Project Report

On
Brand Resonance Model of Goldstar

TABLE OF CONTENT

Title Page No.

Introduction ………………………………………………………………………………………3

Vision ………………………………………………………………………………………4

Mission …………………………………………………………………………………….. 4

Brand Resonance Model of Goldstar …………………………………………………………….4

SWOT Analysis of Goldstar ……………………………………………………………………..8

Strategies to Grow the Brand Stronger……………………………………………..…………… 9

Conclusion……………………………………………………………………………………….10
Reference………………………………………………………………………………………...11

Introduction

In recent years, the footwear industry and the business environment have significantly changed
and have also become more sophisticated and competitive as a result of globalization. In the past,
shoes were used for functional purposes; their purpose in modern society has changed. The
aesthetical style of shoes has taken an equal share of consumer interest as functionality that was a
predominant factor in the choice of shoes. Footwear is more likely to be seen as the centerpiece
of clothing rather than as accessories (Leathers, 2014). Footwear has become a common and
popular category among young people as it has become a self-identification tool that helps
individuals to distinguish themselves from the masses with a more relaxed lifestyle, greater
versatility, and comfort.

The footwear industry launched in the mid-1970s was the first and core business of Universal
group which was operating under the name of Modern Slipper Industry Pvt. Ltd & Kiran shoe

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manufacturers. Since its inception, the group has established itself as the biggest footwear-
producing group in Nepal. In the early 1980s, they introduced Hawaii Slippers also known as
HATHI, which is now widely available throughout the country. Over three decades, this pioneer
brand has been admired. This brand produces a variety of EVA sandals and Hawaii slippers.
"Hathi Balio Ki Hathi Chap Chappal" is a well-known slogan among this brand's customers,
which means that the slippers are stronger than elephants. Hathi slippers and sandals are well-
known across the country for their style and durability. In 1990, they launched a mid-priced,
value-for-money brand called GOLDSTAR to service more price-conscious markets.
GOLDSTAR is a strong brand built with genuine materials and cutting-edge technology.
GOLDSTAR is now sold throughout Nepal and India, and it is gradually gaining popularity in
Western countries as well. Since its revamp in recent years, Goldstar has been able to capture the
majority of the Nepalese shoe market. People welcomed Goldstar because of the product's price,
quality, and the company's marketing efforts, and the brand is able to associate itself with
patriotic feelings. It caters to all age groups with a diverse range of products. You're either
trekking, jogging, or somewhere else. Feel free to walk around. The success of a Goldstar is
solely due to its continuous improvement and availability at an affordable price. Currently, more
than 3000 people are employed directly in five different operating units in Kathmandu,
producing more than 75000 pairs every day.
Vision

We envision Goldstar to be a part of people’s lives in every continent of the world by 2025.

Mission
Our mission is to create quality footwear at competitive prices with innovative technology.

Brand Resonance Model of Goldstar

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Brand resonance is how well a customer relates to a branded element. It is how someone
perceives a brand and their values or goals. Brand resonance models are used to build
relationships with customers. Brand resonance or Customer-based brand equity (CBBE) is also
used to show how a brand’s success can be directly attributed to customers’ attitudes towards
that brand. Kevin Lane Keller has given a model which explains how brand resonance or brand
equity can be achieved. Keller’s Brand resonance model is below:

There are four levels and six quadrants. The four levels essentially define a brand using these
questions:

1. Who are you? (Identity)

2. What are you? (Meaning)
3. What about you? (Response)
4. What about you and me? (Relationships)

Level 1: Brand identity (Who are you?)

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As you can see above, ‘salience’ fills up the bottom rung of the pyramid. Salience is simply
referring to how transparent a brand is to a customer. Brand salience deals with how
knowledgeable a customer is about a branded product or service. It is how clearly customers can
recall different factors such as the values of your brand while making a purchase decision. This
is how customers look at your brand and distinguish it from others. It’s the most important stage
and must be strong to support the rest of the pyramid above it. The main thing to keep in mind
when completing this stage of the resonance pyramid is to raise brand awareness and establish
brand identity.
As a large number of Nepalese customers are price and quality-sensitive, Goldstar offered
quality and durable products at affordable prices. Which makes Goldstar a leader in the Nepalese
footwear industry. As we also know Hathi chap chapal is so famous and leader one time. So,
customers perceive Goldstar as a market leader in the Nepalese footwear industry.

Level 2: Brand meaning (What are you?)

When customers become aware of your brand, they’ll want to know more about it. Do its
features work well? Is it reliable? Does it look good? Is the customer service good? Is it value for
money? This is brand meaning and is divided into two quadrants which include performance and
imagery. Performance indicates how well a brand meets customer needs. When a brand ‘does
what it says and performs well over time, it will be loved and trusted. It is a measurement of
efficiency, involving the products or services and how well they are helping customers to
overcome the problems. Imagery, in this model, refers to how the customer perceives a brand.
Imagery is more about customer perception and brand image. Brand image deals with the types
of feelings a customer has about a brand.
Talking about performance then, Goldstar is known as a comfortable, affordable, portable, and
durable footwear brand by the customers. As it caters to the need of the low-middle income
group customers by offering low price durable footwear products. On the other hand, customers
perceive Goldstar as a made in Nepal brand and brand which offers sports, hiking, and trekking
footwear.

Level 3: Brand response (What are the feelings for the brand?)

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Once a customer has bought the brand, does it live up to the hype and expectation for them? If
they love the product, they have feelings for it, and they’ll tell friends, family, and social media
to buy one. They are starting to become a brand advocate. If they’re disappointed with their
purchase, their judgment of it will be negative and they won’t buy another one and may criticize
it widely. They become a brand detractor. Companies need to address judgments and build
positive feelings at Level 3 to attain. Feelings mean the number of attachment customers has
toward a brand. Offering strong brand experiences builds relationships, memories, and positive
emotions.

Customers highly regard Goldstar’s products by factors such as durability, affordable, value for
money, and consistency for its quality. In comparison to other brands in a competition like;
Caliber, Shikhar, Black Horse Shoe, Goldstar comes up at affordable rates. There is a pride in
wearing products made in Nepal. People wear it with a feeling of patriotism.

Level 4: Brand resonance (What about you and me? / strong relationship)
The resonance stage is the absolute top of the pyramid. Each quadrant below has built toward
this: a solid relationship between brand and customer. Brand loyalty is a result of reaching brand
resonance. When a customer loves a brand so much they would not consider buying another one,
feels a relationship with it and a connection with other buyers, they are that very rare and
precious thing: a brand advocate.

Focusing on the aspect of customer support, Goldstar has been opening up well-managed and
standard-looking outlets at different locations. Considering the customer demands, they are
entering into the sector of fashionable shoes alongside their affordability and comfortability. The
company has been offering discounts on occasions. All these have a direct positive impact on
customer retention and brand loyalty.

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 RESONANCE

Loyalty and Attachment

with Well managed outlets,
PERFORMANCE trendy& fashionable,
Comfort, Affordability, Discount at occasions
Portability, and Durability

JUDGEMENTS FEELINGS
SALIENCEFeeling of patriotism
Durable, affordable, Value
Leader in the Nepalese footwear industry
for money, quality
consistency

IMAGERY
Hiking, Trekking, sports,
made in Nepal

Fig: Keller's Brand Resonance Model of Goldstar

SWOT Analysis of Goldstar Shoes

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Strengths:
Weakness:
Variety of designs which includes all types
Price quality image
Caters to different types of people
to ignore the brand
Affordable and durable

Opportunity:
Capable of producing more designs
Opportunity to cater other classes of people
of different age groups
Can cater to more female customers as well
with women oriented designs
Threats:
Counterfeit branded shoes available at
similar price range, affecting Goldstar sales
New international brands with similar price
range entering the market rapidly

S W
O T

Strategies to Grow the Brand Stronger

In my opinion, the following enlisted ideas can be optimal strategies for Goldstar to grow it's
brand stronger:

1. Consumers, especially youths, are looking for a wide variety of styles. However, the range of
variety and designs of Goldstar are limited in comparison to its competitors. So, to be
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 competitive and exist for the long-term in the footwear market, the Company should
concentrate more on introducing different kinds of varieties of footwear with fashionable
designs and colors according to the expectation of youth consumers.

2. Goldstar is available in the market at an affordable and cheaper end. Somewhere at the back
of customers’ minds, Goldstar is considered to be a cheap and embarrassing (Low status)
product. With the motive to change this misconception, the company should hire youth and
high professional celebrities for their marketing campaigns. Alongside, Goldstar should
endorse its brand by appointing brand ambassadors to like; as Balendra (Balen) Shah, and
Srinkhala Khatiwada.

3. As we know, Goldstar offers its product at an affordable price to cater to the needs of low to
middle-level income group people. So to make the brand stronger, Goldstar should also
introduce premium products by adding more quality materials and trendy footwear designs to
cater to the needs of the High-level income group.

4. The big prominent ‘G’ logo of the Goldstar is a turn-off to the design of the shoe. They have
started putting the brand name on the side-base of the sole which is a great idea. The design
team should consider putting a name that merges with the actual theme of the shoe. This
simple change can be a major boost in the company’s entire marketing.

Conclusion

In conclusion, Goldstar is a brand in the Nepalese market that holds a history of itself. In the
current scenario, the company has evolved enormously establishing itself as an affordable,
durable, and quality shoe brand. There are considerations of Goldstar being old-fashioned, but
they are trying to tap the fashionable market as well. The company is at an advantage of gaining
customers’ support for being a local product. The company has been amongst the top rankers in

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the industry despite the presence of other players in the market. “Unless and until you are
consistent, you will not be able to do well. Consistency has to be there all the time.’’ This has
been the philosophy of Goldstar to which they are dedicated and as a result, are expanding
consistently within and outside the country.

Reference

https://www.goldstarshoes.com/

Leathers, W. (2014). Attitude, color and trend forecast. Retrieved from:

http://wolverineleathers. com/wp-content/uploads/A14W15-TrendReport-rl.pdf

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https://www.canto.com/blog/brand-resonance-model/

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