Summary:This panel session discussed the use of branding as an effective method for gaining a competitive edge over competitors. Moderator Victor Imbimbo, Jr. began the session with a brief presentation. It included several commercial video clips that had made a difference in the success of various consumer products. Later, the panelists, each representing different industries, were given an opportunity to describe how branding is used in their respective companies as an effective tool for selling their products.
Steve Burd of Safeway Inc. provided the grocery industry′s point of view by covering his company′s branding strategy. He believes that branding is a more fluid concept in this industry than in others. In the grocery industry, the shopping experience is by far the most important factor since the "product" consists of a diverse array of food and food-related brand name products. According to Burd, Safeway attempts to distinguish itself from other grocery stores by creating a unique merchandising approach — offering fresh and high quality products available in different sizes to its customers. The produce, meat and bakery departments generate the highest impulse purchasing and should therefore draw the most attention by maintaining high quality characteristics. Burd also emphasized friendly, helpful service by store management as a way the chain positions itself to attain a long-term competitive edge.
Burd also discussed the launching of Safeway′s premium brand Select and the success it has had at Safeway and beyond. Select has been able to compete next to brand named labels such as Chips Ahoy and Pepsi.
Lynda Resnick of Roll Corporation felt that creating a brand identity was key in strengthening her products. She used Pom Wonderful, a juice drink, as a recent example of how her company took a commodity in pomegranates and converted it into a value-added product that has achieved much success. Resilience in pushing this product to its potential despite the high initial costs, made the difference. It now sits among its peers as the top selling juice drink in the high-end of its category in Southern California.
Starwood Hotels & Resorts Chairman and CEO Barry Sternlicht described his product as one significantly different from those of the previous panelists. Sternlicht explained that lodging customers usually first look for location, then price and finally brand. Also, hotels are not out to sell a traditional consumer product. So far, Starwood′s success has come in the form of loyalty programs or discount programs, that have enabled it to weather the current industry climate. This approach has served as a marketing tool and provided the means to market their product to key customers who have maintained loyalty. Sternlicht reiterated what Burd said by emphasizing the importance of the customer′s "experience." For this reason customer service has continuously been improved.
Sharon Patrick noted that her company built a trusted brand name around a given hobby - improving your household. Its brand seeks to forge an "emotional connection" with its users. This approach has proven successful and Patrick stated that they intend to spread this success into new products.
Speaker Peter Grauer stated that singularity was Bloomberg′s most important branding strategy involving a commitment to high quality customer service. Bloomberg′s branding intentions are to nurture this strategy of customer service and continue to prioritize its clientele.
The closing remarks by moderator Victor Imbimbo, Jr. echoed the views of most panelists. He reinforced the importance of providing customers with a unique "experience" that would increase customer loyalty and satisfaction. Communication and management′s ability to relay its policies to employees who carry out customer service, was also viewed critical to branding.
