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JÖNKÖPING INTERNATIONAL BUSINESS SCHOOLJÖNKÖPING UNIVE RSITYB ra nd I de ntit y & Bra nd I ma geA Case Study of Apotek HjärtatThesis within Business AdministrationAuthor:Alexandra RosengrenAndrea StandoftAnn SundbrandtTutor:Börje BoersJönköpingMay 2010

AcknowledgmentsIn the process of writing this bachelor thesis, a number of people have contributed towhom we would like to express our thanks and appreciation. Without the guidance andhelpful inputs from our tutor, Börje Boers, this thesis would not have been able to developinto its current state. In addition to this, we would like to thank our inspiring intervieweestheir participation:Cecilia Bunar, Local Manager (Jönköping), Apotek HjärtatBarbro Dawidson, Regional Manager (mid to south of Sweden), Apotek HjärtatBodil Eriksson, Executive Vice President, Apotek HjärtatYour contribution has provided this thesis with depth.Furthermore, we would also like to thank the respondents who participated in our survey.You have enabled us to see the situation from your point of view.Lastly, we would like to thank the fellow students in our seminar group for theirconstructive critique and advice, which constantly made it possible for us to develop thisthesis.Alexandra RosengrenAndrea StandoftiAnn Sundbrandt

Bachelor thesis within Business AdministrationTitle:Brand Identity & Brand ImageAuthors:Alexandra Rosengren, Andrea Standoft, Ann SundbrandtTutor:Börje BoersDate:May 2010Key words:Brand, brand identity, brand image, brand awareness, pharmaceutical retailingmarket, Apotek HjärtatAbstractBackgroundThe Swedish pharmaceutical retailing market was re-regulatedin February 2010, which enabled competition. Hence, it hasnow become important to stand out through having a strongbrand. In order for a brand to be strong, the brand identity andthe brand image need to be congruent. This study investigatesbrand awareness, brand identity and brand image in the biggestnewly established pharmaceutical retailing company, ApotekHjärtat. Since brand develops over time, the researchers believethat the newness of the company provides an interestingaspect.PurposeThe aim of this study is to explore if there is a gap betweenApotek Hjärtat’s brand identity and brand image.MethodThis study uses a mixed method approach. The qualitativemethod is used in forms of interviews, in order to obtaininformation concerning the brand identity of Apotek Hjärtat.The quantitative method refers to a survey conducted on thecustomers of Apotek Hjärtat, which generated informationconcerning the brand image.ConclusionApotek Hjärtat has a strong and coherently communicatedbrand identity. However, the brand image is not mirroring thebrand identity, partly due to the fact that many customers havenot yet made up their mind concerning Apotek Hjärtat.ii

Table of Contents11.11.21.31.41.51.62Introduction . 1Background . 1Problem discussion . 2Purpose . 2Research questions . 2Delimitations . 3Definitions. 3Theoretical Framework . 42.12.22.2.12.2.2The importance of having a strong brand . 4Identifying the brand’s identity and image . 5Brand identity . 5Brand Image . 62.2.2.1Marketing Communication . 62.2.2.2Consumption Experiences . 72.2.2.3Social Influence . 72.2.32.3Integrating brand identity and brand image . 7Previous Research . 93Method . 103.13.1.13.1.23.1.33.23.2.1Research method . 10Case Study: Apotek Hjärtat . 10Qualitative and Quantitative methods . 11Inductive vs. Deductive. 11Data Collection . 12The Interviews . 123.2.1.1Face-to-face Interviews . 133.2.1.2Telephone interview . 133.2.13.2.23.2.33.33.3.13.3.23.43.4.13.4.2Webpage . 13The Survey . 14Sampling method. 14Data Analysis . 15Analysing Qualitative Data . 15Analysing Quantitative Data . 17Quality of Data . 18Reliability . 18Validity . l Findings . 20General information . 20The importance of having a strong brand . 21Apotek Hjärtat – preferred pharmacy? . 21Communicating brand identity internally . 23Brand identity of Apotek Hjärtat . 24Health and well-being . 24Understand customers and their need. 25Society and surrounding environment . 26Innovation . 27iii

4.44.4.14.4.2Forming the Brand image of Apotek Hjärtat . 28Marketing communication. 28Consumption experience . 294.4.2.1Smooth and Simple . 294.4.2.2Highly skilled employees . 304.4.2.3 Wider product range, better service, better opening hours, and a more personalguidance . 314.4.35Social influences. 32Analysis . 345.15.1.1The importance of brand . 34Apotek Hjärtat – preferred pharmacy? . 345.1.1.1Follow-up question – why or why not preferred pharmacy? . cating brand identity internally . 36Identifying Brand identity . 37Health and well-being . 37Understands customers and their needs . 37The society and surrounding environment . 38Innovation . 39Shaping the Brand image of Apotek Hjärtat . 39Marketing communication. 39Consumption experience . 405.3.2.1Smooth and simple visits . 405.3.2.2Highly skilled employees . 415.3.2.3 Offers a wider product range, better service, better opening hours and a morepersonal guidance, compared to the other pharmaceutical retailers . 425.3.35.45.5Social influences. 43Interpreting the Don’t Know responses. 44Combining Brand Identity and Brand image . 446Conclusion . 467Discussion . 487.17.2Contribution . 48Criticism and Suggestions for further research . 48References . 49Appendix 1 – Interview Questions to local manager . 52Appendix 2 – Interview Questions to local manager (In Swedish). 53Appendix 3 – Interview Questions to regional manager . 54Appendix 4 – Interview Questions to regional manager (In Swedish) . 55Appendix 5 – Interview Questions to the Executive Vice President . 56Appendix 6 – Interview Questions to the Executive Vice President (In Swedish). 57Appendix 7 – Survey to customers of Apoteket Hjärtat . 58Appendix 8 – Survey to customers of Apoteket Hjärtat (In Swedish) . 60Appendix 9 – Test Re-Test Reliability Data . 62iv

List of figuresFigure 2.1 - The Identity Structure . 5Figure 2.2 - The Process of Inductive Inference on Brand Image . 6Figure 2.3 - The Brand Derby Matrix . 8Figure 3.1 - Modified Likert Scale used in the survey . 14Figure 4.1 - Gender distribution among respondents. 20Figure 4.2 - I shop at Apotek Hjärtat . 20Figure 4.3 - I know of Apotek Hjärtat . 21Figure 4.4 - Apotek Hjärtat is my preferred pharmacy . 22Figure 4.5 - Apotek Hjärtat is my preferred pharmacy, excluding Don't Know answers . 22Figure 4.6 - Apotek Hjärtat cares about my health and well-being. 25Figure 4.7 - Apotek Hjärtat cares about my health and well-being, excluding Don't Knowanswers . 25Figure 4.8 - Apotek Hjärtat understands me and my needs . 26Figure 4.9 - Apotek Hjärtat understands me and my needs, excluding Don't Know answers . 26Figure 4.10 - Apotek Hjärtat cares about the society and its surrounding environment . 26Figure 4.11 - Apotek Hjärtat cares about the society and its surrounding environment, excludingDon't Know answers .

Since these to concepts are central, they will be explained individually below. 2.2.1 Brand identity. Brand identity can consist of traits, benefits, values, differentiation, and personality; it can be seen as everything the brand owner wants the consumers’ to associate with the brand (Roy & Banerjee, 2007).