The paper 'Radical Brand Evolution' is a great example of a Marketing Assignment. For a long time, there has been a general belief that firms should strategically position themselves in the market to tackle rising competition from emerging players. Most marketers base their reasoning on the fact that positioning creates a positive impact on brand image to the customers and stakeholders (Goodyear, 2006). Kapferer (2010) argues that large corporations, especially multinationals invest up to 15% of their annual revenues to the aspect of positioning, through offline and online advisement methods. For those firms, which have experienced reduced market niche due to lack of adequate market positioning, they have had to carry out radical rebranding exercises through advisement among other notable aspects.
This paper critically evaluates the element of radical brand evolution in Canadian Tire Retailer. Question 1 Canadian Tire is the main mass merchandiser in Canada, having annual retail sales of more than $ 6 billion in retail sales. There are approximately 500 associated stores operated by a few associates’ dealers in a relationship resembling franchising but not franchising. In the last decade, Canadian mass merchandise markets have become highly competitive with the arrival of firms such as Wal-Mart, after taking over Woolco, Zellers as well as additional pressure from category killers such as home depot among others departmental stores like the Bay and Sears (Bedbury, 2002).
In 2001, the firm appointed a new marketing manager in an effort to carry out rebranding exercises. This was a clear indication that the firm did have recognizable forms of market positioning prior to the appointment of the marketing manager. However, this does not mean that the firm did not have a strong brand name.
It is worth noting that, CTR Canadian Tire Retailer) had a strong heritage with the majority of people in the country growing up with this particular brand, as it was comfortable to them. De Chernatony (2010) indicates that the brand as an icon is one way used in describing the nature of CTR before rebranding exercises. One of the major strengths of the firm was its advertising skills, which included powerful weekly fliers with specials, as apart of the firms’ high-low promotions strategies. Constituent to the strong culture of merchandising was the assumption that CTR could have been all things, to all people.
This stands in great contrast to the usual marketing approaches of tight forms of segmentation, positioning, targeting among notable forms of marketing. De Chernatony (2010) indicates that by creating the desired cultures among its customers, firms may continue to enjoy large sales volumes despite the lack of a clear positioning strategy such as CTR. Other successful global firms, without clear portioning strategies, include ester Airlines, most of the margarine firms that have not developed unique names for their products.
Further, most consumer electronic firms generally lack proper positioning for most of their products. For instance, Samsung and Motorola phones, both run on Google Android software, thus similar properties. Similarly, Samsung Galaxy tablet and iPad have similar properties, despite the enormous success of these firms. Question 2 There is a great need for firms to build strong brand names, to tackle increased competition from emerging players in the industry. Crawford and Mathews, (2010) indicate that retailers are required to be dominant in one of the five attributes associated with the brand, which include the product, price, access, service, and product.
This way, they will be able to have a point of difference on another broad attribute as well as to be competitive on the remaining brand attributes. AMA (The American Marketing Association) defines the term branding as name, sign, design, or symbol or combination of any of these elements, intended at identifying products or services of a single or group of sellers and differentiating them from others offering similar or related products.
Based on this argument, it is important for firms to recognize the fact that branding does not entail getting the targeted markets to choose your firm over competitors, but it is getting your prospects to distinguish you as sole providers of the solution to their problems (de Chernatony, 2010). For CTR, there was a need of developing a branding vision to enable the firm to compete accordingly in the contemporary market. Previous research on the customers pinpointed on the targeted market, the primary group being parents, whose kids were less than 18 years, while the second group was the empty nesters (Crawford and Mathews, 2010).
From the research, it was evident that customers required high-quality products as well as the commencement of new activities such as projects, new seasons, life events, sporting among other notable activities leading to marketing position tagline or slogan: “ let’ s get started” .
Bedbury, S. (2002).A New Brand World: Principles forAchieving Brand Leadership in the 21st Century. New York: Viking.
Crawford, F., and Mathews, R. (2010). The Myth of Excellence. New York: Crown Business, 2001.
De Chernatony, L. (2010). Modelling the Components of the Brand. European Journal of Marketing 32, (11):1074–90.
Goodyear, M. (2006).Divided by a Common Language: Diversity and Deception in the World
Kapferer, J. (2010). Reinventing the Brand. London: Kogan Page.of Global Marketing. Journal of the Market Research Society 38, (2): 105–22.