Brand Equity

Brand Equity
Brand equity refers to the effects of marketing on consumers' knowledge

about a brand Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Measuring Brand Equity
Firm Level: Can be measured through market value minus the financial assets of a firm. Product Level: Comparison of price of a no-name or private label product to an "equivalent"

branded product. The difference in price, assuming all things equal, is due to the brand. Consumer Level: Measuring the awareness (recall and recognition) and brand image (the overall associations that the brand has).

All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

Customer-based Brand Equity

Organization of Brands
Brand architecture the structure and organization of

brands Brand hierarchy the different organizational levels within a brand system Sub-brand an identified division (other of products) within a brand

Brand Hierarchy
Corporate Brand Range Product Line Sub-brand Branded Feature
HP

Imaging

Systems

Laserjet

Inkjet

PCs

Laserjet IV Laserjet IV RE

Product Range Strategy

Allows multiple market entry

Household Range of Products

and flexibility Consumer-oriented branding not corporate branding Encourages innovation and risk taking (failure will reflect less on corporate brand) Possible to control greater shelf space with strong brands BUT expensive and requires sophisticated organization

Umbrella Brand Strategy

Builds brand equity at the corporate level

Corporate brand strength is critical

Reduces marketing investment in new categories Allows fast-follower strategies in innovative

companies Easier for horizontal rather than vertical extension Risk of over-stretching

Umbrella Brands - Sony

Endorser Brand Strategy

Allows dual brand equity

09 H3 09 H2 SUT 09 H2 SUV 10 Yukon Denali 10 Yukon XL Denali 10 Yukon Denali HB

Corvette Z06 Corvette Conv Corvette Coupe

to develop Quality seal of approval Cheaper method of building brand equity in company name Use product brands to express different aspects of personality Requires comprehensive understanding of brand values

Brand Extension
Pros
Facilitate new product

Cons
Hurt parent brand image Dilute brand image (diluted

acceptance Increase profits Avoid cost of developing a new brand Appeal to new consumers Revitalize the brand Prevent marketing myopia

investment) Confuse consumers Alienate existing consumers Retailer resistance

Brand Alliance
Co-operative marketing of brands/ products that have

the same utility or target segment

Event related DLF-IPL Operations related Star Alliance (airline industry) Collective brand assets McDonalds and Coke Complementary products Intel

4 Ps and 4 Cs of Marketing