Use of Company Branding in the Marketing Mix

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Use of company branding in the marketing mixIntroduction.The JB HI-FI company brand has established itself as a leader amongst Australian home entertainment retail stores. Their philosophy has always been to provide Australians with the cheapest prices and biggest range. As a value player in the entertainment electronics retail market, JB HI-FI has continued its’ marketing theme of “Cheapest Prices Always”. Having grown from ten retail outlets in 1999, JB HI-FI now has 141 stores (Australia: 131 NZ: 10) with $2.731 billion of sales for the year ended 30 June 2010. JB Hi Fi is Australia’s largest home entertainment discount destination store. For over thirty years their philosophy has always been to provide Australians with the cheapest prices and biggest range.As one of Australia’s’ largest electronic entrainment retailers, buying power has allowed a focus on discounted price policies creating high floor traffic through their stores. From original stand alone stores JB has altered its focus to include major shopping centres. JB’s high floor traffic now makes them a sought after shopping centre tenant allowing higher negotiating power.JBs’ combination of software and hardware offering provides a distinct customer proposition. The availability to purchase software (Music, DVDs and Video Games) with hardware (HI-FI, Audio Visual and Game Consoles) creates high volume repeat business and brand awareness.JB has established itself amongst the younger community, a key market segment of their target market. Many of the younger generation thrive on technology and lifestyle image. If you enjoy a culture of music along with rapid uptake of technology and communication, you fall within this market segment.BrandingIf you have ever walked into a JB HI-FI store you can’t help but feel you have walked into a bargain basement store. From its’ loud yellow and black colours with hand drawn signage, the branding is very deliberate. This image is consistent across all stores, cheap and cheerful. The no frills image creates the perception you will always get a bargain. Increased buying power allows JBs to undercut independent music stores and their marketing always tells you they have the “Cheapest Prices Always”.JB HI-FI has created a perception in the minds of its target market as being cheap and they've stuck hard to this strategy. They now own that market position.From the original focus on selling music and Hi Fi systems, JB HI-FI has extended its product range and is now a major retailer of televisions, audio/visual, photography, portable audio (particularly Apple), in-car entertainment, computer/video games, DVD movies, communications, gadgets and information technology equipments.Offering a broad range of branded products within focused categories, JB HI-FI is seen as a specialist retailer. The casual atmosphere, modern music pumping through the speakers and discounted prices, are focused at the younger generation consumer.ProductIntegrated technology systems allow sales consultants to download product information and pricing offered to customers direct to cashiers. This information is also valuable for inventory control and purchase trends. Integration of systems allows close analysis of stock turnover reducing the need to carry unnecessary inventory and maintaining supply of quick moving products. High turnover and low volume warehousing means JB can reduce money sitting on the shelves. JBs no frills, low cost culture, high turnover and low margin business model together with their buying power mean that they can give you the cheapest prices.A second more intangible element of JB’s branding is that the company has achieved a high degree of brand loyalty among younger consumers. This is in part due to the informal nature of the stores, but their hiring policies are also an important factor. The sales assistants are generally young, very casually dressed and come across as enthusiasts for their product range.Diversification has seen a...
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