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

Brand equity models

Aakers model

A. Aakers 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 FIRMS 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 SELFEXPRESSIVE 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


Customer analysis Trends Motivation Unmet needs Segmentation BRAND IDENTITY SYSTEMS

STRATEGIC BRAND ANALYSIS Competitor analysis Brand image/identity Strengths, strategies Vulnerabilities

Self-analysis Existing brand image Brand heritage Strengths, capabilities Organization values

BRAND IDENTITY Extended Core Brand as Brand as Product organization 1.Product scope 7.Organization attributes 2.Product attributes 8.Local vs. global 3.Quality/value 4.Uses 5.Users 6.Country of origin Brand as person 9.Personality 10.Brandcustomer relationships Brand as symbol 11.Visual imagery & metaphors 12.Brand heritage

VALUE PROPOSITION *Functional *Emotional *Self-expressive

CREDIBILITY *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 *Symbols & metaphors

*Generate alternatives

*Testing

A McDonalds Brand Identity

MCDONALDS, WHICH DOES ABOUT $26 BILLION OF BUSINESS IN 79 COUNTRIES, HAS ONE OF THE MOST SUCCESSFUL BRANDS. THE FOCUS FOR MCDONALDS HAS BEEN ON VALUE, IN PART BECAUSE CUSTOMERS VALUE CONSCIOUS & IN PART BECAUSE IT MUST COMPETE WITH AGGRESSIVE VALUE APPROACH OF PEPSICOS TACO BELL. HOWEVER, THE BRAND AS SYMBOLIZED BY THE GOLDEN ARCHES HAS A RICH IDENTITY THAT PROVIDES SEVERAL LINKS TO THE CUSTOMER

McDonalds Core Identity

Value offering: McDonalds provides value as defined by the product, special offers, & buying experience given the price Food quality: consistently hot, good-tasting at any McDonalds 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

McDonalds 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, childrens entertainment Sub-brands: Big Mac, Egg McMuffin, Happy Meals, Extra Value Meals, Corporate citizenship: Ronald McDonald childrens Charities, Ronald McDonald House Brand personality: family oriented, all-American, genuine, wholesome, cheerful, fun Relationship: family/fun associations are inclusive, McDonalds is part of the good times Ronald McDonalds Childrens Charities engender respect, liking, & admiration Logo: Golden Arches Characters: Ronald McDonald; McDonalds dolls & toys

McDonalds 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 McDonalds emotional advertising