Building Retail Brands

25 03 2010

This article titled, Building Retail Brands, Terilyn A. Henderson and Elizabeth A. Mihas, focuses on differences between retail companies with multibrands versus a retail store with only one brand. The best way to achieve success in retail brands is to have one main brand and focus a stores attention on that brand rather than having multiple brands within one area.

Building Brands:

“The building of a brand starts with a precise definition of the target customer group and its needs” (113).

A Powerful Personality and Multibrand Challenge:

This article bases its focus on creating brands that will stand out to customers and to clearly define the target market. It uses the example of Gap and its creation of the Old Navy brand. They did extensive research and targeted the brand towards the correct segment that would respond the best to the new brand. The response has shown that they were effective, as well as their sales numbers. It also gives the example of Abercrombie and Fitch. They have created an environment within their brand. While they use some questionable ads, they create the atmosphere inside their stores that gives a unique feel. (The smell, the lighting, the furniture, and the décor.)

These are both examples of brands that have one specific brand in the store, with the focus going to their target markets. However, the article explains the challenge that multi-brand stores face. Sears and JC Penny are two examples of department stores that carry multiple brands. They must position not only their store, but also focus on the different brands of merchandise that they carry.

Target was an example of a well-positioned multi-brand company. They have focused on carrying high-design and quality products by famous designers. “In a sign that shoppers understand Target’s brand image, some wryly pronounce the chain’s name with French flair: “tar-ZHAY”” (116). 

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