Mckinsey - Branding - * If you liked the Ebook visit...

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Unformatted text preview: * If you liked the Ebook visit GetPedia.com to support my Cat MEME. * More than 500,000 Interesting Articles are waiting for you . * The Ebook starts from the next page : Enjoy ! acing a marketplace overflowing with stores, most retailers have spent the past several years tirelessly searching for new ways to grow. In the case of runaway successes such as the apparel manufacturers Nike and Calvin Klein, the secret appears to be strong, well-leveraged brands, which, McKinsey research shows, add five points on average to shareholder returns. Do retailers have the same access to brand magic? Vertically inte- grated ones certainly do. Companies, such as Gap and Victoria’s Secret, that retail brands Teri Henderson is a principal in McKinsey’s Boston office, and Liz Mihas is a principal in the Chicago office. Copyright © 2000 McKinsey & Company. All rights reserved. This article can be found on our Web site at www.mckinseyquarterly.com/retail/bure00.asp. R E T A I L 110 Building Terilyn A. Henderson and Elizabeth A. Mihas Establishing and communicating a brand may be harder for multibrand retailers than for their single-brand counterparts, but brand building is essential for both. F PHIL FOSTER design, manufacture, and market their own products have very substantial long-term growth expectations embedded in their share price, reflecting, in part, the expectations created by their brand strength (Exhibit 1). Some retail brands have been built from the ground up virtually overnight. One verti- cally integrated single- brand retailer—Old Navy, Gap’s retro-hip discount concept, offering a proprietary line of value-priced family apparel—sprang onto the scene in 1994. Five years of phenom- enal growth later, Old Navy had sales of $2.6 billion and could claim to be the first retail chain to have reached $1 billion in sales within 48 months of its launch. There seems to be no end in sight: Old Navy plans to add upward of 140 stores to its base of more than 420 this year and then to expand overseas. But the picture is quite different for retailers—category killers, department stores, discounters, and the like—that sell a range of other companies’ brands. Although some multibrand retailers have managed to command a national brand identity (in Sears’s case, one founded on reliability), many suffer from a lack of brand distinctiveness independent of the brands they carry. In fact, many multibrand retailers have lavished more thought and care on those brands than on their own banner. But the multibrand retailers, like their single-brand counterparts, can and must create a brand personality with which consumers want to identify and rethink the underlying business system that is needed to deliver it....
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Mckinsey - Branding - * If you liked the Ebook visit...

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