This session describes..

Background of branding
Definitions of branding
Significance of branding
Brand Equity
Brand Equity Models
Brand management in
various stage of product
life cycle

Markets are fragmenting..
Brand or business model power?
High competition, locally,
regionally, internationally
Limit of traditional
marketing : Hard
discounted, store brands,
conventional brand
Media fragmentation
With technology, the
consumer seized power
1980s
marked a
turning point
in the
conception
of brand

Brand ?
a brand is everything a customer
sees, feels and experiences about
a product or service.
=
It is how a company or product is
perceived by customers
It is the
magical
difference
between many
competing products
and services.
The
significance
of branding?
Brands create
sustainable competitive
advantage
Brands boost
relationships
Brands boost sales
Brands boost profits
Brands boost balance
sheets
Brands create
assets in the
heart and mind
of the costumers
Brands save costumers
time = shortened the
how
Brands reduce
perceived risk
Brands satisfy
aspiration
Brand Components
Brand Essence | Brand Experience | Brand Identity | Brand Image
| Brand Personality | Brand Positioning | Brand Promise | Brand
Role | Brand Values | Brand Vision | Brand Equity

Brand has financial values..
Brand Equity..
Brand equity is the added
value endowed on
products and services.
Brand equity arises from
differences in consumer
response = reflected in
the way consumers think,
feel, and act with respect
to the brand, as well as in
the prices, market share,
and profitability the
brand commands
Brand
equity
Brand
strength
Brand
value
Brand strength: behavioral competitive indicator
Brand value : the ability of brands deliver profit, projecting into the future
Brand equity is reflected in perceptions,
preferences, and behavior related to all
aspects of the marketing of a brand. Stronger
brands lead to greater revenue.
Brand Equity Models
Brand Asset Valuator BAV (Y &R)
Strong new brands show
higher levels of
differentiation and
energy than relevance,
whereas both esteem
and knowledge are lower
still. Leadership brands
show high levels
on all pillars.
Declining brands show
high knowledge
evidence of past
performance
a lower level of esteem,
and even lower
relevance, energy, and
differentiation.
Brand Dynamic Pyramid (Brandz)
(Millward Brown and WPP)
Brand Equity Models
Resonance Pyramid..
Building Brand Equity
Read : Marketing Management 14
th
edition|
Philip Kotler | p.249
Product Life Cycle
Launching the Brand
Launching a product
and launching a brand
are not the same.
Launching a new brand
means acting before the
product name becomes
symbol: endowing it
with both functional
and non-functional
values.
Launching the Brand
Determining the flagship
product (products name,
contact poin, etc)
Building brand
foundations through
opinion leaders and
communities
Creating a hard core
ambassador
Creating word of mouth,
buzz
Growth in Mature Market
Growth in Mature Market
Growth through existing customers: building
volume per capita; addressing barriers to
consumption
Growth through new uses and situations
Growth through trading up: upgrade service
or product.
Growth through innovation
Growth through cross-selling between brands
Growth through internationalisation
Sustaining a brand long term
Brand is not a
product!
Product growth
recovery : line
extension,
distribution
axtension, price
reduction, facelift,
repositioning, etc)
Sustaining a brand long term
Nurturing a perceived
different
Investing in
communication
Loyalty at all cost does
not exist! Segmenting
loyalty program
Brand equity VS
consumer equity
Proximity to the
consumer


The key concept of brand
management is identity..
Adapting to the market
The role of modern
brand is to stimulate
consumer to have
new experience: take
more risks, explore
new behavior
To grow, the brand
should continue
differently
Adapting to the market
Identity and
change: better or
bigger?
Brand and
products:
integration and
differentiation.
Growth diversity
and managing
coherence
Growth through brand extension
Growth through brand extension
NIVEA BRAND EXTENSION
What is..
Background of branding ?
Definitions of branding ?
Significance of branding ?
Brand equity ?
Brand Equity Models ?
Brand management in
various stage of product
life cycle ?

TASK : BRAND ANALYSIS
Deskripsikan secara kualitatif brand equity dari produk tersebut