Chapter 13: Branding and positioning

Question 1

what is a brand?

Answer 1

‘A brand is a name, term, sign, symbol or combination of them, intended to define the goods or services of one seller or a group of sellers to differentiate them from those of competitors.’

Question 2

Brands represent value because consumers drive certain meanings
from them, the functions are:

Answer 2

1. Recognition: a brand can make it easy for consumers to identify the supplier.
2. Certainty: offers a certain degree of certainty about what they can expect.
3. Emotional value: brands have impressive and expressive values. Impressive value refer to the feeling that a brand can evoke in the user’s mind. Expressive value refers to the meaning that it can evoke in others about the user.

Question 3

what is positioning?

Answer 3

Positioning is part of the retailer’s strategic marketing policy. It vies the internal organization direction when it comes to the operational marketing policy. Moreover, a retailer’s positioning has a strong influence on consumers’ expectations.

Positioning is a systematic process:
To make a brand occupy a distinct position …relative to competing brands …in the mind of the consumer

Question 4

A well-written positioning includes…

Answer 4

▪ The formulation of a mission statement
* Identity & values

▪ The definition of the core proposition
* Central distinctive promise to the consumer

▪ The establishment of the desired brand associations
* Unique selling point (USP)

Question 5

mission statement

IKEA

Answer 5

company’s mission indicates what the company stands for, what its identity is and which values are the basis of its operation. It provides direction for both the employees and other stakeholders, such as suppliers and customers.

“to create a better everyday life for the many people”

Question 6

core proposition

IKEA

Answer 6

The core proposition reflects the central promise of the retailer to the consumer. The core proposition is often represented by a slogan or short sentence and is based on the mission statement.

“We bring the IKEA Brand to millions of homes, offering well-designed,
functional, durable, affordable and sustainable home furnishing solutions to people with big dreams and thin wallets. We’re curious about the world around us, and want to make a positive difference in people’s lives.”

Question 7

desired brand associations

IKEA

Answer 7

To elaborate on the core proposition even more, the retailer can describe the areas in which it would like to excel: brand associations.

togetherness, caring for people and planet, cost-consciousness, simplicity, renew and improve, different with a meaning, give and take responsibility, lead by example

Question 8

Trend analysis

Answer 8

This looks at the most important changes in the external environment that are likely to have an impact on consumer needs in the coming years. There are two models: the DESTEP analysis and the trend-bundling method.

Question 9

DESTEP analysis

Answer 9

• Demographic developments
• Economic developments
• Socio-cultural developments
• Technological developments
• Ecological developments
• Political and legal developments

Question 10

Trend-bundling method

Answer 10

Three forces model that looks at macro-trends, consumers needs and competencies.

It can be used to realize a vision or a strategy for a retail company. Each bundle of trends consists of three forces, and the cutting edge of each shows the growth opportunities. The larger the cutting edge, the greater the growth opportunities.

Question 11

Customer Relevancy Model

Answer 11

pentagon and triangle model

Question 12

Customer Relevancy Model
pentagon

Answer 12

(met klok mee)
place
product
value
people
communication

Question 13

Customer Relevancy Model
triangle

Answer 13

systems
suppliers
logistics

Question 14

Customer Relevancy Model
The idea behind this model is that there are actually three strategies that retailers can follow:

Answer 14

1. Choice of cost leadership (based on operating according to the triangle)
2. Choice of differentiation (based on operating according to the pentagon)
3. Choice of niche player

Question 15

Hemmer and Quix made an adaptation of the pentagon: the

Answer 15

store compass

Question 16

The Store compass is built on 5 crucial points.

As in the marketing mix we talk about the 5Ps, this model talks about the retail 5W’s, factors that are clearly perceptible to the consumer and that the consumer can easily assess with grades or scores on a point scale.
The store compass shows that a retail formula can distinguish itself from its competitors in five areas:

Answer 16

where, what, worth, who, why.

It is like a mirror in which a retailer compares its own performance with that of its competitors.

Question 17

the store compass
where

Answer 17

location, layout, size

Question 18

the store compass
what

Answer 18

assortment, style, innovation, intensity

Question 19

the store compass
who

Answer 19

service, skilled staff, atmosphere

Question 20

the store compass
why

Answer 20

reasons for buying

promotion & communication

Question 21

the store compass
worth

Answer 21

value for money

Question 22

Sloot’s positioning model can be helpful in systematically developing or revising a (new) positioning. The four phases are:

Answer 22

1. Analysis (identity)
2. Choice (compare various alternatives)
3. Implementation (location, communication etc)
4. Evaluation: important talking about perceived positioning in the market; if your trends are aligned with the market and position of competitors)

Question 23

Analysis

Choice

Implementation

Evaluation

Answer 23

identity, trend & competitor analysis

desired positioning

retail marketing policy

perceived positioning