
competitive advantage to the retailer.
 Differentiation – retailers have their own brand because they want to create a
demarcation or diffentiate a certain product from other similar products for example the
candles that are labelled Shoppers Choice are similar to those branded Probrands but its
branding that is making to look as if they are different.
 Legal protection of product features – by establishing an own brand retailers may protect
the product features for example coke as a brand was established in a bid to protects its
product features.
 Satisfy customers.
 Eliminates much of manufacturer’s promotional costs.
 Means of making profits – since customer’s buying or purchase behavior is heavily
influenced by branding retailers established their own brand or labels inorder to
maximize the sales and profits (Brand Equity)

c) Strategic significance of retailer own brands

 Innovation- Own brand products today are well-respected and trusted, respond quickly to
new trends and changing consumer demands. As the closest link to consumers, retailers
might therefore be quicker to introduce new products to the market than brand
manufacturers.

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 Increased competition- Own brands are an essential part of retailers’ strategy in creating
more choice and better value for their customers. They are also a way for retailers to
maximise their own brand equity and to increase their price competitive offer in relation to
branded products.
 Help towards the formation of differential advantage in the retail market- In order to
implement the own brand strategy, firms should base on external market conditions, the
strength of internal conditions, competitor market position and characteristics of target
market needs, organize production timely and supply some of its own brand. So products
feature will be rich, while enterprises are with more comprehensive services.
 Conducive to the formation of price advantage- As own brand by the retailers themselves
are generally organize production or direct orders from the factory, so it can save a lot of
purchase links, saving transaction costs and distribution cost.
 Contribute to the formation of information superiority- Retailers deal directly with
consumers, so they are better than the manufacturer in both time access to information and
abreast of changing trends in consumer demand and first-hand information of consumer
demand to make rapid changes in the dynamic response.
 Retailers can take full advantage of the product advantages of intangible assets –Large
scale retail enterprises have developed a unique business model in the operations
management for a long run, and product name are often deeply rooted in the minds of
consumers. Good reputation and best-known enterprises name own brand products with
corporate name and sale within the enterprise, which can set a good image into the goods.
People can easily link the quality service and rigorous management of enterprises with own
brand products, and then that can transform into commodity dependence and acceptance,
which in turn further enhanced customer satisfaction.

d) Challenges of retail own brands

 The lack of ability in development and design products -Relative to the manufacturer,
the retailer's expertise is timely to put forward, but limited by production capacity and
production technology, they often cannot find a suitable manufacturer, together with the
monitor production or control system is incomplete, the quality of the products may not
meet their targeting criteria, and thus undermine its own brand's reputation.

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 Lack of quality control ability.

 Retailer brand product quality control in the early general lack of support of science and
technology, OEM products quality control and brand management has a gap.

REFERENCE LIST
1) Aaker,D. (1991), Managing Brand Equity. The Free Press, New York.
2) Keller, K. L. (2003). Strategic Brand Management, 2nd ed., Prentice Hall, Upper
Saddle River, New Jersey.
3) www.marketingresearch.org, (accessed on 09/09/15 @ 1320 hours)
4) www.aytm.com, (accessed on 10/09/15 @1305 hours)
5) www.okzimbabwe/brands..., (accessed on 05/09/15 @ 0917 hours)
6) Davis, S. M. (2000). Brand Asset Management: Driving Profitable Growth through
Your Brand. California: Jossey-Bass, Inc., Publishers
7) Doyle, P. (2008). Value-Based Marketing: Marketing Strategies for Corporate
Growth and Shareholder Value. West Sussex, England:
8) Wiley Drezner, W. (2002). A Balanced Perspective on Brands.

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