LEVERAGING SECONDARY BRAND ASSOCIATIONS TO BUILD BRAND EQUITY

( LOral )RED ()RED ( Facebook )RED

Introduction Concept & Case

( )RED

Concept & Case Concept & Case

( General Motors )RED (Google)RED

RED

Concept & Case

Conclusion

 Borrowing some brand knowledge and depending

on the nature of associations or responses, some brand equity Secondary brand knowledge may be quite important to creating strong, favorable, and unique associations or positive responses if existing brand associations or responses are deficient in some way

 Tata Salt V/S Dandi Namak Tatas reputation of quality being transferred to the salt. Belmonte, gets endorsed by Shah Rukh Khan and immediately starts selling more. Why? Because Shah Rukh Khan had a relevant equity (his style statement) to lend to the brand Country of Origin: Swiss Chocolates, French Wines, Indian Basmati need I say more?

CONCEPTUALIZING THE LEVERAGING PROCESS

If there is a secondary entity that already exists who has done a good job building brand image and brand awareness, we could somehow link our brand to their brand to transfer equity to our brand.
Such entities include companies, countries of origin, and channels of distribution, other brands, and spokespersons The brand borrows some brand knowledge and some brand equity from other entities.

TRANSFER OF BRAND KNOWLEDGE

CREATION OF NEW BRAND ASSOCIATIONS

A connection between the brand and another entity makes a consumer form a mental association from the brand to other entity and to any judgments, associations, feelings linked to that entity.
This secondary knowledge is most likely to affect the evaluations of a new product when consumers lack the motivation or the ability to judge product related attributes

EFFECTS ON EXISTING BRAND KNOWLEDGE

Cognitive consistency- In the minds of consumers, what is true for the entity, must be true for the brand. Factors for predicting the extent of brand leverage : Awareness and knowledge of the entity: If consumers are aware of the entity and hold some strong, favorable, and unique association about it, he will have positive judgments and feelings about the brand as well.

CREATION OF NEW BRAND ASSOCIATIONS

Meaningfulness of the knowledge of the entity: given the entity evokes some positive associations, judgments, or feelings, is this knowledge relevant and meaningful for the brand? Consumers must feel connected. Linkage must be relevant.
Transferability of the knowledge of the entity: A meaningful association could transfer to the brand. How strongly will this knowledge actually become linked to that brand?

EXAMPLES
Events: create experiences
People: create feelings Media: knowledge about attributes Cause-related marketing: Enhance brand image Evoke feelings of social approval/esteem Brand attitudes such as trustworthy & Likeable

HOW WOULD BRAND LEVERAGING BENEFIT?

Evaluation of new product
A positive effect on existing brand associations that is deficient in some way. The cost of introducing a brand-leveraged product is less than introducing an independent new product due to a much smaller investment in brand development and advertising designed to gain brand recognition.

RISKS OF BRAND LEVERAGING

To avoid brand dilution, leveraging should be limited to entering only those categories that are directly related to the original product. Potential exists for damaging the reputation of the parent product if new products fail. Also, manufacturing and inventory costs may be higher as a result of product diversification

WILL BRAND LEVERAGING WORK FOR YOU?

Does the new product fit into the established product family? Does the brand have attributes or features that easily and effectively carry into new categories?

Is the brand name strengthened or diluted by representing two (or more) differentiated products?

WILL BRAND LEVERAGING WORK FOR YOU?

Does your company have facilities necessary to manufacture and distribute a new and differentiated product? Will sales of the new product cover the cost of product development and marketing? A brand leveraging strategy can be extremely successful and profitable if it is correctly implemented and provides new products with the right image

CO-BRANDING
Marketing Arrangement Where Two Companies Form An Alliance To Work Together

CO-BRANDING
(RED) has teamed up with the world's most iconic brands to produce (PRODUCT)RED branded products. American Express (UK only), Apple, Bugaboo, Converse, Dell, Gap, Hallmark (US only), Nike, Pen folds and Starbucks. (PRODUCT)RED Special Editions include: Beats By Dr. Dre, Belvedere, Girl Skateboards, Nanda Home, Shazam, Solange Azagury-Partridge, and Timbuk2.

ADVANTAGES & DISADVANTAGES

Borrow Needed Expertise Leverage Equity Reduction In Cost Of Product Introduction Expand Brand Meaning Source Of Additional Revenue

Loss Of Control Brand Equity Dilution Negative Feedback Effects Lack Of Brand Focus And Clarity Organizational Distraction

CHANNELS OF DISTRIBUTION

Retail Stores indirectly affecting brand equity through Image Transfer

PRODUCT ASSORTMENT
The collection of goods and services that a business provides to the customer. Length or number of products Breadth or number of product lines Depth or number of product varieties within the product line

PRICING AND CREDIT POLICY

This relates to the price and discounts the stores or the retailers are providing to the customer for its brand.

QUALITY OF SERVICE
The quality of service or the reception received by the customer when it enters the store also has a deep impact on brand equity. .

CHANNEL OF DISTRIBUTION FOR RED A & RED B

American Express develop a distinctive red credit card designed to help eliminate AIDS in Africa and leveraged by publicising supermodel Elle Macpherson

GAP had a entire line of (RED) apparel and the full collection of T-shirts were made available in October 2006
Converse first RED product was a chuck Taylor ALLStar shoe made from mud cloth imported from Africa which gained attention of public

CHANNEL OF DISTRIBUTION FOR RED A & RED B

Giorgio Armani first RED product was a pair of sunglasses which retailed for $170 and the company gained profit margin of 40% Apple released a RED special edition of popular I pod Nano in October 2006 with a RED shuffle and RED I tunes gift card followed. Motorola unveiled a new line of RED cell phones and accessories and packaging was done in Lesotho. The Independent, MY Space, VH1 was also the companies that leveraged the brand (RED) in the mind of the customers.

LICENSING

Licensing creates contractual agreements whereby firms can use the names, logos, characters and so forth of other brands to market their own brands for some fixed fee
A firm is renting another brand to contribute to the brand equity of its own product ( As in the case of RED Products)

CELEBRITY ENDORSEMENT
A form of brand or advertising campaign that involves a well known and admired person using their fame to help promote a product or service.
The need for celebrity endorsement Instant brand awareness and recall Celebrity values define, and refresh the brand image Celebrity adds new dimensions to the brand image Instant credibility or aspires PR coverage Convincing clients.

INSTANCES FROM THE CASE

(RED)s launch took place on the Oprah Winfrey show
Supermodel Christy Turlington, actress Penelope Cruz, and hip-hop star Kanye West also came to model and buy (RED) products GAPs campaign also depicted celebrity endorsement , which included photographs of celebrity sponsored such as Steven Spielberg, Dakote Fanning, Penelope Cruz, Chris Rock and Mary J. Blige all wearing their favourite GAP (RED) apparel.

BRAND SELCTION
EMOTIONAL LOYALITY

30%

70%

RED PRODUCTS CREATED A EMOTIONAL IMPACT

CSR activities creates a magnified effect in terms of marketing New product had lot of promotions which were tapped by red Sustainability education, hope consisted of commerce,community,

Networking helped impression in a event

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