The following appeared in a market research report examining

ESSAY QUESTION:
The following appeared in a market research report examining consumer perceptions of a chain of clothing stores:

"A recent survey commissioned by the market research department of XY Gen Stores indicated a high level of recognition among consumers of the brand and the nature of the apparel sold in XY Gen Stores. However, the survey also indicated that approximately 60% of those surveyed that recognized the name of XY Gen Stores had never shopped at one of the company's stores. Because of this result, XY Gen Stores executives should launch a significant rebranding and marketing campaign to change the company's image and thereby bring new consumers into the stores.

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.

YOUR RESPONSE:
The research report outlines the result of a recent survey and draws the conclusion that XY Gen Stores should undertake a rebranding and remarking campaign. I think the conclusion is based on questionable assumptions and draws illogical conclusions and therefore I disagree that the company needs to initiate a remarking and rebranding capaign.

First, the conclusion is based on the assumption that greater than 40% of consumers that know a brand and a product line should be purchasers for the branding to be successful. This assumption is illogical. The price point of the products, the target demographic and other factors will determine whether consumers will actually shop for a particular product. As an example, low and middle income consumers may be very familiar with the brand and products of the watch company, Rolex, but they will not do their shopping in Rolex stores.

Second, the study indicates that a "high level of recognition" is observed amongst polled consumers. If this is the case, why should the company invest money in rebranding a recognized name? Investment in rebranding should be reserved for situations in which brand recognition is low, or in cases where brand image is damaged.

Finally, with a healthy current market penetration, the analyst does not suggest what the effect of rebranding would have on current customers, and whether the changes are designed to move toward a target demographic that is not mentioned by the analyst. If rebranding or remarketing would cause XY Gen to lose current customers, the company would need to perform a thoughtful analysis to see the effect on revenues.

In conclusion, I disagree with the analysts suggestions, and recommend that in the future, the analyst compare the market penetrations of XY Gen versus its competitors. Furthermore, the analyst should have a more detailed questionaire for the survey that asks additional questions to help the firm and its analysts understand its clients.