USPs and the product life cycle.

People often wonder what makes a brand different from a product. Quite simply, in marketing terms, products aren't brands. Products arc general, while brands are something quite unique. Brand identity consists of far more than the physical product itself. It includes all the psychological features that we have learnt to associate with it. Top brands form a personal relationship with consumers; they're able to make us feel more confident, more powerful, healthier, and happier. Brands are promises and people buy what they believe in.

A brand has USPs (Unique Selling Points), specific features which set it apart from its competitors. For example. Barbie was the first doll to look like a young woman, and a metal rivet was the unique feature of Levi jeans. Both brands have had numerous imitators, but generally speaking, a 'me-too' product won't achieve the success of the one it follows.

People who say you don't need to worry about your competitors couldn't be more wrong. Competent managers have to know how to position their brand in relation to the competition, in terms of factors like > price and quality of the product. Managers should relate the brand's values in a meaningful way to the consumers they have targeted. With worldwide brands this may mean changing your message from country to country, or even within one market. Coca-Cola produces a version for Japan which is sweeter than the one sold in the US. The Japanese prefer
beef with a higher fat content, so McDonald's naturally obliges. Ronald McDonald's name was even changed to Donald because the Japanese have trouble saying ‘r’.

Q The product life cycle is a familiar one in marketing. A product is launched, developed, goes through a period of growth, enters maturity, declines, and eventually dies. A top brand should go on and on if it is well managed. A brand manager is like a doctor or plastic surgeon, who can keep the brand healthy and looking fresh down the years. Brand managers must be able to identify new segments of the market, particularly when products have become mature. Coca-Cola has introduced a large number of variants to appeal to different consumers. So knowing what stage your branded product is at in this cycle may help you decide when to launch a line extension or go for a relaunch with improvements and 'added-value' features. Newer versions of cars, for instance, will come with air-conditioning as a standard feature, or they will have a facelift to modernize the look even though what's under the bonnet may stay the same.

 

7. Retail

Talking about retail we have to mention such thing as supermarkets and how they are going to work afret a couple of years.

Then, after a few years, shopping trolleys will carry a personal assistant. When customers swipe their loyalty cards a list of their last purchases will appear on a screen as a shopping list. Customers will be able to scan thebar codes on their 'buys' as they put them in their trolleys. In fifteen years time, the rows of tills with their human cashiers will have disappeared. Customers won't have to queue any more, instead they'll be checking themselves out. However, more is to come: bar codes will have been replaced by *RFID which will transmit purchase details directly to checkout points.

Fleets of supermarket vans delivering online purchases are already a familiar sight in the suburbs. Although the Internet has changed the way we buy books and DVDs, pure etailers such as Amazon.com remain relatively rarejFor larger purchases such as furniture, customers still prefer a physical shop or department store where they can inspect goods before, perhaps, ordering them online later. This 'clicks and bricks' approach has proved a successful combination for physical stores.

City centres will be left to specialist retailers and boutiques. People will go recreational shopping for clothes and other items, or when they need the expert advice only a specialist retailer can provide. Big book shops have responded to the Internet by emphasizing the leisure side of visiting their stores and offering café s and comfortable reading areas. It will become harder to see where leisure ends and shopping begins. And for many people, no shop will ever replace the charm of a large outdoor market.

 

Types of stores.

Lidar is a discount store which only stocks brands exclusive to its stores. Its small supermarkets (1, 000 square metres) only keep 500 own-label items in stock. As well as cheap prices, Lidar provides quality too. There is not much fresh produce. Queues at checkouts are long. Stores look like warehouses. No other store can beat it on price. It has opened a store every month for the past three years.

Rosco's is the market leader with over 20% of the market. It has 30, 000 items in its stores (5, 000 square metres) and carries most well-known brands. It has 400 own-name products which carry the Rosco's label. It has good value fresh produce and a meat and cheese counter. It promises that if there is one customer waiting it will open another checkout. Its loyalty card, where customers earn points every time they spend money, has been very popular.

Bellamy's carries 8, 000 own-label items but in addition has a high quality delicatessen counter for cooked meats and cheeses, and top quality fresh produce not usually found in other stores. Bellamy's ready meals are well known for their quality and high prices! It also sells fine wines and good quality cakes. For everyday goods its prices are a little higher than Rosco's. Bellamy's has ^ small city branches of 1, 000 square metres and out-of-town stores r of 3, 000 square metres.

 

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