Prepared for Pumpkin Patch Limited

By Shanti Marsh1382170

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Executive Summary

Branding has proved as a powerful marketing strategy however the Anti-brand

community is significantly questioning the ethics of the power that large

corporations hold. Your brand represents your reputation therefore is heavily

relied on for all future sales and customers.

Critics of branding feel that global corporations are:

- Taking advantage of their consumers emotions to dictating their

thoughts and actions.

- Advertising an unrealistic reality and lifestyle to consumers to draw

them into the brand

- Taking advantage society any way possible, as their main priority is to

make money

- Assisting globalisation with damaging local economies and businesses

Fighting for brands, the positive argument of brands concluded that:

- A relationship of acceptance, love and loyalty is created for the

consumer through branding

- Competition is encouraged with global corporations, which only makes

product standard higher.

- Third World countries are given employment opportunities by global

corporations.

After discussing both sides of the arguments, it is recommended to Pumpkin

Patch to continue branding their company with the following key points:

- The brand must stay open and honest about everything to their

consumers

- The consumers are the most important thing to the brand, ensure you

are meeting their basic needs and making them feel part of the brand

- Showing that the brand supports every community which it has

employees, consumers and other stakeholders is vital to uphold and

ethical reputation.

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Executive Summary.................................................................................................2

1.0 Introduction...................................................................................................4

1.0 Pumpkin Patch...............................................................................................41.1 Background...............................................................................................................................................41.2 Current Financial Status....................................................................................................................5

2.0 What is a Brand?............................................................................................5

3.0 The Pro Brand Argument................................................................................73.1 Brand Equity.............................................................................................................................................73.2 Lovemarks.................................................................................................................................................9

4.0 The No Brand Argument.................................................................................94.1 No Logo...................................................................................................................................................... 94.2 Anti-Brand Movement.......................................................................................................................10

5.0 Globalisation building Brands.......................................................................11

6.0 Case Studies.................................................................................................126.1 Nike............................................................................................................................................................ 126.2 Icebreaker...............................................................................................................................................136.3 McDonalds..............................................................................................................................................13

7.0 Summary......................................................................................................13

9.0 References and Bibliography........................................................................17

10.0 Appendices.................................................................................................1910.1 Stock Quotes (PPL)............................................................................................................................19

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1.0 Introduction

Brands are flooding communities in every marketing sector around the world.

While branding has proven to sell products highly successfully, anti-brand

activists are constantly scrutinizing the ethics. This report will provide an

argument ‘pro-branding’ and ‘anti-branding’ while discussing the effects of

Globalisation. In conclusion, marketing recommendations will be made for

Pumpkin Patch Limited to proceed ethically yet successfully.

Does branding allow corporations to connect and build a personal relationship

with the consumer or is it dictating the way that consumers live their lives?

1.0 Pumpkin Patch1.1 Background

Pumpkin Patch is a New Zealand born and bred company, started by Sally

Synott in 1990. The company sells young children clothing, emphasizing in

quality and valuing family. Pumpkin Patch Limited owns and operates four

collections; Charlie & Me, Ubran Angel, Patch General, and Patch Maternity.

The company is now selling products globally in Australasia, Asia, the Middle

East, and until recently, the United States and the United Kingdom.

The Pumpkin Patch brand guarantees quality with their pledge to stand by

their products. They publicly announce on their website that “if you’re not

satisfied with the quality of your purchase, we’ll make it right for you – NO

time limits, NO exceptions – it’s as simple as that.” (Patch Quality Pledge,

2013). The company is also actively supporting New Zealand children

charities such as Starship and Cure Kids, which reflects high morals and

values on the Pumpkin Patch brand.

Pumpkin Patch happily admit that all their products are manufactured

overseas, including China, with suppliers that they hold very strong

relationships with and some of who have been in partnership with the

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company for the entire 20 years. Pumpkin Patch design all the clothing in New

Zealand however in order to keep up with the quality and the price point that

their customers demanded, they have no other choice but to manufacture

overseas (Best business over $50m, 2010).

Pumpkin Patch describes themselves in the statement below:

“Our people are dedicated, talented, passionate and heaps of fun. We have a

strong workplace culture that’s inspired by family values… Our continued

growth and the loyalty we receive from our customers speaks volumes and

makes the hard work so worthwhile” (About Us NZ, 2013).

1.2 Current Financial Status

In 2010 Pumpkin Patch reached a record high of $50 million revenue with

nearly $400 million of annual sales. (Best business over $50m, 2010).

Unfortunately since then, the sales have dramatically dropped and the

company struggled with a $30 million decline in 2012. In 2013 the company is

fighting back and showing a positive turn for the New Year. The Pumpkin

Patch Limited stock quotes of the last five years show a dramatic drop in 2011

though also that the company’s fighting with a positive trend in 2013 (see

appendix one).

The 2010 statistics for the multi million dollar company at its peak, are

outlined below:

- 527 retailers selling Pumpkin Patch products

- 230 of the retailers were company owned stores

- Manufacturing approximately 20 million garments per year

(Best business over $50m, 2010).

2.0 What is a Brand?

The most used marketing definition of a brand is from the American Marketing

Association. AMA define a brand as a “name, term, sign, symbol, or design, or

a combination of them, intended to identify the goods and services of one

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seller or group of sellers and to differentiate them from those of competition”

(as cited in Keller, 2012. p.30).

Branding peaked through mass industrialisation and the globalisation of

products. While the community was used to buying their products from locals

whom they knew well and trust, it then became normal to buy products that

had been shipped in from other towns or countries. To ease people out of the

relationships they held with their local producers products were typically

branded with trusting faces for consumers to build “surrogate relationships”

with (truthislight888, 2012).

A brand is not the same thing as either the logo or the product. The product

represents the tangible features of what we are buying, that we can physically

see and touch. The logo is the recognisable shape that represents the brand.

While the brand is visibly the logo, it is the collaboration of the consumers’

emotions, perceptions and the reputation of the company.

For example the key tangible features of a laptop is that it is portable, can surf

the Internet, can create documents, and can open applications. Looking at

two different brands of laptops; an Apple laptop, and a LG laptop. They both

have very similar tangible features however the brand is the key aspect, which

persuades a consumers purchase decision. The Apple brand is highly trusted,

modern, innovative and a ‘cool’ brand. LG is less known therefore less trusted

and doesn’t quite compete with the Apple contemporary impression. Most of

the time, consumers subconsciously are buying a product for its brand as

opposed to its unique tangible features. A European study discovered that

young adults (aged 18 to 24 years old) are more heavily influenced to buy a

brand, which is reflected as ‘cool’ as opposed to an ethical or less expensive

choice (being ethical, or being cool: young adults can’t make the choice,

2005).

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3.0 The Pro Brand Argument3.1 Brand Equity

Brand equity is what builds a brand in the minds of a consumer and therefore

builds the value. The value of brand equity is often higher than the value of

the tangible product as it secures repeat business and strong customer

relationships. As figure 1.0 shows, the value of the brand has the potential

double the value of the company as it gives assurance of loyal and repeat

customers and stable future revenue.

Figure 1.0 – “Brand Value as a Percentage of Market Capitalization (2010)” (Keller, 2012. p.

36)

Your brand holds a significant percentage of the customer relationship as it is

traditionally the platform, which allows a consumer to “satisfy their needs,

wants and desires” (Hollenbeck & Zinkhan, 2006. p. 480). The strength of

your brand ultimately lies in the hands of consumers and the knowledge they

hold of your brand. The knowledge of the brand is not merely the facts the

experiences, thoughts and beliefs that they connect to the brand (Keller, n.d.).

Building a brand is broken into four steps according to the brand resonance

model illustrated in figure 2.0. The model is based around building blocks,

which rely on the step prior in order to continue (Keller, 2012). The four steps

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are based around the four simple questions in orange, on the left side of the

model. These four steps simply are building;

1. Brand Identity

2. Brand Meaning

3. Brand Responses

4. Brand Relationships

Figure 2.0 – “Brand Resonance Pyramid” – (Keller, 2012. p. 108).

Keller explains the importance of the ladder as “we cannot establish meaning

unless we have created identity; responses cannot occur unless we have

developed the right meaning; and we cannot forge a relationship unless we

have elicited the proper responses” (2012. p. 107).

Brand equity allows a consumer to feel comfortable in their relationship with

the brand. Consumers will therefore respond with a positive purchase

decision as well as positive feedback to the brand and to the community. The

brand allows consumers to connect with it by holding similar values and

meaning. The identity of a brand will be clear to the consumer and reflect in

their own identity.

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3.2 Lovemarks

Taking branding to a level of emotion, CEO of the advertising company

Saatchi and Saatchi, Kevin Roberts, introduced Lovemarks. Lovemarks are

built from personalised love, respect, passion and openness. Roberts believes

that consumers are motivated by emotion as opposed to reason therefore this

is the obvious way to reach them. Lovemarks commit to understand their

consumers dreams, experiences and pleasure by building a trusting

relationship between the brand and the consumers.

Lovemarks is genuine branding that prioritises the consumers at all costs.

CEO of Fashion Label Benetton, Silvano Cassano explains that by “identifying

with an individual instead of a customer” they promote Benetton products “not

on the basis of the age or income, but instead on a shared vision and a set of

common values” (as cited in Roberts, 2005. p.79). Lovemarks speak with their

consumers as opposed to speaking to them, and directing their thoughts and

feelings.

Surrounding consumers with consistent images and messages is a basic

strategy of branding however to connecting with the consumer is where

Lovemarks differentiate from standard branding (Roberts, 2005).

4.0 The No Brand Argument4.1 No LogoNaomi Klein is a Canadian Journalist who passionately fights against

globalisation and global corporate branding. Klein believes that as a result of

globalisation the modern world is being taken over by global corporations who

subconsciously dictate consumers’ thoughts and actions.

Klein explains “the process of branding in it’s simplest form is just the

processing of marking a product with a consistent logo, image, mascot; that

sends a message to the consumer. A message of consistency, a message of

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quality” (truthislight888, 2012). This definition is very comparable to the ASA

definition however the two opinions of branding are on complete opposite

sides of the spectrum.

Klein argues that today’s community are emotionally attaching themselves to

a brand to an extreme level. Consumers feel their surrogate relationships with

their brands are so strong that they will label themselves for example as a

‘Nike person’. Activists against branding argue that corporations are

manipulating consumers feelings to create strong loyalty to their brand and a

sense of self belonging.

American companies such as McDonalds, Disney and Coca Cola owe a lot of

their success to the brand as opposed to the product. They have sold the idea

of family and positive lifestyles through the branding of their product however

cases of the brand contradicting the product are not uncommon. McDonalds

promotes nutritious food for families however the reality is that a diet built from

their food “is linked with a greater risk of heart disease, cancer, diabetes and

other diseases” (Hollenbeck & Zinkhan, 2006. p. 482).

4.2 Anti-Brand Movement

Typically global corporations hold dominating positions in the market place.

The anti-brand movement feels that with high brand equity corporations are

able to dominate local businesses, which leads to a weaker economy, loss in

jobs and even a polluted environment.

While marketers intend to create a personal and balanced relationship with

their consumers, anti-brand communities believe that large corporations hold

all the power with their profit driven companies. The anti-brand community

feels that brands are dictating consumers’ personal preferences and feelings.

The members therefore have a negative opinion of global brand names as

they are “representing corporation domination” (Hollenbeck & Zinkhan, 2006.

p. 480).

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The anti-brand community describe the global corporations are “oppressive,

exploiting, destructive, unethical, and monopolizing” (Hollenbeck & Zinkhan,

2006. p. 480). The movement feels that these corporations are “bullies” and

that the community personally has a moral responsibility to fight against them.

Klein expresses her concern of their dictation in the following statement;

“Corporations are much more than purveyors of the products we all want; they

are also the most powerful political forces of our time” (as cited in Legrain,

2002. p. 132).

By becoming a globally branded company, you are embracing globalisation

and being given the label of a money driven company. Global corporations

are often given the stereotype of having minimal morals and are instead seen

to be emphasising mass production at any cost or sacrifice.

5.0 Globalisation building Brands

Whilst Klein is against global brands her main issue is with globalisation,

which makes all people more the same and does not support different

cultures and individuals. In addition the huge success of these brands pushes

smaller local companies out of business as consumers want the big global

brands even though they may not be good quality or a good price.

Globalisation is typically a negative term as it is being accused of being the

sole reason

In the eyes of Klein and other critics, corporations and their brands are

routinely “accused of manipulating our desires, exploiting our children,

spoiling the landscape, using their financial and political clout to control us,

homogenising our culture and taking advantage of the worlds poorest to make

the things we crave” (as cited in Clifton & Simmons, 2003. p. 171). While anti-

globalisation activists argue that globalisation is ruining society, there are

many positives aspects that don’t get a lot of acknowledgement.

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The power of globalisation is something that the world should stop fighting

against and embrace as an opportunity. Before globalisation, choices were

minimal therefore prices were fixed with zero competition. Large companies

such as Starbucks are forcing everyone in the market to compete. Consumers

now have a choice as to where they go therefore the competition for high

quality and affordable prices is at a high (Clifton & Simmons, 2003).

Hilton (2003) argues that global corporations such as Nike are acting

extremely ethical with their decisions to employ those less fortunate in Third

World Countries, even if it is for a lower wage. These companies who are

embracing globalisation are keeping workers employed in a much better

position than they would be in without. If sweatshops were to be forcefully

closed, countless young female employees would turn to the prostitution as a

last resort for money. Sweatshops “are a positive symbol of economic

development” (Hilton, 2003), and companies that have been accused of

exploitation are helping fight against poverty.

6.0 Case Studies

6.1 Nikewww.nike.co.nz

Nike is a sports clothing line, which has created a global community of

consumers. Their mission is “to bring inspiration and innovation to every

athlete* in the world. *if you have a body, you are an athlete” (About Nike,

2013). Instead of putting their focus on pushing their clothing line, they are

instead focusing on supporting and encouraging their consumers. By showing

genuine care towards consumers, they feel a connection with Nike and

consequently will buy their products.

Nike also have an enormous online presence on Social Media. They provide a

community for athletes to connect with each other and feel apart of a team.

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Additionally, Nike stores all over the world operate ‘Run Clubs’ free to the

public, to support the community.

6.2 Icebreaker

www.icebreaker.com

Icebreaker is a New Zealand merino wool company, which emphasise the

ethical production and high quality of their products. Since the foundation of

the company in 1994, they have broken into the international market with

stores all over the world.

After purchasing a product from Icebreaker, consumers can track back the

barcode of their clothing to find out the exact production line it came from. The

‘Find Your Baacode’ initiative, builds on the ethics of the company and leaves

consumers feeling comfortable and trusting in their relationship with

Icebreaker.

6.3 McDonalds

www.mcdonalds.com

McDonalds positions themselves as a family restaurant, with fresh, nutritious

and high quality food. It’s no secret that the food that McDonalds serve is high

in salt, fat and sugar, and low in vitamins and fiber though they’ve still created

a strong brand with loyal consumers (Hollenbeck & Zinkhan, 2006).

While this McDonalds is a highly successful company in terms of revenue,

their ethics are low in priority as their produce us ultimately encouraging

children obesity.

7.0 Summary

The success of branding in today’s market is undeniable. Strong brand equity

will not only sell products but creates loyal returning customers. Turning your

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brand into a ‘Lovemark’ gives the consumer an experience and relationship

that they cherish. A brand allows a customer to connect with the product they

are buying as well as feel comfortable with their purchase decisions.

Anti-brand activists have clear concerns of global corporations taking a

dictating control over consumers, economies and employees however they

fail to research the positives of brands.

To summarise the anti-brand arguments, critics feel that:

- Branding is telling consumers how to feel and therefore unethically

holds control over their actions, and loyalty.

- Brands advertise an unrealistic reality to draw in consumers

- Global corporations are taking advantage society any way possible, as

their main priority is to make money.

- Local economies and businesses are being damaged by globalisation

All of the concerns shown by anti-brand activists are issues that have been

guided by globalisation. Globalisation is not something that brands have been

responsible for, however something that brands have been a result of. Brands

were built as a result of globalisation and not the other way round.

To counter the anti-brand argument, and summarise the key points of the pro-

brand argument:

- Brands make consumers feel comfortable, loved and in a trusting

relationship

- Global corporations are offering competitive prices and quality

therefore local businesses must bring only the best to the market

- Global corporations are providing employment in Third World countries,

in safe working environments.

8.0 Recommendations

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My recommendation to Pumpkin Patch is to continue with your current

branding positioning however to stay aware of the anti-branding community’s

concerns. I suggest that you embrace a Lovemarks into your brand, and

prioritise your consumers over everything. As your brand is the key

representation of your company and is relied on for all transactions, it is vital

that the reputation is kept immaculate.

Using Icebreaker as a positive example, you must be 100% open with your

values, product quality and manufacturing line. While you do not currently

hide that you manufacture all products over seas, it is important that

consumers discover this in a negative light.

Creating a trusting and caring community, which encourages consumers to

share parenting wisdom, will assist in creating a genuine Lovemark. As Nike

has created a online and physical community with their consumers, Pumpkin

Patch has an opportunity to create a community for parents to interact with

the brand, and with each other.

Your commitment and support to New Zealand charities is commendable and

reinforces the strong ethical values of Pumpkin Patch. It is recommended that

you show your support to any Third World countries of which you are selling

or producing product to back the poor environments that your staff and

consumers are apart of.

Maslow’s Hierarchy of Needs (figure 3.0) is an ideal model to base the

Pumpkin Patch brand priorities on, with the consumers at mind. The model

explains that in order to meet the needs at the top of the pyramid, such as

self-actualization needs, you must have the basic building blocks below.

Without the basic needs of food, safety, and love that are found at the lower

levels of the model, consumers will not be able to meet their needs of esteem

or self-actualization. If Pumpkin Patch actively shows that they are meeting

the core needs for their consumers and internal stakeholders, then consumers

will be more inclined to allow themselves to meet the higher needs and

purchase products.

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Figure 3.0 - Maslow’s Hierarchy of Needs (Larson, 2012. p. 200).

Pumpkin Patch is doing an admirable job at branding their company in the

global market. While I am content with their current position I do feel that they

must be aware of their reputation in the eyes of their consumers.

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9.0 References and Bibliography

About Nike, (2013). Retrieved from: http://nikeinc.com/pages/about-nike-inc

Best Business over $50m, (2010). New Zealand Trade & Enterprises.

Retrieved from: http://www.nzte.govt.nz/latest-events/new-zealand-

international-business-awards/award-winners-2010/pages/best-business-

over-50m.aspx

Hilton, S., (2003). Employing Ethics – Why Anti-sweatshop Campaigners

Should be Pro-logo. Retrieved from:

http://www.brandchannel.com/brand_speak.asp?bs_id=70#author

Hollenbeck, C. R., & Zinkhan, M. G., (2006). Consumer Activism on the

Internet: The Role of Anti-brand Communities. Advances in Consumer

Research. Vol 33, 2006. Retrieved from:

http://www.acrwebsite.org/volumes/v33/v33_10337.pdf

Keller, K. L., (n.d). Measuring Brand Equity. Retrieved from:

https://docs.google.com/viewer?

a=v&q=cache:kuk9IwfvpF4J:www.terry.uga.edu/~rgrover/

chapter_26.pdf+measuring+brand+equity+keller&hl=en&gl=nz&pid=bl&srcid=A

DGEEShpWgOJVF2qPqUjwbcjPSQnxyT4gaylzpDrOLxZ2WgHS0yZM8s3kjxWo6n

EdcHgzeoj5UkJxk7WwKVZkL09QNhJqk15ZvWyITHH-JSnWm4vJc3PbCzBY-

uTMcnNMGLYI6DR-P2g&sig=AHIEtbQxRuJjDornnJDoLMWpAs9hRFZ0KA

Keller, K. L., (2012) Strategic Brand Management: Building, Measuring, and

Managing Brand Equity. (Global ed.) Harlow, England: Pearson Education

Ltd.

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Larson, C. U., (2012). Persuasion: Reception and Responsibility (13th ed.)

Cengage Learning.

Legrain, P., (2002). Open World: The Truth About Globalisation. Great Britain:

Abacus.

Patch Quality Pledge, (2013). Pumpkin Patch. Retrieved from:

http://www.pumpkinpatch.co.nz/banner/generic/quality_pledge_nz

truthislight888, (2012). No Logo: Brands, Globalization and Resistance

Retrieved from: http://www.youtube.com/watch?v=8859syeumXw

Roberts, K. (2005). The Lovemarks effect: Winning in the consumer

revolution. Brooklyn, New York: powerHouse Books.

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10.0 Appendices

10.1 Stock Quotes (PPL)

Retrieved from: http://www.stuff.co.nz/market/stock/PPL/charts

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