Retail brands Essay Example | Topics and Well Written Essays - 1750 words

Retail brands - Essay Example Consumer retailing is one of the major aspects of marketing prevalent in the present age of growing competition. Modern day retailing has evolved from family run businesses to multinational organizations like Wal-Mart and TESCO which run operations across numerous regions of the globe. The statement â€Å"Retail brands are about more than just putting your name on products† has far reaching influence on the business prospects and strategies of retail organizations. The statement assumes greater importance in the wake of growing competition which has been characterised by the advent of globalisation where corporate organizations are trying to reach out to consumer breaching geographical boundaries. This has enhanced the nature of competition among the existing firms with regards to acquiring customers. Branding is one of the most important aspects that are considered by consumers while evaluating the stores with regards to the purchase of goods and services. Retailers are there fore making considerable efforts in building up a brand image of their products in the market. Branding has a large implication of the purchase decision of the consumers which has prompted corporate organizations to formulate policies so as to have a strong brand image to position their brands in the minds of the customers.A research report states that the brand value of a retail store is determined to a large extent by the brand image of the products available in the retail store. Private labels have also begun to play an important role in the brand image of the retail store (Cullen & Whelan, 1997, p.906-907). A report published in the International Journal of Retail & Distribution Management states the example of fashion retailers in UK where the market players have effectively used branding strategies to segregate themselves in the tough and competitive UK market. The report also states the role of private labels apart from the national brands as means to enhance the brand image of their stores in the minds of the consumers. Private labels have a greater impact on the brand image of the retail store as they bear the name of the retail store. This generates greater importance for these products with regards to branding. It is important for the retailers to ensure that the product mix of the private labels or the products bearing the brand name of the retail store matches with the branding strategies of the retail outlet. The report also lays down a set of criterions that must be taken into consideration by the retail outlets with regards to branding strategies. Firstly, the retailer should analyse whether the customer is able to dissociate the private label brand with the main competitors of the product. Secondly, the firm also has to analyse whether the brand has an image that can help it to command a premium market share or the value for money segment. Thirdly, marketers have to analyse whether the private label brand can be sold as a distinct product from the shelves of other retailers as well. Finally the firm must also be able to analyse whether the private label brand offers considerable brand value to the consumers. The report states that it is essential for organizations to effectively analyse the above stated sets of criterions before launching a private label brand (Birtwistle & Freathy, 1998, p.318, 319). According to a study conducted by Burt and Encinas (2000), the aspect of branding of individual products by the retailers also assumes considerable significance with regards to international expansion. The advent of globalisation and emergence of developing markets like India and China have made it highly profitable for retailers to set up shops in these nations. The authors point out that brand image of a retailer