What's a 'Store Brand,' Anyway?

There are watch and jewelry brands; grocery, toy and auto brands; soft drink brands, cosmetics brands and clothing brands. But what's a store brand? Retail and branding experts say it's a mixture of many factors, such as name, logo, niche marketing and even the well-known products a store sells.

“People know jewelers sell jewelry,” says J. Russell Krueger, CEO of Acquire Marketing, a leader in small-business branding and marketing in the jewelry industry. Krueger defines a store brand as a combination of attributes, both tangible and intangible, that resonate with consumers while differentiating a store from its competitors.

“What they want to know is what separates your store from others,” notes Krueger. “What's your point of difference? What does your store stand for? What's its 'promise' to consumers?”

“It's a whole package of rational and emotional benefits,” says Frank Proctor, co-partner of the Luxury Brand Group. “For a store brand to succeed, it must appeal to both the mind and the heart of the consumer.”

Branding expert Alina Wheeler, author of Designing Brand Identity, points out some of the intangible aspects of store branding. “It's your store's reputation, the collective perception of consumers, the media and even your employees. It's what customers think of when they hear your store name.”

Whether the owner knows it or not, every store has a brand — either an intentional brand that the retailer creates or an unintentional one that evolves, and not always to the business' advantage. “A brand always stands for something, but that isn't always something good,” notes Krueger. “Many businesses have negative brand images ... like being known for poor service.”

Clearly, a store needs to pay attention to its brand. The first step is to see your business through other people's eyes. Here are some tips for seeing your brand as others see it:

• Ask employees. Get their opinions and suggestions. “In staff meetings and one-on-one, ask, 'What's our image? What do we stand for, and what do people think we stand for?'” says Krueger. “If they don't know, or give inconsistent replies, I guarantee your customers won't know, either.”
• Ask consumers. Invite 10 longtime customers in for a focus group — perhaps during a catered business lunch — and ask, “What do you like and dislike about our store? What do you think it stands for?” Or ask a local consultant to hold two or three focus groups outside your store with longtime, occasional and potential customers. You also can use in-store, email or direct mail surveys of customers to gain insights about your store's image.
• Ask suppliers. Find out how vendors perceive your business, in terms of inventory as well as marketing strengths and weaknesses.

According to Krueger, if the answers of employees, consumers and suppliers align, that makes a successful brand. If they don't, the brand won't be successful.

With information from employees, consumers and suppliers in hand, take these steps to define your brand:

Ask yourself what you want to be known for. How do you want your community to perceive you? Oklahoma jeweler Arthur Gordon says a retailer must “start with a crystal clear vision” of what he or she wants to be, and figure out how elements such as decor, layout and staffing can support that vision.

“The store owner or partners need to brainstorm and discuss what the store aspires to,” says Alina Wheeler. “A great business should have dreams. It should want to exceed customers' expectations, to astonish and delight them.”

Review your business and sales trends for 18–24 months. Which products and categories sell well — or not — and to whom? Which consumer segments are you reaching? Which products generate repeat business from long-term customers, or many new customers? Krueger recommends asking yourself why you're doing a good job in a given product or category. “Is it salespeople, selection or because you have no real competition?”

Look at competitors' operations. These include other specialty retailers, chains, department stores and big box discounters. What do they do best, and worst, in selling to consumers? “If you're going to be different from competitors, you must know how,” says Wheeler. “Why should your [target] customer buy from you and not them?”

Look at your market. No single brand strategy fits all stores, says Krueger. “Look at lifestyles, housing, professions, even cars in your parking lot. Look at your market's economic and social conditions. How do they affect what people wear and how they buy, and how do you respond to that as a retailer?”

Once you have a clear idea of your store brand, attend to tangible features of your brand identity. These include (but aren't limited to):

• Your store. Does it convey your brand image? Is its location easily accessible to your target audience? Is the interior — including wall decor, furniture, case placement and carpeting — clean, comfortable, inviting? Frank Proctor says retailers should ask: “Does my store name say one thing, but the interior decor another?”
• Name and logo. Are they distinctive and do they summarize your brand promise? Do you promote your membership in key industry trade groups?
• Employees. “Staff plays a huge part in brand identity,” notes Wheeler. “They're a store's ambassadors; their relationships with customers make or break sales.” Wheeler suggests regularly reminding staff of your brand promise and what you stand for. Lacy & Co. in El Paso, TX, promotes itself as the area's most knowledgeable watch retailer. Says owner Charles Lacy, “We train them thoroughly, then test them. If they don't pass, they don't sell watches.”
• Customer service. Krueger cites Windsor Jewelers, in Augusta, GA, as an example of “incredible” service. There, a salesperson knows what Krueger's wife's preferences are. “When I need a gift, I just call her, or she calls me when a significant milestone is coming up and suggests what to buy. Often, she has it giftwrapped and delivered to my office. That kind of service establishes a store brand as something special.”
• Inventory. Is it large and comprehensive? Do you specialize in a particular category? Are you known to consumers and suppliers as the best — or the exclusive — retailer of a particular product? Inventory recognition builds brand awareness.
• Packaging. Boxes, bags, paper and ribbons take a store brand into customers' homes. Tiffany does it with blue boxes. Joseph's Jewelers in Des Moines, IA, is known for gold boxes and bows. Parks Diamond Jewelers, in Texarkana, TX, uses purple wrapping paper and satin ribbon, imprinted with the store name. “Our logo is on everything we do, and we make sure it's consistent,” says store manager Diane Cooper.

“Individually or combined, these features can create points of difference from competitors, and a preference in consumers for sale after sale,” says Krueger.

“Name awareness takes at least two years to sink in,” says Mark Rood, co-founder and president of TOMA Research, which has measured local market awareness of businesses for two decades. “You won't change the community's perception sooner than that — and it wears off if you don't continue.”

“The worst thing is not giving your new or redeveloped brand enough time to grow,” says Proctor.

“You're not a brand in their minds until you consistently deliver over time,” explains Krueger. Although visible changes like redecorating, repositioning or installing new fixtures will be noticed sooner, market awareness still takes time. “It can be months or even a few years, especially if you're changing a negative brand image,” says Krueger.

“Branding isn't a sprint,” stresses Alina Wheeler. “It's a marathon — a business discipline. The only way it works is being conscientious about it. You do it all the time, because you're the custodian of your reputation.”

And the payoff is worth the time and effort. “A store brand with a good reputation and great shopping experiences, product and pricing attracts customers who are so happy with what they buy and how they're treated. And they tell their friends,” Wheeler says.

Proctor agrees. “If your branding strategy is done right, over time, it will affect your store operations, sales and product selection. It creates dedicated employees and satisfied new and repeat customers.”