Jump in with everyone else. Or jump out. A suggestion for a branding strategy for Magasin

Abstract

The foundation of this thesis is in branding. The research is conducted with a mix of primary and secondary as well as qualitative and quantitative data, with an overweight of qualitative data. Magasin has not managed to differentiate itself from competitors. This is reflected in the low brand equity and the weak consumer-brand relationship between Magasin and consumers. Also Magasin’s identity has several major misalignments which make it difficult to achieve consistency of the brand. The market is characterized by being highly competitive and the list of competitors is extensive, as Magasin basically competes for the disposable income. Consumer behavior trends have been identified and they do not all correspond with what Magasin offers. Of the most important ones are: a high service level, inspiration, fashion, convenience, simplicity, value-for-money, good shopping experiences and identity creation. Several competitors deliver better on these attributes than Magasin does which causes consumers to shop other places. To obtain a strong positioning, Magasin should strengthen its Point of Parity and Point of Differentiation. By strengthening POP, Magasin obtains a clearer perception in consumer’s minds. The POP should simply be, to act more like a department store so that consumers do not associate Magasin with for instance malls or hypermarkets. In differentiating Magasin from competitors, there are three essential areas in which to take action - experience economy, consistency and touch points. Magasin has a long history of providing superior shopping experiences to the Danish population and it should stay true to its history and values and thereby obtaining consistency. Consistency is vital in brand building and Magasin should align its identity and all important touch points to achieve this. Important touch points are the stores, the webpage and communication to consumers. These touch points ought to reflect good experiences by creating an inspirational environment, feelings of fashion, a pleasant atmosphere, a high service level, convenience, simplicity and unexpected surprises. In short, Magasin should emphasize brand relevance/legitimacy rather than price. A change in focus increases the value that Magasin adds to its brands and hence, enhances its brand equity. The British department store Selfridges has achieved success with a similar strategy, which signifies that the suggested brand strategy has potential to strengthening the Magasin brand.