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These are not in the product that a brand enrobes; rather they all
are engineers in the prospect’s mind. They live, grow & die in the
mind. They also Add or Subtract value.
The key concept between brand and the equity is the brand
image.
Brand
Perception
Brand Brand + Contribution / equity
Brand
Image
The brand equity which implies greater profits, more cash flows and
market share hinges on brand image that resides in the customer’s
mind and drives behaviour.
ii. Image of the User:- Think about ‘Pepsi’ or ‘Coke’. It clearly spells a
profile in the mind about the user. The brands have an
unambiguous definition of its users. The brands user profile may
contain signals about a user’s Sex, Age, Occupation, Life-style,
Activities, Mindset etc.
Ex:- The user image in case of ‘Pepsi’ is embodied in its slogan
‘Choice of the new generation’ or ‘Generation next’.
iii. Product Image:- A brand’s image is also determined by the
image of the product it carries. All products have dimensions like
Functionality & Emotionality, Technology intensiveness, Old &
Young, inherent to them.
Ex:- Products like perfumes, chocolates, champagne, whiskey,
high end clothing tend to be associated with emotions & a lot of
symbolism.
On the other hand, products like house cleaners, headache
remedies, dishwashing liquids & domestic insecticides tend to be
driven by functionality & reason.
vi. Brand Portfolio & Hierarchy:- Most firms evolve into multi–
product & multi–brand business. When a firm has many brands
in its portfolio, each brand bearing connection with its name
can add to or dilute its equity.
It is for this reason that brands in the company portfolio must
form a pattern to strengthen equity. Firms often dent their
equity by creating conflicting brand structures.
• The Internal studies reveal how the brand has been marketed;
where as, the External studies are aimed at capturing the Brand
Image and Meaning, that resides in the minds of the customers.
At the same time, it is not easy also as there may be trade offs
involved. Improving performance in one area may potentially
decrease performance in others.
The key is to evaluate potential trade offs and take decisions
that have equity maximizing effects.
iii. Other Shifts:- The Indian car market leader, Maruti was dealt a
heavy blow, when the Supreme Court enforced the new pollution
emission norms, i.e., MPFI obligatory; which means that before a
vehicle could obtain institutional clearance, it has to conform to
Bharat III norms (equal to Euro II norms).
This decision took the company by surprise, and Maruti lost a fair
amount of its Market share to rival brands like Santro & Matiz and
overnight Maruti’s brand equity suffered a major setback.
In the 90’s, the concern about ozone layer hole & green house
effect forced governments to enact provisions checking the use of
CFCs. Many brands of air-conditioners & refrigerators which relied
on CFC technology witnessed their weakening control over the
markets and their brand equity suffered a great deal.
Though this may sound very logical & correct, the perspective
is myopic. It misses the fundamental essence of a brand.
Some brands which once had the supreme positions in the Indian
market have now lost their luster. Their equity has become weak or,
in some cases, even negative. The market no longer loves & respects
these brands.
This implies that the brand’s associations have either become
obsolete, weak or inconsistent.
Ex:- Dalda, Rath, Boroline, Air India, Philips, HMT etc.
o The brand’s focus & position does give it the freedom to execute
changes in prices, quality, attributes, advertising, execution
styles & formats, packaging etc.
The advertising message strategy & execution could also be
made to accommodate pressures, but, the change must occur
within the chosen concept of the brand as incoherence among
various mix elements, as, inconsistency of actions in an area
over time endangers brand equity by making brand
associations weak, diffused & undesirable.