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Article
Publication date: 1 July 2020

Jake David Hoskins and Abbie Griffin

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused…

Abstract

Purpose

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused on if and when brick-and-mortar retailers should include niche brands in their category assortments.

Design/methodology/approach

The authors empirically analyze the category performance implications of focusing assortments on niche brands, at the expense of mainstream brands, in two product categories that have significant niche brand presence, namely, coffee and beer. The empirical data include sales, distribution and marketing tactical information for 50 US geographic markets from 2001–2011.

Findings

This research finds that a mainstream brand focus has a generally positive impact on category performance. However, a store’s strategic shift toward niche brands is beneficial in certain cases such as when a store has higher average prices or product form variety or when they are part of a powerful chain. The authors also find that a niche brand focus strategy is becoming increasingly viable over time for brick-and-mortar retailers.

Originality/value

Little is known about the parameters that might make a brick-and-mortar retailer more or less likely to pursue a niche brand focus strategy and when doing so might improve category performance. This analysis helps clarify the conditions under which a brick-and-mortar retailer may experience category level sales increases from focusing assortments on niche brands.

Details

Journal of Product & Brand Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 August 2005

Wade Jarvis and Steven Goodman

This paper aims to explain the structure of the market from the perspective of small brands and to discuss marketing strategy implications.

Abstract

Purpose

This paper aims to explain the structure of the market from the perspective of small brands and to discuss marketing strategy implications.

Design/methodology/approach

The paper uses revealed preference data of the Australian wine market, comprising 4,000 wine shoppers' purchases over a 12‐month period. Standard brand performance measures such as penetration and purchase frequency are applied to the data to define niche and change‐of‐pace brands. Using the same data, price tier loyalty is measured using polarisation, and discussed in relation to the attribute offering required and the direct marketing approach required for true niche positions.

Findings

The empirical results show that both niche and change‐of‐pace positions are prevalent in the wine market and small wineries, within a direct marketing channel approach, should target higher price points with branded wines but also lower price point products as well. The results suggest that attribute levels that are change‐of‐pace are unsustainable for small brands and can only be undertaken by large brands with the appropriate marketing resources.

Research limitations/implications

The authors conceptualise that small brands should focus on attribute levels that have excess loyalty. Large brands can absorb attribute levels that are change‐of‐pace. This conceptualisation requires further discussion, particularly from the strategy literature, as well as further empirical testing.

Practical implications

Whilst “niche” positions are the holy grail of some teaching and much practitioner endeavour, this paper has presented data that demonstrate the need for managers to ascertain if the position they occupy is in fact a niche or a change‐of‐pace position.

Originality/value

This paper fulfils a need by using revealed preference behavioural data to highlight different strategies for small and large brands. Behavioural analysis and papers in the past have emphasised the strength and tendency towards large brands without offering insight into small brand strategies.

Details

Journal of Product & Brand Management, vol. 14 no. 5
Type: Research Article
ISSN: 1061-0421

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Abstract

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International Journal of Sports Marketing and Sponsorship, vol. 1 no. 2
Type: Research Article
ISSN: 1464-6668

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Article
Publication date: 1 October 2013

Veronika Schwarzenberger and Kenneth Hyde

This study investigates the role that sports brands play in building group identity within a niche sports subculture, via research from two different trail running events…

Abstract

This study investigates the role that sports brands play in building group identity within a niche sports subculture, via research from two different trail running events. Participants exhibit some of the characteristics of an activity-based subculture of consumption, and brands play a role in building group identity. A key factor that drives a serious leisure pursuit to become an activity-based subculture of consumption is identified as high levels of socialising among participants.

Details

International Journal of Sports Marketing and Sponsorship, vol. 15 no. 1
Type: Research Article
ISSN: 1464-6668

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Article
Publication date: 6 February 2017

Manuela López, María Sicilia and Alberto Alejandro Moyeda-Carabaza

Companies are now using social network sites (SNSs) within their marketing and brand-building activities. Twitter is the preferred SNS for creating brand communities…

Abstract

Purpose

Companies are now using social network sites (SNSs) within their marketing and brand-building activities. Twitter is the preferred SNS for creating brand communities, which offer companies many advantages. The purpose of this paper is to examine how individuals manage their competing needs for being affiliated (operationalized as personal and communal-brand connections) and for being seen as distinctive (operationalized as need for uniqueness (NFU)) when they are members of brand communities on Twitter. The authors have also analysed which type of brand community is able to achieve the balance between both needs, enhancing identification with the brand community.

Design/methodology/approach

A total of 318 valid responses were collected from three camera brand communities on Twitter. Messages (“tweets”) which included a link to an online questionnaire were sent to community members via Twitter. The authors examine the proposed model using structural equation modelling.

Findings

The authors demonstrate that consumers can satisfy their need for affiliation in brand communities created in Twitter. However, consumers can only reach a balance between the need for affiliation and the need for distinctiveness in brand communities built around niche brands. In contrast, the two needs work in opposition to shape identification in brand communities of big brands.

Originality/value

Optimal distinctiveness theory is used as a theoretical background for proposing how the antecedents of identification with the brand community enhance brand loyalty, with reference to the conflict between the individual’s needs for both distinctiveness and affiliation. Consumers’ identification with the brand community is proposed as a mediator to achieve brand loyalty in brand communities. Consumers reach this balance in brand communities built around a niche brand, where individuals with high NFU feel a high identification with the brand community. For big brands, as consumers’ NFU increases, their identification with the brand community and brand loyalty decreases.

Details

Internet Research, vol. 27 no. 1
Type: Research Article
ISSN: 1066-2243

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Article
Publication date: 21 November 2016

Laurent Tournois

Reverse innovation has been claimed to be the new emerging paradigm on how to succeed in emerging markets before spreading to more mature ones. This study aims to…

Abstract

Purpose

Reverse innovation has been claimed to be the new emerging paradigm on how to succeed in emerging markets before spreading to more mature ones. This study aims to investigate how the BB cream, a concept that gave birth to one of the recent most impressive worldwide breakthrough products in cosmetics, was successfully integrated into a growth-through reverse innovation strategy by a Western leading brand, Garnier, in its domestic market.

Design/methodology/approach

Using a single case study design that combines brand and product levels of analysis, this paper examines how reverse innovation/BB cream contributed to (re)build perceptions of brand superiority. Data were extracted from the IRI Census Database (retail panel data) and from various other market sources. Additional insights were collected through semi-structured interviews with top executives. Some data, as they remain confidential, are not included in the paper.

Findings

Reverse innovation, although counter-intuitive regarding one of its fundamental assumptions (i.e. a low-cost/low-price strategy targeting price-sensitive consumers), can be used within a niche strategy to help brands develop a radically new offer that justifies a price premium. In this regard, it has to be managed step-by-step, from appropriation to exploitation and, finally, “extinction” in a given market segment.

Research limitations/implications

Evidence is scarce on how Western companies/brands can integrate reverse innovation into their growth strategies. Further investigation is required on this emerging paradigm.

Practical implications

The case of Garnier BB cream invites marketing managers to think differently about where to look for opportunities and how to grow in stagnant markets. Moreover, the inherent latent value of a reverse innovation can serve to trade up the brand with both volume and value benefits, despite the common claim that it is related to a volume strategy. Thus, it opens the range of possibilities to escape commoditization and price wars.

Originality/value

This paper demonstrated that reverse innovation is not limited to the bottom of the market. The story of the BB cream concept, which has been appropriated and valorized by the leading cosmetic brand Garnier through a niche strategy, supports this argument. In addition, instead of viewing the niche strategy as a methodological/theoretical stage within the segmentation–targeting–positioning process, this case study highlights it as a creative process linked to innovation, which helps a brand and/or company to define a new territory within its market.

Details

Journal of Business Strategy, vol. 37 no. 6
Type: Research Article
ISSN: 0275-6668

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Article
Publication date: 12 June 2007

Wade Jarvis, Cam Rungie and Larry Lockshin

The usual method of analysis of product attributes in marketing is to fit a multinomial logit model within a stated choice experiment, to determine the impact of…

Abstract

Purpose

The usual method of analysis of product attributes in marketing is to fit a multinomial logit model within a stated choice experiment, to determine the impact of attributes on the choice probability, which is equivalent to market share. The market share is intuitive and is based on each single choice in the study. However, revealed preference allows for a study into repeat purchase and loyalty, which can also be rich constructs for determining consumer preference.

Design/methodology/approach

The authors introduce a loyalty measure, polarisation, and show results based on a wine data set of revealed preference. Polarisation is a function of the beta binomial distribution (BBD) and can also be a function of the Dirichlet multinomial distribution (DMD). The DMD provides a standardised or average loyalty effect for each attribute (such as wine variety), and the BBD an individual effect for each attribute level (such as cabernet) within the attribute. While the DMD results provide a rich “first‐pass” of the data, it is the individual results which can classify levels as reinforcing, niche, or change‐of‐pace in nature, with subsequent different marketing implications. These implications are drawn out in this study.

Findings

Specifically, the DMD results show higher loyalty towards price and variety rather than to region and brand. The BBD results show that segmented preferences in the wine market are influenced more by the price attribute levels and that the two key single varietals in the red wine category tend to behave as reinforcing attribute levels with important marketing implications for small and large wine brands.

Originality/value

The authors extend the work of stated choice experiments into the realm of actual consumer purchase behaviour for wine. They also find that consumers’ repeat purchasing is based on attributes other than brand. This provides a useful platform for both researchers to further investigate loyalty/repurchasing using attributes as well as for marketing practitioners to better position their products to consumers.

Details

International Journal of Wine Business Research, vol. 19 no. 2
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 10 September 2018

Zachary Anesbury, Yolanda Nguyen and Svetlana Bogomolova

Increasing and maintaining the population’s consumption of healthful food may hinder the global obesity pandemic. The purpose of this paper is to empirically test whether…

Abstract

Purpose

Increasing and maintaining the population’s consumption of healthful food may hinder the global obesity pandemic. The purpose of this paper is to empirically test whether it is possible for healthful sub-brands to achieve higher consumer behavioural loyalty than their less healthful counterparts.

Design/methodology/approach

The study analysed three years of consumer panel data detailing all purchases from five consumer goods categories for 15,000 UK households. The analysis uses best-practice techniques for measuring behavioural loyalty: double jeopardy, polarisation index, duplication of purchase and user profile comparisons. Each sub-brand’s healthfulness was objectively coded.

Findings

Despite the level of healthfulness, all sub-brands have predictable repeat purchase patterns, share customers as expected and have similar user profiles as each other. The size of the customer base, not nutrition content, is, by far, the biggest determinant of loyalty levels.

Research limitations/implications

Consumers do not show higher levels of loyalty to healthful sub-brands, or groups of healthful sub-brands. Nor do they buy less healthful sub-brands less often (as a “treat”). There are also no sub-groups of (health conscious) consumers who would only purchase healthful options.

Practical implications

Sub-brands do not have extraordinarily loyal or disloyal customers because of their healthfulness. Marketers need to focus on growing sub-brands by increasing their customer base, which will then naturally grow consumer loyalty towards them.

Originality/value

This research brings novel evidence-based knowledge to an emerging cross-disciplinary area of health marketing. This is the first study comparing behavioural loyalty and user profiles towards objectively defined healthful/less healthful sub-brands.

Details

European Journal of Marketing, vol. 52 no. 9/10
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 30 November 2020

John G. Dawes, Charles Graham and Giang Trinh

The study investigates the long-term erosion of repeat-purchase loyalty among consumers who purchase brands in a one-year base period.

Abstract

Purpose

The study investigates the long-term erosion of repeat-purchase loyalty among consumers who purchase brands in a one-year base period.

Design/methodology/approach

The study uses a five-year consumer panel of continuous reporters. We identify brand buyers in a base year, then calculate the proportion that fail to buy the brand in later years. We analyse the top 20 brands in 10 consumer goods categories.

Findings

We find pronounced erosion in repeat-buying over the long-term. The proportion of buyers from a base year that fail to buy in a later year increases steadily over time, from 57% in year 2 to 71.5% by year 5. Moreover, we identify brand and marketing mix factors linked to this over-time customer loss or erosion.

Research limitations/implications

The study provides evidence that consumers’ propensity to buy particular brands changes over a period of years, even though those brands continue to exhibit a stable market share. This evidence provides a different interpretation than the literature to date, which has viewed purchase propensities as fixed.

Practical implications

The study finds that store brands and niche brands exhibit lower levels of erosion in their buyer base; that a broad range is associated with lower erosion, and that high price promotion incidence is associated with lower erosion for manufacturer brands.

Originality/value

Loyalty erosion has been reported before (Ehrenberg, 1988; East and Hammond, 1996) but only over short periods. This study examines the phenomenon over five years, confirms that the rate of erosion does diminish over time, and that it is related to category and brand characteristics, as well as marketing mix decisions.

Details

European Journal of Marketing, vol. 55 no. 3
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 December 2005

Subir Bandyopadhyay, Kunal Gupta and Laurette Dube

Compared with the large brands, not only do the small brands attract fewer customers but also their customers buy them less frequently. This twin disadvantage of the less…

Abstract

Purpose

Compared with the large brands, not only do the small brands attract fewer customers but also their customers buy them less frequently. This twin disadvantage of the less popular brands is termed “double jeopardy” (DJ). Earlier studies on the DJ effect have generally explained this as a behavioral phenomenon relating to the size structure of the market. This article aims to argue that the DJ effect is also influenced by the relationship between consumer choice antecedents and consumer buying behavior.

Design/methodology/approach

Using consumer attitudinal and behavioral data on various toothpaste brands collected by a leading consumer goods company, it is shown that small brands are jeopardized in terms of individual‐level choice antecedents of both loyal and switching consumers. In particular, small brands are further jeopardized for brand=switching consumers in terms of weaker attitude‐choice relationship.

Findings

The research findings have significant managerial implications. the research suggests that double jeopardy of small brands may not be as irreversible phenomenon posited. A more in‐depth understanding of the individual‐level antecedents of consumer choice should help small brands to develop innovative offensive and defensive strategies aimed at favorable individual choice antecedents of loyal and switching consumers. For example, it may be prudent for a small brand to concentrate on a selected few segments (such as brand‐loyal segments) instead of spreading scarce brand resources across scattered promotion and distribution strategies.

Originality/value

Examines the choice antecedents of consumers who either are loyal to a brand or are brand switchers.

Details

Journal of Product & Brand Management, vol. 14 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

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