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Creating Brand Equity

Creating Brand Equity


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Published by: ajit on Apr 01, 2010
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Creating Brand Equity
Mr. Ajit Arya Faculty-Marketing Department of Business Studies C. U. Shah College of Engg. & Tech.

Chapter Questions
• What is a brand and how does branding work? • What is brand equity? • How is brand equity built, measured, and managed? • What are the important decisions in developing a branding strategy?

BARISTA: A Strong Brand

Kerala Tourism has successfully branded the destination with a brand name, logo, and the tagline “God’s Own Country”

What is a Brand?
A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

The Role of Brands
Identify the maker Simplify product handling Organize accounting Offer legal protection

The Role of Brands
Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium

What is Branding?
Branding is endowing products and services with the power of the brand.

Advantages of Branding
• Consumer’s viewpoint 1. Product quality 2. Increased shopper efficiency 3. Calls attention to new products 4. Reduces psychological risk Seller’s viewpoint 1. Handling orders, accounting, tracking down problems 2. Trademark identification – legal protection 3. Brand loyalty 4. Reduces need for in-store contact 5. Facilitates segmentation, promotion, and pricing (competitive advantage)

What is Brand Equity?
Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.

Brand Knowledge
Thoughts Knowledge Images Experiences Feelings


Advantages of Strong Brands
• Improved perceptions of product performance • Greater loyalty • Less vulnerability to competitive marketing actions • Less vulnerability to crises • Larger margins • More inelastic consumer response • Greater trade cooperation • Increased marketing communications effectiveness • Possible licensing opportunities

Apple is a Strong Brand

What is a Brand Promise?
A brand promise is the marketer’s vision of what the brand must be and do for consumers.

Brand Equity Models

• Brand Asset Valuator • Aaker Model • BRANDZ • Brand Resonance

BAV Key Components
Differentiation Energy Relevance Esteem Knowledge

Brand Dynamics Pyramid
Strong Relationship

Bonding Advantage Performance Relevance Presence
Weak Relationship

Aaker Model

Brand Identity Extended Identity Elements

Core Identity Elements Brand Essence

Brand Resonance Pyramid

Drivers of Brand Equity

Brand Elements Marketing Activities Meaning Transference

Brand Elements
Brand names Slogans


Elements Logos



Brand Element Choice Criteria
• • • • • • Memorable Meaningful Likeability Transferable Adaptable Protectible

• Like a good neighbor, State Farm is there • Just do it • Nothing runs like a Deere • Save 15% or more in 15 minutes or less • • • • • • • • We try harder We’ll pick you up Nextel – Done Zoom Zoom I’m lovin’ it Innovation at work This Bud’s for you Always low prices

Designing Holistic Marketing Activities




Internal Branding
• Choose the right moment • Link internal and external marketing • Bring the brand alive for employees

Secondary Sources of Brand Knowledge

Measuring Brand Equity

Brand Audits

Brand Tracking

Brand Valuation

The 10 Most Valuable Brands
Brand Coca-Cola Microsoft IBM GE Intel Nokia Toyota Disney McDonald’s Mercedes-Benz 2006 Brand Value (Billions) $67.00 $56.93 $56.20 $48.91 $38.32 $30.13 $27.94 $27.85 $27.50 $22.13

Managing Brand Equity

Brand Reinforcement

Brand Revitalization

Brand Crises

Interbrand’s Steps in Calculating Brand Equity • • • • • Market segmentation Financial analysis Role of branding Brand strength Brand value calculation

Devising a Branding Strategy
Develop new brand elements Apply existing brand elements Use a combination of old and new

Branding Terms
• • • • • • Brand line Brand mix Brand extension Sub-brand Parent brand Family brand • Line extension • Category extension • Branded variants • Licensed product • Brand dilution • Brand portfolio

• Line extensions refers to new sizes, styles, or related products – Coca-Cola line extensions

• Brand licensing licensing: practice allowing other companies to use a brand name in exchange for a payment – Nabisco Licenses Its Oreo Brand to Post Cereal

• Brand extension extension: application of a popular brand name to a new product in an unrelated product category – Example: Utility Lighter – A Bic Brand Extension

• Family brand brand: brand name that identifies several related products
– Heinz A well known family brand

Brand Naming
Individual names Blanket family names Separate family names Corporate nameindividual name combo

Reasons for Brand Portfolios
• Increasing shelf presence and retailer dependence in the store • Attracting consumers seeking variety • Increasing internal competition within the firm • Yielding economies of scale in advertising, sales, merchandising, and distribution

Brand Roles in a Brand Portfolio


Cash Cows

Low-end Entry-level

High-end Prestige

Thank You!!!

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