How do mass-market brands compare to luxury brands in terms of value, pricing attitude and location services?
In terms of value mass-market brands are driven by cost and value rather than originality and margins. When it comes to price mass-market brands can adopt to any pricing strategy, they do not adopt a premium price strategy. Mass-market brands are most subject to re-pricing adjustment strategies such as promotional sales and clearance markdowns than luxury brands are. Mass-market brands are located in central locations usually downtown, mainstreet areas in smaller towns and in shopping centers and malls where cluster of small shops are also located. It is also based on ease of parking, traffic flow, visible slot, and competition. In terms of service luxury brands differ highly with mass-market brands because luxury brands are expected to take extra measures to pamper and please the customer. mass-markets only offer the basic level of service to its customer. "The main difference may be that the core value for most mass-market brands is rational in nature, while for luxury brands, it is emotional" (Hameide, 158).
Briefly compare premium brands to luxury brands.
Premium brands are referred to as aspirational or new luxe brands that are luxury brands that introduce RTW labels. This markets stands at the highest spectrum of mass-market brands . They are not based on exclusivity like luxury brands are but on emotion and relationship with the consumer. "The decision to create a premium brand is primarily a business strategy and as such must be developed and executed by CEOs and divisional leaders of large companies as well as entrepreneurs and innovators of small companies. A premium brand is product centered and also requires keen understanding of consumer motivation and buying behavior" (162).
Name a few of the challenges private labels face to compete with manufacturing brands.
Private labels are brands owned by retailers not manufacturers. Some challenges private labels face are that manufacturers offer many services that stores are now forced to provide themselves, such as transportation or warehousing, which imposes and adds cost. Manufacturers also share costs of promotion and marketing activities, and it is handled by the stores in the case of private labels. This can also affect the diverse merchandise in the retail store forcing manufacturers to take their merchandise elsewhere and leave them with no diversity at all. One of the major challenges is that private labels will never be able to compete with manufacturers because they do not have the dedicated resources and they also suffer from a general lack of advertising. "The rivalry between retailer and manufacturers' brands is also evident in their fight over in-store space and locations dedicated to each brand" (166).
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