Title and Content

109 207 246 Dark 1 255 255 255 Light 1 131 56 155 Dark 2 0 99 190 Light 2 85 165 28 Accent 1 214 73 42 Accent 2

185 175 164 Accent 3

151 75 7 Accent 4

193 187 0 Accent 5

255 221 62 Accent 6

255 255 255 Hyperlink

236 137 29 Followed Hyperlink

Chapter 2: Advertising Management in 255 Retail 127 203 179 212 255
175 221 215 238 149 197 195 223 242 171 249 213

Certificate inTata Blue 25% Purple 50Retail 25 % Yellow 50 % Yellow 25 % Stratergic % Purple Management Tata Blue 50%
TCS Business Domain Academy 205 241 213
186 Brown 50 % 235 Brown 25 % 154 Green 50 % 229 248 180 214 231 200 Green 25 % 241 240 202 251 251 241

Light Green 50% Light Green 25%

Topics covered
Introduction Features of advertising Objectives and functions of advertising Types of advertising Types of retail advertising Advertising techniques in retail Role of advertising in retail Advertising management process Determining advertising budget Integrated marketing communication

Learning objectives
What are features of advertising Different objectives and features of advertising Types of advertising Different advertising techniques Role of advertising in retail Advertising management process How budget is determined in advertising Integrated marketing communication.

Introduction
Planned Advertising process involves one year of planning, budgeting, marketing, creative, printing, distribution which involves coordination between various departments and the manual activities. Advertising is nothing but a paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor with a view to disseminate information concerning an idea, product or service.

Features Of Advertising
Paid form: All forms of advertisings are paid forms and the mode and medium of payment depends on the channel used for communication. Non Personal: There is no face to face communication taking place in advertisements, they use a mass transmission medium like TV, Radio etc to communicate to its customers Identified Sponsor: Sponsor of an advertisement is the advertiser who is trying to sell his product or service. An advertisement should be able to convey the identity of the sponsor and also the product. Mass communication: An advertisement generally uses mediums which communicate to a large group of people example TV, Radio etc.

Types Of Advertising
Institutional advertising Product Advertising

Pioneering advertising Competitive advertising Reminder advertising Customer advertising Business to business advertising Commercial and non commercial advertising

Retail Advertising
A retail advertisement is oriented towards highlighting the price, features, availability of a product. Types of Retail advertising Promotional Semi-Promotional Non- promotional Assortment advertising Omnibus Advertising

Role of Advertising in Retail

To create a specific image in customers mind of the retailers products, price, quality etc. To increase short term flow of cash by way of sale, promotional offers etc. Increase the demand for a product To communicate about the store services and policies. Advertisements attract the customers into the store. They act as a catalyst in bringing the customers to the stores

Advertising Management Process

The process involving the procedure to design a campaign for selling a good or service to consumer is known as advertising management. Business Analysis/ Market Research Key word research/Pay Per click research Ad writing Media Selection Launch Monitor

Determining the Advertising Budget

There are a few methods followed by retailers in general to determine the advertising budget. Some of these methods are as listed below: The percentage of sales Competitive parity method Research Approach Incremental method

10

Integrated Marketing Communication

As defined by the American Association of Advertising Agencies Integrated marketing communications "recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines advertising, public relations, personal selling, and sales promotion and combines them to provide clarity, consistency, and maximum communication impact.

11

Please mail feedback to domain.academy@tcs.com

Thank you TCS Business Domain Academy

Chapter -1 Retail Brand Management V1.0, Jan 2013

For Associates

Certificate in Strategic Retail Management

TCS Business Domain Academy

Confidentiality statement

This document should not be carried outside the physical and virtual boundaries of TCS and its client work locations. The sharing of this document with any person other than TCSer would tantamount to violation of confidentiality agreement signed by you while joining TCS.

Page 2 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

Chapter - 1
Introduction

Retail Branding Management

This Chapter gives an idea about how branding over years have been emerged, how retail brands and product brands vary, how branding strategies are applied in retail sector. This chapter gives a detail explanation of Retail branding strategic management and different strategies used in it. It also gives the idea of architecture of retail brands, dimensions in retail branding and a brief description of what is Brand assortment, retail brand equity and brand extension.

Learning Objectives: After reading this chapter you will be able to know: What is Retail Branding Retail Branding strategic management Architecture of Branding Dimensions in Branding Brand equity Brand assortment Brand extension Retail co-branding Brand promotion techniques Sales Promotion Techniques

Page 3 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

Contents 1.1 Overview...................................................................................................................... 5 1.2 Retail Strategic Branding Management ....................................................................... 5 1.2.1 The Product Brand Strategy............................................................................... 5 1.2.2 The Line Brand Strategy .......................................................................................6 1.2.3 The Range Brand Strategy ....................................................................................6 1.2.4 Umbrella brand strategy ....................................................................................... 7 1.2.5 Source Brand Strategy .......................................................................................... 7 1.2.6 Endorsing Brand Strategy .....................................................................................8 1.3 Retail brand architecture .............................................................................................8 1.4 Dimensions of retailer image .......................................................................................9 1.4.1 Location/ Access ...................................................................................................9 1.4.2 Store atmosphere .................................................................................................9 1.4.3 price and promotion ............................................................................................ 10 1.4.4. Cross-category assortment ................................................................................ 10 1.4.5 Within-category assortment ............................................................................... 10 1.5 Retail Brand Equity .................................................................................................... 10 1.6 Brand Assortment ..................................................................................................... 10 1.6.1 Private label branding strategy ........................................................................... 11 1.7 Brand Extension ......................................................................................................... 11 1.8 Retail co-branding ..................................................................................................... 11 1.9 Brand promotion techniques ..................................................................................... 12 1.10 Consumer sales promotion techniques .................................................................... 12 1.11 Direct marketing ...................................................................................................... 12

Page 4 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

1.1 Overview Branding over the years has emerged as a firms most valued intangible asset. Due to the growing competition in this industry branding has become a top priority for the management in the retailing industry. Retail brands though share a lot of similarities with product brand they are quite different when it comes to the application of the branding principles. Retail brands are more sensory in nature and tend to create an image customers minds in a different ways by unique associations with the quality of their service, their product assortment and merchandising policies etc. The Following is American Marketing Associations definition of a brand, a retail brand identifies the goods and services of a retailer and differentiates them from those of competitors. A retailers brand equity is exhibited in consumers responding more favorably to its marketing actions than they do to competing retailers. Over the last decade there has been a lot of change in the retail industry globally there has been a substantial increase in promotion of private labels. There is also an immense growth in the discount stores which has put a lot of pressure on retailers. A large part of retailers sales comes from manufacturers brand which are also available with the competitors hence it has become important for the retailers to build their own brand. Manufacturer brands for most retailers operate agents to generate consumer interest and build the brand equity of the store. Such equity helps them against the competing retailers which results in

increasing their revenues and profitability. 1.2 Retail Strategic Branding Management

There are six strategic models adopted by companies for management of retail brands. Each of these models assigns different role and status for its brand.
1.2.1

The product brand The line brand The range brand The umbrella brand The source brand The endorsing brand
The Product Brand Strategy

As known Brand is a combination of a word, object, color, logo, emblem, packaging and design at a time. In Product strategy each product is assigned a unique name and positioning irrespective of its parent brand. As a result each product owns a unique identity
Page 5 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

and the parent company results in having a portfolio of products each with their own brand identity. Example this brand strategy can be found in case of Procter & Gamble the company isrepresented in the Indian market by detergent like Ariel, and in the soaps market by Camay. 1.2.2 The Line Brand Strategy In this strategy the parent brand introduces a coherent product by proposing a brand name and expands by introducing complementary products. Example: as in the case of Calgon (a Benckiser brand) which markets a dishwasher power together with a rinsing agent and lime scaling inhibitor. Though theseproducts are totally different form the producer point it makes no difference to the consumers, who perceive them as related. The trick here is to stay close to the primary product and exploitation on the success of the primary brand. The following are some advantages of this strategy: It reduces the cost of launching It results in distribution of sales along the extensions

The biggest disadvantage of this strategy though is that the innovation gets limited. 1.2.3 The Range Brand Strategy This strategy is mostly found in food and cosmetic brands here all the products under the parent brand follow a single theme and have similar concept. Example all products of Dove are related to personal hygiene and cater to the same segment. Here Dove is the brand and personal hygiene is the theme followed.

Fig 1.1 Retail brand

The advantage of Range Strategy is that it avoids the random external communications by focusing on a singe name. This helps in creating a brand capital for itself which can even be shared by other products.

Page 6 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

1.2.4 Umbrella Brand Strategy Umbrella Brand strategy is where in the parent brand produces several products in different segments of the markets and each of these develop their own advertising and communication concepts under a single brand name. Each of them acts individually and yet retain brand name. Example of such strategy is Canon which markets cameras, photocopying machine and other office equipment under the same brand name.

Fig: 1.2 Umbrella branding

1.2.5 Source Brand Strategy This strategy is similar to umbrella brand strategy the only difference being that each of the products has their own name and are not addressed by a generic name brand name. Example in this case are clinic plus, lakme, dove, pond`s etc are all different brands under HUL and each of them have their own brandimage.

Fig1.3. Source branding

Page 7 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

1.2.6 Endorsing Brand Strategy Consider famous automobile manufacturers such as Honda, Hyundai everyone easily recognizes them. We notice that next to theirlogos and theirindependent names we always see the brand name. Example: Honda City, Honda Civic etc. This strategy followed is known as endorsing brand strategy.

Fig1.4. Endorsing Branding

1.3

Retail Brand Architecture

Brand architecture of an organization can be defined as a systematic way of organizing the identity of the different products, messages, or elements of an organization so that stake holders both within and outside of the organization understand how its clients or customers are being served. The biggest advantage of brand architecture is that it helps in increasing the equity of an existing brand. Brand architecture plays a dual role of: Improving brand awareness by giving a clear idea of the product and services offered to the consumers. Building the brand image of the products and services.

Few other advantages of brand architecture are: Architecture of a brand when considered as a part of branding strategy helps in effective communication of a brands strategy. It helps a brand in effective promotion either through direct retail experience or through other forms. For instance, when we are exposed to Volvo, we think of safety.

Page 8 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

The biggest challenge though for the smaller brands is to differentiate from the clutter, and create a differentiating brand image to sell. On contrary visibility is rarely a problem for larger brands with large shelf space, such as Tide, Colgate, Surf, Nirma,Knor soup, Priya pickles, MTR etc. The challenge that these brands face is of showcasing all their offerings in a way that facilitates maximum sales and profitability. It is pretty evident that some retailers have performed better than the others understanding how this can be done a retailer should know how to position his brand and how to relate his brand assortment with its image. The Topics below give a brief about the same: 1.4 Dimensions of Retailer Image Following the American Marketing Associations definition of a brand, a retail brand identifies the goods and services of a retailer and differentiates them from those of competitors. Retailers Brand equity can be discovered in a market where the consumers respond more favorably to a brand compared to its competitors. Researchers have found that there are five main parameters which affect the brand image of a retailer namely: 1) Location/ access, 2) in-store atmosphere, 3) price & promotion, 4) cross-category product/service assortment and 5) within-category brand/item assortment.
1.4.1 Location/ Access

The distance a consumer has to travel to shop plays an important role in choice of the store. Consumer decides the store depending on his need for example small basket, fill-in trips are very unlikely to be made to distant. Hence location is one of the key components in consumers assessment of choice of store and is important for retailers who wish to get a substantial share of wallet from fill-in trips and small basket shoppers. 1.4.2 Store Atmosphere Mehrabian and Russell (1974) from their research found out that there are three main parametersin retail atmospheres that arouse response from consumers pleasantness, arousal, and dominance. A pleasing stores atmosphere always appeals consumers to purchase more often, stay longer and also improves consumers perceptions on that store. An appealing in-store atmosphere always has a greater potential from a branding perspective in terms of crafting a unique store image and establishing differentiation.

Page 9 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

1.4.3 Price and Promotion Pricing and promotion is another important parameter which the consumers consider as a parameter in building store image. It is more likely that they develop a favorable image if the discounts offered are more frequent on large number of products rather than steep discounts on less number of products. The effect of pricing and promotions is indirect it encourages consumers in store switching. 1.4.4. Cross-category Assortment An assortment of a retailer is what pulls the customer to the store. A broad assortment can lure customer by offering convenience and ease of shopping. On the other hand too much of extension too far too soon may create an unnecessary burden on the retailer but, staying too tightly coupled to the current assortment and image may unnecessarily limit the retailers range of experimentation. The retail assortment policy is critical to successfully appeal to its target customer base and to expand over time. 1.4.5 Within-category Assortment Greater number of SKU s not always increase the satisfaction level of customers retailers can actually reduce the number of SKUs and still create a positive brand image in consumers perception .Retailers must carefully reduce the number of SKU s without creating much of an impact on consumers perception. As long as the brands they pay attention to in the assortment of the organization are available image of a store will not change. 1.5 Retail Brand Equity Brand equity is defined as the marketing effects or outcomes that accrue to the product or service with its brand name as compared to the outcomes if that same product or service did not have the brand name.
(Source: http://wiki.answers.com)

Measuring brand equity has been one of the most importantissues for both academics and managers. 1.6 Brand Assortment Brand assortment over the years has become an important assortment strategy for retailers to pull consumers and develop a brand image. As Most of the retailers carry manufacturer brands the brands they carry create an image for the retailer but of late,many of them are also offering their private label products. The motivation behind offering private labels is that the percentage of margins is higher to retailers. Secondly the negotiating influence
Page 10 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

they provide over manufacturers;and a third being an implicit assumption that a private label brand enhances loyaltyto the retailer 1.6.1Private Label Branding Strategy Private brands are products that are controlled and marketed by retailers. Frequently, but not always, these products carry the retailer's own name as the brand. Private brands are also known as corporate brand, store brands, own brand, and retailer brands.
(Source: http://www.daymon.com)

Many retailers tend to give their own name to their private label; whereas others use differentnames Example CVS puts the CVS name on all its private label products whereas Kmart does not. There is a high probability that the Consumer perceptions of a private label product under the store are likely to create an impression on the whole store and vice-versa. Yet, the different inherent qualities of a retail store and its products suggest that the flow of meaning and equity may not always be strong. In other words, consumers may be able to mentally compartmentalize product offerings as distinct from retailing activities such that, even if they deemed a particular store brand product as unacceptable, they may be less inclined to downgrade their evaluations of the retailer as a whole. If the retailer chooses not to use the store name for private label products, the feedback effects, both positive and negative, would presumably be less strong. 1.7 Brand Extension Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organizations use this strategy to increase and leverage brand equity. Brands are the prime barrier to entry into most categories.Many companies could make a cola, but only Coca-Cola owns that brand. As a result, well known existing brand names can be the way for a company to enter a new category that otherwise would be impossible.

(Brand equity definition: the net worth and long-term sustainability just from the renowned name) 1.8 Retail Co-branding Co-branding involves combining two brands to create a single product or offering. Itembraces a collaborative venture to further the interests of two or more organizations in aplanned, strategic format.

Page 11 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

Retail co-branding is dominated by businesses that provide convenience benefits to Consumers, for example: fast food franchises teaming up with service stations (fuel retail)and grocery stores, as demonstrated by McDonalds and Hungry Jacks with Shell and BP. 1.9 Brand Promotion Techniques Personal selling, Advertisement, Sales promotion and Publicity are considered to the elements of promotion mix; let it be a product or brand. In all these cases what is underlying is the message and marketing communication that will convince, attract, and generate interest. The very store location, formats, category display, web-services, ambience ,availability trained sales counter personnel, facilities of space, shopping cart, payment facilities etc all can contribute to the promotion of different brands in the store. The very retailer store itself is a brand by itself. The sales promotion techniques employed in a store can end up in excellent viral marketing. 1.10 Consumer Sales Promotion Techniques Price Deal: A temporary reduction in the price, such as happy hour. Loyalty rewards program: Consumers collect points, miles, or credits for purchases andredeem them for rewards. Two famous examples are Pepsi Stuff and Advantage. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentagemarked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulateother profitable sales. 1.11 Direct Marketing Among the trends that have made direct marketing more attractive to buyers are timeconstraints and congestion. Sellers, meanwhile, like directmarketing because of low access costs and databases, which allow precise targeting. Benefits of direct marketing Direct marketing allows in building a qualified and potential database for a business Direct marketing allows to develop an effective and responsive feedback system
Page 12 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

It is easy to measure results because it is easy to know exactly how many people have contacted in the first place and what are their requirements.

Page 13 of 14

Page 14 of 14

Chapter-2 Advertising Management in Retail V1.0, Jan 2013

For Associates

Page 1 of 14

Confidentiality statement This document should not be carried outside the physical and virtual boundaries of TCS and its client work locations. The sharing of this document with any person other than TCSer would tantamount to violation of confidentiality agreement signed by you while joining TCS.

Certificate in Strategic Retail Management

TCS Business Domain Academy

Chapter 2- Advertising Management in Retail

Introduction

This chapter gives brief description of about what is advertisement management and how is it used on retail sector. This chapter also describes what different features of advertising, objectives and functions of advertising.It also includes todays growing new fields of the Internet, digital, TV, Radio and much more, how advertisement helps in success of a business. This chapter focus light on what are different types of retail advertising, what are different techniques used in advertising, what is the role played by advertising in retail sector. It also explains process of advertisement management how the budget is determined in advertisement management.

Learning objectives

Through this chapter you will be able to know

What are features of advertising Different objectives and features of advertising Types of advertising Different advertising techniques Role of advertising in retail Advertising management process How budget is determined in advertising Integrated marketing communication.

Page 3 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

Contents

2.1 Overview ............................................................................................................... 5 2.2 Features of advertising .......................................................................................... 6 2.3 Objectives & Functions of advertising ................................................................... 6 2.4 Types of advertising .............................................................................................. 7 2.4.1 Classification based on purpose ..................................................................... 7 2.4.2 Classification based on customers ................................................................. 8 2.4.3 Classification Based on objective ................................................................... 8 2.6 Types of Retail advertising .................................................................................... 8 2.7 Advertising Techniques in retail ............................................................................ 9 2.8 Role of Advertising in Retail ................................................................................ 10 2.9 Advertising management process ....................................................................... 10 2.10 Determining the advertising budget.................................................................... 12 2.11 Integrated marketing communication ................................................................. 13 2.11.1 Advantages of IMC ...................................................................................... 13

Page 4 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

2.1 Overview

Over the last few years, advertising has undergone many changes and today its about people, products, services, education, information, and change. It also includes todays growing new fields of the Internet, digital, TV, Radio and much more. Planned Advertising process involves one year of planning, budgeting, marketing, creative, printing, distribution which involves coordination between various departments and the manual activities. However in the modern world, face of advertising is changing rapidly and so the advertising planning by the retailers. Retailers are now exploring the new advertising channels and how to integrate these with the existing planned advertising processes.

Definition

Advertising is a form of communication for marketing and used to encourage or persuade an audience to continue or take some new action.Advertising is nothing but a paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor with a view to disseminate information concerning an idea, product or service.
(Source:http://en.wikipedia.org/wiki)

(Source: http://www.marketified.com/internet-marketing-services)

Fig 2.1 Advertisement management components

Page 5 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

As given the above definition focuses on 3 main aspects of advertising:

Advertising is a paid form of communication used by the firm to convey messages to its customers.

It is a type of mass communication which can be both verbal and non-verbal and needs a channel to transmit the information from sender to receiver.

Its main purpose is to help a firm sell its products and convey information of the customers.

2.2 Features of Advertising 1) Paid form: All forms of advertisings are paid forms and the mode and medium of

payment depends on the channel used for communication. Example: TV advertisements are paid on basis of the span of the advertisements where as magazine ads are paid based on the space occupied. 2) Non Personal: There is no face to face communication taking place in advertisements, they use a mass transmission medium like TV, Radio etc to communicate to its customers. The drawback of this form of communication is that it is difficult to understand audiences reaction. 3) Identified Sponsor: Sponsor of an advertisement is the advertiser who is trying to sell his product or service. An advertisement should be able to convey the identity of the sponsor and also the product. If the advertisement does not communicate about either of the two then it cannot be called as an advertisement. 4) Any form : An advertisement can be of any form TV, radio, banners, print etc 5) Mass communication: An advertisement generally uses mediums which communicate to a large group of people example TV, Radio etc. It can simultaneously communicate with a large audience without any personalisation. 6) Speedy way of communication: It is the fastest mode of communication as information can be passed to a major segment of target customer at a time. 7) Can be used by any type of organisation: An advertisement can be used by any type of organisation be it a commercial, charitable, government etc. It can provide services to any kind of organisation.
2.3 Objectives & Functions of Advertising

For the success of a business advertising plays an important and essential role. Advertising does not imply selling but it is amedium which increases sales. It helps the products to reach

Page 6 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

the larger markets and create awareness among people. The following are the main objectives of advertising: Introduction to market

Advertising helps in preparing a ground for introduction of new product into the market prior to its launch.

Creation of Demand

Advertising helps in creating a favourable climate for the product by reminding the customers about the product and its brand and thereby improving its sale.

Face the competition

Advertisements also help a brand to build up its brand image with an objective toface competition and improve customer loyalty towards the product.

Facilitate communication with the customers

Communicating about changes made in prices or in product in any way to improve its quality, packaging etc can be informed to customers through advertisements.

Restricting new entrants

A strongly built image helps in creating a certain kind of monopoly for a product which helps in keeping the new entrants away. Through long and study advertising a strong image is built up for the products to keep new entrants away.

2.4 Types of Advertising

Advertising is classified into many types based on various factors like the channel used for communication, the purpose of advertisement, the customer segment targeted etc. Few of them are as given below:
2.4.1 Classification Based on Purpose

Institutional advertising: The main objective of this type of advertising is to increase the

goodwill of the organisation rather than try to sell the product. This advertising is mainly aimed to enhance supplier, customer, and distributor relationship with the company. Generally large organisations try to link this type of advertising to their products to create positive impact in minds of their customers.
Product Advertising: its main aim is to sell product to either end customer or potential

distributor. They are further classified as pioneering, competitive and reminder.

Pioneering advertising: this type of advertising concentrates more on selling the products rather than improving the sales of the brand. This kind of advertising is
Page 7 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

most useful in early stages of the product introduction to give information of the product to the customers.

Competitive advertising: this advertising comes into play after the product has been introduced and is trying to differentiate itself from the competitors products. The basis for advertising is to develop a specific demand for a particular manufacturers` product above its competitors.

Reminder advertising: In this type of advertising strategy the concentration is on reminding the customer of the product rather than trying to sell the product. It is used when the product is already well established in the market and advertisements are required only for maintenance of the position.

2.4.2

Classification Based on Customers

Customer advertising: This includes selling of product or service to people for their own or

for someone else use.

Business to business advertising: organisations selling products or services to another

business rather than end customer use this advertising strategy. The concentration here is to sell the products to mass consumer market rather than individual customer.
2.4.3

Classification Based on Objective

Commercial and non commercial advertising: Main purpose of commercial advertising is to obtain profit on the other hand non commercial advertising is used by government organisations, NGO and other service organisations who seek donations and support.
2.5 Retail Advertising

The basic difference between retail advertising and consumer advertising is that a retail advertisement is oriented more towards highlighting the price, availability of a product where as consumer advertising is generally feature and benefit oriented.
2.6 Types of Retail Advertising Retail advertising is quite different from the consumer product advertising. There are 5

different categories of retail advertising they are:

Promotional: The emphasis is on the promotion of sale and aim is to encourage high volume purchases. Example: Stores like K-mart use this type of advertising.

Page 8 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

Semi-Promotional: Here the sale products are mixed together with the items which are not in sale. Example: This strategy is used in supermarkets, departmental stores etc.

Non- promotional Advertising: In these ads the emphasis is on the features like quality etc

Many small and specialty store use this type of strategy. Assortment advertising: In this type of advertising the emphasis is on the store and the products available in a store.

Omnibus Advertising: These ads are sale oriented and feature related items or a variety of nonrelated items from several departments.

2.7 Advertising Techniques in Retail

Old advertising methods/campaign still dominating the retail advertising market, however new advertising techniques are becoming popular day-by-day. Since the evolution of Broadband internet, high speed cable, satellite and technological advancement, new adverting techniques are becoming increasingly popular in the internet user customer segment. Study shows that more and more customers are showing interest in new advertising methods retailers using nowadays.

(Source: Forrester) Fig 2.2.Percentage of who pays attention to each type of ads

Page 9 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

(Source: Forrester) Fig 2.3 Statistics advertising in retail

2.8 Role of Advertising in Retail Advertising plays an important role in any retailers marketing strategy. The primary

purpose of advertising is to inform customers about retailers merchandise, services. There are many other objectives for which a retailer may use advertising .Given below are few of them:

To create a specific image in customers mind of the retailers products, price, quality etc.

To increase short term flow of cash by way of sale, promotional offers etc. Increase the demand for a product To communicate about the store services and policies. Advertisements attract the customers into the store. They act as a catalyst in bringing the customers to the stores.

2.9 Advertising Management Process

The process involving the procedure to design a campaign for selling a good or service to consumer is known as advertising management. The process begins with carrying out a market research that helps in developing an outline for the advertising campaign. This campaign is then rolled out with a specific plan of action.
Page 10 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

Fig 2.4.Advertising management process

Business Analysis/ Market Research:

In order to identify the consumer market which the retailer plans to serve market research is important. It also helps in understanding what appeals to the particular market and who are the potential competitors in this market. This step also helps in finding out the availability of resources needed in the process.
Key word research/Pay Per click research:

Linking all the keywords or phrases to most commonly used searches online will help to maximize the pay per click advertising of a product or service. An extensive survey is done to group all those key words and phrases that will provide maximum returns.
Ad writing

This phase involves the process of deciding how to apply the data collected during research stage. Here the selection of themessage. Depending on the product requirements and the markets it is planning to serve the message of advertising is decided. The content if the advertisement should appeal to the target consumer.
Media Selection

Once the content and the target marketsare identified there is a need for selection of appropriate medium of advertising. This may involve selecting elements from various forms of advertising to find the most appropriate campaign.
Page 11 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

A retailer may use any of the following: development of print ads for use in magazines and newspapers, audio campaigns for radio advertising, or commercials appropriate for television broadcast or streaming across the Internet or a combination of all of these strategies to create a unified image among the consumers.
Launch

After the developing of an appropriate advertisement campaign the retailer should identify an apt way to launch the campaign to maximize the effectiveness of the campaign. Launching a campaign that will successfully reach the right consumers will ensure to generate a desired amount of revenue over the lifetime of the campaign
Monitor

To estimate the effectiveness of the campaign thus launched it is necessary to monitor the performance. A few indicators like increase in the sale percentage after the advertising campaign has been launched increase in the revenue after the ads have featured etc have to be measured on regular basis to find the effectiveness of the campaign.
2.10 Determining the Advertising Budget

There are a few methods followed by retailers in general to determine the advertising budget. Some of these methods are as listed below 1. The percentage of sales: In this method the advertising budget is fixed as a percentage of their sales. This is the most common and simplest of all the methods used but the disadvantage with this method is that it takes a very little consideration of the market conditions. 2. Competitive parity method: The basis for fixing the budget here is the estimated competitors budget. The biggest disadvantage with this method is that the information about competitors could be wrong and there is no consideration of the market conditions. 3. Research Approach: Here the retailer defines the goals, and the tasks required to achieve these goals. Then cost of each of these tasks is estimated.A sum total of all these tasks gives the total of the advertising budget. 4. Incremental method: The budget here is based on the previous years budget.

Page 12 of 14

Certificate in Strategic Retail Management

TCS Business Domain Academy

2.11

Integrated Marketing Communication

The increase in choices available to customers and stiff competition from other retailers has given way to a more evolved form of advertising called integrated marketing communication.As defined by the American Association of Advertising Agencies Integrated marketing communications "recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines advertising, public relations, personal selling, and sales promotion and combines them to provide clarity, consistency, and maximum communication impact. The bottom line being different components of advertising like sales promotion, public relation and direct marketing shouldworktogether to deliver same message to the target consumer. Communications and social media working together as a unified force, rather than each of them work in isolation maximizes their cost effectiveness. Unlike in general marketing mix of 4P`s (Product, Price, Place, Promotion) integrated marketing communication uses 4C`s (Consumer, Cost, Convenience, Communication).The increase in use technology enables retailers to access their audience better using database technology. This in turn helps in understanding the target market better.
2.11.1 Advantages of IMC

1. It can create competitive advantage, boost sales and profits at the same time. 2. Integrated Marketing Communication consolidates the organizations image for the customers and helps them move through the various stages of the buying process. 3. Integrated Marketing Communication enhances Relationship Marketing' and it cements a bond of loyalty with customers which can prevent them from brand switching the 4. IntegratedMarketing Communication also increases profits through increased effectiveness 5. Carefully planned sequence of, when presented, helps the consumers move comfortably through the stages of their buying process 6. IMC saves a lot of money as it maintains consistency in areas such as graphics and photography since they can be shared and used.

Page 13 of 14

Page 14 of 14

Title and Content

109 207 246 Dark 1 255 255 255 Light 1 131 56 155 Dark 2 0 99 190 Light 2 85 165 28 Accent 1 214 73 42 Accent 2

185 175 164 Accent 3

151 75 7 Accent 4

193 187 0 Accent 5

255 221 62 Accent 6

255 255 255 Hyperlink

236 137 29 Followed Hyperlink

Chapter 1: Retail Branding

127 175 221 203 215 238 179 149 197 212 195 223

255 242 171

255 249 213 Yellow 25 %

Certificate in Tata Blue 25% Purple 50 % Purple 25 % Yellow 50 % Strategic Retail Management Tata Blue 50%
TCS Business Domain Academy
Brown 50 % Brown 25 % Green 50 % 229 205 186 248 241 235 180 213 154 214 231 200 Green 25 % 241 240 202

251 251 241

Light Green 50% Light Green 25%

Learning Objectives
What is Retail Branding Retail Branding strategic management Architecture of Branding Dimensions in Branding Brand equity Brand assortment Brand extension Retail co-branding Brand promotion techniques Sales Promotion Techniques

Topics Covered
Introduction Retail branding strategic management Retail brand architecture Dimensions of retailer image\ Retail brand equity Brand assortment Brand extension Retail co-branding Brand promotion techniques Consumer sales promotion techniques Direct marketing

Introduction
Retail brands though share a lot of similarities with product brand they are quite different when it comes to the application of the branding principles. Retail brands are more sensory in nature and tend to create an image customers minds in a different ways by unique associations with the quality of their service, their product assortment and merchandising policies etc.

Retail Branding and Strategic Management

There are six strategic models adopted by companies for management of retail brands. Each of these models assigns different role and status for its brand. The product brand The line brand The range brand The umbrella brand The source brand The endorsing brand

Brand Stratergies
The Product Brand Strategy As known Brand is a combination of a word, object, color, logo, emblem, packaging and design at a time. In Product strategy each product is assigned a unique name and positioning irrespective of its parent brand. The Line Brand Strategy In this strategy the parent brand introduces a coherent product by proposing a brand name and expands by introducing complementary products The Range Brand Strategy This strategy is mostly found in food and cosmetic brands here all the products under the parent brand follow a single theme and have similar concept.

Umbrella brand strategy Umbrella Brand strategy is where in the parent brand produces several products in different segments of the markets and each of these develop their own advertising and communication concepts under a single brand name. Source Brand Strategy This strategy is similar to umbrella brand strategy the only difference being that each of the products has their own name and are not addressed by a generic name brand name. Endorsing Brand Strategy Consider famous automobile manufacturers such as Honda, Hyundai everyone easily recognizes them. We notice that next to their logos and their independent names we always see the brand name

Retail Brand Architecture

Brand architecture plays a dual role of: Improving brand awareness by giving a clear idea of the product and services offered to the consumers. Building the brand image of the products and services. Few other advantages of brand architecture are: Architecture of a brand when considered as a part of branding strategy helps in effective communication of a brands strategy. It helps a brand in effective promotion either through direct retail experience or through other forms.

Dimensions of Retailer image

Researchers have found that there are five main parameters which affect the brand image of a retailer namely: 1)Location/ access, 2) In-store atmosphere, 3) Price & promotion, 4) Cross-category product/service assortment and 5) Within-category brand/item assortment. Location/ Access
The distance a consumer has to travel to shop plays an important role in choice of the store. Consumer decides the store depending on his need for example small basket, fill-in trips are very unlikely to be made to distant

Parameters Effecting Retailers Image

STORE ATMOSPHERE Mehrabian and Russell (1974) from their research found out that there are three main parameters in retail atmosphere that arouse response from consumers pleasantness, arousal, and dominance. A pleasing stores atmosphere always appeals consumers to purchase more often PRICE AND PROMOTION It is more likely that they develop a favorable image if the discounts offered are more frequent on large number of products rather than steep discounts on less number of products. CROSS-CATEGORY ASSORTMENT An assortment of a retailer is what pulls the customer to the store. A broad assortment can lure customer by offering convenience and ease of shopping. Within-category assortment Greater number of SKU s not always increase the satisfaction level of customers retailers can actually reduce the number of SKUs and still create a positive brand image in consumers perception.

10

Retail Brand Equity

Brand equity is defined as the marketing effects or outcomes that accrue to the product or service with its brand name as compared to the outcomes if that same product or service did not have the brand name.

11

Brand Assortment
Brand assortment over the years has become an important assortment strategy for retailers to pull consumers and develop a brand image. As Most of the retailers carry manufacturer brands the brands they carry create an image for the retailer but of late, many of them are also offering their private label products. Private label branding strategy Private brands are products that are controlled and marketed by retailers. Frequently, but not always, these products carry the retailer's own name as the brand. Private brands are also known as corporate brand, store brands, own brand, and retailer brands.

12

BRAND EXTENSION Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. RETAIL COBRANDING Co-branding involves combining two brands to create a single product or offering. It embraces a collaborative venture to further the interests of two or more organizations in a planned, strategic format. BRAND PROMOTION TECHNIQUES Personal selling, Advertisement, Sales promotion and Publicity are considered to the elements of promotion mix; let it be a product or brand. In all these cases what is underlying is the message and marketing communication that will convince, attract, generate interest.

13

Consumer Sales Promotion Techniques

Price Deal: A temporary reduction in the price, such as happy hour. Loyalty rewards program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales.

14

Direct Marketing
Among the trends that have made direct marketing more attractive to buyers are time constraints and congestion. Sellers, meanwhile, like direct marketing because of low access costs and databases, which allow precise targeting.

15

Please mail feedback to domain.academy@tcs.com

Thank you TCS Business Domain Academy