Kimberly Vorster

HSM
15000987

ASSIGNMENT 1
PSBM8412
Contents
1. Introduction........................................................................................................................ 2

2.Customer based brand equity.............................................................................................2

2.1 Brand Equity.................................................................................................................2

2.3 Building blocks.............................................................................................................. 2

2.4 Reason for brand resonance.........................................................................................2

2.5 Benefits of brand equity................................................................................................2

3. Positioning.......................................................................................................................... 2

3.1 Identification and assessment of points or parity and points of difference.....................2

3.2 Evaluation of the effective communication....................................................................2

3.3 Recommendations........................................................................................................2

4. Conclusion......................................................................................................................... 2

References............................................................................................................................. 2
1. Introduction

Introduce both equity and position and the two brands

2.Customer based brand equity REFRENCE

The main idea behind Kevin Keller’s Brand Equity Pyramid is that in order for a company to
build a strong brand, the company or organisation must morph the way customers think and
feel about the brand and the products or service the company provides (Keller, 2016). The
model is designed to look like a pyramid, that lays out the foundation that will create an
attitude towards a brand and will illustrate how a brand can capitalize on the attitudes and
loyalties of a brands customers (Keller, 2016). By building a specific experience around a
brand, customers will have positive perceptions, thoughts, opinions, feelings and beliefs
about the brand that will ultimately lead to the brand success (Keller, 2016).

2.1 Brand Equity

Brand equity includes both the tangible and intangible aspects that a brand adds to a
product or service (Esmail, 2015). For a brand such as Coca-Cola, their brand name adds
value to their products that goes beyond the products functional benefits it provides (Esmail,
2015). Coca-Cola has built their brand equity through consistent communication, a
compelling image, unique style, a thrilling message and quality relationships with their
customers (Haseeb, 2015).

Awareness: Brand awareness is the extent to which a brand is recognized by current and
potential customers (Sheridan, 2017). Coca-Cola has spent over 27 billion dollars on
advertising, making them one of the first companies to spend more money on their
marketing than on the actual product. Through their adverting and marketing Coca-Cola has
shown its flexibility and ability to be innovative. The packaging with the red and white
branding is recognized by 94% of the world's population (Bhasin, 2011). Coca-Cola’s brand
awareness allows it to stand out and above against their competitors such as Pepsi (Wiener-
Bronner, 2018). Coca-Cola’s market share has risen to 17.8%, while Pepsi’s has dropped to
8.4%, this is due to Coca-Cola’s strong brand awareness with customers around the world
(Wiener-Bronner, 2018).

Image: It took Coca-Cola many years to create a respectable and dependable brand image.
Coca-Cola has created a brand that customers know and love by spending billions of dollars
to create a strong and rememberable brand image in the minds of their consumers all
around the world (Haseeb, 2015). Coca-Cola has built their image around universal
happiness and has therefore been perceived by its customers as a part of their everyday life
and has become a household name (Bhasin, 2011). The Coca-Cola brand and logo are
easily identifies worldwide and is a huge reason why customers feel a sense of ease when
purchasing any Coca-Cola product (Bhasin, 2011).

2.3 Building blocks

Salience: Salience looks at the brand from the point of view of their customers and looks at
what words these customers associate the brand with. Salience answers the question of
“Who are we?” (Keller, 2016). Salience is all aspects related to the customers awareness of
the brand and their ability to recall an recognize a brand such as Coca-Cola. Coca-Cola
uses the colour red as a form of salience. Red is the colour of energy, excitement and
boldness. These are all things Coco-Cola wants people to associate with their brand. The
red colour that Coca-Cola uses helps with the brands image and gives the brand meaning.
Through their advertising and distribution channels Coca-Cola dominates the customers
brain with the colour red (Piktit, 2009). This is clearly seen in super markets world wide
where there is excessive Coca-Cola adverting with their Coca-Cola refrigerators filled with
the different Coca-Cola products. Through this brand salience customers will consider
buying other products solely for the reason it belongs to Coca-Cola. By having this distinct
colour red associated to Coca-Cola it will help customers identify the brand and increase the
chance of repeat purchase (Piktit, 2009).

Performance: Performance refers to factors such as customer service and customer

satisfaction with regards to the actual product, and therefore includes other functional factors
such as reliability, durability, price, and how these factors influence customer opinion (Keller,
2016). Coca-Cola has been in existence since the 1800 and has survived in a highly
competitive market due to their consistency in performance. Coca-Cola as an umbrella
brand supports the brand value of each of the Coca-Cola sub brands, which indicates
reliability. Coca-Cola recently launched a new campaign to introduce their new flavours for
diet Coke and this has increased their performance. This is clearly seen in their profit growth
of 3% in 2018 due to a positive performance from the Diet Coke campaign (Sweeny, 2018).

Imagery: Imagery focuses on how customers’ needs and wants are met on intangible
aspects, both the social and psychological intangible aspects. Imagery can occur in multiple
ways such as customer actual interactions with the product or imagery can be the work of
targeted marketing or even word-of mouth (Keller, 2016). Imagery is how customers think
about the brand abstractly, rather than thinking about what the brand does. Coca-Cola
creates a feeling of happiness and refreshment along with the togetherness of friends and
family (Piktit, 2009).

Judgements and feelings: Judgement and feelings are closely related which makes it
extremely difficult in differentiating the two. Judgement and feeling takes personal opinions
into account in order to interpret how and what customer think and feel about a brand, and
whether this thought is based on actual interactions or perceived reputation of the brand
(Keller, 2016). Consumer are constantly making judgements about a brand’s quality, loyalty,
creditability and considerations (Moye, 2016). Customers judge the quality of Coca-Cola and
the effect it could have on their health and wellness. Coca-Cola is challenged with trying to
keep their customers satisfied and encourage repeat purchases (Moye, 2016). Through the
Coca-Cola “Share A Coke” campaign they have inspired loyalty by making the brand a
personal collectible. Coca-Cola has used the same trusted recipe and logo for over 100
years which has created trust, creditability and likability in the minds of their consumers
(Moye, 2018). Consumers constantly judge the relevance of a product to their wants and
needs. Coca-Cola has shows that they are related to everyone’s lifestyle through their “taste
the feeling” campaign. Through the campaign Coca-Cola has reinforced that even though
Coca-Cola has many variants, Coca-Cola is still for everybody. No matter what way people
want their Coca-Cola they will always receive the great taste and refreshment that the brand
promises (Moye, 2016). The “taste the feeling” campaign was intended to make customers
feel festive, happiness, unity, and self-respect. Coca-Cola wants to make people feel that the
brand is more than just a drink but rather a feeling. By drinking a Coke every moment will
feel more special and memorable (Moye, 2016).

Resonance: Several different factors go into creating resonance with customer, these
include: price, products, customer service, as well as previous customer experience with the
brand. If a customer remains loyal to one brand is considered the goal of the model (Keller,
2016). In order to become a loyal customer, buyers will assess their relationship and
interactions with the brand and then decide whether or not it is superior to competitive
brands (Keller, 2016). Resonance is the ultimate relationship and level of identification a
customer has with a brand. A brand achieves brand resonance once their customers feel a
deep bond with the brand. Coca-Cola has created resonance through a strong personal
attachment with the brand (Piktit, 2009). Coca-Cola has done this by creating innovative
marketing ideas such as personalized bottles, interactive machines and packaging that
customers can wrap during the holiday season. Coca-Cola’s customers view the product as
an item they look forward to consuming (Piktit, 2009).
2.4 Reason for brand resonance

Simplicity: Although Coca-Cola has multiple products, the company has never moved
away from their timeless and basic ideals which has lead them to grow into one of the
biggest global companies (Warkentin, 2014). Throughout every single one of their marketing
campaigns, Coca-Cola constantly communicates one strong and effective message:
“pleasure”. They communicate this message through their simple slogan: “Happiness” which
resonates with consumers worldwide (Warkentin, 2014).

Experience: A huge reason for Coca-Cola’s success is due to their emphasis on brand over
the product itself. Coca-Cola sells “happiness” in a bottle rather than a soft drink in a bottle.
Managing products themselves is a challenge, and this is why Coca-Cola aimed to sell their
consumers an experience and lifestyle that is associated with the brand rather than the
product. The experience they are selling of happiness and friendship is universally shared
and understood by their consumers (Warkentin, 2014). Coca-Cola’s “Share a Coke”
campaign launched in Australia in 2011 and seven years later people still get excited when
the campaign is launched, and consumers see their names written on Coca-Cola products,
in place of the iconic logo (Moye, 2018). By putting consumers names on an iconic product,
Coca-Cola gave consumers a personal experience which lead to a feeling of love and
loyalty. The success of this campaign is due to the fact a name is an individuals most
personal and prized possession. Consumers will feel positively to a brand that shows some
form of interest in them, especially if they are able to make a personal connection such as
having their name on a product (Moye, 2018).

Logo: The Coca-Cola logo is written in Spencerian script and is easily recognizable by
consumers and differentiates Coca-Cola from its competitors. While the packaging has been
adjusted over time, the core Coca-Cola logo has remained untouched since 1923. By
remaining untouched the logo has had over 100 years to be imprinted in the minds of their
consumers (Feloni, 2016).

2.5 Benefits of brand equity

3. Positioning
A brand position is a marketing strategy that aims to create a distinct position in the minds of
a brand target audience (Koelzer, 2017). The position is the benefits a brand wants
consumers to think of when they of a brand and differentiates the brand from their
competitors. Companies apply their positioning strategy by highlighting the features of their
brand. Once a brand has positioned themselves it can be extremely difficult to reposition the
brand without completely destroying the brands credibility (Koelzer, 2017). ABSA positions
themselves as the “One Stop Bank in Africa”

3.1 Market segmentation and Target market.

Market segmentation is the process of dividing a market of potential customers into groups
based on certain characteristics. These groups are composed of consumers that have
similar interests, needs, wants etc. and who will react similarly to certain marketing
strategies (Maven, 2014). Target marketing is concentrating your marketing efforts on one or
more of these market segments. Market segmentation and target markets leads to a
company’s success and are the key to maintaining currents clients and attracting new ones
(Ward, 2017).

ABSA is a financial and investment bank and with wealth management products and
services, that caters to the mass market. ABSA has recently rebranded and is now seen as
an “entrepreneurial, digitally led bank with a deep knowledge of African markets and global
scalability” (Dicey, 2018). ABSA believes that age is the least important psychographic
variable, and rather takes income and attitude into account as people of all ages can have
similar mindsets and lifestyles (Dicey, 2018). ABSA has realized that their adverting
messages will not always be well received by everyone, but by simply having a presence will
create awareness for the bank (Andrews, 2008). While general ABSA’s adverting messages
appeal to the core, middle class markets, ABSA will still create tailored advertising messages
and services that are aimed at reaching specific customers. For example: for the entry-level
market ABSA has created a pre-paid banking style, similar to loading airtime on a cell phone
(Andrews, 2008).

The challenge for ABSA as a brand is to find am idea that all consumers can connect to and
to be “all things to everyone”, regardless of the different generations (Andrews, 2008).
Through long standing relationships with their clients, ABSA has gained the relevant
experiences and insights needed to develop new innovative products and services that can
respond to such challenges successfully. ABSA believes that through their specialist support
to their customers they are able to meet customer goals quickly and efficiently (Cordier,
2018).

3.2 Identification and assessment of points or parity and points of difference

Companies often focus on creating points of Difference that will give consumers reasons to
prefer one brand over another. While it is extremely important to establish points of
difference it is equally important to identify the points of parity to match and abolish
competition. Points of parity provides perspective on how to keep a brand relevant (Aaker,
2013). ABSA’s key competitor is Standard Bank (Khumalo, 2017).

Points of Parity:

2. Range of checking
3. Savings plans
4. Traveller’s cheques and e-wallets
5. Wide range of ATM’s
6. Convenient working hours

Points of Difference:

ABSA: Cash rewards

ABSA uses a tiered system for their rewards programme and works on points with a monthly
membership fee of R23. The main difference between ABSA’s rewards program compared to
any of its competitors is that ABSA allows customers to cash in their points. Customers earn
their rewards points through various sales transactions using either an ABSA debit, credit or
cheque card (Writer, 2018).. The spending amount is capped at R150,000 per month.
Customer can also earn cash rewards from fuel spent at any Sasol Garage. ABSA also
allows their customers to convert their cash rewards into points for other rewards schemes
with an added boost, such as converting cash rewards into Pick ‘n Pay Smart Shopper
points with a 15% boost (Writer, 2018).

Standard Bank: uCount rewards

Standard Bank’s uCount rewards program includes reward tiers, spending limits and can
only be use at certain stores that have partnered with Standard Bank and the monthly fee is
R22 (Writer, 2018). Points are earned through various channels such as using financial
products, engaging with certain marketing and communications and by saying things online
that is seen as positive or neutral for the brand. The scheme has a point collection cap of
65,000 points a month (equilivant to R6,500) and has a redemption cap of 200,000 points
(Writer, 2018).

3.3 Evaluation of the effective communication

Evaluation of the effective communication of the positioning has been conducted in context
of the target market, competitors and communication environment.
3.4 Recommendations
Financial literacy programmes:

ABSA can improve their positioning in the minds of their consumers by implementing a
financial literacy programmes to educate their current and potential customers (Remund,
2010). Outside financial literacy programmes often only target the low-income population
and the other market segments are left out and are often too embarrassed to ask advice. By
creating an in-house financial literacy program, ABSA can target their desired market
segments and give each segment the necessary information to grow their funds (Remund,
2010). The financial literacy programme can be done through literacy video tutorials and be
made available to all ABSA’s current and potential customers. Financial education can
benefit ABSA greatly by creating goodwill in the community and strengthen ABSA’s
relationships with customers (Remund, 2010).

Personalised customer experience:

After the 2008 recession customers have very little trust in banks and banks such as ABSA
need to work hard to secure brand trust and build their brand (Wolfers, 2011). The
competition in the banking industry is huge and customers have a choice over which bank
they want to work with. For ABSA to stay competitive and strengthen their position in the
minds of their consumers, they must build customer trust through personalisation and
segmentation of their messaging and services (Wolfers, 2011). A key aspect of earing
customer trust and loyalty is through personalized product offerings. With all the customer
data that ABSA has on each of their clients the opportunities for personalization is endless
for the institution. By creating a personalized messaging to ABSA customers, there are more
likely to feel valued by ABSA and engagement is more than likely going to increase for the
institution (Burns, 2018). By using personalized technologies available to ABSA, they will be
able to personalize transactions based on customer preferences, provide customers with
information based on recent transitions, and customers will be able to access the information
they need immediately without having to call customer services. Personalized technology will
allow ABSA to better target their customers by supplying them with the services they need
and want at that moment in time (Burns, 2018).

4. Conclusion
Conclude both equity and position

Coca Cola’s brand equity or value is driven from willingness of people to spend a premium
for Coca-Cola and refusal to switch for substitute products, like Pepsi. The recipe of Coca
Cola may not be unique anymore; however, memories linked with Coca-Cola are unique and
of a great value that drastically increases brand equity of the brand (Haseeb, 2015).

References