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CREATING BRAND EQUITY

21-09-2012, IGTC-Bangalore

-Bindu Thushara N

CHAPTER QUESTIONS
What is a brand and how does branding work? What is brand equity?

How is brand equity built, measured, and managed?


What are the important decisions in developing a branding strategy?

BRAND
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 competitors.
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THE ROLE OF BRANDS


Identify the maker Simplify decision making Reduce risks Simplify product handling Organize accounting Offer legal protection Signify quality Serve as a competitive advantage Secure price premium

SCOPE OF BRANDING

ATTRIBUTES OF STRONG BRANDS


Excels at delivering desired benefits Stays relevant Priced to meet perceptions of value Positioned properly Communicates consistent brand messages Well-designed brand hierarchy Uses multiple marketing activities Understands consumer-brand relationship Supported by organization Monitors sources of brand equity

BRANDING

Endowing products and services with the power of a brand.

BRAND EQUITY
The differential effect that brand knowledge has on consumer response to the marketing of that brand.

KEY INGREDIENTS OF BRAND EQUITY(CUSTOMER-BASED)


Differences in Consumer Response

Consumers Knowledge
about the Brand

Unique Strong

Brand Associations
Favorable

Marketing a Brand

MARKETING ADVANTAGES OF STRONG BRANDS


Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases Elastic consumer response to price decreases Greater trade cooperation Increase in marketing communications effectiveness Licensing opportunities Brand extension opportunities

BRAND PROMISE
The marketers vision of what the brand must be and do for Consumers. To create great things that change peoples lives

BRAND EQUITY MODELS

BRAND ASSET VALUATOR

BRANDZ

AAKER MODEL

BRAND RESONANCE MODEL

BAV KEY COMPONENTS


Energized Brand Strength
DIFFERENTIATION ENERGY RELEVANCE

Brand Stature
ESTEEM KNOWLEDGE

POWER GRID

Up-coming / Niche
Low earning / High Potential

Leaders
High earning / High Potential Declining Leaders High earning/Low Potential

BRAND STRENGTH

New /
Underdeveloped

Eroded / Commoditized

Seriously
Challenged

BRAND STATURE

BRANDZ-DYNAMIC PYRAMID
BONDING ADVANTAGE PERFORMANCE

Strong Relationship

RELEVANCE

PRESENCE

Weak Relationship

AAKER MODEL
BRAND IDENTITY
CORE IDENTITY ELEMENTS

EXTENDED IDENTITY
ELEMENTS

BRAND ESSENCE

BRAND RESONANCE MODEL

DRIVERS OF BRAND EQUITY


BRAND ELEMENTS MARKETING

ACTIVITIES
MEANING TRANSFERENCE

BRAND KNOWLEDGE
THOUGHTS
KNOWLEDGE FEELINGS

BELIEF
EXPERIENCES

IMAGES

BRAND ELEMENTS
BRAND NAMES SLOGANS ELEMENTS

URLs

CHARACTERS

LOGOS
SYMBOLS

BRAND ELEMENT CHOICE CRITERIA


Memorable Meaningful Likeable Transferable Adaptable

Protectable

SLOGANS

DESIGNING HOLISTIC MARKETING ACTIVITIES


PERSONALIZATION

INTEGRATION

INTERNALIZATION

INTERNAL BRANDING

Choose the right moment


Link internal and external marketing Bring the brand alive for employees

LEVERAGING SECONDARY ASSOCIATIONS

MEASURING BRAND EQUITY


Where does brand power reside ?

Is there a need for measuring it ?


What is the need ?

What are the proven approaches


?

Indirect approach

Direct approach

INDIRECT APPROACH

Aims at assessing consumer perception.

DIRECT APPROACH
Aims at assessing actual impact of brand knowledge

BRAND VALUE CHAIN

MEASURING BRAND EQUITY

Brand audits Brand tracking Brand valuation

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BRAND VALUATION

Interbrands Brand Equity Formula


Brand earnings
Brand sales Costs of sales Marketing costs Overhead expenses Remuneration of capital charge Taxation
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Brand strength Leadership (25%) Stability (15%) Market (10%) Geographic spread (25%) Trend (10%) Support (10%) Protection (5%)

MANAGING BRAND EQUITY

Brand reinforcement Brand revitalization Brand crises

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DEVISING A BRAND STRATEGY


Ideas for Today and Tomorrow

Vision Statement Brand strategy is creating a solid brand identity for a company to have customers associated with that company.

STRATEGY BUILDING BLOCKS


Branding decision Branding extension Brand portfolio

BRANDING DECISION
Individual names company does not tie its reputation to the product Blanket family names A blanket name for all its products

Corporate name combined with Separate family individual product names for all products name Combination Separate name for of company and various products product name.

BRANDING EXTENSION

A marketing strategy using the same brand name in a different product category. Facilitate new-product acceptance Provide positive feedback to the parent brand and company Reduce the cost of introductory launch campaign

BRAND PORTFOLIO

A set of all brands and brand lines a particular firm offers for sale in a market segment.

Increasing shelf presence

Attract customers by offering more choices

Yielding economies of scale in advertising, sales, merchandising and physical distribution

BRAND PORTFOLIO

QUESTIONS

THANK YOU

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