Merchandising- The Brand Building Strategy

Published by MBA Skool Team, Published on August 17, 2011

A brand is the image or the perception which a customer has in his mind about a particular product and services. Advertising, marketing, product quality, customer service etc all contributes in forming a brand. The brand life cycle of any product or service is associated with a lot many things. Sometimes events, concerts and sponsorships improve a brands presence while controversies, legal issues hamper a brand. But one of the strongest tools of branding which helps in creating a strong brand identity are merchandising.


Merchandising- Building the brand ?

Merchandising is a strategy which helps in enhancing brand equity of products and services. Companies make products like t-shirts, watches, caps and other accessories which help them spread more awareness about their brand. Having such products increases brand visibility and helps reach out to people across economic barriers also.

Some of the biggest global brands consider merchandising as an integral part of their business. A few big brand names are discussed herewith.

Automobile giants Ferrari are one of the most well known and popular brands in the world when it comes to merchandising. Owning a Ferrari is a dream for almost every person on the planet. But due to its high price, it becomes a distant dream. However, people can associate themselves with the brand Ferrari by purchasing its merchandise products. Ferrari watches, t-shirts, jackets and souvenirs with the prancing horse logo are popular amongst the car fanatics as it helps them get closer to their dream brand. Motorcycle manufacturer Harley Davidson is also known for its high quality merchandises which are a huge rage amongst the biking enthusiasts.

Merchandising isn't only limited to products. Infact more or less every big organization or brand wants to be accessible to customer through merchandise products. One of the biggest market for merchandise products are sports teams worldwide and global events like Olympics, FIFA world cup, cricket world cup etc. Top football clubs like Manchester United, Arsenal, Real Madrid, Barcelona etc earn huge revenue from club merchandise like t-shirts, flags, posters etc. Similarly, the Indian Premier League IPL also attracts the spectators in buying team merchandise and showing loyalty & support towards their clubs. Also, merchandising helps in capturing the children segment, as brands like Warner brothers and Walt Disney make sure that their promotional events include toys, video games etc.

Infact for global brands, merchandising has become a critical element of their business. Merchandising not only spreads brand awareness but also contributes to revenue generation. It helps generate a buzz amongst the target group by a positive word of mouth which boosts the prospects of growth of a brand.

Marketing of products is the most important factor which helps a brand grow and show the customers the portfolio and the quality offerings by a company. It also helps build relationships and increase brand loyalty with the customers by becoming a part of their lives. Hence, merchandising is the most effective brand building strategy.

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