Global Branding - House of Fraser

Global branding- IB846K 1
Global Branding
House of Fraser
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Global branding- IB846K 2
Contents
Global Branding....................................................................................................................................1
House of Fraser.....................................................................................................................................1
Contents.................................................................................................................................................2
Overview...............................................................................................................................................3
Brand Analysis, equity, position and sources........................................................................................3
Brand Equity......................................................................................................................................4
Brand position and sources of brand equity.......................................................................................4
Sources of brand equity.....................................................................................................................4
Identification of a foreign market for House of Fraser..........................................................................5
Comparison and contrast in the marketing environment........................................................................5
Comparison.......................................................................................................................................5
Contrast.............................................................................................................................................6
Strategies to re-position the brand in India............................................................................................7
Marketing programmes supporting brand strategy................................................................................8
Recommendations.................................................................................................................................9
References...........................................................................................................................................11

Global branding- IB846K 3
Overview
The following assignment identifies UK’s low sales growth company, House of Fraser. It is a
UK based departmental store offering a wide range of products, but recently undergoing
considerable low sales. This assignment focusses on the need to built brand strategies to
support company’s sales and stratifies ways to re-position the brand in a new market, which
has also been identified.
Brand Analysis, equity, position and sources
House of Fraser is a UK based department store that offers a wide range of products starting
from clothing, accessories, fashion boots, cosmetics, home products, furnishing, electricals,
and other products. It was formerly established in Glasgow, Scotland in 1849. The founders
Arthur and Fraser initially named it as Fraser and Sons (Azhar, 2013).
It possesses many in-house brands like BIBA and LINEA. It has approximately 55 stores
spread across United Kingdom. In this particular assignment, we will be performing the
brand analysis of the company in its external and internal environments, thereby presenting
strategies which will explain how the company can be performed better in the years to come.
The information required for the analysis can be obtained from different sources like journals,
social websites and textbooks.
The PESTEL analysis of House of Fraser clearly reveals the performance of the company in
the market. UK is a promising market and a strong part of the European Union. Competitors
can enter the market without any terms, conditions or limitations. As a result, the government
of UK is planning to decrease the corporation tax from 30% to 28% that would help the
company to increase their profits in the coming years. Economically, the UK company is
continuously undergoing recession and there is a rapid change in the rates of interest. There is
a tough competition between companies of the same sector which forces the retailers to
deliberately put incentives to the customers (Farjam and Hongyi, 2015).
At the Socio-cultural level, there are lot of opportunities prevailing in the market which is
giving materialistic goals to the company. The company is in urgent need of presenting
attractive and fashion clothes for the customers. At the Technological front, it is a common
phenomenon of customers doing internet shopping at a massive level which gradually
decrease the offline sales of the product. The only way to exist in the market is to launch new
ways to please their customers (Florek and Kavaratzis, 2014).

Global branding- IB846K 4
They are planning to inaugurate new stores in the same building, so that the customer avails
different products in one go. For the protection of consumer rights, the National legislation
has become rigid about its non-compromising terms in context to health and safety of the
customers. The company therefore has to incline its goals towards using more of renewable
resources, which would qualify the guidelines of the legislation (Insch and Bowden, 2016).
As far sale of the products for the company is concerned, they believe to formulate their
business model to get rid of the discounts offered on the products. The stores are coming up
with strategies that will revise the rates of the products to ensure that the sales are right – in
the very first time (Johns and English, 2016).
Brand Equity
The brand value of House of Fraser is in big trouble. In the news last week, the company
planned to close 31 out of its 59 shops, which encloses their main store- Oxford Street store,
which was a rescue plan. If this plan goes active, it would lead to a loss of approx. 6000 jobs
in UK. And this would lead to a considerable loss for the retail industry. House of Fraser
impression score has considerably fallen in 2018 by four points from 23 to 19. They are on
the verge of renovating their trade and product strategy according to which, the store will
now incorporate the most exclusive brands only. Trend-spotting will be a major investment
by the company (Jung et al., 2014).
Brand position and sources of brand equity
The position of the brand is considerably low. The analysts state that the assets of the
company were scooped by 90 m pounds. The reason behind such a downfall is the inefficient
functioning of the marketing department. Its also been surveyed that the company didn’t get
any CEO for atleast an year, and the consistent absence of the leader hampers the growth of
the brand (Lieven et al., 2014).
Sources of brand equity
Various sources of brand equity can be used to improve the sales.
1. Awareness and Recognition of the brand
2. Use of Ethnographic and Observational skills
3. Use of projective techniques