Question

As consumers, we continually interact and consume brands to satisfy our functional and emotional needs. Applying the theory covered as part of this module to your own experience as consumers, answer all three questions:-

1. The Internet and digital world has presented new opportunities and threats for brand managers. One threat is the increasing competition traditional, bricks and mortar retail brands are facing from online retail brands. In order to survive, traditional retail brands are having to adapt to this changing environment .

1. Review the impact the Internet and digital space has had on traditional retail brands .
2. What three recommendations would you have for traditional retail brands to survive in the increasingly digital and online world? .

Answer 1

1. The e-commerce business over the internet is giving a very tough competition to the traditional brands prevailing in the market over a long period of time. These physical stores have been operating in the market for a very long period of time and they have been functioning in their traditional and customary ways since there establishment, due to which these stores or brands are facing tough competition and increasing threat over their normal course of business. The retail brands have to adapt to these ever changing market situations in order to retain their place in the market and to operate successfully.

a. The impact of internet and digital world is huge on the traditional retail brands:-

The e-commerce business is acquiring the market share of traditional brands as they are easily accessible by a huge smart phone operating population and over a huge geographical area. The market over internet provides customer the facility to know the specifications of a brand or product by sitting in the comfort of their home or workplace, this also impacts the traditional brands at large as now the customer does not have to enter a store or different stores in order to know about a particular product or service. The online portals like amazon,flipkart,snapdeal etc. have also reduced the customer base of traditional brands as a huge population of consumers can purchase their particularly desired products from these portals as they provide a huge variety of products at a single place.

b. In order to survive in the digital and online world the traditional retail brands must follow the following recommendations:-

* The traditional brands must promote their products and tell the public about purchasing them,over the products available on the internet. This could be done by giving their advertisements over local news channel and newspapers or by distributing pamphlets in the nearby localities in order to promote their products as well as stores and how purchasing done from their stores is much more beneficial then purchasing online.

* The traditional brands must switch to online business as well by hiring a small team of IT employees or by selling their products at huge portals like amazon,flipkart,ebay etc. which provide retailers the facility to trade their products online by applying a certain amount of commission on the products being sold. This will help the traditional Businesses to operate online as well as offline through their stores.

* The traditional businesses must try to fulfill the emotional needs of customers by providing special discounts and offers on various festivals and occasions. This creates a sense of belongingness amongst the consumers as they feel obliged by the offers and discounts which they receive on their special occasions and festivals.