SERVICE BRANDING

&
RETAIL BRANDING
 SERVICE
BRANDING
 Service sector – an overview
• It has become a dominant force in global
economy. Traditionally, India has relied on
agriculture to sustain it’s economy. After
liberalization (in 1991) Indian service sector
is increasing & have a big contribution in
GDP. Due to economic reforms of 1991
Indian companies are also doing their best
to compete with MNC’S.
 THE SERVICE MIX
Service mix has 7 P’s which are as follows:-
(1) Product
(2) Price
(3) Place
(4) Promotion
(5) People
(6) Process
(7) Physical evidence
 Product

Physical Price
Evidence
People

Process Place

Promotion
 Distinctive characteristics of
services:-
• Intangibility :- we can’t see, touch, taste &
feel.
• Inseparability :- these can’t be separated from
its providers.
• Inconsistency :-two people can’t provide same
service.
• Perishability :- these can’t be stored for future.
 Delivery sequence of products &
services :-
Delivery sequence

Physical Products Services

Production
Sale

Sale
Production &
Consumption Consumption
 Challenges in Service Branding:-
• The intangible nature of services.
• Delivery & consumption of services takes
place in the premises of service provider.
• These do not come under the purview of
intellectual property rights as these are
basically ideas.
• Due to boom in service sector consumers are
so much aware about them.
• Same standard of services throughout the
world is not possible.
 Strategies for building successful Service
Brand :-
(1)Utilize subtle cues to tangibalize the intangible :-
for ex:- Same outlets of Mc Donald’s.
(2)Use symbols & slogans to communicate brand
essence :- LIC’s two hands saves a flame.
(3)Exploit positive word-of-mouth to promote the
service brand :-
(4)The entire org. function as marketing
department:-
(5)Implementing total quality management :-
(6)Provide incentive to deliver ‘on time’ :-
(7)Keep ‘buffer stock’ of staff to deal with peak
situation :-
(8)Develop long term relationship with the
customer :-
(9)Develop strategy to continuously innovate :-
 RETAIL
BRANDING
 INTRODUCTION
• Started in 1960’s in USA.
• Traditionally, Indian retail sector consists of
large & medium general stores, kirana stores
where price vary from shop to shop or
customer to customer.
• Today, in large cities the scope of retail is
increasing day by day.
• Ebony, Nilgiri’s, Big Bazaar, Pantaloons etc.
 The Retail Scenario in India :-
• India is world’s second emerging market
attractive for international retailers.
• Indian retail market is expected to grow at
30% annually.
• 15 million retail stores.
• Retail business of Rs. 35000 crores.
 Difference between Producer &
Retailer Brand :-
• Retail Brand :- These are the brands, whose
brand name, strategy & development is
managed by the retailer, & not
producer/manufacturer. These brand belong
to individual retailers or retail chain, they
are rarely found at other outlets.
• Producer brands can be found at different
outlets throughout the country & hence are
sometimes referred to as national brands.
 Producer/ National brand Retailer/ Private brand
• Branded by producer & • Branded by retailer, &
available in a whole are available locally i.e.
region if not the entire at retailer’s outlet.
country. • Less investment in
• More investment in advertising , promotion
advertising , promotion & & publicity.
publicity. • Preferred in case of
• Preferred in case of commodity goods or
technology goods or high low risk/ low price
risk/ high price purchase. purchase.
• Offer superior product at • Offer quality products at
premium price to generate a lower price than a
profit. producer brand
(sale profit )
• Marketing strategy is
centered around R & D,
advertising & a holistic
view of the market.
• Brand is associated with
a unique product having
limited extensions, &
positioning with clearly
identifiable brand
attributes.
• In case of crisis, recalling
& repositioning is
expensive.
• Marketing strategy is
based on retailer’s
superior intelligence
regarding consumer’s
buying pattern,
consumption rate etc.
• Many products are sold
under the same brand
name & a multitude of
attribute exist &
positioning is based on
store’s reputation.
• In case of crisis, recalling
& repositioning is
comparatively easier.
 Factors Heralding the growth of
Retail Brand :-
• General increase in wealth & degree of
Urbanization :-
• Increase in the number of double income
households :-
• Widespread possessions of consumer durables
like refrigerators & cars :-
• Phenomenal change in outlet appearance :-
modernization of stores
 Conditions favoring Retail Brands :-
• As it is easy to manufacture as no high
technology required :- like grocery items
• As these are inexpensive & routinely
purchased products :- like food products
• These are perishable products :- fresh fruits
• High demand & in bulk purchasing :- wheat
floor
• Prices are less than those of producer brands :-
 Strategy for creating & sustaining
Retail Brands :-
• Gauge the strength of the retail brand name &
make strategies for long run.
• CEO should take initiative & make a team of
brand managers to makes its brand recognizable.
• Make good customer relation.
• To increase customer attractive schemes should
be given.
• Try to give ‘value for money’.
 Retailer can launch his own Brand if he has :
an established & reputed brand name, a loyal
customer base, visionary leadership, ability to
leverage supply of products at lower prices,
ability to produce better products than of a
producer’s brand, ability to deliver the brand at
lower price.
Producer can launch his own Brand if he has :
strong brand name in his portfolio, superior
advertising & brand building ability, strong R &
D to develop superior products, ability to sell
superior quality products at a premium price.
Thank
u