The real brand issue for distributors

As has been shown above, the distributor’brand is not a brand like the others. It is subject to three conditions: it must express the values of the store, position itself in relation to the big brands, and finally deliver a‘plu’s compared with low-cost products.

It is therefore more like a quality label attached toga price. To increase its financial results, it is certainly possible to increase its share of the shelf and have the goods appear in great numbers, which can give the impression of Soviet store. It is better, however, to increase the client’s preference for it. How?

Percentage of consumers who intend to buy the distributor’s product

Table below indicates how a better purchasing and promotion policy can contribute to this. bove all, however, it is necessary to sell it through greater brand strength. Since the distributor’s brand carries the store name, value must therefore be created through the store itself, its positioning and its identity.

Too many stores are devoid of meaning: they are businesses and nothing more. The hypermarket, like a cathedral, must decide which god it serves: the generic god of the consumer society, or an intimate desire on the part of the distributor to modify its relationship wit hits clients? For example, Careful venerates rationalism: its entire crusade is aimed at the enlightenment of the audience.

Remember that a big brand is built through the intangible: it is embodied in the tangible, and forms the basis of a durable relationship, a community of values among its clients. The first task that the store should set itself during this work is to identify its project, its vision:

what in its customer’s lives does it want to change? Although it will be necessary to compete on price, on choice and on service, it will also require an internal energy: this is found through the vision and the battle that the store takes as its own. What is the battle for most stores? When an organization doe snot have critical mass, it is necessary to compensate through goodwill, and therefore through the power of the brand.

Once this has been defined, it must be implemented through 360 degrees, and not only through the distributor’s brand products. For example, what service innovations will embody it in stores, and also beyond? It is these that will spark off word of mouth, turn customers into ambassadors and carry the brand’s point of view.

In comparison to the weight and inertia of the multinationals, which can only innovate once they have confirmed that the innovation will be profitable because it can be implemented worldwide, distributors must innovate more reactively. Of course technological innovation is beyond them. But customers do not expect it of them: on the contrary, it is their job to render customer’s lives more pleasant, even more live able.

This is achieved through recognizing that the customer segments are fragmented and that it is therefore necessary to adapt the distribution brand to this variety. Second, the distributors must be ahead of the curve on trends: it is up to them to lead in terms of ecology, organic produce, fair trade and so on. These are all profound movements that destabilize the status quo. The risk is much less for distributors:the distributor’s brand should be segmented to fill these niches. This is how ac lose affective relationship is forged: client by client.

The brand-store must go further, into personal service. Remember the remarkable phrase of Howard Schultz, the founder obstructs. Asked about the success obstructs, which will soon have more outlets worldwide than McDonald’s, he replied: ‘We are not in the business of coffee serving people, but of people serving coffee. ’Star bucks does not sell coffee to people – it is at their service, and serves them coffee, of good quality, in recyclable cups, using fair-trade coffee beans, in a peaceful, calm environment and with genuinely happy staff.

It is easy to understand why Star bucks had no need to advertise: its customers took care of that. It is time to stop talking about ‘distributor’s ;the ambition now should be to place‘life center’s at the customer’s disposal, facilitating and stimulating places where they can also do their shopping.

‘The tail does not wag the dog’, as the proverb goes (it is the other way around). Ethereal issue is to turn the store itself into ab rand. Among distributors, the brand manager is no longer there to manage DOB's, but to ensure the coherence of all the brand project’s activities. This presupposes that there is a brand project, with a vision, admission, strong values that are felt internally, and implementation well beyond the store itself and the private label products.

Strategic Brand Management Related Practice Tests

Strategic Management Practice Tests
Brand Equity In Question What Is A Brand? Differentiating Between Brandassets, Strength And Value Tracking Brand Equity Goodwill: The Convergence Of Finance And Marketing How Brands Create Value For The Customer How Brands Create Value For The Company Corporate Reputation And The Corporate Brand Strategic Implications Of Branding What Does Branding Really Mean? Permanently Nurturing The Difference Brands Act As A Genetic Programme Respect The Brand ‘contract’ The Product And The Brand Each Brand Needs A Flagship Product Advertising Products Through The Brand Prism Brands And Other Signs Of Quality Obstacles To The Implications Of Branding Brand And Business Building Are Brands For All Companies? Building A Market Leader Without Advertising Brand Building: From Product To Values, And Vice Versa Are Leading Brands The Best Products Or The Best Value? Understanding The Value Curve Of The Target Breaking The Rule And Acting Fast Comparing Brand And Business Models: Cola Drinks From Private Labels To Store Brands Evolution Of The Distributor’s Brand Are They Brands Like The Others? Why Have Distributor's Brands? The Financial Equation Of The Distributor’s Brand The Three Stages Of The Distributor’s Brand The Case Of Decathlon Factors In The Success Of Distributor's Brands Optimising The Dob Marketing Mix The real brand issue for distributors Competing Against Distributor's Brands Facing The Low-cost Revolution Should Manufacturers Produce Goods For Dob's? Brand Diversity: The Types Of Brands Luxury, Brand And Griffe Service Brands Brand And Nature: Fresh Produce Pharmaceutical Brands The Business-to-business Brand The Internet Brand Country Brands Thinking Of Towns As Brands Universities And Business Schools Are Brands Thinking Of Celebrities As Brands The New Rules Of Brand Management The Limits Of A Certain Type Of Marketing About Brand Equity The New Brand Realities We Have Entered The B To B To C Phase Brand Or Business Model Power? Building The Brand In Reverse? The Power Of Passions Beginning With The Strong 360° Experience Beginning With The Shop The Company Must Be More Human, More Open Experimenting For More Efficiency The Enlarged Scope Of Brand Management Licensing: A Strategic Lever How Co-branding Grows The Business Brand Identity And Positioning Brand Identity: A Necessary Concept Identity And Positioning Why Brands Need Identity And Positioning The Six Facets Of Brand Identity Sources Of Identity: Brand Dna Brand Essence Launching The Brand Launching A Brand And Launching A Product Are Not The Same Defining The Brand’s Platform The Process Of Brand Positioning Determining The Flagship Product Brand Campaign Or Product Campaign? Brand Language And Territory Of Communication Choosing A Name For A Strong Brand Making Creative 360° Communications Work For The Brand Building Brand Foundations Through Opinion Leaders And Communities The Challenge Of Growth In Mature Markets Growth Through Existing Customers Line Extensions: Necessity And Limits Growth Through Innovation Disrupting Markets Through Value Innovation Managing Fragmented Markets Growth Through Cross-selling Between Brands Growth Through Internationalisation Sustaining A Brand Long Term Is There A Brand Life Cycle? Nurturing A Perceived Difference Investing In Communication No One Is Free From Price Comparisons Branding Is An Art At Retail Creating Entry Barriers Defending Against Brand Counterfeiting Brand Equity Versus Customer Equity: One Needs The Other Sustaining Proximity With Influencers Should All Brands Follow Their Customers? Reinventing The Brand: Salomon Adapting To The Market: Identity And Change Bigger Or Better Brands? From Reassurance To Stimulation Consistency Is Not Mere Repetition Brand And Products: Integration And Differentiation Specialist Brands And Generalist Brands Building The Brand Through Coherence Defining The Core Identity Of The Brand Confirming The Presence Of Brand Core Facets In Each Product Identifying The Role Of Each Product Line In The Construction Of The Brand Graphically Representing The Overall System Of The Brand Checking The Coherence Worldwide The Three Layers Of A Brand: Kernel, Codes And Promises Respecting The Brand Dna Managing Two Levels Of Branding Growth Through Brand Extensions What Is New About Brand Extensions? Brand Or Line Extensions? The Limits Of The Classical Conception Of A Brand Why Are Brand Extensions Necessary? Building The Brand Through Systematic Extensions: Nivea Extending The Brand To Internationalize It Identifying Potential Extensions The Economics Of Brand Extension What Research Tells Us About Brand Extensions Avoiding The Risk Of Dilution Balancing Identity And Adaptation To The Extension Market Segments Assessing What Should Not Change: The Brand Kernel Preparing The Brand For Remote Extensions Keys To Successful Brand Extensions Is The Market Really Attractive? An Extension-based Business Model: Virgin How Execution Kills A Good Idea: Easycar Brand Architecture The Key Questions Of Brand Architecture Type And Role Of Brands The Main Types Of Brand Architecture The Flexible Umbrella Brand The Aligning Umbrella Brand (masterbrand) Choosing The Appropriate Branding Strategy New Trends In Branding Strategies Internationalising The Architecture Of The Brand Some Classic Dysfunctions What Name For New Products? Group And Corporate Brands Corporate Brands And Product Brands Multi-brand Portfolios Inherited Complex Portfolios From Single To Multiple Brands: Michelin The Benefits Of Multiple Entries Linking The Portfolio To Segmentation Global Portfolio Strategy The Case Of Industrial Brand Portfolios Linking The Brand Portfolio To The Corporate Strategy Key Rules To Manage A Multibrand Portfolio The Growing Role Of Design In Portfolio Management Does The Corporate Organization Match The Brand Portfolio? Auditing The Portfolio Strategically A Local And Global Portfolio – Nestlé Handling Name Changes And Brand Transfers Brand Transfers Are More Than A Name Change Reasons For Brand Transfers The Challenge Of Brand Transfers When One Should Not Switch Analysing Best Practices Transferring A Service Brand How Soon After An Acquisition Should Transfer Take Place? Managing Resistance To Change Factors Of Successful Brand Transfers Brand Turnaround And Rejuvenation The Decay Of Brand Equity The Factors Of Decline Distribution Factors When The Brand Becomes Generic Preventing The Brand From Ageing Rejuvenating A Brand Growing Older But Not Ageing Managing Global Brands The Latest On Globalisation Patterns Of Brand Globalisation Why Globalise? The Benefits Of A Global Image Conditions Favouring Global Brands The Excess Of Globalisation Barriers To Globalisation Coping With Local Diversity Building The Brand In Emerging Countries Naming Problems Achieving The Delicate Local–global Balance Being Perceived As Local: The New Ideal Of Global Brands? Local Brands Can Strike Back The Process Of Brand Globalisation Globalising Communications: Processes And Problems Making Local Brands Converge Financial Valuation And Accounting For Brands Accounting For Brands: The Debate What Is Financial Brand Equity? Evaluating Brand Valuation Methods Brand Valuation In Practice The Evaluation Of Complex Cases What About The Brand Values Published Annually In The Press? Strategic Brand Management Interview Questions