BRAND VALUE AND BRAND EQUITY COKE

PRESENTED BY

ABHINAV KUMAR(10) ABHINAV TYAGI(20) ABEER CHAKRABORTY(22) CHARU PALIWAL(14) KAMESH PATIL(26) SWATI BUDHRAJA(29)

BRAND
The American Marketing Association defines a brand as

´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 competitorsµ.

THE ROLE OF BRAND
y Consumers may evaluate the identical product differently depending y y y y y

on how it is branded. Consumers learn about brands through past experiences with the product and find out which brands satisfy their needs. Simplify decision making and reduce risk. Simplify product handling or tracing. Help to organise inventory and accounting records. Offers the firm legal protection for unique features or aspects of the product. Brand name -- trademarks Manufacturing processes -- patents Packaging -- copyrights & designs

BRAND EQUITY
Brand Equity is the added value endowed on products and services. It may be reflected in the way how consumers think, feel, and act with respect to the brand, as well as the prices, market share and profitability that the brand commands for the firm. An important intangible asset that has psychological and financial value to the firm.

BRAND EQUITY

Price Premium Customer Satisfaction/Loyalty Perceived Quality Leadership And Popularity Perceived Value Brand Personality Organizational Associations Brand Awareness Market Share Market Price And Distribution Coverage

It was created in Atlanta. ‡1. Coca-Cola is the most popular and biggest-selling soft drink in history. Even though Coca-Cola may have started in the United States. Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water.6 billion servings per day. Penberton. Georgia. as well as one of the best known products in the world. Today. its popularity is universal. 9. .About Coca-Cola Coca-Cola is the world's most recognized brand and now anchors a portfolio of more than 500 brands and more than 3.300 beverages. by Dr. John S. ‡In 2009.8 billion cases of our flagship brand were sold worldwide. you can find Coke in every part of the world.

Coca-Cola Company Strengths y Worlds leading brand y Strong brand recognition y Has a large portfolio of different Challenges y Negative Publicity in India during September 2006 y Accused of selling products with beverages y Large scale of operations y Revenue in excess of $24 billion pesticide residue y Intense competition y Pepsi is the leading competitor y Mission: y To refresh the world y To inspire moments of optimism of Coke and happiness y To create value and make a difference .

BRAND RESONANCE A BRAND EQUITY MODEL .

including the ways in which the brand attempts to meet customers psychological or social needs. Performance of Coke world over is undoubtly the best. In recent times how coke has captured emotions of people be it in party. coke again won hearts of people world over.all consider coke as the status symbol. Coke is preferred world over over any other drinks.BRAND RESONANCE WHAT IT SAYS: Brand salience elates to how often and easily the brand is evoked under various purchase or consumption situations. Brand resonance refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are ³in sync´ with the brand. thirst quenching etc. meal.Available at all places. After recent cola controversy. COKE y First thing that comes to your mind when you are thirsty.It equalizes everyone and everyone like is. poor. Brand feelings are customers emotional responses and reactions with respect to the brand. Brand judgments focus on customers own personal opinions and evaluations. student. housewife. y y y y y . Every customer may be rich.kids . Brand performance relates to how the product or service meets customers functional needs. fun. Brand imagery deals with the extrinsic properties of the product or service.

y Larger margins.MARKETING ADVANTAGES OF STRONG BRANDS y Improved perceptions of product performance. . y Less vulnerability to competitive marketing actions y Less vulnerability to marketing crisis. y Possible licensing opportunities. y Greater trade cooperation and support y More inelastic consumer response to price increase. y Greater loyalty. y Additional brand extension opportunities.

y Transferable. she doesn·t look a day over 35!! y Protectable. and Puffs can help. y Meaningful. To what extent does the brand element add to brand equity across geographic boundaries and market segments? y Adaptable. How aesthetically appealing do consumers find the brand element? Concrete brand names such as Sunkist. Does it suggest something about a product ingredient or the type of person who might use the brand? Consider the inherent meaning in names such as Diehard auto batteries. Crest. and Firebird evoke much imagery. How legally protectable is the brand element? Can it be easily copied? .BRAND ELEMENT CHOICE CRITERIA y Memorable. Spic and Span. How easily is the brand element recalled. y Likeability. recognised? Short brand names such as Tide. How adaptable and updatable is the brand element? Betty Crocker has received over eight makeovers through the years³although she is over 75 years old.

.6 17.9 48. "Interbrand's World's Most Valuable Brands.4 52.2 21.1 40.6 23.2 32.5 112.0 26.4 328.9 14.3 30.3 77.8 59% 21 28 10 58 58 21 64 24 19 44 37 23 31 37 60 22 PEPSI 12.6 144.0 20.0 57.0 - Source: Raymond Perrier.9 158.8 17.8 33.5 32.5 54." report of a June 1999 study sponsored by Interbrand and Citigroup.9 102.2 271.8 56.Value of Global Brands as Measured by Interbrand BRAND VALUE $ BILLIONS MARKET CAPITALIZATION $ BILLIONS BRAND VALUE AS PERCENT OF MARKET CAPITALIZATION 1 Coca-Cola 2 Microsoft 3 IBM 4 GE 5 Ford 6 Disney 7 Intel 8 McDonald's 9 AT&T 10 Marlboro 11 Nokia 12 Mercedes 13 Nescafe 14 Hewlett-Packard 15 Gillette 16 Kodak 83.2 24.7 17.1 15.9 24. 1999.4 46.7 43.8 142.9 42.

Elements of Brand Equity: Brand Loyalty Brand Awareness Perceived Quality Brand Associations .

.Brand Loyalty Brand loyalty is a measure of the attachment that a customer has to a brand. either in price or in product features. It reflects how likely a customer will be to switch to another brand. especially when that brand makes a change.

Enhancing Brand Loyalty ‡ Treat the customer right ‡ Stay close to the customer ‡ Measure/manage customer satisfaction ‡ Create switching cost ‡ Provide extras .

HOW VALUES AFFECT BRAND CHOICE OF COKE CONDITIONAL VALUE FUNCTIONAL VALUE SOCIAL VALUE EMOTIONAL VALUE BRAND CHOICE EPISTEMIC VALUE .

Archives Collection. if the test is not 'blind' and the tasters know which beverage is which. and one that brings people together in a number of different occasions. helped cheer on our favourite teams. people prefer the taste of Pepsi over the taste of Coke. and enjoyed a seat at the table for family meals. and has also strengthened its emotional bond with consumers by bringing a breath of fresh air and positivity during tough times. SOCIAL VALUE Coca-Cola has always been a social brand people love to share with others." said Ted Ryan. they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. economic turmoil and social unrest. The Coca-Cola brand has the power to actually change an individual's taste! . Coca-Cola has tagged along on beach trips. for example. "During the Great Depression. including periods of war. Manager.EMOTIONAL VALUE The brand has been there in the good times. However. (Advertisement) In 'blind' taste tests. CocaCola advertising focused on the positive and encouraged consumers to take a break and enjoy life's simple pleasures.

. Available in small sizes and quantities.CONDITIONAL VALUE FUNCTIONAL VALUE y Readily available at all y y y y locations including remote areas. Replacement for water. Quenches thirst. Uniform acceptance for all group segments(Rich and Poor).

‡ .  Legal Actions y Coke controversy. y Not as Such In coke Management  Competitor Actions y Competitive prices.CHANGES OCCUR IN BRAND EQUITY OCCUR WHENu  Major New Products  Product Problems  Change in top y Pepsi y Failure in Blind test.

The dreamy actor donned a hairnet and looked studiously at a test tube held by a man in a white lab coat inside a Coke bottling plant. a serious but humble Aamir Khan.flv(add 1) . Khan pulled a bottle of Coke Classic from the manufacturing line.BRANDING AFTER PESTICIDE CONTROVERSY ON COKE Coke's market research was clear. While Khan's ads were targeted at the mass audience and youths. Indian consumers wanted someone credible to assure them that Coca-Cola wasn't loaded with dangerous pesticides !! «« Who better to do that than Aamir Khan. He stared into the camera and told Indians to come see the plant for themselves. testimonial ads featuring soap star and member of Parliament Smriti Irani were targeted for housewives and adult women who make the majority of the food-buying decisions in Indian households. And in the final act of the 60-second ad. popped the top and gulped fearlessly. Kini said. the socially responsible and bigger-than-life Indian movie star loved the country over? In a television testimonial. Coke amir. told everyday Indians that he cared for their safety. arms crossed behind his back.

Brand Awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category Brand Awareness Hierarchy Top of Mind Top of Mind Brand Recall Brand Recognition Unaware of Brand Brand Recall Brand Recognition Unaware of Brand .

memorable Involve a slogan or jingle Symbol exposure Publicity Event sponsorship .How to Achieve Brand Awareness Be different.

BUILDING BLOCKS OF BRAND COCA COLA :: Including football. the Olympics. meals. SLOGANS ´The pause that refreshes ´ "I'd like to buy the world a Coke´ "Coke is it" ´ Little Drops of Joyµ ´Welcome to the Coke Side of Lifeµ (Add 2) .BRANDS PROMISE : To inspire moments of optimism and uplift. Christmas and teen recruitment-.focus on inspiring happiness by creating connections that transcend age and geography.

CONCEPT AND USES Similar..RANBIR KAPOOR..IPL.Pinpoint the Brand Image in Light of Competitor COKE PEPSI NAME Certainly coke has a edge over Pepsi . Pepsi still needs to go long way to compete Coke.(BLIND TASTE ANALYSIS) PERCEPTION Coke is sweeter than Pepsi but has a greater brand loyalty so people prefer this. ADVERTISING Approximately 670 million dollars. WORLD CUP CRICKET. But Coke has relatively more number of tie ups with international units. ALMOST SAME TARGET MARKET ALMOST SAME . DEEPIKA PADUKONE.FIFA2010. Pepsi in 1990· tastes better than Coke. Pepsi lags here also with Coke. PROMOTIONS KATRINA KAIF. Amout spend is approx 1 billion dollars in 2009. AAMIR KHAN. Later coke worked on this and improved.

Perceived quality is a perception by customers. relative to alternatives.Perceived Quality The customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose. .

‡ Performance What Influences Perceived Quality of Product Product? ‡ Features ‡ Conformance with specifications ‡ Reliability ‡ Durability ‡ Serviceability ‡ Fit and finish .

The Value of Perceived Quality ‡ Reason-to-Buy ‡ Differentiate/Position ‡ A Price Premium ‡ Channel Member Interest ‡ Brand Extensions .

Programs y Brand Loyalty y Prices/margins y Brand Extensions y Trade Leverage y Competitive Advantage .Brand Equity is Perceived Value to the Customer Value to the customer enhances: y Interpretation/Processing of brand information y Confidence in the purchase decision y Use satisfaction Value to the firm is enhanced through: y Efficiency and effectiveness of Mkt.

Estimating Brand Equity using the Perceived Value Concept y Market Share. Perceived Value. Price: Relationship Perceived Value Market Share = f [ -------------------.] Price y Increase Perceived Value by: y Improving the product itself by increasing actual quality or offering better service or a longer warranty period y Advertise to enhance the product·s image y Institute value added services in the distribution channels such as technical support or financing y Improve sales effort by training the sales force to sell value rather than price .

7Up 8 Analysis Totals: Comparative Brand Value y Coke. the respondent chooses the brands most preferred.Estimating Brand Equity with Dollarmetric Scales y Rather than use 1-7 liklihood of purchase scales. Dr Pepper 3 Dr Pepper: -5 -3 +3 +7 = 2 cents y Pepsi. Dr Pepper 5 Coke: +2 +8 +5 +12 = 27 cents y Coke. Fresca 4 y Dr Pepper. Dr Pepper 3 y 7Up. responses are given in dollar other currency terms. Fresca 7 . and next. Fresca 12 Pepsi: -2 +6 +3 +10 = 17 cents y Pepsi. Fresca 10 Fresca: -12 -10 -4 -7 = -33 cents y 7Up. What should the relative prices of the five brands be? y First. 7Up 6 7Up: -8 -6 -3 +4 = -13 cents y Pepsi. how much extra would they be willing to pay for a six pack? y Coke. Pepsi 2 y Coke.

a feeling such as having fun. or a symbol such as the Golden Arches. a consumer segment such as kids. a product characteristic such as service.Brand Association A brand association is anything "linked" in memory to a brand. McDonald's could be linked to a character such as Ronald McDonald. Thus. .

The Value of Brand Associations Maintaining Associations ‡ Be consistent over time ‡ Be consistent over elements of the marketing program ‡ Manage disasters in order to minimize their damage ‡ Help Process/Retrieve Information ‡ Differentiate/Position ‡ Reason-to-Buy ‡ Create Positive Attitudes/Feelings ‡ Basis for Extensions .

T I M E L I N E .

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BRAND ASSOCIATIONS PRODUCT ATTRIBUTES INTANGIBLES RELATIVE PRICE USER/CUSTOMER BRAND NAME AND SYMBOL CELEBRITY/PERSON COMPETITORS PRODUCT CLASS COUNTRY/GEOGRAPHIC AREA .

and where and how they want to drink it. Coca Cola Zero. ‡ Introduced six pack at lower price making customers addicted to the drink ‡Coke : 600ml : Rs30 Product Attribute Non Alcoholic Beverage No Calorie Product . paying attention to what people from different cultures and backgrounds like to drink.Country / Geographic Reach From selling only nine glasses of drinks a day initially.Coca Cola Classic. believing that Coca-Cola exists to benefit and refresh everyone it touches. Diet Coke. after a successful stint of operation for over 120 years. With its bottling partners. the Company reaches out to the local communities it serves. the company currently produces more than 10 billion gallons of drink a day and sells its products across 200 countries worldwide. Coca-Cola is committed to local markets. ‡ Unique Botteling ‡ ‡ Consumer Benefit ‡ ‡ ‡ ‡ Refreshing Drink Pervasive Penetration Exhilarating Delicious . Relative Price ‡ Was first to launch the Rs 5 bottle.

Pepsi : Revenue : 12690 Million. Rank : 1 Intangibl es What is it that comes to your mind when you hear ³Thanda´ ??? ( add 3) . Rank: 22 Coke : Revenue 67000 Million.Lifestyle Coke Can : Professionals 2L Bottle : Family 300ml : Kids and Low Income Group 600 ml :Youth Celebrity/Person  Aamir Khan  Imran Khan  Hrithik Roshan and Aishwarya Rai Competition Coca-Cola has long been the steady brand that triumphs over Pepsi as the latter attempts to gain ground with brand gimmicks and changes.

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PRODUCT CLASS .

I could rebuild my business. If I lost my name. Coca-Cola . the business would collapseµ.Management of reputation is crucial to maintenance of value advantage ´If I lost all of my factories and trucks but kept the name Coca-Cola. Nivelle Isdell CEO.

Myspace. This in turn will: Increase brand awareness and Create a positive image for the brand By taking advantage of these different networks such as Twitter.Social Media Networks Coca-Cola needs to utilize different aspects of social media in order to communicate with consumers. . Facebook and Youtube Coca-Cola will be able to see what customers are saying about the product and improve or change things if necessary.

Graphs ‡Research instruments : Online Questionnaire ‡Time frame : 2 weeks .Research Methodology ‡Sample design : Random sampling ‡Sample size: 82 ‡Area of operation : INDIA ‡Tools of data analysis : Pie charts.

y Identify consumer relationships with the brand. Brand Equity Research Objectives: y Identify the effectiveness of individual brand Coke.housewife all were involved in survey. y Identify the status of the brand in a competitive context .working professional. y The major loophole lies as large number of respondents belonged to age group of 22 -29 years.Concerns of Survey y Questionnaire was collected across all Age groups. y Students. y Bias may only be on the part of the respondent.

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No of People consuming cold drinks in a week 5-7 5% 3 ² 5 times 21% < 3 times 66% >7 8% .

WHEN ARE SOFT DRINKS With food GENERALLY CONSUMED ? After meals While travelling After playing With hard drinks Other In a party While smoking To quench the thirst During meetings 4% 5% 12% 8% 5% 13% 8% 18% 3% 24% .

AVAILABILITY PEOPLE WHO VALUE BRAND VERYMUCH PEOPLE WHO VALUE BUT NOT TOO MUCH PEOPLE WHO CAN ADJUST WITH BRANDS PEOPLE FOR WHOM THERE IS NO EFFECT OF BRAND 10% 12% 43% 35% .

PE PLE PEOPLE PEOPLE O VALUE BRAND VERYMU H HO VALUE BUT NOT TOO MU H HO CAN ADJUST ITH BRANDS PEOPLE FOR BRAND 10% HOM THERE IS NO EFFECT OF 12% 43% 35% £ £ BRAND VALUE ¡ ¡ ¡ ¡ ¢¡   .

65 56 61 66 78.95 66 61 53.71.66 70 SURVEY SNAPSHOT .95 75.05 71.

 75.  Almost 56% say they are not interested in any nutritional value in        the drink.65 % say they drink the anything that is available in shop.KEY HIGHLIGHTS OF SURVEYuu  71.5% people prefer Coke over Pepsi.  53. 71.66 % say they are influenced by packaging. 61% say they are not affected by latest cola controversy Almost 70. 78. Almost 61% said they prefer sweeter taste.05% go for brand. 66 % say they like the flavor of coke. .95 % take cold drinks for thirst quenching Surprisingly 66 % people look for price in buying cold drinks.95 % say they are not affected by star endorsement.

THANK YOU ALL y BREAK TIME«.. y HAVE .

KNEW THIS WILL COME SO SAB KRIPYA APNE APNE PAISE SE COKE PIYE DHANYAWAAD .

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