7. Leveraging Secondary Brand Associations to Build Brand Equity
Suh-hee Choi
HTM 631 (Spring 2009)Keller, K. L. (2008). Strategic Brand Management:
Building, Measuring, and Managing Brand Equity (3rd ed.), Prentice Hall.
Strategic Brand Management Process:Where are we?
Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra
Mixing and matching of brand elementsIntegrating brand marketing activities
Brand Value ChainBrand auditsBrand trackingBrand equity management system
Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization
Grow and SustainBrand Equity
Identify and EstablishBrand Positioning and Values
Plan and Implement Brand Marketing Programs
Measure and InterpretBrand Performance
Preview
1. Co mpany
Brand
Things
6. People Places
Secondary Sources of Brand Knowledge
Endorsers
Alliances
Ingredients Company
Extensions
2. Country of origin
3. Channels
7. Events8. Third-partyendorsements
4. Other Brands
Preview
5. Licensing
Creation of New Brand Association + Effects on Existing Brand Knowledge
Conceptualizing the Process
BrandOther Entity
Mental Association
Associations
Associations
Associations
Associations
1. How much do people know about the entity?2. Is the knowledge MEANINGFUL to the brand?3. Is the knowledge transferable?
commonality complementarityGuidelines
Discussion
Let’s think of the example of successful “cause marketing programs” (p. 282) in hospitality and tourism industry. How do they enhance brand image, feelings, attitudes, and experiences?
Conceptualizing the Process
1. Company (Branding Strategies)
1. Creating a new brand2. Adopting / modifying an existing brand 3. Combining brands
Ways of leveraging
2. Country of Origin and Other Geographic Areas
Ways of leveraging
Country of Origin and Other Geographic Areas
Ways of leveraging
Country of Origin and Other Geographic Areas
Discussion “Events or actions associated with the
country may color people’s perceptions (Keller, p. 287).”
Ways of leveraging
Country of Origin and Other Geographic Areas
Example: British Airways “Utopia”
http://www.lockonaviation.net/html/utopia.htmlWays of leveraging
Country of Origin and Other Geographic Areas
Example: (p. 288)
• In 2003, Wedgwood closed two factories and move factories to Asia.
• Research in the U.S. showed that what customers wanted was the Waterford label and not where the crystal was made.
• Retailers worried that it could harm its brand image. http://www.youtube.com/watch?v=WP9RmuoZUpg
Ways of leveraging
3.Channels of Distribution
Ways of leveraginghttp://www.careernomics.com/Loreal0709/can/excelling.php
4. Co-branding- definition / examples
Brand bundling / brand alliances Existing brands combined into a joint product /
marketed together Hospitality examples
Mr. Clean®, THE NEW STAY SMART®
SHOWERHEAD BY KOHLER®
(Holiday Inn Express® )
Ways of leveraging
Advantages
1. Borrow needed expertise
2. Leverage equity you don’t have
3. Reduce cost of product introduction
4. Expand brand meaning into related categories
5. Source of additional revenue
Disadvantages
1. Loss of control2. Risk of brand equity
dilution3. Negative feedback
effects4. Lack of brand focus and
clarity 5. Organizational
distraction
Ways of leveraging
Co-branding- advantages/disadvantages
Co-branding-guidelines
Guidelines- Each brand should have adequate brand awareness +
judgment + feelings. - Marketers should ask:
• our capabilities• resource constraints (people, time, money)• our goals
- Marketers should check:• profitability• contribution to brand equity • extrinsic advantages
Ways of leveraging
Co-branding-ingredient branding
A special case of co-branding which creates brand equity for materials, components, or parts that are necessarily contained within other branded products.
Benefits- Consumers: a signal of quality + reduce risk - Host product producers : leverage the equity from the
ingredient brand to enhance its own brand equity Disadvantages : loss of control, consumer confusion Hospitality and tourism examples:
- Tourism package with …….. ?
Ways of leveraging
5. Licensing
Contractual agreement to use names, logos, characters, etc. Entertainment licensing : characters from movies/cartoons Lucrative for licensors Guidelines : beware of short-lived brands! Corporate trademark licensing
- licensing a company’s names, logos, and brands to be used in various products.
- advantage : increase brand exposure, generate extra revenues, enhance brand image
- disadvantage : inappropriate licensing harm the brand reputation
Ways of leveraging
Licensing
Hospitality industry examples?
http://www.nick.comhttp://www.nickhotel.com
Ways of leveraging
Licensing
Tourism industry examples?
http://www.tourism.australia.com/Marketing.asp?sub=0413&al=2119
Ways of leveraging
6. People:Celebrity Endorsement
"What do I wear in bed? Why, Chanel No.5, of course."
Using well-known and admired people : Consumers judge based on the knowledge about the celebrities.- Advantage : easier to draw attention to a brand.- Potential problems
• when celebrity endorse too many products.... • when the celebrity’s image and brand image doesn’t match….• when people think the celebrities endorse just for the money
- Strategic evaluation / selection of celebrity required
Ways of leveraging
Celebrity Endorsement
Example
Ways of leveraging
December 11, 2008 02:10:41 GMT “Chris Brown's "Got Milk?" print ad has hit the Internet…”
February 11, 2009 02:49:48 GMT “Having his "Got Milk?" ad campaign coming to an end this week, Chris Brown will no longer be used as the celebrity face of the project.”“The dropping of Chris Brown by several companies, which products he endorses, adds fuel to the existing speculation that his felony battery case can ruin not only his reputation, but also his career. Still, there have yet comments issued by the star himself or his people.”
7. Sporting, Cultural, or Other Events
Ways of leveraging
Associations
Sponsor
Brand equity
awareness
Strengthfavorability
8. Third-party Sources
Brand
Third-party endorser
Hospitality and Tourism industry examples?
Ways of leveraging http://www.dinegreen.com/
Gnoth, J. (2002). Leveraging export brands through a tourism destination brand. Journal of Brand Management, 9(4/5), 262.
Article: Gnoth (2002)
Country as a tourism
destination brand Products and
services in export market
Creates Leverage
Article: Gnoth (2002)
Tourism Systems:Networks Vs. Channels
Tourism product
HospitalityTransport Accommodation
Attraction
Article: Gnoth (2002)
Tourism Systems:Networks Vs. Channels
Difficulty of developing strategic modelsIdiosyncrasies and complexity of the tourism industry
Difficulty of branding countries and tourism destinations (because of complexity)
NETWORK APPROACH helps
Article: Gnoth (2002)
Tourism Systems:Networks Vs. Channels
Networks The notion of ‘community’
1. Commonality: members share an intrinsic connection to one another.
2. Values: they have shared rituals and traditions
3. Moral responsibility: they share a sense of moral responsibility.
Network theory supports the development of the thetourism industry as an extended community.
Article: Gnoth (2002)
Brand extension to other products and service (producers or those product brands would like to leverage country brand image)
which contribute to the pull to the destination
Branding the essential tourism servicewhich facilitate the tourism experience
Brand extension to non-tourism and export industries
Extension of the tourism brand to other products and services
which contribute to the pull to the destination
Article: Gnoth (2002)
Tourists interact with these attributes, and it characterizes their tourism experiences and defines the qualities of services of experiences.
2. Branding the essential tourism servicewhich facilitate the tourism experience
Article: Gnoth (2002)
Intangibles allows a company, region, or country to provide unique service delivery. Branding the services facilitating the attraction the second level of brand extension.
3. Brand extension to supporting infrastructure, non-tourism, and export industries
Article: Gnoth (2002)
Food grown in the country
Technological products (e.g. skis)
Socio-political infrastructure (reputational capital)
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Strategies to select important attributes are important.
4. All other products and services (producers or those product brands would like to leverage country brand image)
Article: Gnoth (2002)
There are also brands which are strong enough on their own and don’t need a country brand’s help derived from tourism. example:
“While there may be brand connections from tourism to these brands, the process is not always reversible.”
Article: Gnoth (2002)
The emergence and role of a country as a brand
Again, network is important! When tourists experience cohesive attributes within a
contiguous network throughout the country, new information is interpreted in a way that has been organized through past destination (country) brand experiences.
Article: Gnoth (2002)
Gnoth (2002) : Discussion Isn’t is necessary in some cases that export brands
need to be disjoined from tourism destination brand? Some researchers argue that three levels of
experiences (functional, experiential, and symbolic level) are not accumulative while others don’t. What do you think?
Isn’t it possible that “unifying” the brand image limits the scope of destination images and eventually narrows down the target market?
“While there may be brand connections from tourism to corporate brands, the process is not always reversible.” What do you think of this statement?
Conclusion Gnoth (2002)
Managing tourism systems as network + managing brand attributes are important.
Keller, Ch. 7 Customers expect that there are same attributes between
the source factors and the brand. Consequently, marketers can borrow the brand equity from these source to enhance their own brand equity.
8 ways to leverage secondary associations : 1) the company 2) the country or other geographic location 3) other channel members that sell the product 4) other brands such as ingredient brands 5) licensed characters 6) endorsers 7) events 8) third-party sources
Risks exist : Marketers have to sacrifice control.
Review