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CREATING BRAND EQUITYCHAPTER 10

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PRESENTED BY

2

Name Roll no.

Sahil Rao 44

Taha Tarwala 52

Kunal Ramrakhiani 19

Ghansham Gaikwad 14

Shaeesta Chowdhary 47

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BRAND?

A Brand is a name, term, sign,

symbol or design, or a combinationintended to indentify the goods orservices of one seller or group ofsellers and to differentiate them

from those of competitors.

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THE ROLE OF BRANDS

Helps organization or individuals to assign responsibility.

Brands identify the source or maker of the product. Consumers may evaluate identical products differently

depending on how it was branded.

Brands perform valuable functions for firms, they simplifyproduct handling or tracing, help organize inventory and

accounting records, offers legal protection for uniquefeatures or aspects of the product.

Brand names can be protected through registeredtrademarks.

Manufacturing process can be protected through patents.

Packaging can be protected through copyrights andproprietary designs.

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Brands signal a certain level of quality so thatcustomers can easily select the product again.

It provides predictability and security of demand for thefirm.

It makes it difficult for the firms to enter the market.

It creates a sense of loyalty where the customer iswilling to pay a higher price often 20 to 25% more than

the competiting brand . Branding enables firms to secure a competitive

advantage.

Brands represent enormous valuable piece of legalproperty which influences consumer behavior.

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THE ROLE OF BRANDS

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THE SCOPE OF BRANDING

How do you brand a product? Although firmsprovide impetus to brand creation throughmarketing programs & other activitiesultimately a brand resides in the minds of

consumers. Branding is endowing products & services

with the power of a brand. Its all aboutcreating differences between products.

Branding creates mental structures that helpconsumers organize their knowledge aboutproducts and services in a way that clarifiestheir decision making and in the processprovide value to the firm.

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For Branding strategies to be successful and

brand value to be created, consumers mustbe convinced there are meaningfuldifferences among brands in the products orservice category.

Brand differences are often related toattributes or benefits of the products itself,Gillette and others have been leaders in theircategories for decades due to continualinnovation.

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THE SCOPE OF BRANDING

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WHAT IS BRAND EQUITY?

Brand Equity is the added value endowed onproducts and services. It may be reflected inthe way consumers think, feel and act

with respectto the brand, as well as in theprices, market share and profitability thebrand commands for the firm.

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BRAND EQUITY AS A BRIDGE

From the perspective of brand equitymarketers should think of all the dollarsspent on products & services each year asinvestments in consumer brand knowledge.

The quality of the investment in brandbuilding is the critical factor, not necessarilythe quantity, beyond some minimal thresholdamount.

The brand knowledge created by marketing

investments dictates appropriate futuredirections for the brand.

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BRAND EQUITY MODELS

1. BRAND ASSET VALUATOR

has 5 key components they can broadly classified as:

Differentiation

Energy

Relevance Esteem

Knowledge

Differentiation, Energy and Relevance combine to

determine Energized Brand Strength. These three

pillars point to the brands future value. Esteem and

Knowledge together create Brand Stature, which is

more of a report card on past performance.

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BRAND EQUITY MODELS

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2. BRANDZ :

Strongrelationship/high

share of categoryexpenditure

Presence

Relevance

Performance

Advantage

Bonding

Weakrelationship/lowshare of categoryexpenditure

Do I knowabout it?

Does it offerme smething

Can it deliver?

Does it offersomething betterthan the others?

Nothing else beats it

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BRAND EQUITY MODELS

BRAND EQUITY MODELS

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3. AAKER MODEL:

Marketing professor David Aaker viewsbrand equity as the brand awareness, brandloyalty and brand associations that combine

to add or subtract from the value providedby product or services.

Brand management starts with developingbrand identity, which promises to customers

an aspirational brand image.

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BRAND EQUITY MODELS

BRAND EQUITY MODELS

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4. BRAND RESONANCE MODEL

Brand Salience

Brand Performance

Brand Imagery

Brand Judgments Brand Feelings

Brand Resonance

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BRAND EQUITY MODELS

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BUILDING BRAND EQUITY

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BRAND EQUITY DRIVERS

Choosing Brand Elements Brand names, URLs, logos, symbols, characters,

slogans, jingles, packages and signage.

Designing Holistic Marketing Activities Product and services and all accompanying

marketing activities and supporting marketingprograms.

Leveraging Secondary AssociationsOther associations indirectly transferred to the

brand by linking it to some other entity ie person,place or thing. 17

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BRAND ELEMENTS

Brand Elements are those trademarkabledevices that identify and differentiate thebrand.

A brand element that provides a positive

contribution to the brand equity, conveyscertain valued associations or responses.

Based on its name alone, a consumer might

expect ColorStay lipsticks to be long lasting andSnackWell to be healthful snack foods.

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ELEMENTS

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CHOOSING BRAND ELEMENTS

Memorable Meaningful

Likable

Transferable

Adaptable

Protectable

ELEMENTS

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Defensive and deal with how toleverage and preserve the equity ina brand element in the face ofopportunities and constraints.

Brand Building

ELEMENTS

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1. Memorable How easily is the brand element recalled and

recognised? Short brand names such as Lux, LG

and Taj are memorable brand elements.

1. Meaningful

Does it suggest something about a productingredient or the type of person who might usethe brand? Consider the inherent meaning innames such as Fair & Lovely fairness cream,Close-Up toothpaste, and Mothers Recipe

pickles.

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ELEMENTS

ELEMENTS

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3. Likable Is it likable visually, verbally, and in other

ways? Concrete brand names such as Maharaja

evoke imagery.

4. Transferable Can the brand element be used to introduce

new products in the same or different

categories? Eg. Amazon.com, From initially anonline book seller, to selling diverse range ofproducts.

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ELEMENTS

ELEMENTS

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5. Adaptable How adaptable and updatable is the brand

element? Eg Lifebuoy made a shift in positioning

from male concept of health to a warmer andversatile benefit of health for the entire family.

6. Protectible How legally protectible is the brand element? How

competitively protectible? Names that becomesynonymous with product categories such as

Scotch Tape, Xerox and Fiberglass should retaintheir trademark rights and not become generic.

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ELEMENTS

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ACTIVITIES

Brands are not built by advertising alone, but alsothrough:

Personal observation and use

Word of mouth

Interactions with company personnel

Online or telephone experience

Payment transactions

Marketers are creating brand contacts and build

brand equity through many avenues such as: Clubs and consumer communities

Trade shows Event Marketing

Sponsorship

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HOLISTIC MARKETING ACTIVITIES

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Factory visits

Public relations and press release

Social cause marketing

Three Important new themes in designingbrand building marketing programs :

Personalization Integration

Internalization

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HOLISTIC MARKETING ACTIVITIES

HOLISTIC MARKETING ACTIVITIES

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PERSONALIZATION

Personalizing marketing is about making sure the

brand and its marketing are as relevant as possibleto as many customers as possible a challenge,given that no two customers are identical.

To adapt to the increased consumer desire for

personalization, marketers have embracedconcepts such as:

Experiential marketing

One-to-one marketing

Participatory marketing Permission marketing

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HOLISTIC MARKETING ACTIVITIES

HOLISTIC MARKETING ACTIVITIES

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INTEGRATION

Integration marketing is about mixing and matching

marketing activities to maximize their individualand collective effects

Although Apollo Tyres may invest in R&D andengage in advertising, promotion and other

communication to reinforce the tires durableassociation, it may chose to sponsor activities toensure that the brand is seen as contemporary andup-to-date.

Marketing programs should be put together so thatthe whole is greater than the sum of the parts.

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HOLISTIC MARKETING ACTIVITIES

HOLISTIC MARKETING ACTIVITIES

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INTERNALIZATION

Internal branding is activities and processes that

help to inform and inspire employees.

It is critical for service companies and retailers thatall employees have an up-to-date, deep

understanding of the brand and its promise.

Holistic marketers must go even further and trainand encourage distributors and dealers to serve theircustomers well.

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HOLISTIC MARKETING ACTIVITIES

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Alliances

Employees

Ingredients

Endorsers

Company

Countryof origin

Extensions

Channels

Events

OtherBrands

Causes

People

Third-partyendorsement

s

BRAND

Things

Places

Secondary Sources of Brand Knowledge

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MEASURING BRAND EQUITY

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Power of the brand

resides in the mind of

the consumer

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APPROACHES TOMEASURING BRAND EQUITY

Direct approach

Indirect approach

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BRAND VALUE CHAIN

Marketing

programinvestments

Customer

mind set

Brand

performance

Shareholder

value

Programmultiplier

Customer

multiplier

Marketmultiplier

ProductCommunicatios

TradeEmployee

other

AwarenessAssociations

AttitudesActivity

Price premiumsPrice elasticity

Market shareExpansion successCost structureProfitability

Stock priceP/E ratio

Market

capitalization

ClarityRelevance

Distinctivenesconsistency

Competitive reactionsChannel supportCustomer size & profile

Market dynamicsGrowth potential

risk profileBrand contribution

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For brand equity to perform a useful strategic functionsand guide marketing decision marketers need to

understand

1. The source of brand equity and how they affect outcomeof interest

2. How these sources and outcome changes, if at all , over

time

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BRAND AUDIT

Is as consumer- focused series of procedures to assess the

health of the brand uncover the sources of brand equity and

suggest ways to improve and leverage its equity

It allows marketers to keep their fingers on the pulse of their

brands so that they can manage them more proactively and

responsively

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BRAND TRACKING STUDIES

It collect quantitative data from consumers on a routine basis

over time to provide marketers with consistent, baseline

information about how their brands and marketing programs

are performing on key dimensions

Tracking studies are a means of understanding where , how

much , and in what ways brand value is being created, to

facilitate day to day decision making

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BRAND VALUATION

Is estimating the total financial value of the brand

John Stuart of Quaker Oats said If this business weresplit up , I would give you the land and bricks and mortar

, and I would take the brand and trademarks, and would

fare better then you

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WHAT IS A BRAND WORTH

Top brand management firm interbrand has developed a

model to formally estimate the dollar value of a brand

Interbrand defines brand value as the net present value of

the earning brand is expected to generate in the in the

future and believes both marketing and financial

analyses are equally important in determining the value

of a brand

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MANAGING BRAND

EQUITY

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Effective brand management requires a long term view

of marketing actions.

Because consumer responses to marketing activity

depend on what they know and remember about a brand ,

short term marketing actions , by changing brandknowledge , necessarily increase or decrease the long

term success of future marketing actions

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BRAND REINFORCEMENT

Brand equity is reinforced by marketing actions that

consistently convey the meaning of the brand in terms of

1. What products the brand represents, what core benefits itssuppliers and what needs it satisfies ; as well as

2. How the brand makes the products superior and which strong ,

favorable and unique brand associations should exist in theminds of the consumer

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Support thats consistent in amount and kind

Tactical changes may be necessary to maintain the strategic

thrust and direction to the brand

Marketers must recognize the trade off between activities thatfortify the brand and reinforce its meaning

E.g. Volvo

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BRAND REVITALIZATION

Changes in consumer tastes and preferences, the

emergence of new competitors or new technology or any

new development in the marketing environment can

affect the fortunes of a brand

E.g. voltas limited

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BRAND

Understand what the sources of brand equity were to begin

with

Are the positive associations losing their strength or

uniqueness

Have any negative associations become linked to the brand

Decide to retain the same positioning or to create a new one

E.g. Harley-Davidson

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However the old positioning is no longer viable and a

reinvention strategy in necessary

E.g. Mountain Dew

Combination of back to basics and reinvention

E.g. Cadbury's bournvita

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DEVISING A BRAND

STRATEGY

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DEVISING A BRAND STRATEGY

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Can develop new brand elements for thenew product

Can apply some of its existing brandelements

Can use a combination of new and existingbrand elements

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BRAND EXTENSION

When a firm uses an existing brand tointroduce a new product, the product iscalled a brand extension.

It can also be called as subbrand.

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BRAND EXTENSION

General categories Line extension

Category extension

Some terminologies Brand line

Brand mix

Branded variants

Licensed product

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BRANDING DECISIONS

Individual names

Blanket family names

Separate family names for all products

Corporate name combined with individualproduct names

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BRAND EXTENTIONS

ADVANTAGES OF BRAND EXTENSIONS

Improved odds of new product success

Positive feedback effects

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BRAND PORTFOLIO

The Brand portfolio is the set of all brands and brandlines a particular firm offers for sale in a particularcategory or market segment

Increasing shelf presence and retailer dependence inthe store

Attracting consumers seeking variety who mayotherwise have switched to another brand

Increasing internal competition within the firm

Yielding economies of scale in advertising,sales,merchandising and physical distribution

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CUSTOMER EQUITY

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CUSTOMER EQUITY

Marketing Memo: Twenty-First-Century Brandingoffers some contemporary perspectives on

enduring brand leadership.Customer equityhas one universally recognized

definition-the life time value of customers.

This value results from the current and future

customer profitabilityas well as such intangiblebenefits as testimonials and word of mouth sales.

Customer equity incorporates customer loyaltyto buy again and again, the faith to recommenda brand and the willingness to forgive the

inevitable mistakes that every firm makes.

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