Showing posts with label Branding. Show all posts
Showing posts with label Branding. Show all posts

Introduction To Consumerism Through Branding Identity Marketing Essay

Consumerism has played a big role in economy and society of the present time. Consumerism is one of the main aspects that have helped the economy to have a good growth. Conspicuous consumption has also taken over the society where people are trying to classify themselves to a certain social status. Hence, branding identities has become one of the approaches used for marketing in the industry.

For this project, we are to propose a design to supply the demand required in Singapore. From the research that has been done, Singaporeans have a strong habit of eating out and therefore there will always be a demand for the food service industry. The proposal for the project would be of a restaurant targeted at the middle-upper class. The decision is supported by a chart that has shown the annual income derived from a restaurant has been at a constant growth despite of the economy crisis. This is because people who usually go to the restaurants come from the middle-upper range with a more stable financial power.

It is common in the modern days for people to take leisure in the place where they eat. This can be considered as consumerism in the service industry as well. Branding identities comes to place as the present society does measure one’s social status from the place where they eat. In order to have a wholesome package of good branding of the restaurant, interior space design plays an important role to predetermine a proper identity for both the restaurant and the future customers. In the direction of proposing a potential scheme, a critical thought has been set for good site selection and design program.

Consumerism is defined as followed by

1. The state of an advanced industrial society in which a lot of goods are bought and sold

2. Disapproving when too much attention is given to buying and owning things

(dictionary.cambridge.org)

3. Protection of the rights of consumers

(www.collinslanguage.com/results.aspx)

Consumerism is understood as an action where people purchase goods more than necessary. It has been around ever since the first civilisation. However, it got popular during the Industrial Revolution period, when goods are produced in an affordable price and therefore were able to reach a wider range of people, promoting consumerism internationally.

Since then and still growing till now, consumerism has been a tool for people to feel content by the purchase and owning the goods. This is also a media for people to determine, or at least attempt to, mark their status in the society.

As for the latter issue, consumerism has brought a positive effect on the economy. Therefore, it plays an important role in the financial system. It is the main factor of how the economy can have a good cycle. If people only purchase the essential goods, the economy will suffer and it will affect the stability of a country. Hence, consumerism is important to boost the economy. Moreover, consumerism is also one of the means of how people can get exposed to new technology and advancement.

However, consumerism has its disadvantages too. Although it is advantageous at encouraging a good economy cycle, consumerism means more usage of materials in the industry. This has been affecting the environment as it causes more wastage. Furthermore, the industries contributed to the pollution as well. There will always be an effect after an action; and on the environmental aspect, consumerism has caused an ecological imbalance and global warming.

Some actions have been taken to respond to the latter. More environmentally friendly and sustainable design has emerged. The society is also encouraged to take part in the action by having environmentally friendly habits, such as reducing the usage of plastic bags and such.

In the present context, consumerism is not just about selling the physical manufactured good but also the image or the branding of the product itself as well. It is an act for psychological satisfaction for the consumer. This leads to the fact that branding identities has been used by the manufacturers or producers to make the most of it as a strategy to get more people to be loyal or have a sense of belonging to the brand itself. Physical or functional attraction of the goods is no longer the key factors to attract buyers. “A transaction is like a one-night stand,” said a book titled Emotional Branding in which it means that there is only one business deal in a transaction. However, what the producers want are consumers that will keep using their products. They are trying to imply the contemporary branding by generating or promoting relationship between the consumers and the products (or the brand) through advertising and marketing (branding) in order to make people come back for more in the future. The old economy used to be focused on producing the manufactured goods itself. However, the economy strategy towards consumerism has changed. The new economy is now giving more attention towards creating brands or making the items more appealing psychologically to the targeted market.

Branded lifestyles, to some degree, have become substitute identities. It creates an identity that we develop by our own preference, and has the tendency to replace our original identity, such as traditional and cultural aspects. This view has been supported by Benjamin R Barber in his book titled Consumed (2007, Page 167).

Consumerism can also be applied to the service industry. One of them is the F&B industry where people look for good eating place that does not provide only fine food but also good quality of service and environment. In Singapore, the demand for the food service industry is high as there is a strong habit of Singaporeans to eat out. It is also considered as lifestyle, especially for the middle-upper market. Singapore has been considered as a high-end playground, shown by the emergence of the casino (fig 1.1), the F1 tournament (fig 1.2) and such. It has developed as a world gourmet destination as well.

1.1 Singapore Integrated Resort 1.2 Formula 1 in Singapore 2008

As my approach, good branding identities would be of a useful tool to be implied to promote a restaurant and bring it to success. Branding identities is part of the lifestyle. It is common nowadays to consider the place of someone to eat or hang out; as a benchmark for the social status of that person. Therefore, branding the restaurant has become one of substantial elements to attract the targeted market customers to come back again and again. Branding a restaurant would be more towards the image and marketing of the restaurant in which preferably an in-context and appealing whole package. Therefore, branding the restaurant needs to be done thoughtfully, considering all the supporting aspects to be part of the image of the restaurant. In the modern days, good eating place does not supply good quality food only but also the environment that it provides as well as the atmosphere or the ambiance that has been the main intention of the interior designer to be projected for the customers to feel and experience while they are enjoying the food and the service presented. Therefore, spatial elements do hold a significant role in creating a good branding image to attract the right crowd of the people from the targeted market.

Singapore is a city with a busy high-paced lifestyle where the stress level is considered high. A psychological research written in the book of John T. Haworth has shown that stress should be tackled with leisure in order to be able to live a healthy lifestyle (1997, page 138-141). Leisure can be both passive and active. The focus of passive leisure would be to deal with the emotion while active leisure is to be targeted at problem solving. Social support is considered as active leisure. Another study has shown that only personal social circles can help in dealing with stress related problems, social connection from either work or school usually are not efficient in doing so (Bolger and Eckenrode, 1991). Therefore, social leisure is an important reasoning of why people get together.

The proposal for this project would be of a restaurant targeted at the middle-upper market society. The main objective of the restaurant would be to provide a place where people can have a place to be away from the high-paced city lifestyle and have a relaxed moment at the restaurant. Clifford Pier is the ideal place for the design intention as it is a waterfront in which water has always been considered as a calming natural element. The location of the site itself is very supportive as well because it is secluded and tranquil but still placed at the heart of the busy area of the city, right at the hot developing area, Marina Bay.

Clifford Pier used to function as a port where people took ferries to go to the near islands. It operated from 1933-2006 and now conserved as a historical building. The issue that needs to be solved for this project is that as a historical place, Clifford Pier’s original value for being a jetty has been neglected. Since Clifford Pier is a transit place that had been operating for such a long period, it had somehow captured the memories of the growth of Singapore. I believe that people who were around when Clifford Pier was still functioning as a port and actually made use of it in the past will be missing it dearly as it holds some of their memories. Therefore, Clifford Pier is precious enough to be revived with its essence being infused in the design so that it can be used again for people to either have a nostalgic time and/or have a good meal with great conversation. The restaurant that is intended to be created at Clifford Pier is a Tapas Bar where it serves small-serving food, hence promoting more interaction between the consumers so that they are not too engrossed with just enjoying the meal but also to make them able to have time to appreciate both the food and the surrounding such as the interior space and the great panoramic scenery of Marina Bay and The Integrated Resort. This will also promote more interaction with the other party that they are spending time with as this is one of the main intentions for the place being a place to relax, have a social leisure time and breaking away from daily pressure. This contributed to the main design intention to create a restaurant space that is both doing justice to the site by appreciating its original value as well as being comfortable and appealing to the future users of the space (for example, the customers of the restaurant and the employee).

The idea of the restaurant would be of the revival of Clifford Pier’s soul in which the concept is derived from the nature of the function of the pier itself for being a place where people come and go to take the ferry service. Hence, the concept or keyword used to promote the creative design process is ‘interlink’. Interlink is used in the sense of Clifford Pier was a place where people departed and arrived from and to other islands. Although the boats and ferries were the ones that transported people from one place to another but Clifford Pier is the physical stationary connector of the whole journey as it is the gathering point for the people.

There was not much interaction between the people and the space in the past as most of them did not hang out at the pier. This project would be about encouraging more interaction and connection between the user to the space and within the spaces itself as well. Hence, the concept for the project is to create interlinked space. The interlinked space would be to promote interaction from various aspects. It will be between the spaces within the site, the spaces and users; as well as between the people themselves.

An interlinked space is shown in the space planning through curvy lines. Spatially, the interaction between the spaces within the capacity is shown through the circles of spaces that are connected by the lines that resulted in the curvy lines. Clifford Pier was built in the Art Deco style, designed with arches for both its exterior and interior. The beams of the building have been replaced with graceful concrete arched trusses. Hence, the curvy lines are a response to the feminine nature of the original architectural structure.

Interaction between the spaces and users would be interlinked through visual connection. The users of the space would have the ability to enjoy a visual interaction not only within the dining spaces itself but also to the service areas such as the open kitchen and storages. Different levels of spaces and non-solid room divider are used to promote such interaction (Fig 2.1).

2.1 View of the dining area with visual interaction with another space

The type of restaurant that would be infused to the site is Tapas Bar. Tapa is a Spanish style of food serving that comes in small portion. It is a social food where the intention of the servings is to promote interaction between the consumers. Therefore, tapas bar is suitable to be implied in the restaurant as its intention is communicative with the objective of design which is to provide a place to hang out and break away from the hustle bustle of the busy life in Singapore. This interaction between the users of the space can be encouraged through the visibility between the spaces.

In conclusion, consumerism will help in promoting the success of the restaurant. This is because in the present time, branding identity in the society is a strong point to get consumers from the middle-upper class to be attracted to the restaurant in which interior design plays an important role within the whole package. An in-context design can be a great support for the latter as it gives more value not just for the new restaurant but also to the site itself as its essence of the original function of Clifford Pier as a port is infused to the new function that is designed at the site.



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Effect Of Counterfeit Branding On Sales Of Edhardy Marketing Essay

This research proposal is objectively aimed at understanding all the hurdles currently experienced by Ed Hardy in expanding their business in India. The business organization with intent to expand in different market entered India in the year 2007 as part of its expansionist policy to explore the commercial viability of the market objectively aiming at high profitability (Khilnani 2009).

In the year 2002, Ed Hardy who initially commenced his career as a tattoo artist entered into an agreement with Ku USA, Inc. to carry out and market a clothing line with the basis of his tattoo art design which was extraordinarily popular in the U.S.A. In a span of just two years, the international corporate giant Saks expressed interest in Ed Hardy clothing line. Hardy and Ku USA created the Hardy Life LLC, an organization possessing trademark ownership in addition to copyrights to all of Ed Hardy’s images.

Christian Audigier entered the Ed Hardy scenario in 2004 gaining rights for the clothing line production based on the artistic designs of Ed Hardy. Ed Hardy in today’s day and age has a commanding global position with outlets in New York, Los Angeles, Seattle, Honolulu, the Gulf Nations and India.

Iconic Brand Group made an acquisition of 50% of shares in Hardy Way, LLc. Iconic Brand Group made a payment of $ 17 million for major share in the Hardy Way as it estimates sales revenue to be to the tune of approximately £110 million by 2011.

Ed Hardy is undoubted recognized as an organization of high repute with its product lines having immense popularity especially among the younger generation. In European nations such as the U.K., U.S, Germany and France, the organization commands a high market share as its varied line of products such as t-shirts, shirts, shoes, belts and deodorants are highly consumed by the consumers. The organization has branches globally and has recently set up branches in India. (Chaudhari 2009)

India as a market is attracting a great number of Multinational as the high populace makes provision for a ready market for the merchandise dispatched for sale. Though Ed Hardy has numerous outlets at strategic consumer locations in India especially Mumbai that is the capital centre of the country, the business is primarily plagues with issues relating to counterfeiting. (Kotler 2007)

This decision for conduct of this research was essentially taken to highlight the issues faced by Ed Hardy. This brand has been a victim to Counterfeit Branding. Counterfeit Branding is highly prevalent in countries like India and China and these results in economic losses to the respective governments by way of taxes and the business are affected in terms of profitability. Ed Hardy T-shirts which are a rage amongst the college-going consumer and young adults commence at a pricing range of approximately Rs 1000 (20 USD) which is relatively on the higher side in terms of pricing. The pricing, though is not directly a contributing factor for the declining sales of the brand, counterfeiting of Ed Hardy products cause a massive impact on the sales and consequently the revenue (Keller 2007).

http://www.bestshoeswomen.com/images_products/Ed_Hardy_Original_Lowrise_100_Women_Shoes_Sneakers.jpg http://www.celebrityclothingline.com/wordpress/wp-content/uploads/2009/12/Ed-Hardy-Tshirt-Beautiful-Ghost-Graphic-Original-62-4499.JPG http://eleven.se/files/w/wallet-black-1_250x250.jpg http://www.funkytrend.com/wp-content/uploads/2009/02/ed-hardy-true-love-belt-thumb.jpg http://www.clothingcheapprice.com/images_products/Ed_Hardy_Emerald_City_Elphaba_Tote.jpg http://www.newwavefragrances.com/images_up/1239994301_art_EH-M-LINESHOT-450x400.jpg

Comparative Analysis of the Ed Hardy’s original and counterfeit products: http://www.revolveclothing.com/Brands.jsp?c=Ed+Hardy&sc=Shoes

Ed Hardy Product Line

Original

£ (Pounds)

Counterfeit

£ (Pounds)

Pricing Difference

£ (Pounds) (Approximately)

1

T-Shirts

26

6

20

2

Shirts

31

2

29

3

Converse Shoes/Heels

65

12

53

4

Belts

25

5

20

5

Wallets/Purses

60

7

53

6

Handbags

265

25

240

7

Perfumes

109

10

99

Ed Hardy commenced its retail chain at Mumbai, India in 2007 and has in continuity reported declining sales for the last three financial years citing counterfeiting issues as the primary reason for the failure of the brand to succeed in the Indian market. There is a huge pricing difference between the original and counterfeit product leading prospective consumers to continue the purchase of counterfeit products. The counterfeit products are reported almost similar to the original in terms of design, dimensions and labeling but lacks quality of the original yet it this factor does not prove to be discouraging for consumer who continue to patronize counterfeit Ed Hardy products. Ed Hardy, Nike, Rolex, Louis Vuitton, Dior, Yves St Laurent, Prada, Hermes and Cartier are generally the brands that are highly counterfeited. These brands have not reported higher profits in the last several years. (Simon 2005)

Year

Sales Revenue (Pounds)

1

2007

40 million pounds

2

2008

28 million pounds

3

2009

10 million pounds

The above table is clearly indicative of a constant and steady decline in the sales of the Ed Hardy Mumbai Outlet wherein at the first year of establishment of the outlet the reported sales was at 40 million pounds which declined to 28 million pounds and finally to 10 million pounds in the accounting year of 2009 (Kumar 2009).

Anti-counterfeiting laws and legislations though in existence have not been strictly imposed. The ACTA Act which is an Anti-Counterfeiting Trade Agreement Act between global trading nations of the world such as U.S.A. , U.K., Japan, France, India and many Asian countries has been ineffective in reducing if not totally eliminating the production and sale of counterfeit products. Counterfeit products in India are a booming industry which is crippling the economy and business ventures of especially fashion brands such as Ed Hardy. The Indian Judicial System is not as stringent and enforceable as the European counterparts. Strict punitive action is not taken against individual or firms indulging in counterfeiting reputed brands and hence this activity continues to flourish cause huge financial losses for organizations such as Ed Hardy and many more that have invested highly in the Indian market in terms of setting up retail outlets, promotion and advertising and all related expenditure. (Hakan 2009)

At times there have been recorded cases of legal action taken against offenders who are let off after an imposition of a penalty charge which is very minimalistic defeating the very purpose of the exercise. (Nayadu 2009)

India is generally characterized as a cost conscious economy with the general tendency of the consumers to buy or patronize products which are specifically low on cost. Quality of the product is a second consideration after the pricing factor of the product. Hence, international fashion brands such as Ed Hardy target a certain market segment which is the upper middle class wherein affordability of the product does not pose a problematic issue. This results in a narrowed target market segment. This segment would have issues in buying the high priced Ed Hardy product but with counterfeit Ed Hardy products flooding the market, the credibility of the original product is at stake as its exclusiveness is lost in the market of this product. The consumers that cannot afford the original product line of Ed Hardy turn to counterfeit substitutes to gain satisfaction of possessing the product and this has a negative effect on the limited market segment consumers of Ed Hardy as the novelty of the product is lost. (Puri 2009)

Besides high level counterfeiting of Ed Hardy product, the business House faces severe competition from other popular and well established brands such as Levis, Spykar, Adidas, Nike, Louis Phillip and many more that entered the Indian Market several years ago and have successfully gained good market prominence. These brands are well aware of the price conscious mentality of the Indian consumer and constantly indulge in competitive pricing strategies and promotional techniques to increase sales and subsequent profitability. Ed Hardy being relatively new in the Indian Market Scenario is hence confronted with hurdles in this form of excess competition thereby retarding growth and progress in the process. (Armstrong 2005)

The Government of India taxation policies toward FDI (Foreign Direct Investment) especially of luxury brands is comparatively and competitively high thereby creating a need for such multinational business organizations such as Ed Hardy to have higher sales to sustain themselves in the Indian market and grow simultaneously. The taxation rates of such brands amount to 40% of the product price which is ultimately borne by the consumer. Such taxation policies towards fashion brands are imposed with the intention to protect local and national entrepreneurs and their businesses form highly popular reputed brands such as Ed Hardy that command a high percentage of clientele globally.

This taxation policy of the Government of India has proven to be a deterrent factor contributing to slack in growth for Ed Hardy. (Keegan 2002)

To understand the obstacles faced by Ed Hardy and strategize ways to counter attack these problems

To identify the hurdles confronted by the Fashion Brand Ed Hardy in business expansion in the Indian Market

To ascertain if the business house been in a progressive state post-commencement in India

To establish what the future business prospects of the organization are

To gain knowledge if the Indian business market scene too competitive for the survival of Ed Hardy

To analyze if the Indian business market scene too competitive for the survival of Ed Hardy



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