Why is sustaining brand equity important over time? Changing marketing environment  Shifts in consumer behaviour  Competitive strategies

Internal forces  Changes in strategic focus of the company.

.BRAND SUSTAINABILITY ‡ Sustainability is a new way of doing business. ‡ Sustainability is not an asset that can be bought or sold. in the same way ³reengineering´ or ³just in time´ were in the late 1980s. but also guarantee a long life for the business. rather it¶s becoming an integral part of many a company ‡ Produces proactive strategies designed to maintain and enhance customer based brand equity over time ‡ sustainability as a business practice will not only increase companies¶ brand value.

. and reducing risk and securing future earnings for the business. and financial impacts ‡ companies must make investment decisions that will benefit the environment and society. ‡ brand creates value in two ways: generating demand.Relationship between sustainability and brand value ‡ company¶s initiatives must consider environmental. social.

Protecting sources of brand equity 3.Sustainability of brands can be through: 1. Maintaining brand consistency 2. Fortifying or Leveraging .

1. ‡ Shrinking R&D and communication budgets may risk the brand becoming out-of-date. ‡ Consistency doesn¶t mean no changes at all. irrelevant or even forgotten. . ‡ Consistency to be shown in brand positioning. Maintaining brand consistency ‡ Consistency of marketing support is essential for maintaining strength and favorability of the brand.

. ‡ E.2.g. ‡ Key brand associations should not be altered. successful positioning should not be deviated from. ‡ Unless there is some change with either consumers. Protecting sources of brand equity ‡ While looking at potentially powerful sources of brand equity. Maggi·s new introductions. preserve and defend the existing sources. competitors or the company that makes the strategic positioning of the brand less powerful.

Fortifying versus Leveraging There is always a trade off between fortifying a brand and leveraging the benefits of the brand to financial gains. Fortifying means ways of increasing brand equity and furthering the brand image through continuous marketing and advertising efforts.3. .

Functional Fixedness avoidance in non traditional situations Associated with special occasions only. y y y y .New usage Opportunities y Appropriateness & Advantages of using brands in new situations Reminders to use brands in those situations Improving Top of the mind awareness.

: Adidas. Federal Express. Moderate and evolutionary in nature Preserve salient aspects of Brand elements E.g.Changing brand elements Modification of Brand name Other Brand Elements ± Packaging. logos etc. GE .

Baby Shampoo New market segments based on cultural dimensions x Women as decision makers for men¶s products x Tapping the female segment of the market .Entering New Markets Reach out to new Customer groups Reach out to decision making segment instead of the users Johnson and Johnson: Baby Soap.

Honda was one of the first movers in this direction and this is paying dividends today. This leading behavior contributed to an increase of 28% in Honda¶s brand value since 2004. .Generating demand for products and services AUTOMOTIVE y Companies such as Honda recognized that mineral fuels are limited and prices of petroleum are rising. Honda was first to differentiate and is ahead of the debate. It was the only car manufacturer to report better US sales in June 2008 than in June 2007. This motivated it to adapt its product range to fuel-efficient cars. credited to fuel-efficient Civics and Fits. While reducing dependence of gas-guzzling cars and increasing the number of fuelefficient models became a ³must do´ in the automotive sector.

gent category. also from P&G. allows reduced packaging materials. but in a different way. Through investments in R&D. The campaign suggests consumers turn water temperature in washing machines from 40º to 30º when using Ariel with the same results guaranteed. which does not require hot water for usage and. A few years ago. Another example. sustainability was not a relevant issue in the washing powder or deter. as it is more concentrated. P&G . is Ariel¶s ³Turn to 30º ³ campaign. P&G developed Tide Coldwater.y P&G is another example.


Investment in water supply in India is not only relevant to the population. Is this only a form of CSR to boost the company¶s reputation after protests were held in the area? No. Coca-Cola has been investing in many initiatives. . diet and zero versions.1 billion between 2003 and 2007?Coca-Cola¶s decline is due to the fact that it is seen as one of the bad guys by many organizations. Increasing health concerns have been affecting brand earnings in developed markets. After all. despite its light. such as campaigns to improve community access to safe drinking water and adequate sanitation in India. It consistently invests in its main brand and develops an emotional connection with consumers. how would Coca-Cola produce soft drinks without water? This and other initiatives positively influenced the company¶s share value at the end of 2007 and its brand value increased by 2% in 2008. Also. but also to the sustainability of the business in the country. So why did its brand value decline US$5.y Coca-Cola is the most valuable brand in the world. its image and reputation have been inconsistent around the world. On the upside.




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