HBR CASE STUDY FOR

DISCUSSION IN CLASS
• BMWFilms by Youngme Moon and Kerry
Herman, HBS Premier Case
Collection, Publication Date: Feb 11,
2002. Revision Date: Oct 12, 2005.
• Prod. #: 502046-PDF ENG
• URL: https://hbr.org/product/BMWFilms/
an/502046-PDF-ENG
 Chapter
10
Building Strong
Brands
The world’s most valuable
brands
 What is a Brand (1)?
• American Marketing
Association
– A brand is “a name, term,
sign, symbol, or design, or
a combination of them,
intended to identify the
goods or services of one
seller or group of sellers
and to differentiate them
from those of competitors”.
 What is a Brand (2)?
– Sum total of consumers’ perceptions and
feelings about the product’s attributes and
how they perform, about the brand name
and what it stands for, and about the
company associated with the brand.
 IMPORTANCE OF BRANDS TO
CONSUMERS
• Identification of the source of the product
• Assignment of responsibility to product
maker
• Risk reducer
• Search cost reducer
• Promise, bond, or pact with product maker
• Symbolic device
• Signal of quality
CONTINUUM OF EVALUATION FOR DIFFERENT TYPES
OF PRODUCTS
 Defining Brand Equity
• Customer-based brand equity
– The differential effect brand knowledge has
on consumer response to the marketing of
that brand. Three key ingredients:

 Differences in consumer response

 Brand knowledge
 Perceptions, preferences, and behavior:
consumer responses to marketing
 Defining Brand Equity

• Brand equity
– The monetary value of a brand
• Goodwill
– The monetary value of all intangible assets of a
company
Defining Brand Equity
 HOW DO MARKETERS CREATE
BRAND EQUITY
• CBBE occurs when the consumer has a high level of
awareness and familiarity with the brand and holds
some strong, favorable, and unique brand
associations in memory.
• Brand awareness
– Brand recognition and Brand recall
• Implications
– Low involvement product
– POP / Other settings
• Brand image
– Strong, favorable, and unique brand associations
 BRAND AWARENESS
ADVANTAGES
• Learning advantages
– Register the brand in the minds of consumers
• Consideration advantages
– Likelihood that the brand will be a member of
the consideration set
• Choice advantages
– Affect choices among brands in the
consideration set
• Using heuristics
 ESTABLISHING BRAND
AWARENESS
• Increasing the familiarity of
the brand through repeated
exposure (for brand
recognition)
• Forging strong linkages
(eg., jingle) with the
appropriate product
category or other relevant
purchase (for brand recall)
2.13
 CREATING A POSITIVE BRAND
IMAGE
• Brand Associations need to be
– Strong – think more deeply
– Favorable – desirable and successfully
delivered
– Unique – USP
– How do consumers form brand associations?
Brand Equity Models

BrandAsset® Valuator

Brandz

Brand Resonance Model

 Brand Equity Models
• BrandAsset®
Valuator
– Energized
differentiation
– Relevance
– Esteem
– Knowledge
 Fig 11.2
The Universe of Brand Performance
 Brand Equity Models
http://www.millwardbrown.com/mb-global/what-we-do/brand/brand-equity/meaningfully-different-framework

• Brandz
– Meaningful (meets needs), different (unique and
set trends), & salient (top of mind) associations
– Power (growing sales through extra volumes),
premium (commanding a higher price), and
potential (sustainable future growth) outcomes
Brand Equity Models
Brand Resonance Pyramid
Sub-Dimensions of Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES

SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
 Building Brand Equity
• Brand equity drivers

Brand element or identity choices

Product & accompanying marketing

Other associations
 Building Brand Equity
• Brand element choice criteria

Memorable Meaningful

Protectable Likable

Adaptable Transferable
Building Brand Equity
 Designing Holistic Marketing
Activities
• Brand contact
– Any information-bearing experience (positive
or negative) a customer or prospect has with
the brand, its product category, or its market
 Leveraging
Secondary Associations
 INTERNAL BRANDING
• Activities and processes that help
inform/inspire employees/dealers about
brands

Choose the right Link internal & external

moment marketing

Bring the brand alive for

Keep it simple
employees
Measuring Brand Equity
Brand value chain
 Measuring Brand Equity
• Brand audit (assessing the health of the
brand)

• Brand-tracking studies (using brand audit

as input to determine how marketing
programs are performing)

• Brand valuation (estimating the total

financial value of the brand)
 Measuring Brand Equity

• Gauging brand equity

– Cost approach
– Market approach
– Financial approach
 Brand Mantra
• A three- to five-word articulation of the heart and soul of
the brand
• Communicate brand’s uniqueness
• Simplify brand essence
• Inspire