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Introduction to brand equity

Session 2
Holistic Brand Strategy
Patrick Collings
Sagacite Brand Agency

Nairobi, Kenya
26th & 27th May 2008
“If this business were split up, I would give
you the land and bricks and mortar, and I
would take the brands and trademarks, and
I would fare better than you”
John Stuart, Chairman of Quaker
however,

tangibleforassets ruled
much of the 20th century
management knew

brands were there


but value not recorded
then the

1980s arrived
the value of brands
was recognized
(more about brand valuation in session four)
so a business perspective on brands
(not to be confused with our market definition )
“Brands are intangible assets, assets that
produces added benefits for the business. This is
the domain of strategic brand management: how
to create value with proper brand management ”
Jean-Noël Kapferer, The New Strategic Brand Management
what is brand
equity
many different viewpoints and definitions
my mashup version
brand equity is the measurable value
derived from marketing and other
strategic and management efforts
attributable to a brand
brand equity is the measurable value
derived from marketing and other
strategic and management efforts
attributable to a brand
lets explore
this value add
1
enables buying
decisions
2 builds customer
loyalty
1+2=
3
builds market
share
4 protects market
share
5
helps command
higher prices
+20%
6
creates a halo
effect
apple itunes commercial
50% 17%
vs
7 assists business
expansion
8
more trade
support
9
increases market
value
but...
there is a flip side
a neglected
brand erodes
value
the point we have arrived at
we have defined brands
we have defined brand equity
shown that a valuable brand adds overall value
now to build
brand equity
kevin
lane
keller
E. B. Osborn Professor of Marketing at the
Tuck School of Business at Dartmouth College
customer-based
brand equity
model
CBBE
approaches brand equity from the
perspective of the consumer
customer-based brand equity is the differential
effect that brand knowledge has on consumer
response to the marketing of the brand
customer-based brand equity is the differential
effect that brand knowledge has on consumer
response to the marketing of the brand
customer-based brand equity is the differential
effect that brand knowledge has on consumer
response to the marketing of the brand
customer-based brand equity is the differential
effect that brand knowledge has on consumer
response to the marketing of the brand
colt 45

pabst

coors
guinness

miller lite

budweiser

taste perception of six beers when aware of the brands


pabst

budweiser colt 45
miller lite guinness
coors

taste perception of six beers when unaware of the brands


a brand has positive cbbe when consumer
react more favourably to an offering and its
marketing when the brand is identified than
when it is not
a brand has negative cbbe when consumer
react less favourably to an offering and its
marketing when the brand is identified than
when it is not
“The challenge for marketers in building a
strong brand is ensuring that customers have
the right type of experiences with products and
services and their accompanying marketing
programs so that the desired thoughts,
feelings, images, beliefs, perceptions, opinions,
and so on become linked to the brand.”
Kevin Lane Keller
a point of difference
keller’s cbbe model is marketing focus
whilst holistic brand strategy embraces
other management disciplines
building
brand equity
four sequential steps
brand relationship

brand opinion

brand understanding

brand awareness
what about us? brand relationship

who do i think of you? brand opinion

what are you? brand understanding

who are you? brand awareness


intense and active
what about us? brand relationship loyalty

positive accessible
who do i think of you? brand opinion reactions

points of parity &


what are you? brand understanding points of difference

deep and broad


who are you? brand awareness brand awareness
customer-based
brand equity
pyramid
loyal client base

brand
resonance

brand opinion

brand understanding

potential market brand awareness


takeaways
1 value of brands only measured and
recorded in the last two decades

2
brand equity is the measurable value
derived from activities unique to a brand

3 a valuable brand helps an entire


organization

4 building brand equity with keller’s


customer-based brand equity model
presentation by
patrick collings
sagacite brand agency
patrick@sagacite.co.za
+2781 616 0967

www.sagacite.co.za