CREATING BRAND EQUITY

DAVID AAKER
 CREATING BRAND EQUITY

BUILDING A STRONG BRAND REQUIRES

CAREFUL PLANNING & GREAT DEAL
OF LONG-TERM INVESTMENT.
AT THE HEART OF A SUCCESSFUL BRAND
IS A GREAT PRODUCT OR SERVICE,
BACKED BY A CREATIVELY DESIGNED
& EXECUTED MARKETING.
 The scope of branding
 All about creating differences

 Differences often related to attributes or

benefits of product itself, or

 By understanding consumer motivations

& desires & creating relevant &
appealing images round their products

 Branding can be applied virtually

anywhere a consumer has a choice
 Defining brand equity
 Brand equity is the added value endowed to
products & services

 Marketers & researchers use various

perspectives to study brand equity

 Customer-based brand equity can be defined

as the differential effect that brand
knowledge has on consumer response to
marketing of that brand
 A. Customer-based brand equity
A BRAND IS SAID TO HAVE A POSITIVE CUSTOMER-BASED
BRAND EQUITY WHEN CONSUMERS REACT FAVOURABLY TO
A PRODUCT & THE WAY IT IS MARKETED WHEN THE BRAND
IS IDENTIFIED AS COMPARED TO WHEN IT IS NOT:

3 main ingredients to this definition:

1. Brand equity arises from differences in consumer response

2. Differences as a result of consumer’s knowledge about the

brand

3. Reflected in perceptions, preferences, & behaviour related to

all aspects of the marketing of a brand
 Brand equity as a bridge
 All marketing spends each year on products &
services should be thought of as investments in
consumer brand knowledge

 It is actually possible to “overspend” on brand

building

 At the same time, the brand knowledge created

by these marketing investments dictates
appropriate future directions for the brand
Brand equity models

Aaker’s model
 A. Aaker’s model

DAVID AAKER VIEWS BRAND EQUITY AS A SET OF 5

CATEGORIES OF ASSETS & LIABILITIES LINKED TO
BRAND THAT ADD OR SUBTRACT FROM THE VALUE
PROVIDED BY THE PRODUCT OR SERIVICE TO FIRM
AND/OR TO THE FIRM’S CUSTOMERS:
These categories of brand assets are:
1. Brand loyalty
2. Brand awareness
3. Perceived quality
4. Brand association
5. Other proprietary assets (patents, trademarks,
channel relationships)
 BRAND IDENTITY
BRAND IDENTITY IS A UNIQUE SET OF
BRAND ASSOCIATIONS THAT THE BRAND
STRATEGIST ASPIRES TO CREATE OR
MAINTAIN THESE ASSOCIATIONS
REPRESENT WHAT THE BRAND STANDS FOR
& IMPLY A PROMISE TO CUSTOMERS FROM
THE ORGANIZATION MEMBERS
 BRAND IDENTITY( contd.)
BRAND IDENTITY SHOULD HELP
ESTABLISH A RELATIONSHIP BETWEEN
THE BRAND & THE CUSTOMER BY
GENERATING A VALUE PROPOSITION
INVOLVING FUNCTIONAL, EMOTIONAL,
OR SELF-EXPRESSIVE BENEFITS
 BRAND IDENTITY (contd.)
CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4
PERSPECTIVES:
 As a product: product scope, product attributes,
quality/value, uses, user, country of origin
 As an organization: organizational attributes, local vs.
global
 As a person: brand personality, brand-customer
relationships
 As a symbol: visual imagery/metaphors, heritage
CORE & EXTENDED IDENTITY:
 Core identity: central timeless essence of the brand –
remains constant as brand travels to new
markets/products
 Extended identity: includes various brand identity
elements, organised into cohesive & meaningful groups
 STRATEGIC BRAND ANALYSIS
Customer analysis Competitor analysis Self-analysis
Trends Brand image/identity Existing brand image
Motivation Strengths, strategies Brand heritage
Unmet needs Vulnerabilities Strengths, capabilities
Segmentation Organization values

BRAND IDENTITY SYSTEMS

BRAND IDENTITY

Extended

Core

Brand as Brand as Brand as Brand as

Product organization person symbol
1.Product scope 7.Organization attributes 9.Personality 11.Visual
2.Product attributes 8.Local vs. global 10.Brand- imagery &
3.Quality/value customer metaphors
4.Uses relationships 12.Brand
5.Users heritage
6.Country of origin
VALUE PROPOSITION CREDIBILITY
*Functional *Emotional *Self-expressive *Support other brands
BRAND-CUSTOMER RELATIONSHIPS
BRAND IDENTITY IMPLEMENTATION
BRAND POSITION
*Subset of the brand identity& value proposition *To be actively communicated
*At a target audience *Providing competitive advantage

EXECUTION
*Generate alternatives *Symbols & metaphors *Testing

TRACKING
 A McDonald’s Brand Identity
MCDONALD’S, WHICH DOES ABOUT $26 BILLION
OF BUSINESS IN 79 COUNTRIES, HAS ONE OF
THE MOST SUCCESSFUL BRANDS.

THE FOCUS FOR MCDONALD’S HAS BEEN ON

VALUE, IN PART BECAUSE CUSTOMERS VALUE
CONSCIOUS & IN PART BECAUSE IT MUST
COMPETE WITH AGGRESSIVE VALUE APPROACH
OF PEPSICO’S TACO BELL.

HOWEVER, THE BRAND AS SYMBOLIZED BY THE

GOLDEN ARCHES HAS A RICH IDENTITY THAT
PROVIDES SEVERAL LINKS TO THE CUSTOMER
 McDonald’s Core Identity
Value offering: McDonald’s provides value as
defined by the product, special offers, &
buying experience given the price
Food quality: consistently hot, good-tasting
at any McDonald’s in the world
Service: fast, accurate, friendly, & hassle
free
Cleanliness: operations are always spotless
on both sides of the counter
User: families & kids are a focus, but serves
a wide clientele
 McDonald’s Extended Identity
Convenience: most convenient, quick-service restaurant –
located close to where people live, work, & gather; features
efficient, time-saving service; & serves easy-to-eat food
Product scope: fast food, hamburgers, children’s
entertainment
Sub-brands: Big Mac, Egg McMuffin, Happy Meals, Extra Value
Meals, …
Corporate citizenship: Ronald McDonald children’s Charities,
Ronald McDonald House
Brand personality: family oriented, all-American, genuine,
wholesome, cheerful, fun
Relationship: family/fun associations are inclusive, McDonald’s
is part of the good times
Ronald McDonald’s Children’s Charities engender respect,
liking, & admiration
Logo: Golden Arches
Characters: Ronald McDonald; McDonald’s dolls & toys
 McDonald’s Value Proposition
Functional benefits: good-tasting hamburgers,
fries, & drinks that provide value, extras
such as play grounds, prizes, premiums, &
games
Emotional benefits: Kids – fun via excitement
of birthday parties, relationship with Ronald
McDonald & other characters, & feeling of
special family times
Adults – warmth via link to family events &
experiences reinforced by the McDonald’s
emotional advertising