Chapter 7

Leveraging Secondary Brand

Associations to Build Brand
Equity
 8 ways to Leverage Secondary
Associations
Process of leveraging brand
associations
Issues to consider developing
secondary associations

CH Heads
Leveraging
Borrowing some brand knowledge and depending
on the nature of associations or responses, some
brand equity
Unlike brand elements and communication
strategies, this is an indirect approach to build
brand equity.

These secondary approaches are mostly important

when the primary approaches are deficient in
some ways + to reinforce the existing
associations ( awareness, meaningfulness ,
transferability)
This secondary knowledge is most likely to affect the
evaluations of a new product when consumers lack the
motivation or the ability to judge product related attributes
Secondary Associations:
1. Company (through corporate branding strategies)
2. Country of Origin (through identification of product
origin)
3. Channels of Distribution (through channels strategy)
4. Other Brands (through co-branding)
A Special case of co-branding is ingredient branding
5. Characters (through licensing)
6. Celebrity Spokesperson (through endorsement
advertising)
7. Events (through sponsorship)
8. Other Third-Party Sources (through awards and
reviews)
 Examples
Example

Events: create experiences

People: create feelings
Media: knowledge about attributes
Cause-related marketing:
Enhance brand image
Evoke feelings of social approval/esteem
Brand attitudes such as trustworthy & Likeable
 Associations
Commonality: when consumers
have associations to another entity
that are congruent with desired
brand associations

Complementarity: when there is

not the level of congruence
required, how much can
associations add to the brand
 1. Company
There are three main branding options exist for a new product

I. Create a new brand

II. Adopt/Modify an existing brand
III.Combine existing and new brand

Family Brand evokes associations of common product attributes/

Value Propositions
However, some new brands helps to convey a smaller / niche image
LVMH : Louis Vuitton Moet
Hennessey

LV
Fendi
Marc Jacob
Givenchy
Kenzo
Pucci
Sephora
Charles and Keith
. Country/Region of Origin
 Cultural Bazaar

Origins of the brand are more

important than who the owner
becomes latter in life.
Lamborghini is owned by German-
VW, yet it keeps this Italian
identity.
Rolls-Royce is now owned by
German BMW, it still is associated
with English luxury.
It is like a child, the first years are
the most important for his identity.
 Problems

Strong associations may hinder migration

Favourability of the country of origin
Domestic Perspective
Foreign Perspective
Individualistic vs collectivist societies
Patriotic Appeal
Lack uniqueness
Overused
3. Channel of
Distribution
4. Co-Branding: reduce the cost of product
intron+ an important means to create distinctive product
Occurs when two or more existing brands are
combined into a joint product or are marketed
together in some fashion

The Bronco II: Ford and Eddie Bauer

 Advantages
Borrow needed expertise
Leverage equity you dont have Disadvantages
Reduce cost of product Loss of control
introduction Risk of brand equity
Expand brand meaning into dilution
related categories Negative feedback
Broaden meaning effects
Increase access points Lack of brand focus
Source of additional revenue and clarity
Organizational
distractions
Guidelines
All brands should have separate Brand Equity
Logical Fit : max the advantages for partners , values, capabilities ,
goals, etc
Profitable for all partners involved
Ingredient Branding: A special case of co-branding that
involves creating brand equity for materials, components, or parts
that are necessarily contained within other branded products
Ingredient Branding:

Assurance of Quality
Reduce Risk
Might become industry standard
Helps to differentiate (mature brands)

Please read the guidelines: pg 275

5. Licensing
Involves contractual arrangements whereby firms can use the
names, logos, characters, and so forth of other brands for
some fixed fee
Renting another companys band equity
shortcut means to gain BE

Shahrukh Amin for

SadaKalo
OYO Sports : MLB (major league baseball) mini figures
6. Celebrity Endorsement
Draws attention to the brand
Shapes the perceptions of the brand
Celebrity should have a high level of visibility and a rich set of
useful associations, judgments, and feelings
The celebrity must be credible in terms of expertise,
trustworthiness, likability, product relevance
Potential Problems:
1. Celebrity endorsers can be
overused by endorsing many
products that are too varied.
2. There must be a reasonable
match between the celebrity
and the product.
3. Celebrity endorsers can get in
trouble or lose popularity.
4. Many consumers feel that
celebrities are doing the
endorsement for money and
do not necessarily believe in
the endorsed brand.
5. Celebrities may distract
attention from the brand.
Guidelines:
1. Strategically evaluate, select and use celebrity
spokesperson
2. Choose well-known and well defined celebrities whose
associations are relevant to the brand and likely to be
transferable
3. Logical fit between that person and the brand
4. That person better be not over exposed
5. Communication must highlight the association but his
stardom
7. Sporting, Culture and
other Events
Sponsored events can contribute to brand equity by
becoming associated to the brand and improving brand
awareness, adding new associations, or improving the
strength, favorability, and uniqueness of existing associations.

The main means by which an event can transfer associations

is Credibility and Likability
8. Third Party Sources
Marketers can create secondary associations in a number of
different ways by linking the brand to various third-party
sources.
Third-party sources can be especially credible sources.
Marketers often feature them in advertising campaigns and
selling efforts .
End Notes:
These secondary associations may
lead to a transfer of:
Response-type Associations
Judgments (especially credibility)
Feelings
Meaning-type Associations
Performance
Imagery
These Associations must enhance
Commonality and/or
Complementary