Increased Brand Value Through Strategy and Strategic Communication: Creation of a Unique Brand Position for Rema 1000 Through "Discount med holdning"

Abstract

In the Danish grocery sector, price is an important factor and consumers expect everything from cheap basic products to organic and locally produced foods at the same time. There is a tendency towards a growing demand for companies to contribute to the challenges of society and thus be purpose driven instead of only providing products and low prices. Therefore, this thesis seeks to study how an international corporation can use purpose branding in integrating and positioning its brand on the Danish grocery market. For this study, the Norwegian discount chain REMA 1000 is used as case of the analysis, as this company already has a well-integrated market position in Denmark.
There is a gap between REMA 1000’s vision and image among the Danish consumers. Therefore, REMA 1000 needs to close the gap and at the same time achieve a unique brand position by constructing unique and symbolic associations through strategic communication regarding its “Discount med holdning” concept, which covers REMA 1000’s CSR initiatives in Denmark. In order to achieve a unique brand position that is persistent, REMA 1000 must adjust its strategic elements and use CSR strategically as aspirational talk. In this way, REMA 1000 can use hypocrisy in a positive context that ensures a continuous development of “Discount med holdning”.
The current grocery market is defined by the parameters “price” and “selection”. In order to achieve a unique brand position, REMA 1000 has to create a new demand among the consumers and thereby construct a new parameter. The parameters should be “price” and “attitude”, which contribute to a unique position for REMA 1000, as the competitors do not fulfil the new demand for grocery chains to have an attitude towards society and social responsibility.
Therefore, this thesis contributes knowledge about the relevance for companies to use purpose branding in a market, where price is an essential factor. Purpose branding in this specific type of market can provide a unique brand position when strategy and strategic communication are used to create a new demand which is more important for the consumers than price and which triggers unique associations towards the brand that the competitors do not satisfy.