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Brand equity, Brand awareness, association, loyalty, Perceived quality, Other proprietary assets, Strategy and policies to develop

brand equity The value of a brand – referred to as its equity – is determined by a number of influences and factors. In combination, these increase both the market value of a brand as well as the measurable value to the business. This is important for any business as it determines what the brand is worth if the brand is bought, sold or licensed and also provides a business case for investment in the brand – whether seeking funding from external investment or pitching for support from the business itself. Brand equity is a set of assets (and liabilities) linked to a brand that adds to (or subtracts from) the value provided by a product or service to a firm’s customers. Components of Brand Equity are: • • • • • Awareness Perceived Quality Brand Associations Brand Loyalty Proprietary Brand Assets like trademarks , patents , channel relationships

Brand Awareness Brand awareness is related to the strength of the brand node in memory, as reflected by consumers’ ability to identify the brand under different conditions. Brand awareness consists of 1) brand recognition reflecting the ability of consumers to confirm prior exposure to the brand and 2) brand recall reflecting the ability of consumers to retrieve the brand, when given the product category, the needs fulfilled by the category, or some other type probe as a cue. Brand awareness can be characterised according to depth and breadth. The depth of brand awareness concerns the likelihood that the brand can be recognised or recalled and the breadth of brand awareness relates to the variety of purchase and consumption situations in which the brand comes to mind. Brand associations A brand association is any mental linkage to the brand. Brand associations may include, e.g., product attributes, customer benefits, uses, life-styles, product classes, competitors and countries of origins. The association not only exists but also has a level of strength. The brand position is based upon associations and how they differ from the competition. An
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association can affect the processing and recall of information, provide a point of differentiation, provide a reason to buy, create positive attitudes and feelings and serve as the basis of extensions. The associations that a well-established brand name provides can influence purchase behavior and affect user satisfaction. Even when the associations are not important to brand choices, they can reassure, reducing the incentive to try other brands. Brand associations may take different forms. One way to distinguish among brand associations is the level of abstraction, that is, how much information is summarised or subsumed in the association. Within this dimension, the types of brand associations can be classified into three major types of increasing scope: 1) attributes, 2) benefits, and 3) attitudes. Several additional distinctions can be made within these types according to the qualitative nature of the association. Figure 3 illustrates the main types of brand associations. Brand loyalty Brand loyalty represents a favorable attitude toward a brand resulting in consistent purchase of the brand over time. It is the result of consumers’ learning that only the particular brand can satisfy their needs. Two approaches to the study of brand loyalty have dominated marketing literature. The first, a behavioral approach to brand loyalty, views consistent purchasing of one brand over time as an indication of brand loyalty. Behavioural measures have defined loyalty by the sequence of purchases and/or the proportion of purchases. Repeat purchasing behaviour is assumed to reflect reinforcement and a strong stimulus-to-response link. The second, a cognitive approach to brand loyalty, underlines that behaviour alone does not reflect brand loyalty. Loyalty implies a commitment to a brand that may not be reflected by just measuring continuous behaviour. A family may buy a particular brand because it is the lowest-priced brand on the market. A slight increase in price may cause
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the family to shift to another brand. which. Perceived quality Perceived quality can be defined as the customer’s perception of the overall quality or superiority of a product or service relative to alternatives. continuous purchasing does not reflect reinforcement or loyalty. Perceived quality is valuable in several ways. A perceived quality advantage provides the option of charging a premium price. If managed well. provide a number of benefits to the firm. It is influencing which brands are included and excluded from the consideration set and which brand is to be selected. In many contexts. distributors and other channel members and thus aid in gaining distribution. This measurement is represented by its 3|Page . Perceived quality cannot necessarily be objectively determined. because perceived quality itself is a summary construct. the perceived quality of a brand provides a pivotal reason to buy. A principal positioning characteristic of a brand is its location within the dimension of perceived quality. trademarks and channel relationships. The price premium can increase profits and/or provide resources with which to reinvest in the brand. these assets add value to the product or service and create additional customer satisfaction. Perceived quality can also be meaningful to retailers. in turn. The monetary value of a brand – or its equity – is a total measure of the brand’s impact on both the company and its market. In this case. Other proprietary assets Other proprietary assets such as patents.

the brand is a familiar friend or the brand symbolises status. particularly if the ‘host’ company is providing other benefits rather than the brand itself? Fashion and interior designers have long played on the equity of their own brands. Moss signed a £3 million deal to design her own collection and. since its launch. the brand lowers the risk of something bad). to department stores or retail brands. by creating positive brand evaluations with a quality product. her ranges have immediately sold out. as her audience buys into her ‘look’ – her design skills are less important than her image. and contributing to self-esteem. It is a common tactic for top designers to lend their name. or supermodel. Designer. Affective responses involve emotions or feelings toward the brand (e. Brand equity creates value to firms by increasing marketing efficiency and effectiveness. Brand equity creates value to customers by enhancing efficient information processing and shopping. The first element in building a strong brand is a positive brand evaluation. gaining leverage over retailers. improving profit margins. she effectively licensed her image. What is a brand worth when one company may license the brand of another. the brand makes me feel good about myself. Determining the value of a brand is also important in business deals where the brand is licensed. by fostering accessible brand attitudes to have the most impact on consumer purchase behaviour.g. Quality is the cornerstone of a strong brand. A firm must have a quality product that delivers superior performance to the consumer in order to achieve a positive evaluation of the brand in the consumer’s memory.. collaborations may be expensive but can greatly boost the image of the host brand. by developing a consistent brand image to form a relationship with the consumer. and specific designs.g. secondly. teamed up with the iconic fashion retail shop. and achieving distinctiveness over the competition. 2) cognitive evaluations and 3) behavioural intentions. When international supermodel. Behavioural intentions are developed from habits or 4|Page .constituent elements in the diagram (right). Topshop. Strategy and policies to develop brand equity The literature review reveals further that brand equity provides value for both the customer and the firm. Cognitive evaluations are inferences made from beliefs about the brand (e. and thirdly. building confidence in decision making. Three types of evaluations can be stored in a consumer’s memory: 1) affective responses. building brand loyalty. Building Brand Equity Brand equity is built firstly. affiliation or uniqueness). Kate Moss.. reinforcing buying.

‘lagging indicators’. Brand Equity Valuation Brand valuation cost base. Stored evaluations can be retrieved from memory in two ways.heuristic interest toward the brand (e. This creates the brand’s future value. The second element in building a strong brand is attitude accessibility. This methodology not only helps to gauge a brand against its competitors and better understand consumer perceptions. a young. customer based. Brands at different stages of their life will tend to show similar patterns – for example. are based around the brand’s ‘esteem’ (E) and ‘knowledge’ (K). have a well-known model called the Brand Asset Valuator (BAV) that is based on what consumers think about brands. Consistency of the brand’s image is a part of managing the relationship between the consumer and the brand.g.. which is gauged from a comparative measure against its competition. signifying the extent to which a consumer will choose that brand) and ‘market relevance’ (R). while a new brand with strength will display strong levels of differentiation but not relevance. Together. Automatic activation occurs spontaneously from memory upon the mere observation of the attitude object. the brand is the only one my family uses or the brand is on sale this week). A relationship develops between the personality of the brand and the personality of the consumer with each purchase. In contrast. It refers to how quickly an individual can retrieve something stored in memory. 5|Page . Y & M BAV Young & Rubicam International advertising agency. market based. It is a valuation that also ties in with financial analysis so that the brand’s contribution to a company’s value can be determined. Inter Brand. recently launched brand will have low scores overall. Young & Rubicam. It tracks the ‘consumer equity value’ of a brand. these four aspects of the brand demonstrate a pattern that can determine where the brand fits in the marketplace. The third element in building a strong brand is to have a consistent brand image. but also reveals whether the brand is in a healthy position to be extended. which show the Brand’s Stature. based on an annual survey of 38.000 brands across the world. Controlled activation requires the active attention of the individual to retrieve a previously stored evaluation or to construct a summary evaluation of the attitude object. BAV works in the following way: the ‘Brand Strength’ is based on ‘differentiation’ (D in the facing diagram or ‘powergrid’.

What does it offer which others are not offering)  Relevance (Is it relevant to significant segment. house hold penetration)  Esteem (Quality perception )  Knowledge (What brand stands for. recognition . does it attract a large customer base . How is the brand different from the rest of the world. awareness . Differentiation (Point of difference . recall) 6|Page .

The advantage of conceptualizing brand equity from the consumer’s perspective is that it enables managers to consider specifically how their marketing program improves the value of their brands. and 3) ”consumer response to marketing”. it is first necessary to establish knowledge structures for the brand so that consumers respond favourably to marketing activity for the brand. Second. Customer-based brand equity can be defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand. Thus. There are three key ingredients to this definition: 1)”differential effect”. 2)”brand knowledge”. brand 7|Page . Though the eventual goal of many marketing programs is to increase sales. although strongly influenced by the marketing activity of the firm. brand equity arises from differences in consumer response. If no differences occur. these differences in response are a result of consumers’ knowledge about the brand. First.Customer-based brand equity The basic premise with customer-based brand equity is that the power of a brand lies in the minds of consumers and what they have experienced and learned about the brand over time. then the brand can essentially be classified as a commodity or generic version of the product.

the differential response by consumers that makes up the brand equity is reflected in perceptions. and behaviour related to all aspects of the marketing of a brand.equity ultimately depends on what resides in the minds of consumers. The 4 Fundamental Questions  Who are you? (Brand Awareness)  What do you do? (Brand Knowledge)  What do I think about you? (Brand Attitude)  What about you and me? (Brand Relationship) Quantifying the value of a brand: 8|Page . preferences. Third.

many people will be using it because of its bundling with Windows-based computers. Interbrand analyses both the tangible and intangible assets of the business to determine their Economic Value Added (EVA). financial data and potential future earnings. It then deducts the brand’s invested capital – such as its operating cost. It has also been an important leader in progressing the idea of branding from straight ‘identity’ work. its audience and the data available – and so some well-known global brands (such as the BBC) will therefore inevitably be left out. employment bill and taxes – to get the economic value of the branded business. However. as the brand may be a key driver for purchasing in the fashion or fragrance sector. For example. b.Interbrand is an international branding agency best known for its brand strategy and evaluation abilities. Financial forecasting The revenue that is generated from products and services. It determines the ability of the (branded) business to generate returns above what is invested into the business. such as logo and naming development. EVA is described as a ‘valuebased management concept’. It attempts to apply quantitative and objective measures to rank the world’s top brands. Each year. This is dependent on the sector in which the brand operates. Companies are measured according to the brand’s international presence. rather than necessarily choosing to purchase an Intel-based computer. Interbrand releases its top 100 brand ranking list. to making the value of brands a key part of business and an important business asset. 9|Page . while Intel has a strong brand. Interbrand looks at three key areas in their brand analysis: a. In Interbrand’s ‘Best Global Brands’ report of 2008. Interbrands Interbrand has a well-recognised brand valuation approach that has been established for a number of years. To calculate this. The role of branding This identifies business earnings that are attributable to the brand. Applying this kind of hard and factual criteria to brands has strengthened the role of brands within business. certain criteria must be met for the brand to be included: its internationality and turnover (Interbrand only considers large global brands). Interbrand identifies the ‘branded revenue’ that is generated from products and services. The company pioneered measuring techniques for branding in the 1980s during the era of some high-profile mergers and acquisitions (M&As) of brands that were formerly not recognised for their values. but may only be one attribute of many in the business-tobusiness sector. Interbrand then quantifies a net value for the brand.

support and protection. Interbrand’s top five brands were (in descending order) CocaCola. trends.  Criteria includes business prospects and brand’s market environment. Corporate Branding. Microsoft. including the relationship between the parent brand and its sub-brands. This risk factor is discounted from the brand’s current value.  Interbrand. In 2008. It helps companies to define the relationship between the different brands and provides an overview that is easily managed. 10 | P a g e . The brand structure will cover a picture of the whole brand ‘family’. There are a number of factors that are accounted for in the measurement process: the brand’s leadership. the relationships among subbrands themselves and also to brand extensions. GE and Nokia respectively. Range Branding. Source Branding Brand structures Brand structure is also known as brand architecture and provides a map of relationships between all of the brands in a company’s portfolio. as well as consumer perceptions  Brands evaluated on 7 criteria:  Leadership (25%)  Stability (15%)  Market (10%)  International (25%)  Trend (10%)  Support (10%)  Protection (05%) Strategies to manage Fashion Brands Brand architecture. A risk profile may look at a brand’s future vulnerability in its particular sector (for example.c. IBM. stability. retail banking brands are particularly vulnerable during the ‘credit crunch’ period as people have lost trust in these brands). Brand strength This assesses the risk profile of the current brand value. Line Branding. internationality. a UK based consulting co. Endorse Branding. market dynamics.

 This involves offering one product. The Line Brand  This strategy involves offering one coherent product under a single name. and then extension of the offer by including several related products within the same specific offer. It should also offer a clear view of which brands are owned by whom. the brand.  E. Types of brand structures Brand structures are not necessarily visible to the customer and may not impact on their choice of brand. large consumer-goods companies such as P&G or Unilever both own a number of different fast-moving consumer goods (FMCG) brands (including toiletries and home care products like washing powder).A brand structure helps the brand manager understand the role and contribution of each brand to the overall success of the business. rebranded or retired. There are 6 Branding Strategies: 1. by proposing many complementary products. Studio Line from L'Oreal 3. or whether they should be disposed of.  E. It can facilitate decisions on how to invest in specific brands.g. the name of the product becomes a strict indication of identity. product. and only one. 4. Procter & Gamble and HLL 2. the same brand supports several different products in different markets. Brands within the same family may also compete with each other for the consumer’s wallet.g.  Here. The Range Brand  Range brands bestow a single brand name and promote through a single promise a range of products belonging to same area of competence.  Each new product receives its own brand name and a unique positioning. 11 | P a g e . The Umbrella Brand  Under umbrella brand strategy. The Product Brand  This strategy involves assignment of a particular name to one. as well as the distinctive benefits of each brand. For example.

Multibrand Portfolios Multi Brand Strategy. It may include elements of social or business conduct.  It allows dual brand equity to develop. Canon. It is the same as The Umbrella Brand.Canon cameras. Canon Fax machines.  It acts as a guarantor of quality. Polo ‘Ralph Lauren’ The corporate brand The corporate brand role depends on how prominent the company is in the brand proposition. where all the products reflect the same brand as the company. Pros & Cons . 6. Brand Extension & Line extension.  E.  Yet each product maintains its own generic name. Canon printers etc.  It provides a two-tiered sense of difference and depth – that is by identifying source/ parent brand while at the same time providing a distinct identity through the daughter brand. The Endorsing Brand  The endorsing brand gives its approval to a wide diversity of products.g. Pure corporate brands are rare. but include companies such as General Electric and Philips. power Branding 12 | P a g e . The Source Brand  This is similar to umbrella brand strategy with the only distinction that products are directly named.  E.  Brand endorsement can be indicated in a graphic manner by placing the logo/emblem of endorser next to brand name. 5. (Instead of a generic name). Nestle. Each product has its own advertising tools and develops its own communication. the relationship with suppliers and distribution channels and also be the employee brand (or internal facing brand).g. Canon photocopiers.

WHY EXTEND THE BRAND? (Benefits of Extension)  To energize the brand & aid innovation.  Helps block or inhibit competition.  Helps capitalize paid-for equity in established brand names.  Helps expand core promise to new users.  Helps enter new product categories at significantly lower costs.helps identify logical new product categories.  Benefits of “spillover of advertising”.  Helps beat product obsolescence.  Risk reducer for both the firm as well as consumers. Types of Brand Extensions  Product Form Extension 13 | P a g e .

vis manufacture Brand 14 | P a g e . Companion Product  Customer segment  Company Expertise  Brand Image or Prestige Store Brands v/s Manufactured Brands Private label/Store Brand Strategy. Store Brand strategy vis-à. Benefits for the customers and retailers.

15 | P a g e . •The product category is large in absolute value terms in store’s sales revenue. •The percentage of gross margins in the product category is high •The number of national players is fewer than in other categories. •The quality of store brand is consistent over a period of time. per sé . •National advertising expenditure in the product categories is low.Six Factors Affecting the Success of Private Brand •Quality of store brand relative to national brands is high. Economics of Private Labelling The figure has been constructed with the underlying assumption that (a) it is technically feasible for the store to introduce its own brand (b) the competitive scenario does not change the position from one quadrant to another and (c) the switching costs for the consumers are not high.

High input-output ratio in manufacturing.Quadrant I: Low-Low •This quadrant represents a situation in store where both types of competition are low.Low importance of the product category for the customers 3. •The retail brand will not suffer from me-too Syndrome. •Such a phenomenon may be caused by 1. •This occurs when consumer’s affective Attachment to national brands is high and Achieving brand loyalty is a short-term process. 16 | P a g e . •The store is better off launching its brand. unattractive for private label. per se. •A category that manifests low competition in both dimensions may be. •The retail store may never enter such a category with its own label Quadrant II: High-Low •This quadrant represents high competition between the store’s brand and the major National brand and low competition among National brands.High degree of commoditization 2.

Classic names include Chanel. Balenciaga. once customer loyalty for the store brand has been built up to Quadrant II. Moschino. the quadrants in Figure 1 can be influenced by the strategic approach by the retailer. both cognitive and Effective. Tracking the performance of the Brand For consumers who are already brand-savvy. •Therefore. Calvin Klein. Salvatore Ferragamo. which is favourable to the store-brand. Gucci. it can generate competition between its brand and the national brand by aggressive in-store promotion of its top Private Label versus National Brands. This shifts the in-store context from Quadrant III to Quadrant IV in the short-run and eventually. if the store reckons itself falling in Quadrant III which prescribes nonintroduction of the store-brand. Luxury Brand. Among the contemporary brands that command consumers’ attention are names like Armani. it is expected that a store that Views itself in this quadrant is better off not Introducing its private label. Signature Brand Globalization of Fashion Brands Audit for the Fashion Brand Global Branding strategy. if the store assesses its position In this quadrant. •Therefore.Quadrant III: Low-High •This quadrant represents high competition Among national brands but low competition Between the store brand and national brands. Louis Vuitton and Prada –names that suggest enduring value. while facing the store brand on their Visit to the store. Versace. Christian Dior. •This happens when national brands are highly advertised and the customer’s awareness Of those brands is high. it is better off not launching Its brand. The concept of luxury brands. Quadrant IV: High-High •This quadrant depicts an all-out competition among the national brands and if the store Introduces its private label. Evidently. it will come under Direct fire as much as it will be caught in the Cross-fires of the national brands. Hugo Boss and 17 | P a g e . luxury names come under one of two distinct titles: classic brands and high fashion brands. D&G. For example.

000 (US$18. •The Climbers: As the name suggests. this group wants to project a lifestyle image that will gain them acceptance into the higher echelons of society. The new Indian mindset is deeply rooted in social hierarchy. comprising 49%of the target audience of luxury goods companies. Five key forces that are shaping today’s luxury mindset: •Growing incomes coupled with optimism about the future. this group remains nonchalant about luxury goods consumption. This group comprises a high proportion of college drop-outs and graduates who are in business or work as office executives. where the chief wage earner is male. average age 36–37 •Owns a premium/luxury saloon car such as a Honda Accord. professionals or businesspeople who are in their late 40s or early 50s. These are 19% of the target universe for luxury brands. This group is 17% of the target consumer base. with those who 18 | P a g e . •An expanding upper class. •The Laggards: Although well-heeled and targeted by luxury brands. leaning on the latest study by research group KSA Tecnopak: •Primarily resident in urban India •Lives in a household earning more than about INR800. This is the smallest group ( 15%of the target audience). yet many lack the discernment that comes with exposure to luxury brands and wealth over a long period. 44% travelling abroad for holidays at least once a year. creating large peer groups and reference groups for aspiring consumers. 65%are housewives •Most are educated to post-graduate level •Incidence of foreign travel is 53%. The luxury consumer in profile delivered a fascinating profile of the Indian luxury consumer.Ralph Lauren.000) a year. The KSA study categorizes luxury households into segments according to their attitudes to luxury goods purchasing: •The Arrived: This is the most affluent group. •Among women consumers. says the study. a Skoda Octavia etc. a Vectra. •The Actualized Ascetic: This group comprises largely self-made men.

” A signature brand is an original. You don't look like the business next door. when they need your product or service. that font. family member or professional contact who does. to brochures. and your company won’t stand out. Why is it important to have a signature brand? People remember you. digital and web communications. If your brand isn’t unique and memorable. wealth and consumerism are emerging as the undisputed measures of success and a life well lived. Having a signature brand created by a trained graphic designer makes you look more professional. Educated designers go through years of training about the history of graphic design. 24% to Europe and 34% to Southeast Asia •The influence of the media. but they may run across a friend. that image and those colors. and they remember you and your company. •First-hand exposure to products and lifestyles overseas. which increases credibility for your business. You will be using the same template as hundreds of other businesses. There are sound reasons why we choose that particular placement for the logo. that person may never need your product or service. and doesn't reflect the personality of your company. you will miss out on potential opportunities. What is a signature brand? The word signature can be defined as a “distinctive pattern. catalogs and web sites.want to make the leap into the higher strata of society imitating the prestige purchases of those they imagine are above them in the hierarchy. On the other hand. Having a signature brand increases awareness and visibility among your current clients. coupled with the greater availability of lifestyle products and services in the last five years. It portrays a professional image. potential clients and your personal and professional networks. •Money. All these elements combine to create an emotion that speaks to people 19 | P a g e . There are plenty of inexpensive or free templates online for everything from logos and business cards. In this day and age it’s easy to do it yourself. they aren’t unique to your business. product or characteristic by which someone or something can be identified. that while they may look nice enough. The problem with those templates is. you’re the one that they will call first. Down the road. color theory. use of typography. cohesive design based on the personality of your company that is carried across all print. photography and study under seasoned designers. Over 6 million Indians travelled overseas in 2004: 22% to the US. People take notice when they see the same unique brand repeatedly.

1 Within the US though. and accessory brands. leather. Central London has been the target for some of this development activity in the 1990s. progressive or intellectual. flood in Australia. you don’t look like the business next door and you portray a professional image? Your client base rises. etc started out as small French or Italian family businesses. The fastest growing luxury goods are electronic pieces. the rise of China. such as using the Academy Awards to showcase designer clothing.2 Despite the comeback. whimsical. your client retention rises.4 The 1980’s saw a revitalization of luxury firms. consumer of luxury goods are starting to become more price-conscious and are buying oneof-kind items (clothing/accessories/etc) that hold special emotional ties. a harsh winter in Mongolia) impacting the supply chain. loss of silk trees from the urbanization of Shanghai. Leading this trend was real estate manager Bernard Arnault. as well as high transportation costs due to the rising fuel costs. so you want to ensure you portray the right image. including high commodity prices (cotton. The emotion could be traditional. Chanel. Arnault soon thereafter took 20 | P a g e . These firms lacked capital and were not yet mass-marketing their wares. Armani. In the 1970’s.5 Another reason was the influx of capital to these firms. rather than expensive. Most clothing. the luxury industry still faces the same challenges as other industries. such luxury mobile phones. and the weakest is travel goods. mass-produced luxury goods. Your signature brand speaks volumes to your audience.about your company. centered around a creative designer. Dior. As countries around the world are starting to recover from the global financial crisis. many of the French firms. Cartier.3 The story and impact of luxury is the story of globalization. suffered from a variety of management and ownership problems. One reason was the use of celebrities to promote brand awareness. silk and cashmere) linked to natural and man-made disasters (floods in Pakistan and China. Louis Vuitton. such as Hermes. Charts the growth of designer outlets in the UK capital with particular attention to foreign companies and their market-entry strategies. This analysis will examine the history of the luxury industry. who took control of Agache-Williot-Boussac-SaintFrères and only kept the kept its affiliate Christian Dior. and the industry’s impact on global culture. the luxury industry is recovering as well. What happens when people remember you. which in turn helps your profits rise. Versace. jewellery. The globalization of fashion brands has occurred as major fashion designer houses have expanded their product ranges and diversified into middle-market diffusion lines.

not only of the technologies shaping the brand domain. This requires an intimate knowledge. such as cosmetics and other accessories9 In search of increasing profit (and perhaps relevance). the luxury industry had become democratized. media. Diversification was achieved through enlargement of the scope of products offered. as it sought to balance the market share and individuality of its various brands. ensuring that the luxury products had enough distinction to justify their price. There are four broad brand strategy areas that can be employed. most brand strategies aim to persuade people to buy. and differentiation. Differentiation was achieved through mass production and luxury production. but also of pertinent consumer behaviour and needs. e.control of Louis Vuitton and Moët-Hennessy. A 21 | P a g e . distribution. use. A global brand needs to provide relevant meaning and experience to people across multiple societies. (1) Brand Domain. As branding is typically an activity that is undertaken in a competitive environment. solutions). and united them under LVMH.g. buy and use the products and services offered by the brand. segmentation. and the outlook of consumers (including business decision makers) which has been largely formed by experiences in their respective societies. credibility or reliability over and above competitors. The lifeblood of a brand domain specialist is innovation and creative use of its resources. Hermes and Vuitton followed the latter by increasing the quality of their product and by increasing the number and skills of its craftsmen. donate to a cause. the strategies of competing brands. and donate again by offering them some form of gratifying experience. A brand domain specialist tries to pre-empt or even dictate particular domain developments. Global Branding Strategy Brand strategy is aimed at influencing people’s perception of a brand in such a way that they are persuaded to act in a certain manner. Brand reputation specialists use or develop specific traits of their brands to support their authenticity. In the 1990s. LVMH also epitomized the strategy of diversification. the luxury firms started employing new strategies either diversifying their products toward mass consumption and/or focusing on select high-quality goods. In addition. Brand domain specialists are experts in one or more of the brand domain aspects (products/services. he took over 64 brands. purchase these at higher price points. the aim is also to persuade people to prefer the brand to competition. To do so. the brand strategy needs to be devised that takes account of the brand’s own capabilities and competencies. From 1985 to 2006. (2) Brand Reputation.

therefore. (3) Brand Affinity. Brand measurement and monitoring help marketing agencies (such as brand. public relations and advertising agencies) to determine whether the brand objectives are being met and. The brand recognition specialist either convinces consumers that it is somehow different from competition. The latter is particularly important in categories where brands have few distinguishing features in the minds of consumers. Brand affinity specialists bond with consumers based on one or more of a range of affinity aspects. is complex because a brand is affected by so much more than just financial indicators. In other cases. In some cases. Measuring the brand performance The increasing demand for brand valuation reflects the sophistication of the branding sector as well as the proliferation of different kinds of media. A brand affinity specialist is like a pet dog. scale of presence and products sold. This includes its perception and reputation among its stakeholders. A brand affinity specialist needs to outperform competition in terms of building relationships with consumers. and be able to live up to the resulting reputation. 22 | P a g e . or rises above the melee by becoming more well-known among consumers than competition. to prove their value to the client by showing what they have achieved. This means that a brand affinity specialist needs to have a distinct appeal to consumers. its ability to innovate and adapt. service and business that underpins the brand. importantly. A brand’s success will be measured by the impact of the product. Measuring a brand’s performance. legacy or mythology. as well as its market share.brand reputation specialist needs to have some kind of history. margins. be able to communicate with them affectively. a brand recognition specialist needs to be able to outspend competition to gain unbeatable levels of awareness. What creates value? While a company’s share price can be an indicator of brand strength. it should not be viewed in isolation (and share prices are only applicable to publicly listed companies). a brand recognition specialist needs to convince a loyal following of consumers that it is unique. (4) Brand Recognition. The ability to gauge how a brand is commonly perceived – both among customers as well as how it is conveyed and written about across media – is vital in judging how the brand or company is performing. Brand recognition specialists distinguish themselves from competition by raising their profiles among consumers. It also needs to be able to narrate these in a convincing manner. and provide an experience that reinforces the bonding process. A brand reputation specialist has to have a very good understanding of which stories will convince consumers that the brand is in some way superior. as is the case for niche brands. the leadership of the business. its ability to differentiate and stay ahead of competitors.