Farmers Trading Company has a long history of business and has become a recognized brand. Since its founding in 1909 in New Zealand, the department store network has expanded to 59 locations throughout the country. However, market conditions have altered as more competitors have opened department shops, reducing Farmers Trading Company's profit margins. Brand marketing is one of the tactics that can help the firm grow earnings, enhance the customer experience, and enhance Farmers Trading Company's reputation.
This report is created for Farmers Trading Company's managing directors. This research on brand marketing intends to investigate the specifics of brand marketing, explain its significance to individual consumers, discuss the potential and problems posed by New Zealand's diverse population, and make recommendations for Farmers Trading Company. The organization of this study is as follows: after the introduction, the discussion section provides a synthesis of the literature on brand marketing, describing essential principles and discussing the importance of brand marketing.
The section on recommendations that follows has various suggestions that Farmers Trading Company might integrate into its long-term and short-term marketing strategy to boost profitability. The conclusion summarizes the important themes of this paper on brand marketing. This paper focuses on brand marketing as it pertains directly to department store chains. The focus will be on the definition, important details of applying brand marketing in New Zealand, and potential obstacles. Different brand marketing methods will not be covered in this study.
Brand Marketing – Definition
Initially, it is essential to identify brand marketing and describe its fundamental qualities. According to Gil (2020), enhancing brand equity requires a specialized approach to managing product and customer communication. In essence, this means that a business can design a plan for communicating its value to customers. According to Natarelli and Plapler (2017), brand marketing is the establishment of a relationship with the customer based on shared values, beliefs, and performance expectations. This strategy places a greater emphasis on the relationships between an organization and its clients, with a particular focus on their mutual effects.
Others, such as Arbouw, Ballantine, and Ozanne (2019), Barnes and Higgins (2020), and Sexton (2015), assert that brands are parts of a company's image, including a logo, reputation, marketing efforts, and consumer communication. While these definitions are accurate, they confine the scope of brand marketing to particular brand traits, which cannot be considered a marketing strategy. This paper concludes that band marketing is the building of a relationship between a firm and its target audience using various communication channels. In general, different authors present varying definitions of brand marketing, although there are a number of defining traits.
The objective of brand marketing
A firm's brand is one of its most valuable assets, meaning that it contributes to the value of the company. Brand marketing's major objective is to raise the perceived value of a company's offering from the customer's perspective (Shin, Casidy, Yoon & Yoon, 2016). This is the reason why brand-focused marketing initiatives do not imply direct sales. Instead, they create awareness of an organization in order to explain its activities, such as a strategy to sell only sustainable items. This enables consumers to choose firms that align with their values and views. Possibly, this link can exist without a direct use of brand marketing, but in this instance, a firm is missing out on a potential to garner greater interest in its offering. In addition, higher demand, the justification of premium prices, and client loyalty are the primary outcomes of brand marketing (Bailey, 2016; Hanssens & Pauwels, 2016; Natarelli & Plapler, 2017). Therefore, brand marketing affords organizations numerous opportunities.
A well-established brand can assist businesses in overcoming brand crises and other organizational problems. Media articles that attract negative attention to a brand are typical in today's society (Hewett, & Lemon, 2019; Hollenbeck, 2018; Hsu, & Lawrence, 2016). Occasional issues, such as product recalls, misunderstandings, or controversial situations, can have a negative impact on a company's income; but, by creating a relationship with customers and retaining their loyalty, firms can respond effectively to these disruptive events. This implies that Farmers Trading Company will be able to use its existing brand to address problems, such as potential conflicts, and develop stronger communication with consumers. Since brand management enables organizations to obtain instantaneous client feedback, responsiveness as an intrinsic component of a brand becomes very important (Capelli & Tavis, 2016; Luxton, Reid, & Mavondo, 2017). In the case of Farmer Trading Corporation, this crisis has a negative effect on earnings.
Why do individual consumers value brands?
Individual customers are reliant on brands because they subconsciously demonstrate a preference for a specific brand that reflects their values or socioeconomic standing. For instance, Natarelli and Plapler (2017) contend that when a person is asked about his or her favorite automobile, the reply will mention a specific brand. Similar examples can be observed in people's daily lives when they make purchasing selections and select reputable businesses. This interaction between a consumer and a brand permits both parties to influence one another (Natarelli & Plapler, 2017; Hanssens, 2020; Orazi, Spry, Theilacker & Vredenburg, 2017). Therefore, brands can influence the behavior of their consumers to some extent, whereas customers can urge businesses to develop new goods to meet the requirements of their target market.
The population of New Zealand has become more diverse throughout time. This leads in a change in consumer tastes and needs, presenting Farmers Trading Company with a unique challenge: to evaluate new consumer segments, their values, and build a product and marketing plan that corresponds to these qualities. Specifically, Natarelli and Plapler (2017) assert that enterprises must address the preferences of the next generation of consumers, the Millennials, in order to meet the problems of the contemporary business climate. The demographic shifts indicate a shift in purchasing and decision-making habits and necessitate revised marketing methods, including a brand-centric approach. This presents unique challenges in the context of brand marketing, as it is essential to tailor efforts aimed at communicating brand identity to the unique and diverse population of New Zealand, which requires the use of multiple channels, including social media (Chen, Nguyen, and Melewar, 2016; Pace, Balboni, and Gistri, 2017; Porcu, Del Barrio-Garca, and Kitchen, 2017). Millennials develop a unique relationship with brands, with social media and influencers playing a significant role in their purchasing decisions.
In addition, the advent of online shopping in New Zealand can represent a further obstacle for Farmers trading, reflecting population shifts. According to the National Australia Bank's (2019) research, department retailers continue to expand their market presence, including their online sales. The sales estimates for several industries, including department stores, are shown in chart 1. This gives a methodology for evaluating the issues faced by department shops in New Zealand based on a better understanding of the severe competition and need for online brand presence in Australia. However, this also presents an opportunity for Farmers Trading Company, as it has not yet implemented internet sales and communication channels. Using brand marketing and social media, the department store company may entice Millenials to its brick-and-mortar locations, as this generation values creative communication platforms.
Consumer trends for department shops and other businesses in 2019 (National Australia Bank, 2019).
Consequently, one difficulty is the rising number of new entrants, a problem that Farmers Trading Company also faces. In light of this, brand marketing enables the communication of this department store chain's primary value to consumers and the establishment of an identity that differentiates this brand from its competitors (Shetty, Belavadi & Belavadi, 2019). Despite the possibility of internet buying, a strong brand can help Farmers Trading draw customers to its physical stores.
Farmers Trading Company has a long history of operations, but the current brand image does not serve as a commercial asset because the company is experiencing revenue loss. The establishment of a relationship with the customer constitutes brand marketing. This includes aspects like as communication, logo, marketing efforts, and other instruments that allow the value of the firm to be explained. The primary purpose of brand marketing is to communicate value to consumers via various communication and marketing channels. In this sense, a company's brand becomes an asset. Due to their association with a company's image, people attach great importance to the brand.
The basic function of department stores has not altered throughout the years; they continue to offer a variety of products in a single location. Farmers Trading Company's branding effort should emphasize the benefits of convenience and diversity. Farmers Trading Company can adopt some parts of brand marketing into its marketing plan, notably social media communication and crisis management, based on the results of this report.
Farmers Trading Company should regard brand marketing as a technique that will assist in familiarizing consumers with the organization's products. This can be a useful and effective strategy for increasing consumer demand (Natarelli & Plapler, 2017; Edeling & Fischer, 2016; Fornell, Morgeson & Hult, 2016). To ensure the efficient operation of this instrument, the organization must identify the distinguishing characteristics that set it apart from the competition. This is crucial, as Farmers Trading Company faces rising competition from both online and offline newcomers. Since the company's founding in 1909, Farmers Trading Company has a well-established brand. Despite the fact that the organization does not explicitly handle brand marketing, its operations, services, and reputation have helped consumers build a distinct impression of the department store chain (Ballantine & Ozanne, 2019). Farmers Trading Company can exploit the brand's lengthy history, which can be connected with quality and superior service, in its advertising campaign.
Farmers Trading Company can instantly begin evaluating its existing brand image from the consumer's perspective. As noted in the second section of this study, the organization has built a distinct brand despite the fact that it did not devote resources to addressing this marketing tool. Currently, it is crucial to assess the product and highlight the aspects that buyers value most. Short-term objectives include addressing the important positive components of the brand's image that consumers already connect with Farmer's Trading Company. This should be accomplished by emphasizing the qualities that buyers already acknowledge.
Long-term, Farmers Trading Company should concentrate on implementing its brand management plan across all of its 59 outlets and consider reconsidering its distribution strategy in light of Millennials' demand. This population values internet accessibility and ease, and an online business may accommodate these desires. Furthermore, Farmer's Trading Company must have a social media presence in order to draw this demographic to its physical locations. As a response to crises such as bad media representation or product defects, the company should develop a strategy for interacting with its customers. This will aid in preparing for unfavorable situations and preserving the company's reputation, since the staff responsible for branding will engage with consumers and handle any problems. Such a strategy will aid in establishing Farmers Trading Company as a responsible organization.
The aforementioned proposals take into account Farmers Trading Company's particulars, such as the time, resources, and budget required to accomplish each of the initiatives. The majority of the proposals, with the exception of the online store, may be implemented by existing marketing department staff. The proposals contain immediate, short-term, and long-term solutions, which facilitates forward planning.
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