With the recent announcement of nationwide store closures (Lannin, 2019), BIG W’s geographic footprint is shrinking fast, and with it, the equity underpinning its brand. However, by updating its brand name and logo, the retailer may recapture its lost brand equity.
Defining Key Terms
Brand equity is the measure of the influence that the brand name has over the consumer’s response to marketing efforts (Armstrong et al, 2015: p. 222). Brand identity is the unique configuration of brand associations that the brand strategy strives to create and maintain (Aaker, 1996). Brand image is the interpretation of brand identity by consumers (Kapferer, 2008).
The Centrality of Brand Identity
Increasingly, brand identity is considered the central constituent to brand equity (Burmann, Jost-Benz & Riley, 2009). Indeed, brand identity serves as the foundation of Keller’s Brand Equity Model (2012). This analysis will proceed through the lens of brand identity.
What was BIG W’s Brand Equity?
BIG W adopted the brand identity of “size and scope” because it created a brand image of convenience. Consumers equated the wide geographic footprint, physical size and varied inventory of BIG W with the ease of “one-stop shopping” close to home (Seiders, Berry & Gresham, 2000). In turn, BIG W derived its brand equity from this brand image of convenience: consumers readily responded to BIG W’s marketing efforts because they perceived it to be a more convenient place to shop than other retailers. However, this brand equity has not survived to the present day.
How Do Store Closures Affect BIG W’s Brand Equity?
The announcement of store closures communicates to consumers that BIG W’s geographic presence is contracting. With fewer locations, it is less convenient for consumers to shop at BIG W. Thus, BIG W’s brand identity of “size and scope” rings hollow, and no longer projects the brand image of convenience. This confuses consumers and undermines BIG W’s brand equity.
Recapturing Lost Brand Equity
I propose that the BIG W should update its name and logo. To begin, the retailer should ditch the “BIG” and become “NewW“, thereby re-calibrating its brand identity away from size and towards innovation.
(BIG W, 2019)
BIG W has a history of innovation, being the second retailer retailer in Australia to trial self-checkout machines (NCR Australia, 2003). BIG W has shrewdly capitalised on the surging demand for affordable homewares (Fact.MR, 2017), with its new furniture range being lauded for its trendiness (Bartels, 2019).
BIG W’s New “Dark Wonder” Homewares Range (Bartels, 2019)
The proposed name and logo change will update the retailer’s brand identity to reflect its forward-thinking ethos. Consumers will correctly perceive NewW as an innovative retailer, its brand synonymous with trendy merchandise. Consequently, its brand identity will match its brand image, remedying customer confusion and resulting in a boost to brand equity.
Reference List:
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Armstrong, G., Adam, S., Denize, S. & Kotler, P. (2015). Principles of Marketing. 6th edn. Pearson, Melbourne.
Bartels, K. (2019). BIG W launches new on-trend homewares range starting at $9. [online] Domain. Available at: https://www.domain.com.au/living/big-w-launches-on-trend-homewares-range-829243/ [Accessed 21 Apr. 2019].
BIG W. (2019). BIG W | Australia’s Lowest Prices Everyday. [online] Available at: https://www.bigw.com.au/ [Accessed 22 Apr. 2019].
Burmann, C., Jost-Benz, M. and Riley, N. (2009). Towards an identity-based brand equity model. Journal of Business Research, 62(3), pp.390-397.
Fact.MR (2017). Homewares Market Forecast, Trend Analysis & Competition Tracking. Global Market insights 2017 to 2022. Fact.MR.
Kapferer J.-N. (2008). The New Strategic Brand Management, Creating and Sustaining Brand Equity Long Term. London: Kogan Page.
Keller, K. L. (2012). Strategic Brand Management. 4th ed. Boston: Pearson.
Lannin, S. (2019). Woolworths to shut 30 of its Big W stores amid retail gloom. [online] ABC News. Available at: https://www.abc.net.au/news/2019-04-01/woolworths-to-shut-30-of-big-its-w-stores-over-next-three-years/10958700 [Accessed 21 Apr. 2019].
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NCR Australia (2003). Press Release: BIG W to begin Self-Checkout trial in two stores to improve customer service. [online] Prwire.com.au. Available at: https://prwire.com.au/pr/6868/big-w-to-begin-self-checkout-trial-in-two-stores-to-improve-customer-service [Accessed 21 Apr. 2019].
Seiders, K., Berry, L. and Gresham, L. (2000). Attention, Retailers! How Convenient Is Your Convenience Strategy?. Sloan Management Review, 41(3), pp.79-86.
Woolworths Group (2019). The Woolworths Story. Available at: https://www.woolworthsgroup.com.au/page/about-us/The_Woolworths_Story/How_We_Were_Founded [Accessed 21 Apr. 2019].
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