EOC Week 7: Chapter Questions

ch. 5
1. How do mass-market brands compare to luxury brands in terms of brand value, pricing attitude, and location choices?

Mass Market brands have value you on all their products but it may not be as high of a brand value that company's like Chanel hold. They will not sell any of their products on sale or second stores because their value is so high. "Mass-market products are highly price driven. At the budget range, for instance, they are quantitative and based on the concept of more for less, so in most cases these brands are positioned primarily based on price." (Hameide 158) Location is not as much of an issue for mass market. They are able to be located in places like downtown or shopping centers. They also have a very strong presence online, unlike luxury brands who only sell their products in stores.

2. Briefly compare premium brands to luxury brands.


"Premium brands are also referred to as “aspirational” or “new luxe” brands and include brands such as Coach, Victoria's Secret, and most RTW labels introduced by luxury brands" (Hameide 162) They are more affordable luxury brands. the quality is excellent and their products are desirable to everyone. They still follow the trends that the luxury brands create but they do have some new and innovative ideas of their own. They also have great craftsmanship but aren't quite handmade like most luxury items are.

3. Name a few of the challenges private labels face to compete with manufacturing brands.

"Private labels are brands owned by a retailer and not a manufacturer. Retailers usually contract these products and have them produced under their own labels. The definition of private labels has expanded to refer to both private labels sold next to manufacturers brands in multibranded stores (such as Club Room at Macy's or Target's Isaac Mizrahi collection) as well as private brands sold solely in their exclusive stores (such as Gap and Esprit), which would also fall under the specialty stores category." (Hameide 165-166) Private labels have a hard time competing because they cant move product as quickly as manufacturing brands can. Unless the brand is backed behind a huge company, they rae usually small companies that have boutiques here and there.

EOC Week 4: Chapter Questions

1. Explain the social element of luxury brands, and explore how this concept relates to some of the challenges facing luxury brands, such as counterfeiting and parallel markets.

Luxury brands are run completely by social elements. When a brand becomes popular they become the most wanted brand, which is why they are able to charge the outrageous prices they charge. Celebrities and the upper class create an image for the brand. People idolize stars and want to wear everything they wear. With the prices being so high they cant always afford the newest purse or shoes, so that’s when counterfeiting becomes a problem. People will create a replica of the merchandise and sell it for a substantially lower cost. Also brands like Forever 21 will mimic things they see and make them with cheap materials and sell them for a much lower cost.

2. What is the meaning of a lifestyle brand? Why are most luxury brands described as such?

“A lifestyle brand successfully identifies itself with a lifestyle and a marketing segment to the point that its name or image is mentally triggered when the segment is mentioned.”
(Hameide 117) They are described as such because not everyone can afford a $3000 purse, so you have to live a specific lifestyle of high class to be able to spend the money and wear the luxury brands.

3. Explain how luxury brands seem to defy traditional marketing principles

“If marketing strategies are meant to increase sales volume and market shares and allow for maximization of profit through smaller margins but higher volumes, this is totally the opposite with luxury brands. Luxury brands are keen on deliberate limited production and exclusive distribution, in spite of any rise in demand. Luxury brands are expected (and accepted) to be harder to acquire.” (Hameide 149)

EOC Week 3: Chapter Questions

1.                  Explain the VIP concept, and compare it to the traditional Four Ps.

VIP stands for Value, Integrity and product mix. “The VIP model endorses the product as the core of the brand and at the same time acknowledges the value-added elements introduced by the branding process. As a mix, it offers a good base for positioning, which in return is an effective base for any communicating strategy.” (Hameide 78) The four ps are product, placement, promotion, and price. These focus on the marketing aspect. It also focuses on the communication strategies.

2.                  Explain the concept of co-branding; give examples.

“Co-branding is the practice of using multiple brand names together on a single product or service. This form of alliance can have potential economic and commercial rewards for participating parties. “(Hameide 84-85) H&M does a lot of co-branding with designers like Karl Lagerfeild and Versace.They even use celebrities like David Beckham for an underwear line. It has become a huge hit and has brought in excellent amount of revenue for their company. Other companies that co brand would be Nike who worked Stella McCartney, Peyton Manning branded with Gatorade and RG3 with Maybach.

3.                 How do licensing and brand extensions compare as growth strategies?

Licensing is a great growth strategy because if you license a brand that’s well known, you have a better chance of selling the merchandise. Also if your product is being licensed that means that you will get additional money from when its sold in other places besides your store. “Brand Extension refers to increasing the range and type of product lines under the brand's umbrella.” (Hameide 89-90)

EOC Week 3: Apple Juice Scandal

Beech Nut Corporation trashed their brand with this scandal because they falsely advertised a product and it was a product for babies, which makes it even worse. The brand can not say they didn’t know what was in their product because a worker, LiCari, brought it to their attention numerous times. “The company itself had pleaded guilty the previous fall to 215 counts of violating Federal food and drug laws, and had agreed to pay a $2 million fine, by far the largest ever imposed in the 50-year history of the Food, Drug and Cosmetic Act.“ (http://www.nytimes.com/1988/07/24/magazine/into-the-mouths-of-babes.html?pagewanted=all&src=pm)  They completely lied about what their product and what they were selling. “Nestle has defended its subsidiary's acts as vigorously as it defended its own in the past. The company has spent what sources close to the case estimate as several million dollars in defending the two executives, and has agreed to keep both men on the payroll - at annual salaries of $120,000 and $70,000 - until their current appeals are exhausted.” (http://www.nytimes.com/1988/07/24/magazine/into-the-mouths-of-babes.html?pagewanted=all&src=pm)  I think its crazy that a huge corporation like Nestle was helping them when they went to court. They defended both the executives during the trial and also kept paying them, which is absurd. Nestle should have cut them off in order to save their reputation. It was a horrible thing to do as a company. It is completely unethical and they were lying to their loyal customers. Also their product could have harmful effects on the consumers, which sadly are babies. 

EOC Week 2: Chapter Questions

1.                  Describe the relationship between branding and marketing.
Some people think that they are the same, but they are not. They work together to create the entire brand. Branding is a process that highlights a proposed value for a product and transforms it into a real customer experience. "Marketing supports the development of brands in all of its stages; it plays an integral role in the creation of the emotional value through the shaping of the brand personality and then communicating it to the outside world through its various communication channels." (Hameide 43)

2.                  How does the decision-making process differ between that of luxury brands and mass-market brands?

One difference between luxury brands and mass-market brands lies in the power and role of the designers. Luxury brands live on creative superiority and trendsetting. In many cases, full control and creative authority are given to the designer. "As a matter of fact, in many luxury brands, the position of brand managers does not exist. On the other hand, mass-market brands are, for the most part, trend followers." (Hameide 42) Mass marketing focuses more on marketing their products and will almost always have brand managers involved getting their product out to the consumers.

3.                  Explain the meaning of “brand identity” and highlight its role in the positioning strategy

Brand Identity can be simply described as the “meaning of the brand.” Identity is also affected by the image established by the user for the brand, which is an aspect the brand cannot directly control. The image is a mental perception of how the buyer sees and understands the brand's identity and value. (Hameide 60) Brand identity also use symbols to represent the brand and create a relationship with the customer and the brand. 

EOC Week 1: Chapter Questions

1.             Explain in your own words why we need brands.

·      I think we need brands to help create our identity. Everyone wants to be different and identify with a brand that can represent them as a individual. Chanel or Louis Vuitton says a lot about the person that is wearing there clothing. It shows elegance and luxury and people that wear that know that’s how they will be identified.

2.             The promise of value is an important element of any brand. Explain the concept and its relevance to the brand.

·      Promise of Value ensures that the values attributed to the brand will be delivered. Its relevance to the brand is that the values they portray in their products. its important that the quality of the product matches the value that the company holds. The main reason people buy certain brands is that they trust the values the company offers.

(Hameide 8)

3.             Innovation and consistency may seem to be two contradicting notions. What does each term mean in relevance to the brand, and how do these terms work together in defining it?

·      innovation is about change, consistency seems to be all about standardization and conformity. In order to create an amazing brand, one must utilize both. Innovation is how you reinvent your brand and keep it current with all the new updates. Its very important to keep up with the trends because your product can go out of date very quickly. Consistency is also really important because you cant switch up the value or quality of your brand and expect the consumers to be interested.  You promise your customers a certain thing when you make your product and if you completely change it then the customers become unsatisfied with your product.

·       (Hameide 18)