Literature for the business leader published by SchmidPreissler International Strategy Consultants, The Lion’s House, D-83703 Gmund am Tegernsee, schmidpreissler@schmidpreissler.de, www.schmidpreissler.de

 

 

 
 

SchmidPreissler Brand Equity+Performance©  Programm

 
 

Issue: 06/200

Next Issue: Week 31/2008

 

 

Excerpt of further issues topics: Brand Equity and Brand Strategy, Brand Equity and Brand Diffusion, Brand Equity and Company Success, Brand Equity and Sales and Acquisition of Brands or Companies, Brand Equity and Marketing Investment

 

 

 

 

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Danger Spot Distribution for the Brand

Successful brands, in other words brands of high value, are no random product of entrepreneurial actions. They are rather the result of consequent and continued brand leadership, centered on the increase of brand equity.

There is no doubt about it that such an increase in brand equity cannot be achieved without consequent maintenance of the brand and that is nowhere more apparent than at the point of sale.

Unauthorized abatements, lacking service performance and shelf maintenance, poorly qualified sales personnel or something like it is not the rule in retail, but it is also not a curiosity. And it led to the rapport between retail and industry being disturbed in many cases. Independent retail, especially large-scale enterprises, department stores, general stores, discounter and chains, just to name a few typical forms of retail, are seeking salvation in private labels and aggressive, price-oriented marketing concepts. And even though retail is not really blessed with good profits in all branches, it acts presumptuously in many cases, because retail thinks inadvertently it is in possession of market power.

However, this power rests with the consumer. Industry has to buy its access to retail in the truest sense of the word. Thus retail turns more and more into a provider of storage and display areas and is losing considerably in economic performance.

However, brands need a space to live, that allows them to unfold their aura, to give to the people what they desire today, when they set forth to fulfill wants or simply satisfy needs. Consumers are ambitious and they make clever purchasing decisions.

It is time that industry and retail enter into a dialogue with the co-operation in partnership as a goal. Retail would be well advised to give to brands what they deserve, namely an adequate space to develop in. Without brands markets lose their vitality. There are no winners here. Industry is losing because in the long run they cannot finance a blanket availability of their brands via own stores or franchise partnerships. Retail is coming under pressure because without the presentable share of turnover of classic brands they cannot be in the black and survive long-term. The consumer loses, because brands offer a solid orientation during the purchasing process when it comes to satisfaction of needs or wants. 

 

 

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