QUESTION 5 (15 MARKS)

Much company these days manage its brand equity and focus on its value for maintaining
balance in marketing activities over time.

a. Define strategic brand management. (2 Marks)

Strategic brand management is primarily utilised by companies to help their brands and
products get global recognition. The term “strategic” signifies that the process deals with
long-term plans and assets of a brand. This includes integrative and sustainable policies that
aid a company to create, develop and manage its brand. This article discusses the role of
strategic brand management in the evolution of a brand and the various types of branding
strategies available.

b. Explain Customer Based Brand Equity model. Give Real life example of your experience.
(9 Marks)

Keller’s Brand Equity model is also known as the Customer-Based Brand Equity (CBBE)
Model. Kevin Lane Keller developed the model and published it in his widely used textbook,
“Strategic Brand Management.”

Within a pyramid, the model highlights four key levels that you can work through to create a
successful brand. These four levels are:
Brand Identity (who are you?)

This is how customers look at your brand and distinguish it from others. It explores the words
and images buyers associate with when they hear a particular brand name. It’s the most
important level and must be strong to support the rest of the pyramid above it. 

Brand Meaning (what are you?)

Once customers become aware of your brand, they’ll want to know more about your product.
They’ll question its features, looks and style, reliability, durability, customer experience and
value for money, to find its brand meaning. 

Brand Response (What are the feelings for the brand?):

On this level of Keller’s model, judgment and feelings can be hard to separate and are intensely
personal for each individual customer. One customer may judge the brand irrelevant to them,
whereas another will find it completely relevant. 

Brand Resonance (a strong relationship):

The apex of Keller’s CBBE model is resonance: when a customer is loyal to a brand, considers it
superior, will buy no other and advocates its merits to others. 

Within these four levels are six building blocks that further help with brand development. These
six building blocks are salience, performance, imagery, judgments, feelings, and resonance.

In the Coca Cola Cases, Brand equity of Coca Cola and its value is driven from the willingness
of the customers for spending premium for it and refusal for shifting on competitor’s product like
pepsi. The facts of Coca Cola using emotional branding strategy in Keller Model:
c. How do you manage CBBE model? (4 Marks)

In four different levels CBBE model can be managed:

Level 1: Brand Identity
This is the first stage where you need to create brand awareness. In this stage,
people do not identify your brand and cannot distinguish your brand from other
brands. Hence it is necessary to build a strong identity by telling people about your
brand.
Level 2: Brand Meaning
After a brand has been able to capture the attention of the consumers, it is the next step for the
brand to provide more information about the product to its users.

Level 3: Brand Response

Customers have a certain expectation from a brand, and when it meets expectations, the customer
is happy and shows positive feelings. 

Level 4: Brand Resonance

The final and the most difficult stage is the brand resonance. This is a stage where the brand the
customer has built a strong relationship. This is a stage where customers are highly engaged with
the brand, and they are ready to participate in online forums, social media, similar communities,
and any events relating to the brand.