CHAPTER 1 Introduction to brand management and terminologies

INTRODUCTION TO BRAND MANAGEMENT
1

1.1 Introduction

The purpose of this study is to find out how effective brand management can help maintain the success of the brand. Brand is not only the identity of a of a specific with product but is a complete association person the product. Recent

studies have shown that good brand management has improved the sales and other factors of brands. So the research is carried out to do a complete analysis of effective brand management on brand equity and its application to a certain brand. When customers buy your product or service, the experience they receive is what persuades them to buy from you again, and the excellent product and service quality is firstly supported by its brand. Bates (2007) defined a brand as: "A brand is a collection of perceptions in the mind of the consumer". Moreover, the American Marketing Association (AMA) defines a brand as a of "name, of them one term, seller sign, to or symbol of or design, the or a and to combination services intended identify goods and

group

sellers

differentiate them from those of other sellers. Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

Brand development is surely not a very old idea in Pakistan as it has never goal been it has completely to understood by most its of the companies. Brand equity is the base of every brand and the biggest maintain
2

throughout

existence,

Companies

that

want

long-term customer loyalty and overall

success for their brand work to achieve the most convincing, pertinent, and reliable brand experiences for their customers. (Bloise, 2009) According to Walker (2008) consumer perceptions and attitudes are measured collectively and commonly described as consumer Brand market Equity that has a direct relationship results. to a brand's rely position and the business Marketers

heavily on advertising as one primary means to develop and raise Brand Equity. According to Fortune magazine (in 1997): “In the twenty-first century, the only unique difference between any two companies will be the brand. Brand equity is now a key advantage.” In the thesis, out for all the tools of brand management the effect of only tool i.e. brand equity has been discussed. Brand equity has further two classifications; brand image and brand awareness. Brand image is simply the way consumers view a brand—the perceptions a brand creates in the mind of the consumer associate (Aaker with 1996, the Aaker and Joachimsthaler, awareness is 2000). Everything related to the brand helps form the identity people brand. Brand typically discussed in terms of “aided” and “unaided” awareness. Aided awareness refers to a consumer’s familiarity with a brand when it is shown or read from a list. Unaided awareness connotes a stronger relationship with the brand as it is defined by a consumer’s product ability to name the aided brand or when asked about a is category. Whether unaided, awareness

essential to the situation. Moreover there are at least three viewpoints to observe brand equity. First one is financial which is a way to measure brand equity is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay $100 more for a branded television over the same unbranded television, this
3

premium provides important information about the value of the brand. However, expenses such as promotional costs must be taken into account when using this method to measure brand equity. According to Keller (1993) there are at least three

perspectives from which to view brand equity: Financial applying – means that much How financial much more outcomes money a improve consumer by is

brand

equity.

willing to pay because of strong brand equity. Brand extensions A successful brand can be used as a

platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Furthermore, appropriate brand extensions can enhance the core brand. However, the value of brand extensions is more difficult to quantify than are direct financial measures of brand equity. Consumer-based attitude brand. A strong toward strength brand the is increases by the consumer's with with the a

strength Attitude

product built

associated experience

product. This importance of actual experience by the customer implies that trial samples are more effective than advertising in the early stages of building a strong brand. The consumer's awareness and associations lead to perceived quality, inferred attributes, and eventually, brand loyalty.

To study the effect of good brand management and how it is going to maintain the brand equity for a product, I have selected FnkAsia which is a fashion brand. Brand equity is a
4

very important concept for fashion brands because for them he value that product delivers is more important the core functionalities of the product. The concept has been studied and applied to FnkAsia determining how it will provide value for money to the customers through successful brand management.

1.2 Theoretical Framework

Following variables would be used in conducting the research process as concluded from the literature review.

5

Dependent Variable

Independent Variable

Brand Equity

Brand Management

H1: Effective brand management maintain strong brand equity for FnkAsia. H2: Effective brand management cannot maintain strong brand equity for FnkAsia.

1.3 Objectives of the Study

The purpose of the research work is to critically understand and explore the importance of Brand management and its impact on brand equity of FnkAsia

6

I.

To

understand

the

importance

of

successful

brand

management and its effect on brand equity.

II.

To ensure that the right brand management techniques have been applied to the brand.

III.

To see how managing the brand equity will improve the overall sales and performance of FnkAsia.

IV.

How brand awareness and brand image will help FnkAsia to work on new opportunities.

V.

How

the

thoughts,

feelings,

images,

perceptions

and

attitudes of a brand are controlled by brand equity (CBBE Model).

VI.

To maintain the overall reputation of FnkAsia in the world market.

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1.4 Rationale of the Study

The

purpose

of

conducting

this

research

is

to

basically

highlight the issues of branding. To be specific I have chosen one major factor of brand management i.e. brand equity. The detailed concept of brand awareness and brand image has been applied to FnkAsia to derive strong equity for it. This research would not only help to determine how powerful brand management can make a brand successful but also discuss the issues about branding that have not been stressed upon before. Also a good branding strategy for FnkAsia has been worked upon by keeping in view its strengths and weaknesses.

1.5 Research Question

The research will be conducted to find out how some brand elements should be applied to the Pakistani product brands and what brand strategy should be followed ensuring the long term success of the brand. The research is conducted for the current Pakistani market of FnkAsia. Hence the research question is, “Can effective brand management help maintain the brand equity of FnkAsia?”

Many

issues

can

be

dealt

with

if

possible

solutions

are

obtained for the above research question. It will help the Pakistani Marketers to develop a different insight about the product success through effective brand management which will increase the brand equity which will lead to sustainability of
8

many other things like long-term customer loyalty and brand reputation. It would be a source of foreign exchange hence making the balance of payments of Pakistan better which is indeed a big problem currently.

9

CHAPTER 2 LITERTURE REVIEW

LITERATURE REVIEW
10

A comprehensive literature review is conducted to analyze the importance of brand management and its attributes. To further narrow down the broad area of brand management, one of its most important elements i.e. brand equity has studied thoroughly. The concept of brand equity has been applied on a fashion company known as FnkAsia.

2.1 Review of Brand Management and related terminologies

Brand management is the application of marketing techniques to a specific a product, product's product line, or brand. to the It seeks to and increase perceived value customer

thereby increase brand franchise and brand equity. Definition of Brand: The Oxford American Dictionary (1980) contains the following definition of the brand: Brand (noun): It is a trade mark, goods of a particular make: a mark of identification made with a hot iron, the iron used for this: a piece of burning or charred wood, (verb): to mark Today a lot of managers agree with the concept that they This cross ways focuses selling of adding upon related to building goods loyalty and and

should focus on growing the overall value of their customer relationships. preservation, customer are services, equity

broadening offerings to cater all the possible needs of a overall customer (Blackett, 2004). Infact, the cost of winning new customers is much more than retaining the existing loyal customers which not only remain loyal to your
11

product

but

also

do

free

promotion. The major issue is that many managers agree to this fact that retaining old customers is important as the brand itself, yet no one is completing implementing it. Whenever they talk, they will you assure watch you them that act, customers the real are their is priority but when story

revealed. Brand is the main thing. Brand management is still not given the attention that it needs in most large companies and that focus is ever more incompatible with growth of the company. (Blackett, 2004) When there are a variety of choices given to the customer, specific brands provide them a direction through a baffling variety of choices. For example, a customer does not have to be an expert on the complexities of internet service providers to choose between one service supplier and another. The brand name, the tariffs and the method of payment are all that is required to make a genuine choice (Blackett, 2004). And as tariffs and payment methods are almost the same among rival companies, more or less it is the brand and its attributes which shape the final purchase decision. The whole impact of the core appeals of the product; the fact that how brand the sales of the product, has made equity has increased

managers ponder over the concept of brand equity. Brands with strong equity implant themselves profoundly in the hearts and minds of consumers. The real power of successful brands is that they fulfil all the requirements and expectations of the product keeping the brand promise. As such they are a bond between a seller and a buyer: and if the seller fails to deliver the brand promise for a long period of time, the buyer will go for substitutes. (Blackett, 2004)

2.2 Important definition of Brand Dimensions

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The profound

phenomenon literature

of

successful showed

brand that

management mainly the

has

been

studied by many authors and marketers for a long time. Yet a review authors Kevin Lane Keller, David A. Aaker, Jennifer L. Aaker (1997) and Jean-Noel Kapferer (2005) has established the basis for all they successive can be theoretical works and research studies. So, as the major drivers and specialists in seen

separating a brand into its brand dimensions and illuminating how these sub-factors add to the creation and maintenance of a strong brand. Since many studies largely refer to one or more of these previous mentioned authors, this study will also be based on their works and especially on Keller (2008) and Aaker (1996). The following list contains a brief of the major dimensions by combining the individual elements of Keller’s and Aaker’s definitions to give a basic overview of brand management. • Brand equity is a consumer’s subjective evaluation of a brand. The main sources for brand equity are brand awareness and brand image. Brand equity creates value for the consumer as well as for the company. However, if the term brand equity is used in this study, it is referred to as customer-based brand equity, i.e. the assets for the consumer and not to the brand’s financial value (Keller 2008, pp. 48 and Aaker 1996, pp. 7). • The brand elements and associations defined by the brand managers responsible for the brand result in the brand identity. Thus, brand identity reflects how the company wants the brand to be seen by its customers (Keller 2008, p. 174; Aaker 1996, p. 68; Aaker and Joachimsthaler 2000, p. 23).

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• Brand knowledge, which contains brand awareness and brand image, is the key to creating brand equity and it represents everything a customer knows about a brand (Keller 2008, p. 51; Keller 1993, pp.2). • Brand awareness is the strength of a brand’s presence in consumer’s memory and defines the ability of identification of this brand. The two main components of brand awareness are brand recall with its sublevels and brand recognition (Keller 2008, pp. 51 and Aaker 1996, p.10). • Brand recognition means that the customer is able to assert previous experience to that brand when provided with a list of brand names and the recognition might even offer an approximation of potential recall-ability (Keller 2008, p. 54 and Aaker 1996, p. 10). Brand elements are defined as “those trademarkable devices

that identify and distinguish the brand.”, e.g. brand name, URL, logo, symbol, slogans (Keller 2008, p. 176) Beiträge der Hochschule Pforzheim Nr. 136 11 • Brand recall means that the consumer is familiar with the brand and can recall it when the product category is given. Moreover, if the customer can recall a brand, he or she is definitely able to recognize it (Keller 2008, p. 54 and Aaker 1996, p. 11). • Brand image represents the perception of a brand by its consumer and it is reflected by brand associations (Keller 2008, p. 51 and Aaker 1996, pp. 69). • Brand associations contain the meaning of the brand for the consumer and reflect his perception of the brand (Keller 2008, p. 51 and Aaker 1991, p. 109).
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• Brand personality contains the human characteristics which a consumer associates with the brand (Keller 2008, p. 369 and Aaker 1996, p. 141). • Brand attitude contains the consumer’s overall opinion

toward a brand – whether it is positive or negative – which can result in trust and loyalty when positive (Keller 1993, pp. 7 and Aaker and Biel 1993, pp. 121). As brand management is a broad subject so I have just taken its one dimension to be studied that is brand equity.

2.3 The concept of Brand Equity
According above devices and and to Rust & Zeithaml (1991) Brand Equity is the This and life

customer's subjective and intangible evaluation of the brand, beyond is is its by objectively the by
15

perceived marketing customer

value. strategy through

evaluation

shaped

firm's the

inclined

experiences and associations with the brand.

While

it

has

be

completely decide

understood if a

that

all

goods is

and most

services provide benefits (e.g., Kotler 1977; Penrose 1958), consumer perceptions brand’s promise important, and whether or not the brand has met its promise, which cannot be determined simply by analyzing the outcome measures based on buying behaviour. We therefore define brand equity as the perception or desire that a brand will meet a salient promise of benefits Operationally, we conceptualize brand equity as a moderator of the impact of marketing activities (products, messages, etc.) on consumers’ actions (consideration, purchase, etc.)(Raggio & Leone, 2006) Brand image has further two main components:

BRAND EQUITY

BRAND IMAGE

BRAND AWARENESS

Brand image is defined as consumers' perceptions as reflected by the associations they hold in their minds when they think of your brand. (Dolak, 2001) Brand yours. awareness This for is your when not customers attach recognize mean a they high your will or brand have as a

does

essentially

preference

brand,

value

better

attributes to your brand, it simply means they recognize your brand and can identify anytime.

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Brand awareness consists of both brand recognition, which is the ability of consumers to verify that they have previously been exposed to the brand, and brand recall, which reflects the ability of consumers to name your brand when given the product category, category need, or some other similar sign. (Dolak, 2001) In his book the “managing brand their equity” Sexton and proposed that the customers are becoming more conscious and knowledgeable about products, attributes pricing. Everything is transparent to them and this has given rise to strong competition so managing brand equity over time through strategic measures is important during the five stages of product life cycle.

Positive brand equity vs. negative brand equity
Positive Brand equity means that that customer agrees to pay slightly more for the known brand than for the unknown brand because of the trust they have in the known brand’s promise. There are two different points of views regarding the

existence of negative brand equity. One school of thought says that the negative brand equity cannot exist considering only positive brand equity is established by brand management activities in some such as advertising, sales promotion and PR. A cases; due to bad reputation resulting from

second school of thought says that negative equity can occur catastrophic events to the brand, such as ineffective product recall or continued negative press response. (Roberts, 1997) In general, the term "negative brand equity" may be used to describe a product or service where a brand has a insignificant effect on a product level when compared to a brand which is unknown to the customer.

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2. 4 Measuring Brand Equity
Customers are the ones who tell about the real worth of the brand. Whether it has a positive brand equity or negative brand equity, it is completed dependent on the customers view. Customers decide whether the purchase they made has been significant in satisfying their criteria or not. Although the details of different approaches to conceptualize brand equity differ, they tend to share a common core: All definitions typically either directly or indirectly rely on brand knowledge the consumers have in their minds. Individuals and organization are the basic determinants of brand equity. In other words, the true impact of the brand is in the minds, hearts, thoughts, experiences and insight of the consumers and it is forever there. This clear picture of the brand in the mind of the or consumer determines brand his/her value in reaction the to its In products, pricing, marketing activities and other attributes increasing decreasing process. addition to that customer based brand equity has been defined as the discrepancy effect that consumer brand knowledge has on their reaction to brand marketing actions. (Keller, 2003) Brand awareness is not just having a slight idea about the brand; it is about having the brand knowledge about the thoughts, feelings, perceptions, metaphors, understanding, and all that becomes incorporated in the minds of the consumer. All of these types of information can be thought of in terms of a set of associations to the brand in consumer memory. There are many brands which we daily hear about usually because of television advertising, billboards and banners but not all of the knowledge is in our minds.

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Brands

are

evaluated

using

the

following

criteria

factors

(Haigh, 1996). 1. First is that core quality of the product that

differentiates it from the rest of the products.
2. Then personal relevance that either a brand is fulfilling

what the consumer desired.
3. That extent to which the customers value and regard the

brand and think high of it.
4. It

is

important

to

know

how

much

the

consumers

have

knowledge of the brand and all its attributes.

2.5 Introduction to FnkAsia
As the concept of brand equity has been applied to FnkAsia as a requirement of this research, the following data about FnkAsia was gathered from the official website and by visiting the organization. FnkAsia envisioned by Huma Adnan, hand-picks long forgotten crafts from all over Pakistan, bringing indigenous identities together and presenting them in global silhouettes for the world to enjoy. One season it is the colours of the Thar Desert that spill across its arid canvas and another season it
19

is

the

warm

blend

of

woolly

colours

from

the

majestic

Himalayas. FnkAsia is all about beautiful and funky outburst of hand-woven textile, filled in with delicate embroidery and lavish outer bits and pieces. FnkAsia mainly operates the following three divisions:

FnkAsia

Men’s Wear

Women’s Wear

Jewellery

Huma Adnan is one of the successful women who are making a mark in the fashion industry by completing supporting and further promoting her husband’s business. With her continuous effort FnkAsia has been able to reach the point where it is today. FnkAsia is a global brand with outlets in countries like USA, UK and Dubai and is among the pioneers of online selling of clothes in Pakistan and foreign. It is a combined effort of Amir Adnan and Huma Adnan (husband and wife) who did not only bring back the forgotten industry of craftsmanship in Pakistan but also worked hard in order to take FnkAsia on a foreign level.

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COMPETITIVE ANALYSIS OF FNKASIA: The major local competitors of FnkAsia are Cynosure, Maria B, Generation and other stores selling kind of similar clothing stuff and jewellery items. National competitors include Karachi: by my off-street, HSY and Khaadi. International competitors include Gucci, Next and Indian

designer Ritu Beri Competitive competitors: FnkAsia bring the colour splash from the most beautiful Advantage of FnkAsia over local and national

villages and valleys of Pakistan from where the hardworking labour puts in all the effort to make delicate and elegant embroidered fabrics. The designs are very original and unique as they are true reflection of traditional arts and crafts of Pakistan. This has been a completely new idea as many of the already existing ready-made garment outlets have machine work on fabrics. But FnkAsia believes in pure originality. FnkAsia does not only offer the clothing bags. week but also jewellery exhibitions FnkAsia and in as accessories Karachi and including Asian hand Various

fashion

have

portrayed

complete soul of Pakistani traditional clothing style.

Khaadi is well-known for its handmade clothes and Karachi: my offset is known for its fascinatingly stylish clothes. FnkAsia has brought all these factors together and also offers matching jewellery and handbags with the individual dresses. The tailoring is also unique in its way and is done so as to highlight Pakistan. the cultural and traditional dressing style of

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Competitive Competitors:

Advantage

of

FnkAsia

over

International

As the name FnkAsia indicates, its speciality is the intricate work and funky blend of colours that makes it unique from the competitors. Taking FnkAsia global does not only provides a chance to compete in global fashion industry in Pakistan but also revives our culture and tradition. Ritu Beri is the first Indian designer who is heading an Italian brand. She is a strong competitor of FnkAsia being pioneer of this business in India and is promoting the traditional Indian clothes on the international level.

Resources and Competencies of FnkAsia

i.

Resources FnkAsia was commenced by two already individually successful designers in Pakistan who further made an effort to start a business which can revive arts and crafts of Pakistan. FnkAsia has become successful in maintaining a decent brand image in a short period of time. That is because of the unique resources that it has which were made their strong competencies.

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AHAN (Aik Hunar Aik Nagar) is a committee formed as a rural enterprise moderation project. Its mission is to bring back handiworks and skills of people of Pakistani villages; find out the potential and polish the hidden talent of the women in rural areas. AHAN has connection and with micro financing NGO’s, both organization, Resources government for private are businesses, available from

educational institutions and few top designers of Pakistan. available FnkAsia financial capital and human capital and are sufficient enough.

ii. One

Competencies: of the greatest advantages that FnkAsia gives is the

flexible range of prices. The clothes range from 900 to 7000 that makes the clothes affordable for almost everyone who buys readymade clothes. FnkAsia is targeting a class from age 16 to 55 and the items are available in the outlets located in major cities of Pakistan. Also all the items including readymade garments, bags and jewellery are displayed under one roof for the convenience of the customers. The display is done in a way that products are easy to see, and arrangement is funky and attractive. FnkAsia has excellent value chain management which has made the only delivery service very effective. Another competitive advantage 200 labour paid that it has have is selling the wages its products delivery makes online of them and ensures timely delivery of products. staff with made The combined efforts of products perform

fast

possible maintaining the brilliant value chain. The labour is being reasonable which efficiently and honestly. Therefore the stakeholder management is made successful.

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Being a readymade garments and accessories brand, FnkAsia focuses a lot on innovation which is very important because the trends in Fashion industry are changing with quick pace. Innovation Management, originality and novelty are the core competencies of FnkAsia. Quality and innovation is required in Handicrafts and artefacts as well as the stitching style and outlook needs to be different and comfortable every time. The finishing of the product also needs quality and innovation. For the maintenance of innovation in every step FnkAsia has created teams of freshly graduated designers who are in charge of individual sub-division like tunics, kurtis, skinnies, bags and accessories. The innovation teams have given all the rights to exercise decision making power that they have as the empowered teams are more creative. Funds for creativity and innovations are also being provided to ensure that work gets done without any financial constraints.

Shaughnessy (2003) in his book entitled “The Marketing Power of Emotion” mentions that branding is effective only when the brand is successful in fulfilling its customer’s expectations. What a brand offers may sometimes have nothing to do with the core function of the the product but the customers in be associate that both themselves to it as a social status thing. Although market exchange have follows cost-benefit benefits principle, that cannot consumer and seller weigh costs against benefits, consumer may numerous intangible measured directly. Every brand in fact has product component and an
24

equity component, though the boundary between them is apt to be fuzzy. According to Venkatesh & Chaudhuri (2010) with the ever-increasing lookalikes in the marketplace, Asian companies have realised the need to differentiate themselves, not just on quality but on their identities. From being anonymous suppliers to established brands, Asian businesses have started asserting their identities through strategic branding. Even though some of the Asian brands find the phenomenon of brand management expensive yet there are businesses with success stories which have left no stone unturned to make their brands successful on world level.

2.6 Application of Brand Awareness and Brand Image to FnkAsia
FnkAsia is not very old in the market yet it has done well in a short period of time. Still many improvements are still to be made and many opportunities are to be worked upon to make it top notch fashion brand in Asia. The concept of Brand equity has been applied to it in this research. For this it is important to determine whether people are aware of this brand or not. Awareness further narrows down into recognition and recall. There is a need to find out that how many people have actually tried the product and how many would like to buy that again based on their previous buying experience. Was the buying worth it or not? What did they observe? How big was the gap between expected and actual experience of purchase? This will determine whether they will buy the brand again or not. Brand awareness is the first and precondition dimension of the entire brand knowledge system in consumers’ minds, reflecting their ability to identify the brand under different conditions: the likelihood that a brand name will come to mind
25

and

the

ease

with

which it does so (Keller, 1993). Brand

awareness can be depicted into brand recognition (consumers’ ability to confirm prior exposure to the brand when given the brand as cue) and brand recall (consumers’ ability to retrieve the brand when given the product category, the needs fulfilled by the category, or some other cues). Brand awareness is essential in buying decision-making as it is important that consumers recall the brand in the context of a given specific product category, awareness increasing the probability that the brand will be a member of the consideration set. Awareness also affects decisions about brands in the consideration set, even in the absence of any brand associations in consumers’ minds. In low involvement decision settings, a minimum level of brand awareness may be sufficient for the choice to be final. Awareness can also influence consumer decision making by affecting brand associations that form the brand image (Keller, 1998). Then the aspect of brand image has to be applied. People pay more for of brand-name products a brand products lacking as a than they of do for essentially this Waves identical surety brand signal identity. Sometimes (e.g.,

quality

refrigerators) However, the importance of a “brand name” is more evident particularly in the fashion industry for which the functionality is given less importance compared to style, trendiness and uniqueness of products. For example if Body Shop their wealth products and are very of high expensive, Shop status then people are et who display their 1992; consumption their Body products showing al.,

(Bikhchandani

Coelho and McClure, 1993; Bagwell & Bernheim, 1996; Frijters, 1998; Corneo and Jeanne, 1999; Bianchi, 2002). From the marketing point of view it is said that the luxurious or prestige goods must be expensive; the price should not be
26

less than a certain level because as the price decreases the demand can decrease as well (Berkowitz et al., 2000; Boone and Kurtz, 1999; Perreault and McCarthy, 2000). Giving a brand name to certain product is not at all expensive yet it gives the advantage to the brand’s capability to command higher prices and reap other significant opportunities. It is not because of something else but just the “brand name”, like just by stitching the brand name “Bonanza” on a sweater would never add any extra value to the product attributes but can have a psychological or emotional impact on specific consumer. The basic terms of brand elements are explained in a lot of brand management books but were wonderfully described in a special Fashion Survey issue of The Economist (March 6-12, 2004, p.7), in which the term "brand integrity" was used instead of "brand image". So it is concluded from the above discussion that brand awareness message loyalty in and the brand minds this image (or integrity) are two most essential things for a strong brand. FnkAsia must clear its of consumer and its image should be fashion brand. So here I revise my better than so that they get every reason to extend their towards research question again:

“Can good brand management result in strong brand equity of FnkAsia? How the elements of Brand equity will be applied to this brand.”

27

CHAPTER 3 Research methodology
28

Research Methodology
RESEARCH QUESTION

Data Collection

29

Qualitative

Quantitative

Questionnaire

Literature Review

Model 3. 1

Analysis

3.1 Introduction
The basic purpose of this research is useful to examine, discovering, construing and the development of methods and

systems for the advancement of creature information on a large variety of logical matters of our planet and the universe. The research methodology is a fundamental part to show the truism in research proceedings. The design and methodology would be adopted in such a way that it would have minimized biasness in it and the true picture of the data collected from the unit of analysis.

3.2 Type of Study
The type of the research conducted would be exploratory research which will help to thoroughly examine the effect of brand equity on FnkAsia. A quantitative approach has been used for this notion to understand the topic in depth.

30

3.3 Methodology
The appropriate research methodology will help to find the correct and will minimize the chance of error. Whilst secondary data is collected via conducting literature review, survey based primary data has also been collected. Surveys were be filled by people from Rawalpindi and Islamabad especially bring out women the as true they are the of direct consumer target market of and FnkAsia. The precise research design was adopted in a way to picture preferences behaviours about the brands. Both quantitative and qualitative data collection techniques were used properly and chances of biasness would be minimized throughout the conducted research. Questionnaires have been given to people with the intention to find out the problems that are responsible for poor brand management and also to see how managing brand equity can help increase the value of product. These questionnaires were used for collecting data and information from the sample population. This tool proved extremely helpful in obtaining information as it permitted people to express their feelings anonymously and safely. To have clear how record of findings, people 5-point or likert disagree scale with

(strongly agree to strongly disagree) has been designed to scrutinize strongly agree statement on five point scale. Every question, included in the questionnaire and interview, has their own rating and scale.

3.4 Action
The unit data of would analysis be collected in the and form of surveys This and will questionnaires. Data will be collected from people from the i.e. Rawalpindi
31

Islamabad.

yield to the qualitative data from surveys and questionnaires

by

using go

symbolizing for in a

technique brand. This

and

assigning help to

numbers compare

and the

ratings to the questions to calculate which factors people mostly will preferences and approach of people and companies towards the brand. Hence it can be figured out that which elements are the best applied in my unit of analysis and how they can be more improved to further improve the brand management.

3.5 Unit of analysis:

The selected unit of analysis for my research is Rawalpindi and Islamabad. International models cannot be applied to Pakistani market as it is a third world country and no particular brand management model can be applied to it as our economy is totally different. So the application of false paradigm models should be avoided. Samples have been selected from Islamabad, Rawalpindi for surveys and questionnaires. The sample frame would be designed so as to gather the information from different places of the twin cities to check how customers are different from each other when considering brands. FnkAsia target both males and females but its focus is more on female clothing and jewellery. So the female population would be more.

32

3.6 Instrument
The questionnaires have been given to the respondents directly. Out of the population of twin cities, the sample size was 100 respondents which belong from both university students and local citizens. The available instruments related to variables have been explored for proper reliability and validity. A five items scale have been used and divided into 15 statements to get a detailed view from the respondent to fashion perspective. brands. It This approach guided me to examine also helped to determine various current scenario of brands and branding and how people respond opportunities that can be worked upon for FnkAsia.

CHAPTER 4 Data Analysis and interpretation
33

DATA ANALYSIS & INTERPRETATION

4.1 Introduction

This

chapter by This

presents using data the

the

detailed to I

understanding described major not in

of

data about have

collected chapter. customers, study.

methodology help that

previous

will trends

gather might

facts

uncover

otherwise

known existed, or present indisputable facts to support the

Twelve questions were asked from the respondents out which first two questions relevant and are to designed to explore This data to the basic information the correspondent. of the introductory has been the

information regarding the correspondents enables to determine reliability viability effort has that collected. Maximum been made minimize

possibility of error.
34

4. 2 Statistical Analysis of the Data

N 100 Valid Excluded = 0 Total Table:5.1 100 Cases

% 100.0 .0 100.0

35

4. 3 DEMOGRAPHICS 1.1 Correspondent's Age Groups
50 45 40 35 30 25 20 15 10 5 0 18-25 Yrs 26-32 Yrs 33-38 Yrs 39-45 Yrs 5 17 43 35

Interpretation:

In this research, the sample size is 100

correspondents. Out of 100 correspondents there are 43% who belong to 18-25 years age group, 35% belongs to 26-32 years age group, 17% belongs to 33-38 years age group whereas only 5% belongs to 39-45 years age group. These percentages of different age groups show the distribution of questionnaire. The questionnaire was distributed among various age groups for validity of data. It is clearly visible that most of the data has been collected from young generation which is the direct target market of FnkAsia.

36

1.2 Gender

80 60 40 20 0 Male Female 29 71

Interpretation: The sample size for conducting this research
in 100. Among the 100 correspondents there are 71% female correspondents whereas 29% belong to female gender. Both genders are given chance to express their opinion. FnkAsia offers readymade garments for both men and women but also jewellery for women. Therefore more chance has been given to females to express their opinion.

37

4.4 INTERPRETATION OF MAIN PART OF RESEARCH QUESTIONNAIRE

1.3 Do you think it a powerful brand name adds to the value of the product?

40 35 30 25 20 15 10 5 0 2 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree 13 15 37 33

P owerful B ndNa e ra m

38

The results clearly show that a powerful brand name adds to the value of the product. Think about all these big brands like Gucci, Coke or P&G; the moment they launch a new product it becomes popular worldwide. A strong brand name adds up to the whole experience. Not only people trust these brands but they have certain associations and emotions attached to them. Most of the correspondents agree to the fact that brand name is important. Pakistani specialities like gem stones, pashmina shawls and sports goods are used worldwide but do not have a brand name. 15% people do not believe that brand name adds up the value rather they think that a good product does not need anything else except the quality. Also this means that these people are not brand oriented.

1.4

You

prefer

branded

clothes

and

accessories

over

unbranded clothes and accessories.

30 25 27

B ndedC ra lothesa Accessories nd
20 15 10 5 0 Strongly Disagree Disagree 13

23

22

15

Neither Agree Nor Disagree

Agree

Strongly Agree

Mixed results are obtained from this study. There are 49% people who believe that branded clothing is trendy and more
39

attractive because of brand name. These are brand oriented people who either belong to rich class or people who feel certain attachment with the brand and do not trust a product easily without a reliable brand name. 23% have no opinion on this point. This can mean that they like branded clothes but would not always go for branded stuff either will buy whatever suits their style and is according to the size of their pocket. 28% people do not believe that branding makes any difference. They are not brand oriented and would like to buy regular unbranded stuff. Mostly students who not have a job to afford branded clothes belong to this category.

1.5 If you have to choose between two products, you will buy the one with a reliable brand name even when price is slightly higher.

40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree 8 14 17 26

Brand R eliability

35

Price always matters when we have to purchase a product but there are some items for which the quality can be never compromised even when the price is slightly higher (for eg. electronics and food items and for some people even clothes).
40

And brand name carries the quality assurance. If you trust a brand since long, you will definitely give preference to it because of the quality and its benefits. 61% people are of agree to the above points. 17% people neither agree nor disagree which means that it might be true for certain items and untrue for others. There are items likes electronics which we would purchase with a reliable brand name because the quality is important and trusting an electric appliance with no brand name can be risky and cost more. While for clothing or other items many unbranded products are reliable too. Whereas there are 22 % people do not agree to pay more for two similar products. The reason behind this is that many famous brands manipulate the prices because of having a brand name. It is not necessary that unbranded items are providing low quality. Even when all rest things are same these brands would charge slightly higher than normal as an advantage of the popular brand name. 22% people believe that there is not point is paying higher when you can get the similar product for fewer prices with the same quality.

_____________________________________________________________

41

1.6 A good brand image contributes strongly to the longterm success of the product.

60 50 55

Im portanceof Brand Im e ag
40 30 20 10 0 0 Strongly Disagree 3 Disagree Neither Agree Nor Disagree Agree Strongly Agree

31

11

86%

people

strongly

believe

that

a

good

brand

image

contributes to long term success of the brand. There is a difference between success and long term success because many brands come and go but a few maintain equity for a long period of time. Not to forget brand equity depends upon brand awareness and brand image. It is important to know about a product in order to test it and it is mandatory to have a good
42

brand image so that people are convinced to buy your product. A good brand image means that brand has been fulfilling all its promises and has stayed up to mark. A brand with good brand image has a guarantee of staying longer in the market because products even will is if its one product has died line its other in new and the earn also profits. easier Product extension believe

replacement

because

people

brand. 11% people neither agree nor disagree means that they have no clear opinion on the issue. 3% people disagree because they might believe that some other factor is more important for long term success of brand.

1.7 You know a fashion brand known as FnkAsia exists.

35 30 25 20 15 10 5 0 Strongly Disagree Disagree 3 Neither Agree Nor Disagree Agree Strongly Ag ree 13

Awarenes F sof nkAs ia
30 25 29

Mixed response has been recorded for this question. It has been asked to know about brand awareness of FnkAsia. 54% people are aware of this brand. This does not necessarily mean that these 54% will also buy the product. All the other things
43

are dependent upon brand awareness. Results have shown that FnkAsia has got average brand awareness which means that it is not a popular brand. 43% people still have no idea that a brand naming FnkAsia exists. One reason is that it is new in the market. So there is a lot of need of strong advertising to create the awareness countrywide. As it is a fashion brand and a luxury rather than a normal commodity, strong advertising is required. Only then the people will try it and might recommend it to others.

1.8 You prefer buying readymade clothes when the prices are reasonable and brand is reliable.

45 40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree 7 15 7 29

Preferencefor buyingR eadym eClothe ad s

42

71% of the correspondents would buy readymade garments if the brand it reliable (i.e. quality is good and product meet all the standards) and prices are reasonably. Recently the trend of buying readymade garments has increased fast because the population of working class has enlarged in twin cities. They do not get time to buy the cloth material and get it stitched so will rather prefer readymade clothing. Also people have
44

become

more

fashion

oriented

and

everyone

wants

something

unique and different. 22% people do not agree to the above statement. They believe in buying clothes other than readymade because of personal choice. Many women are not comfortable wearing readymade clothes because of the size and comfort issue. 7% population neither agrees nor disagrees to the above statement. Overall it has been observed that the trend of buying readymade clothes has been increased and people are looking for quality brands with reasonable prices for formal as well as casual wear.

1.9 Have you ever tried any of the stuff from FnkAsia?

40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree 2 Neither Agree Nor Disagree Agree Strongly Agree 16 17 29 36

Utilityof theBrand

The results clearly show that FnkAsia is not catering even half of the market. It is a fashion brand and not everyone will go for it, yet the prices are reasonable. Chart from question number 7 shows that 71% people prefer buying readymade garments when the brand is reliable and prices are reasonable. While in the above chart we see that out of 71%
45

people people

who have

would tried

like

to

buy

readymade means

garments it

only

33% lags

FnkAsia

which

that

still

behind in the race. Again the reason that it is new in the market; it is different than the existing clothing brands yet not marketing the difference.

1.10 (For the ones who tried FnkAsia Products) the brand delivered you what you have expected it to deliver (quality, comfort, looks, and other attributes)

46

30 25

BrandEquity of F nkAs ia
20 15 10 5 0 1 Strongly Disagree 4 Disagree 1 Neither Agree Nor Disagree

24

3 Agree Strongly Agree

The response to question number 7 showed that 33% people have tried FnkAsia. Out of these 33% correspondents, 27% are satisfied with FnkAsia. They find all the attributes fairly good which means that they are or can be loyal customers of FnkAsia. About 7% people disagree that FnkAsia is fulfilling its promise. In an option to write the reasons for disliking, two correspondents mentioned that FnkAsia does not provide any value added services like stylo shoes or generation. This study shows that 85% people are happy with FnkAsia whereas 15% population is not happy with the brand which a quite a market. Overall FnkAsia has a good brand image amongst the people who know the brand and have tried the products.

1.11 Suppose your favourite brand does not deliver you what it has promised anymore. You will still continue to buy its products just because of long time loyalty.

47

50 45 40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree 12 6 2 Strongly Agree 33 47

Cus tom L er oyaltyand Brand Equity

80% of the people disagree with to the statement. As stated in the literature review, brand equity is a brand’s promise to its customer. Brand it promise has been is that either to the brand or is delivering what expected deliver not.

Obviously the brand loyalty of a product that has fallen from its standards would be shaken up as well. It takes long to maintain a positive brand image and obtain loyal customers but pretty less to lose them if brand isn’t delivering the promise anymore. A strong reason for this is that today there is a lot of competition in the market and replacements from other brands are ever available. So we can say that there is no monopoly and even if there is, it cannot stay for long. 8% people agree to the statement. These might be the people who want to keep on giving the chance to the brand expecting that it will rise to the standard again. Also for some people mostly middle aged group it is difficult to switch the brands that they have been trusting for a long time. But slowly these people would also get rid of the brand if it is continuously losing its quality.
48

1.12 If a brand has negative image and afterwards it starts again? to improve itself will you trust its products

49

40 35 30 25 20 15 10 5 0 Strongly Disagree Disagree Neither Agree Nor Disagree Agree 9 4 Strongly Agree 16

Im pact of neg ativeBrand Im e ag
34

37

This

has

been

a

difficult

question

for

correspondents

to

respond to so mixed opinions have been collected. 43% people do not agree that they will trust the brand with negative image. The reason is that it is much difficult to gain trust then to lose it. For expensive brands like electronics or for health & beauty brands, people are very careful before buying. They will think twice before making any decision. If the image is negative they would not take the risk because the popularity of the brand is not good. Also negative word of mouth about a brand is very dangerous and no one will dare to buy a brand which is not trust by them or their friends/relatives. In such case even when the brand improves its image, it will be hard to regain the trust of the people again. This is because most probably they will even avoid trying the brand products which means that they cannot notice if it has improved or not. 42% people believe that they will try the products from that brand if it is improving its image. They believe that a second chance should be given to the brand. If initially it has made some mistakes it should be
50

given an opportunity to correct them. It is very difficult to rebuild a brand image but still if they become successful with it, the brand can be successful. 16% people neither agree nor disagree as it is a hard decision to make. They cannot tell whether such a brand can be trusted again or not because people are reluctant to buy again but maybe if they buy again they will get a good response.

51

CHAPTER 5 Conclusion and recommendations

Conclusion

This topic for the thesis was undertaken to understand in detail the brand management on brand equity which is the most important time yet tool in of Brand many management. companies is as Brand ignore management its as proper product techniques have been there in the market for a long period of Pakistan Brand application. management important

development itself. Many good products have been there is the market since a long time but they have never achieved the
52

position that they should have reached in such a long time. Managers in Pakistan still do not take it seriously and lack expertise in brand management practices. As a result of this no Pakistani brand is a global brand unlike India whose global brands are there in top 500 global brands list every year. FnkAsia is a new brand in the market and has done fairly well in a short period of time yet it needs a lot to get be able to compete with the best fashion brands in Asia. FnkAsia aims to become one of the top global brands yet it has not even covered Pakistan. For this research I have used questionnaire as data collecting tool which showed that brand image and brand awareness contribute most to the brand’s success. It is seen that all the other things about products being good, brand management has not been effective in managing the brand equity of FnkAsia. Biggest challenge that FnkAsia is currently facing is maintaining its brand equity. It has poor brand awareness and a good brand image. FnkAsia has been known by its users to provide good quality and trendy clothes and accessories but the market it caters within the twin cities is small. And even in that small market not everyone knows about FnkAsia. I have even personally experienced that FnkAsia has no strong advertising which is the prime reason for less awareness. The brand image is good but still has a room for improvement. It has been noticed that there is very small quantity of people who have tried FnkAsia even when they know that this brand exists. FnkAsia is not a highly expensive brand like Maria B or HSY, and it directly targets the youth as the same also says it is funky. Yet it has not been able to attract youth to effective level who go for other brands like Generation or Cynosure. Overall, it is a new and different fashion brand which still need a lot to beat the bush and get of the top.

53

Recommendations

From

the

above

study

I

have

concluded

that

good

brand

management can lead strongly to the success of the brand. Based on my observation and understanding of the literature review and questionnaires I would present the two main problems:  Weak brand awareness
 Not an exceptionally developed brand image overall

54

It is a fact that clothing and accessory items do go a long way in settling in the minds and hearts of customers. But once they gain brand equity they are long lived. I have come up with the following recommendations for FnkAsia:
1. Customer awareness is most important for FnkAsia because

it is a new brand. For this they should launch seasonal campaigns throughout the twin cities. Besides that they can also launch a youth campaign to attract the youngsters. 2. They are already promoting FnkAsia through fashion shows and display in fashion week. Furthermore they can hold exhibitions in PC and Marriot seasonally. Many stores nowadays send texts whenever there is something new in the market or at the time of sale. They can do that. 3. There is only one outlet of FnkAsia in twin cities and they have a bigger can market be in Rawalpindi in as well so for another outlet opened Rawalpindi

convenience of customers.
4. Packaging and delivery matters a lot. The packaging of

clothes and jewellery items can be improved. 5. There should be special discount for people who bring at least strong 2 of word their of friends/relatives to FnkAsia through This will further increase the mouth.

brand awareness.
6. Radio, Newspaper & Cable advertising. 7. Improved catalogue advertising. 8. The brand should work on its core equity elements i.e.

the

major In

attributes case of

which FnkAsia
55

derive it is

its the

maximum

market and

share.

artistic

intricate work of the handicrafts and Khaadi which has made it reap profits.
9. As FnkAsia has only one outlet per city, another way of

promoting is to strengthen the online selling which it already does. Recently a brand known as BnB accessories has been very successful free will selling delivery handbags in all and over jewellery through home

Pakistan. In these days people do go for online purchase; FnkAsia can also adopt that strategy of free delivery.
10. It

should sell the difference. FnkAsia stuff comes in

variety with a range of prices. It should go for further segmentation among the clothes setting up a wide range of prices so that maximum people can go for it. 11. Promotional gifts and giveaways for raising

awareness among customers. 12. Discount cards for regular buyers.

13. FnkAsia has a good brand image. To further strengthen the

image of the brand they should ensure quality, delivery and after sales services. The existing loyal customers should be valued as it is hard to get new customers than to retain existing ones.
14. FnkAsia can include the option of detailed customization

in clothing and products. Catalogues can be maintained through which the customers can chose and order the designs of their choice.
15. Customer

feedback is never to be ignored. They should

adapt ways to collect customer’s response through which the products can be made better. It is important the difference between expected and perceived quality should be minimized.
56

The above suggestions if applied can help FnkAsia build its brand awareness which will lead to good brand image as its core competencies are well determined. Again not to forget that it is not quite old in the business so it will take time to establish strong brand equity.

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