Reputation and Brand Management of Woolworths Assessment 1 Answer
REPUTATION AND BRAND MANAGEMENT
1. Sources of Brand Equity
A brand of an organisation is developed through linking logical steps, which includes identification of the brand within the customers. Developing the meaning of the brand within the customer, evaluating the responses of customers towards the brand and maintain long term loyalty relationships (Cobb-Walgren, Ruble & Donthu,1995). The brand equity is stated as the value-added to the customer over the product operating under a specific brand. Brand awareness and brand image are the two primary sources of brand equity. These sources help to create brand architecture for a product or service. According to the brand resource pyramid, the brand equity of a product is created through identification of the brand, establishing the meaning of the brand, eliciting response towards the brand and creating a strong relationship within the brand and customer (Godey et al.,2016). In the case of Woolworths, the business entity has been winning over the customer by creating a strong message of the brand, innovations in a brand presentation in front of the customer.
The company is focused on reducing the prices and providing the ultimate quality of products to the customer. Thus, for creating a strong relationship and developing a strong brand within the customer mind, value addition is necessary (Mitchelson, 2020). The brand image and brand awareness work parallel for developing brand equity of business entity in the market. The increasing market competition from New Zealand has been one of the issues for Woolworths, the quality concerns have also raised the alarm of the entity might impact on the perception of the customers (Mitchelson, 2020). The change in customer perception declines the equality value of the brand. Thus, for proper brand equality, it is necessary to create a reliable balance between the sources of brand equity in the marketplace.
2. Brand Elements
The brand elements are the trademark sources, which helps to identify the brand in front of the treated customers in the market. These elements or identities of the brand increase the brand awareness and facilitates the unique, favourable and strong formation of brand association with the customers (Spry, Pappu & Cornwell, 2011). The elements of the brand include the brand name, URL logo, characters, slogans, jingles, and packaging. It has been stated that the building of brand elements are based on the memorability and attention seeking. The name, symbol or characters used in the brand should be memorable and differentiated from other brands availed within the marketplace (Swaminathan, 2016). It is required to be short, simple and unique, which could be identified by the customers at once. The brand management is required to meaningfulness, likeability, adaptability and protects ability. Each of the brand elements plays a different role to recognise the brand in the mind of the customers. In other words, the brand elements are required to be descriptive, easy to understand, easy to recognise, flexible and include proper legality (Yoo, Donthu & Lee, 2000). However, there are different business firms, which try to use a similar symbol, name, character, pattern of a brand, which already exists in the market. This creates a state of confusion and misunderstanding. The original brand blame and image usually get hamper, when a similar or identical brand name services low-quality products to the customers (Datta, Ailawadi & Van Heerde, 2017). In today’s rising competition, it has become tough for companies and customers to stay unique with their brand name and elements.
3. Marketing Mix
The brand equity is developed through the implication of marketing mix strategy; the business entities use the 4p marketing mi strategic approach to increase awareness about the brand. In the marketing mix strategy, the tactics over the product, price, place and promotion are introduced (Mukherjee & Shivani, 2016). The product strategy entails the tangible and intangible benefits and values additions are given by a brand to their targeted customers, pricing strategy determines the pricing pattern of the product, channel strategy engages procedure of distributing the product and promotion entails source of increasing awareness of the brand and its product (Lim, Jee & De Run, 2020). The Woolworth engages a diversified portfolio of product strategy, which provides a wide range and categories of products for the customers. The company beholds the customer's attention tube providing every necessary product under one roof (Woolworthsgroup 2020). The company includes a slightly higher price for its products in comparison to average market pricing so that a regular discounting and officers could be initiated to keep customers engaged. Woolworths introduces offline and online platform for distribution of its products, the company includes gift cards, loyalty schemes, promotion through social media and traditional sources (Woolworthsgroup 2020). Thus, marketing mix creates a space for business entities to plan and direct the brand image towards the customers by presenting their products using every reliable source.