When retailers cut off distribution to the customer in the store

-www.integrabank.com

When retailers cut off distribution to the customer in the store, brand name manufacturers like P&G are forced to become more creative in order to form a new relationship with the customers that are impenetrable from all external influences, many are adamant about the persuasive advertisements flooding them. For instance, the rise of competitors. Levi’s and Sony made use of retailers like Wal Mart, Courts, Giant to bring their product to the consumers. However, if these retailers were to set up their own brand, they will definitely prioritise the sales of the brands they own before others. Therefore, a heavy reliance on wholesalers, retailers is actually unhealthy. The level of assurance is just not enough to sustain you throughout the entire course of the product’s life cycle. These retailers adopt the idea of the goods they once sold and create their own label similar to those famous ones. They are often on par or even better than the ones they used to sell because they understood the essence of the product they sold. They are the true customers we are talking about until now. A quality that is on par yet of a lower price is no doubt far better than that of the famous one. They had the opportunity to save costs on advertising & product development through research and development.

We can see that original brands are trying to reach the customers directly through their own concept stores. A store packed with Adidas bags, shoes, clothes, games and balls seem so much more attractive and enticing as compared to a gargantuan retail store that has adidas products in that small corner of the shop, i.e. Sports House. There are way too many brands in the entire retail store, the location, positioning and highlights of various brands confuses the consumer. They then based their choices on the shoes that catch their eye rather than a product that clearly offer superior customer value in price, design and comfort. However, if perpetual advertising is not done, no one will take note of it.

These brands that set up their own stores focus on building brands that in the long-run can boost sales throughout the entire retail chain. Nonetheless, recognition is insufficient today. Remember the point about integrating the 4Ps into the marketing plan? It is of paramount importance to integrate the 4Ps nicely into the target market. If you lose out in price, work on non-price competition, in today’s qualitative society it is easy to get the consumers if you understand them. There is a reason why people spent hundreds to thousands for a haircut over an $8 haircut at the corner of the neighbourhood. That is because they know that the money spent is for the purpose of achieving their goals, of becoming a superstar, gaining social status & envy-looking faces. All these benefits are intangible and not easily purchased with a mere $8.