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Advertising Express Magazine:
Strategizing Brand Positioning through Distribution Network
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This article throws light on the deciding factors which enable companies to design brand positioning strategies based on selecting appropriate channel members/partners who best reflect the brand value and offer value proposition to end-users.

 
 
 

Branding a product/service has been metamorphosing over a period of time, from basics to the height of sophistication. Companies would always be willing to build brand value around their product/service, which would provide an extra mile reach to the target group. Branding provides a sophistication and entity to a product/service as well as the producer/manufacturer. Once the brand is created and brand value established, it would provide a near perfect cakewalk to the manufacturer to produce and sell other products under the existing brand umbrella. It took sometime for Sony to create the brand value, but it proved very effective for the company to sell other products under the umbrella brand. Today, Sony sells radio to high-end notebooks to PS3 (highest priced game console in the market) under its brand umbrella. The Korean conglomerates Samsung and LG closely followed the strategy and reaped the benefits. Samsung and LG sell TVs to Refrigerators to Washing Machines under their brand umbrella. LG even forayed into mobile phones and computers, while Samsung went a step further and forayed into Digital Cameras and High Plasma TVs. These companies spent considerable time to create a mind space among their target group which is effectively used to communicate the brand value irrespective of the products they offer. The brand value would act as an enabler to facilitate the consumers to perceive the value proposition.

To reinforce this brand value, the companies intend to build a distribution value chain which would aim to provide value proposition to the selected group. Recently, HP began creating a distribution value chain (HP Digital Store) in major metros of the country to build its brand value and positioning the company as digital entertainment company, which could be called a major shift from its earlier focus. To build this brand aggressively, HP decided to build its own distribution network to ensure the brand value. Nokia has already started this exercise through opening "Nokia Priority Dealer Outlets" and "Nokia Concept Stores" to emphasize the brand value.

 
 
 

Advertising Express Magazine, Strategizing Brand Positioning, Distribution Network, Nokia Concept Stores, Awareness Creators, FMCE, Fast Moving Consumer Electronics, Multi-Brand Outlets, MBOs, SEC, Socio-Economic Classification, Consumer Durable Products, Market Segmentation, Market Segmentation Strategy.