STP or Journalims?

Today, I would like to discuss about the validity of STP strategy of branding rather than brand journalism. In our class, brand journalism is focuses as one of the new tendency of brand strategy. However, I still believe that brand Journalism, trying not to cut the segment, does not work unless its brand has strong existing value.

 

For example, one of the advocator of brand journalism, McDonalds, takes its strategy. McDonalds appeal its value to anyone. “All people have their experiences or memories of McDonalds in their childhood.” That is why customers can be welcomed. The reason why McDonalds is successful to take this strategy is its strong existing brand. Most of people know what McDonalds is. They already have the expectations for dining at McDonalds.

 

How about brand journalism for new venture business?

Personally, I do not think appealing everyone of new brand without its famous core brand would succeed in this complex market. For example, UNIQLO, one of the global apparel companies from Japan, used to take brand journalism in Japan before UNIQLO expands global strategy. Especially for apparel industry, each brand has its own target as usual. However, UNIQLO had just the theme of “high quality with low price.”

It was actually, successful for some extent. However, now UNIQLO takes STP strategy. UNIQLO has realized that apparel industry requires positioning for brands. Therefore, UNIQLO developed its sub-brand, called “g.u,” which focuses more on price competition and its targeting for young consumers. That is why UNIQLO could develop its business in globally.   

 

My opinion of STP and journalism

I really believe that journalism is valid only for strong existing brand such as McDonalds. For most of the brand companies, especially for new ventures, should settle their expected segment, and cast the appropriate strategies, for this complicated market.