Premium Essay

Value, Brand, Quality Strategy

In:

Submitted By aoife1618
Words 589
Pages 3
1. Value Strategy
Definition:
In defining Value, we begin by following Porters (1980) in considering a vertical chain extending from supplier of resources to firms, through firms, to buyers of products and services from firms. Value is created by such a vertical chain of players as a whole. In particular, vale creation depends on the characterises of all three categories of player in the chain- suppliers, firms, and buyers.
Why choose this strategy:
- Used by management of a firm focused on developing and executing strategies that helps increase revenue, improve marketing return on investment and maximize business operation efficiencies.
- The value strategy helps product and professional service firms build a scalable, competitive advantage by integrating their sales, marketing strategy, operations and financial management into one revenue capture process.
Example:
One of the most obvious examples of strategic value is reducing competition. More recently, many of Microsoft’s company acquisitions have been viewed as Bill Gates reducing competition. The American government, and some in Europe, dragged Bill Gates into court in an attempt to reduce his monopolistic influence in the global economy.

2. Brand equity strategy
Definition:
Brand equity is the result of a process which leads to a creation of a unique and distinct brand identity. A brand strategy can be thought of as the translation of the business strategy for the marketplace. It defines the manner in which the offering will present itself to the marketplace, which will, in turn, influence the way in which targeted customers think of offering – creating the brand’s image.
Aaker (1991) suggests that brand equity consists of brand associations (brand image), brand loyalty, brand awareness, perceived quality, and other brand assets.
Successful branding also creates “brand equity” – the

Similar Documents

Premium Essay

Ingredient Branding

...ABSTRACT Ingredient Branding, a subset of Co-Branding, wherein two or more brand names are used on a single product to increase product differentiation and further market share is becoming increasingly visible in the marketplace today. This strategy is generally used to enhance Brand Potential and works on the rationale that, “If a consumer understands the functions, attributes and benefits of the ingredient, he or she will pay more attention to this offering and if it is unique compared to others, it can lead to loyal and profitable customer relationships”. The goal of this Dissertation is to conceptualize Ingredient Branding Strategy and measure its effect on Brand Choice. It seeks to examine the impact of an Ingredient Branding Strategy on consumer’s attitude toward the Host Brand depending on the Partner Brand. To better understand this impact, a review of the most relevant theories on Co-Branding, perceived quality and attitude towards the brand is first presented. On the basis of this literature review, a conceptual framework is proposed concerning the overall transformation of the associations tied to the host brand, the perceived quality and the consumer attitude towards the brand. The overall evaluation of the brand is based on three parameters viz. Perceived Quality, Brand Image & Brand Attitude. INTRODUCTION INTRODUCTION In today’s dynamic economy, companies try to find new ways to maintain their competitive advantage, which helps them to better manage...

Words: 7542 - Pages: 31

Premium Essay

Uniqlo Assignment

...Cover Sheet UNIQLO, one of the oldest clothing brands in Japan, is a Japanese causal wear designer, manufacturer and retailer. It was founded in 1984 and has over 100 stores operating throughout Japan by April 1994. Moreover, there are 750 stores in Japan and other place in the world currently, such as Australia, China and the United States etc (Uniqlo: Our Story http://www.uniqlo.com/au/corp/ourstory.html). This easy will focus on how UNIQLO create value for consumers in terms of its core competences and value chain. The value propositions that , aligned to its value delivery system, are the sources of values are delivered to customer. The company creates brand value for consumers in the organization by both products and markets diversifications. The core competences of UNIQLO are low-cost and high quality, which secures a competitive advantage in global market. The benefit resulted from low-cost is generating reasonable prices of casual clothes for customers and the high quality transferred high customer utility immediately. ‘UNIQLO is aiming to added new value in clothes design and function, therefore, customers will purchase new clothes’, according to Naoki Otoma, senior Vice President and COO of UNIQLO (Petro, ‘The Future of Fashion Retailing: Part 1 – Uniqlo’, 2013). The Porter’s Value Chain assists the value creation in the organization through cost reduction or differentiation. UNIQLO’s large –format store strategy is adopted by changing shopping experiences. These...

Words: 1375 - Pages: 6

Premium Essay

Splash Corporation Case Study

...Rajinda Jayasinghe A0090911 SPLASH CORPORATION: COMPETING WITH THE BIG BRANDS “We are at war with the multinational corporations, fighting for the hearts and minds of the Filipino consumers” With these simple words, Roland Hortaleza, Chairman and CEO of Splash Holdings, provides some key insights into how he views his company’s place in the highly competitive cosmetics and toiletries market in the Philippines. An underdog success story in the truest sense of the word, the rise of the Hortaleza family from their humble beginnings as civil servants, to the pioneers of the “next Unilever”, the story of Splash Corporation is an informative model for those who wish to study the marketing strategies that drive successful startups in competitive markets. Several years removed from its creation, Splash finds itself facing challenges that are quite different from those that it faced at the time of its inception. In many ways, the underdog mentality that so successfully fuelled Hortaleza’s initial strategies is now obsolete. Splash finds itself in something of an inconvenient middle-ground, competing for market share against emerging low-cost alternatives and fighting the big-budget multinationals that continue to dwarf the scope of Splash’s product lines and thee depth of its marketing budgets. The following case analysis looks at Splash’s current position in the Philippines cosmetics and toiletries industry, and attempts to draw conclusions on future opportunities and points...

Words: 5093 - Pages: 21

Premium Essay

Brands

...STRONG BRANDS How Brand Strategy and Brand Communication Contribute to Build Brand Equity THE CASE OF NAVIGATOR Student: Daniela Yasenova Baeva Supervisor: Professor Doctor Arnaldo Fernandes Matos Coelho May, 2011 Master Thesis in Marketing STRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATOR 1 ABSTRACT In a world of global competition that we are living nowadays, brands are each time more used by companies as a strategy to create value and differentiation and this way to be one step ahead of their rivals. A "brand" is the result of the recognition and the personal attachment that forms in the hearts and minds of the customers through their accumulated experience with that “brand”. These experiences contribute to increased consumer trust and loyalty and allow building strong relationships with the “brand”. By this way, “brands” promote the increase of shareholder value and establish a long-term advantage in the marketplace for organisations. Companies recognise that strong brands are and have been historically associated with accelerated revenue growth and improved returns to shareholders. That is why, each time more organisations focus their strategies on building powerful brands as they represent competitive advantage and they are a key success factor in creating value to the customer and at the same time value to the company. In this regard, this study intends to show how effective brand strategy...

Words: 41006 - Pages: 165

Premium Essay

Private Label vs National Brands: a Comparative Study

...Limitations…………………………………………………………………………………20 Section III • Data Analysis……………………………………………………………………………………….21 i. Demographics……………………………………………………………………………21 ii. Awareness………………………………………………………………………….……..23 iii. Importance of Factors influencing Purchase………………………………25 iv. Consumer Attitude……………………………………………………………….……27 • Private Label Vs National Brand: Brand Strategy………………………………….36 • Findings of Research………………………………………………………………………..….40 Section VI • Implications for Retailers……………………………………………………………………..41 • Suggestions ………………………………………………………………………………………...42 • Conclusion……………………………………………………………………………………………43 Bibliography………………………………………………………………………………………………..44 Appendix: Questionnaire……………………………………………………………………………….46 Contents of tables 1. Determinants of Success of Private Labels……………………………………………16 2. Descriptive Statistics 1…………………………………………………………………………26 3. Descriptive Statistics 2……………………………………………………….………………..31 4. Correlation Matrix…………………………………………………………………..…………..33 5. Communalities…………………………………………………………………………………….34 6. Component Score coefficient Matrix…………………………………………….……..35 7. Private Label Strategy………………………………………………………………………….36 8. Segmentation Strategy………………………………………………………………….…….37 9. Product Vs Store Branding……………………………………………………………..……37 10. Key...

Words: 6999 - Pages: 28

Premium Essay

Branding

...Branding Strategy.... Building brand equity. “The branding strategy is creates strong brand values which have resonance with the customer and are relevant for the extent of the customers life cycle.” Learning objectives The first step in implementing a branding strategy is to understand the risk involved in the different strategies. After that, we will explore the implications of the different strategies on adding new products and incorporating acquired brands into the portfolio. After the lessons the student should be able to: • Understand the level of risk associated with the different branding strategies. • Understand what generates risk to the brand. • Identify which branding strategies are appropriate to the various segmentation plans. • Understand understanding how a company can avoid dilution of the brand as the product group grows. Brand equity The marketing goal is fulfilled when the brand equity is maximized. As in all matters relating to the concept of equity, there is a balance between risk and return. The choice between different branding strategies means balancing the expected return. A strategy with commonly yields high brand equity is usually associated with a significantly higher risk that the brand can be damaged when there are problems with any products carrying the brand. The brand equity should be seen as the accumulated value of all brands in the company portfolio. Different branding strategies are associated...

Words: 2805 - Pages: 12

Premium Essay

The Effect of Branding Strategy in the Development of Changyu Company

...Knowledge of Brand ……………………………………………………..2 2.1 Definition of Brand ……………………………………………………………….2 2.2 Brand Strategy ………………….…………………………………………………3 Ⅲ. The Benefits of Brands ……...…………………………………………………….3 3.1 Company Value ……………………………………………………………...……3 3.2 Consumer Preference and Loyalty ....……………………………….............…….3 3.3 Barrier to Competition ……...…………………………………………..…….…..3 3.4 High Profits ……………………………………………………………………….4 Ⅳ. The Ways to Build Branding Strategy …………………………………………....4 4.1 Increase Brand Loyalty …………………………..……………………………….4 4.2 International Brand Strategy …………………..………………………………….5 Ⅴ. Branding Strategy in Changyu Company …………………………………………5 5.1 The Culture Branding Strategy ……………………………………………………5 5.2 The High-edge Market Branding Strategy ………………………………………..6 Ⅵ. Conclusion ………………………………………………………………………...7 Bibliography…………………………………………………………………………...8 页数:共8页 字数:1952字 The Effect of Branding Strategy in the Development of Changyu Company Abstract This paper describes the definition of brand, why we should study brand, and how to create a brand. In order to value the effect of branding strategy in a company’s development, the author takes Changyu Company as an example. Through the analysis of Changyu’s branding strategy, some effective ways to build branding strategy were identified. Meanwhile some of Changyu’s successful branding strategy was summarized...

Words: 2014 - Pages: 9

Premium Essay

Strategy

...Valarie A. ZeithamI 20 I MM S p r i n g 2001 C o n s i d e r t h e i s s u e s facing a typical brand manager, product manager, or marketing-oriented CEO: How do I manage the brand? How will my customers react to changes in the product or service offering? Should 1 raise price? What is the best way to enhance the relationships with my current customers? Where should I focus my efforts? Business executives can answer such questions by focusing on customer equitythe total of the discounted lifetime values of all the firm's customers. A strategy based on customer equity allows firms to trade off between customer value, brand equity, and customer relationship management. We have developed a new strategic framework, the Customer Equity Diagnostic, that reveals the key drivers increasing the firm's customer equity. This new framework will enable managers to determine what is most important to the customer and to begin to identify the firm's criticai strengths and hidden vulnerabilities. Customer equity is a new approach to marketing and corporate strategy that finally puts the customer and, more important, strategies that grow the value of the customer, at the heart of the organization. For most firms, customer equity is certain to be the most important determinant of the long-term value of the firm. While customer equity will not be responsible for the entire value of the firm (e,g,, physical assets, intellectual property, and research and development competencies), its...

Words: 3971 - Pages: 16

Premium Essay

Using an Organisation of Your Choice Write a Report That Explains How the Company Seeks to Deliver Customer Value

...Using an organisation of your choice write a report that explains how the company seeks to deliver customer value. This report will be explaining how Tesco Plc seeks to deliver customer value, through objectives and strategies they have in place to try and deliver customer value, and also improving the relationship between them and the customer. Tesco was founded in 1919 when Jack Cohen began to sell groceries from a stall in East London. The name Tesco only became known in 1924, and the first store was open in 1929 in Burnt Oak, Edgware, North London. Now Tesco is one of the world’s largest food retailers, operating in 14 different countries worldwide, in Europe, Asia and North America. Tesco is also a leading retailer in the United Kingdom, with its headquarters in Hertfordshire and 2,715 stores nationwide, it employs almost 300,000 members of staff, and has a market share of just over 30% in the United Kingdom, this creating over 60% of the group sales and profits. Tesco’s main objectives is to increase market share, maximise sales, to grow and maintain the number one retail company in the United Kingdom, remain the market leader, create value for their customers to gain lifetime loyalty, to be an outstanding international retailer in stores and online, be a creator of highly valued brands and supporting the well-being of communities and economic issues. In order for Tesco to achieve their organisational objectives, they need to be able to determine the wants and needs...

Words: 2077 - Pages: 9

Premium Essay

Managing High Growth Brand-Starbucks

...Submitted To Mahbub Hossain Course: brand and product management American International University – Bangladesh (AIUB) Submitted By Khan Samara Salsabeel #07-09162-2 . | | Mr. Mahbub Hossain Course Instructor Brand and Product Management, sec-A Subject: STARBUCKS CORPORATION: Managing high growth brand. Dear Sir, We are grateful to you for giving us the chance to work on this case study. We would also like to express gratitude to you for your gracious cooperation and valuable guidance for preparing the report. Sincerely, Khan Samara Salsabeel (07-09162-2) Sadia Rezwana (07-09013-2) Kazi Masum (08-09933-1) Mohammad Abdul Kader (08-11783-2) In 1971, Seattle entrepreneurs Jerry Baldwin, Gordon Bowker and Zev Siegl first opened Starbucks in Pike Place Market. At that time, Country’s major coffee brands were engaged in price war, therefore they were forced to use cheaper beans in their blends to reduce costs. As a result there was a decline in coffee consumption. To harness the potential of the gourmet coffee trend in the Seattle area, the founders of Starbucks experimented with...

Words: 3244 - Pages: 13

Premium Essay

Truearth

...busy professionals but insisted on eating at home and cook their food to their taste and were conscious about ingredients in the food being consumed by their family. The culture-based characteristics of the Salubrious Cognizant Moms include moderate to high power distance with conservative behaviours. Among these families women usually makes grocery decision and checks the price, ingredients and nutrition value for everything they buy. Due to school going children in the family taste is of paramount importance. The members of Salubrious Cognizant Moms passionately demonstrate family orientation, health consciousness and will carry that in all walks of their lives from workplace to home. They are generally women but there are exceptions where male head of the family goes for groceries and makes buying decision. They have very high uncertainty avoidance values and are not comfortable with uncertainty they seek better value proposition with optimized price, value and nutrition values. Salubrious Cognizant Moms members are smart and realistic with long-term orientation values. Health foods skew to an older and/or more upscale audience. The 40-plus market has been described as a “growing segment of the population looking for healthy, low-cal foods.” With increasing age, calorie needs decrease for most men and women. Furthermore, this segment is the leading edge...

Words: 2812 - Pages: 12

Premium Essay

What Makes the Samsung Brand Successful?

...What makes the Samsung brand successful? Marketing has been defined by The Chartered Institute of Marketing (2001) as …“the management process responsible for identifying, anticipating, and satisfying customer requirements profitably”… This essay will focus on the technology sector and attempt to uncover what makes the Samsung brand successful. Using key marketing theories of branding concept, brand equity and brand positioning in a logical order it will critically evaluate these concepts in the context of the chosen brand. Supporting academic theories, relevant brand examples and critical evaluation will be offered throughout each of the theories explored. In conclusion, a summary of these theories will be discussed in relation to the success of the brand. Founded in Suwon , Korea in 1969, Samsung electronics has arguably grown to become one of the most successful companies of modern times. In 1993 chairman Lee Kun Hee laid out his vision for the future and what the company had to do to achieve success. It was to become a global leader in consumer electronics by focusing on creating high quality premium products. By 2012 Samsung had established itself as the world’s largest information technology company for revenues standing at $200 billion with 236,000 employees in 79 countries. It currently holds No.1 global market share for 13 of its products. Its marketing spend for 2012 was $4 billion - 4 times that of its nearest competitor, Apple. Branding is used by companies...

Words: 2878 - Pages: 12

Premium Essay

Strategic Management of Louis Vuitton

...luxury goods industry is one in which the luxury products created are goods of very high quality but are very expensive as a result of these high levels of quality. The customer range in this particular industry is usually of high net worth or high earners. Louis Vuitton is a French company that is one of the major producers of personal luxury products and as of recent data, is the industry leader in sales and revenues worldwide. At all times, their mission is to keep their values which is basically to provide refined quality products to the customers that they know can obviously afford to pay large amounts for these levels of quality. The company seeks to stick to their core values while remaining at the top of this particular industry and continue to make their high amounts of revenues and sales. The main objective of this report, is to advice the company on the factors that will possibly affect the company internally and externally before we use this to lead to a strategic plan of implementation for the company to attain its goal of remaining the industry leader while maintaining its core values which have been present over the past 150 years. TABLE OF CONTENTS OVERVIEW OF COMPANY……………………………………………………………………4 INTERNAL ENVIRONMENT ANALYSIS…………………………………………………….5 * MISSION………………………………………………………………………………….5 * VISION AND OBJECTIVES…………………………………………………………….5 * LEVEL OF STRATEGY………………………………………………………………….5 * THREE GENERIC...

Words: 4924 - Pages: 20

Premium Essay

Sustainable Competitive Advantage a

...DAVID SUSTAINABLE COMPETITIVE ADVANTAGE AND GENERIC STRATEGIES INTRODUCTION Keeping the strategic window open involves maintaining a sustainable competitive advantage. In consequence, we argue that competitive advantage should be market led. Next we examine the nature of core competencies and interpret their importance as the basis of gaining a sustainable competitive advantage in the market place. Along with these core competencies are a number of generic strategies that an organization can seek to follow or implement. We will look at each of these generic strategies in turn. First we will look at low-cost, focus and pre-emptive strategies and differentiation strategies. The latter leads us to consider product and service quality, customer focus and relevant issues relating to brand management. COMPETITIVE ADVANTAGE SHOULD BE MARKET LED The literature on the subject is dominated by Porter (1980a and b, 1985, 1987), though his propositions are not without its critics (viz. Cronshaw et al., 1994; Speed, 1989). Some see the firm’s outputs or offerings as the main focus of competitive strategy, with the primary aim of strategy being to compete effectively in particular markets by offering a competitive bundle of benefits, or value, to the consumer. It is the positioning of one firm’s offering relative to another that is of prime importance (Mathur, 1992). An alternative view concentrates on the resources of the organization and maintains that superior resources, and processes...

Words: 7274 - Pages: 30

Premium Essay

Cafe de Colombia

... The following report analyses the marketing strategy of Café de Colombia, analyses how they positioned themselves as premium coffee brand and which other strategies could be used to ensure a sustainable market position especially in the U.S. market. The suggestions are based on predominant conditions in the case from 2004. Ignacio Peluffo Dominique-Cristian Baumann Christian Albrecht Linda Koenig Octhavio Martins Marius Roder November 11th, 2013 1. What value has FNC created with its Café de Colombia Brand? Coffee is de facto a commodity like any other agricultural good. As such, coffee prices are derived from global supply and demand and are subject to heavy fluctuation, depending on weather conditions and the quantity of supply in producing countries. The coffee market is thus characterized by long periods of oversupply and low prices and relatively short periods of scarcity and high prices. Especially in the 1950’s Colombian coffee producers were confronted with a worldwide oversupply and had to manage price drops from USD 0.62/ lb to USD 0.52/ lb. Due to the country’s dependency on coffee, Colombia had to think about how to manage these price deteriorations and recognized that it had to access new markets and to create a stronger global brand image to increase revenues. Thus, the Federación Nacional de Cafeteros de Colombia (FNC) decided to differentiate Café de Colombia as a product of higher value. The United States, represented 77% of Café de...

Words: 2083 - Pages: 9