2011

University of South Australia

Ruchi Verma
Student ID : 110070274

JOURNAL ENTRY 03 - HOW DO PRODUCT AND PRICING

WORK TOGETHER TO GENERATE A STRONG BRAND FOR A
RETAILER?
The document talks about Brand Image and Positioning with help of an example – Levi’s St & Co.
[JOURNAL ENTRY 03 - HOW DO PRODUCT AND PRICING WORK TOGETHER TO GENERATE A
STRONG BRAND FOR A RETAILER?] May 15, 2011

What is a brand?
Literature gives several definitions of the term “Brand”. The common themes are that a brand is
more than just a combination of a name, a design, a symbol or other features that differentiate a
good or a service from others (Dibb, 1997). It is a unique set of tangible and intangible added values
that are perceived and valued by the customer. In addition a brand is said to have personality, an
emotional bond to the customer that grows out of the perceived characteristics. (Court 1997, de
Chernatony 1996, King 1991, Murphy 1990, McDowell Mudambi 1997, Biel 1990) (Recklies, Oct
2000).

Certain features of a brand grow out of a complex set of added values that can comprise of history
and tradition, additional services, marketing messages, quality, popularity of the product amongst a
certain group of users (status). A “Strong Brand” cannot be established over night. Strong financial
marketing muscle and good marketing skills (Figure 1) are must to have (Court 1997). Without this
process you do not have a brand but only a name and a sign for a product (Recklies, Oct 2000).

Figure 1 : Characteristics of Strong Brand

To further explain my stand, I will take the example - Levi Strauss – one of the premium players in
the apparel retail segment operating, globally.

Background
The company was founded by Levi Strauss in 1853 primarily selling wholesale dry goods. A tailor
named Jacob Davis thought of using copper rivets to reinforce the points of strain on pants. The
innovation of the rivets in the jeans differentiated Levi’s jeans from others because of its increased
durability. Patent of the rivets in jeans, helped the company achieved monopoly power in the
market. Over the years, Levi’s jeans became more popular, Jean products expanded, targeting
different consumers. Product differentiation and barriers to entry allowed the company to gain
more popularity and market share (Berkeley).

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Requirement of Strong Brands:

Good Brand Image, well defined Target Market and Market mix of a brand lead to a strong
brand (Figure 2).

Figure 2 : Requirements of a Strong Brand Figure 3: Levis - Target Market

Targeting: Identification of target market, (Armstrong, 2004), - set of buyers who share common
needs or characteristics that the company decides to serve. The decision of selecting target
segments can be assessed by looking at market factors, competitive factors, and political, social, and
environmental factors (D, 1995).

Brand Image: Perception of the brand by the consumer – The way a consumer relates to a brand.
Brands can have various product lines to have a larger target market but a constant image. It reflects
the values of a brand.

Figure 4 : Change in Brand Image – Levis

University of South Australia | Requirement of Strong Brands: 3

[JOURNAL ENTRY 03 - HOW DO PRODUCT AND PRICING WORK TOGETHER TO GENERATE A
STRONG BRAND FOR A RETAILER?] May 15, 2011

Market Positioning: Product and Pricing:

Figure 5 : Marketing Mix - Description of only Product and Price

Products are usually considered to be the No.1 factor contributing towards building goodwill of a
brand. Product needs to be build with a unique value or unique competitive advantage to have a
strong market position. Product attributes like packaging, warranties, new functionality, new
advertising campaign or sales promotion can lead to differentiation.

Product Differentiation makes a product more attractive by contrasting its unique qualities with
other competing products. It is aided by new product development strategies – introduction of new
product lines (for example).

Figure 6 : Perceptual Map of Levis product lines (Charles W. Lamb).

Figure 7 : Perceptual Map - Pricing and Brand Image

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Figure 8 : Levi's - Product Differentiation, styling and brand identity.

Pricing for a buyer is 'what must be given up' for a particular product or service offered by a
manufacturer. Price and quality determines the value of the product and thus product placement in
market. For most business, it is not the number of consumers, but the kind of consumer that is the
determining factor of the price of a product or service. How a product is priced often tells consumers
what to expect. Pricing a product low might imply to the consumers that he/she will not be served
appropriately - no returns or refunds and vice versa (Product Pricing Strategies: Tips & The Product
Pricing Process).

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[JOURNAL ENTRY 03 - HOW DO PRODUCT AND PRICING WORK TOGETHER TO GENERATE A
STRONG BRAND FOR A RETAILER?] May 15, 2011

Figure 9 : Product and Pricing strategy as per geography

Conclusion:

By the analysis above, I conclude that Product and Pricing are key components of Brand Image.
Positive perception of a brand by a consumer leads to a strong brand. A good product with effective
pricing builds trust levels between distributor and consumer thus strengthening the market position
of the brand and creating loyalty. Other factors like product promotions and availability are the
supports the brand value.

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STRONG BRAND FOR A RETAILER?] May 15, 2011

Bibliography
Armstrong, K. a. (2004). Principles of Marketing. In K. a. Armstrong, Principles of Marketing 10th
Edition. New Jersey: Prentice Hall.

Berkeley. Levis - Analysis.

Charles W. Lamb, J. F. (n.d.). Market Positioning. Retrieved from Market Positioning:

http://books.google.com.au/books?id=1JftYHGC3RIC&pg=PA232&lpg=PA232&dq=Perceptual+map+
Levis+Strauss&source=bl&ots=xqx8CQB7gP&sig=slJYuZ_YMDiSkSMfltuZieoTG0c&hl=en&ei=znjPTayp
CoS-uwOsmbCiCg&sa=X&oi=book_result&ct=result&resnum=5&ved=0CDQQ6AEwBA#v=onepage&q

Co, L. S. (n.d.). Marketing Levis. Retrieved from http://www.scribd.com:

http://www.scribd.com/doc/19236242/Marketing-Levis#

D, J. (1995). Principles and Practice of Marketing. In J. D, Principles and Practice of Marketing.

London: McGraw Hill Book Company.

Dennim Tradition - Levis Jeans. (n.d.). Retrieved from Dennim Tradition - Levis Jeans:
http://denimtradition.blogspot.com/2010/10/marketing-environment.html

Dibb, S. S. (1997). Marketing Concepts. In S. S. Dibb, Marketing Concepts. Boston: Houghton Mifflin
Company.

Product Pricing Strategies: Tips & The Product Pricing Process. (n.d.). Retrieved 2007, from
http://www.morebusiness.com:
http://www.morebusiness.com/running_your_business/management/Art-Of-Pricing.brc

Recklies, D. (Oct 2000). Branding services. Managing Marketing .

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STRONG BRAND FOR A RETAILER?] May 15, 2011

JOURNAL ENTRY FEEDBACK & SELF EVALUATION FORM

Name:

Remember to include YOUR ratings in pencil for each of the criteria on the checklist in pencil
using the following scale. I will then also rate it.

5 = Excellent 4 = Good 3 = Fair 2 = Limited 1 = Poor

Criteria Rating
Responses address the issues / questions required
for each entry 5 4 3 2 1

Responses show evidence of extension beyond

description and report to include 5 4 3 2 1
analysis and interpretation
Responses link personal experiences with the
course materials 5 4 3 2 1

Responses show evidence of careful attention to

the set readings for each entry 5 4 3 2 1

Response reflect on significant issues and

concerns 5 4 3 2 1

Responses show an ability to compare and

evaluate 5 4 3 2 1

Markets Comments

Good journal. Are you having fun?

Michael

University of South Australia | <Bibliography 8