How can retail companies strategically build brand preference? A case study of Norwegian retail stores.

Abstract

The present study draws on in-depth expert interviews with seven retail company representatives to propose which firm-controlled variables that can serve as drivers for brand preference. Extant literature, secondary data, and representatives interviewed for this study view brand preference as a consequence of brand awareness and brand loyalty. In contrast with existing theory, this study proposes that focusing on having a consistent strategy, brand awareness, and customer experience serves as three prerequisites for being able to manage brand preference. In addition, the results suggest two drivers of brand preference: 1) Crafting and measuring goals, and 2) Brand strategy management. In crafting goals, the result suggests that having brand awareness and brand loyalty as parent goals, have a positive influence of brand preference performance. The study highlights the use of key performance indicators and marketing analytics as important in reaching the parent goal, and also increase brand preference. Findings related to brand strategy management propose five core marketing activities a company needs to implement in order to increase brand preference. These include: place optimization, product selectivity, consistent price strategy, differentiation, and omni-channel synergies. Altogether, the results shed light on the link between firm-controlled activities and brand preference in a practical matter. Theoretical and managerial implications are discussed to help managers and retail companies to get the most value out of their marketing activities.