Brand Equity = strategic asset

The positive differential effect of price and purchase

Strong brand = Product Benefits x Distinct Identity x Emotional Values

Brands are built by performance, not advertising.

Prof. Sapna Modi

 Characteristics of Strong Brands
 Provides superior delivery of desired benefits.
 (Starbucks, FedEx, Amazon)

 Maintain innovation and relevance for the brand.

 (Gillette, Charles Schwab)

 Establish credibility and create appropriate brand personality and

imagery.
 (Apple, Virgin)

 Communicate with a consistent voice.

 (Coca-Cola, Accenture)

 Strategically design and implement a brand hierarchy and

portfolio.
 (BMW, The Gap)
 Strategic challenges for marketers
and researchers
 Measuring brand equity
 Measuring marketing effectiveness
 A better new product process
 Measuring customer satisfaction
 Brand Equity
 Brand Equity consists of differential attributes
underpinning a brand which gives increased value to
the firms balance sheet
- Chernatony and McDonald
 Brand Equity is a set of brand assets and liabilities
linked to a brand, its name and symbol, that add to or
subtract from the value provided by a product or
services to a firms customers
- David Aaker
 Brand Equity is the total accumulated value or worth
of a brand, the tangilble and intangible assets that the
brand contributes to its corporate parent, both
financially and in terms of selling leverage.
- By Upshaw
 Brand Equity is the totality of the brands perception,
including the relative quality of products and
services, financial performance, customer loyalty,
satisfaction and overall esteem towards the brand. It
is all about how the customers, consumers,
employees, stakeholders feel about the brand
- by Konapp
 Brand Equity is defined in terms of marketing
effects uniquely attributable to the brands.
- Keller
 Brand equity
 Brand equity is the added value endowed to products and services. This
value reflects in how consumer think, feel, and act with respect to the
brand, as well as the price, market share, profitability that the brand
commands for the firm.

 Is an important intangible asset that has psychological and financial value

to the firm.

 Brand equity subsumes brand strengths and brand value.

 Brand strength is the set of association and behavior on part of customers,

channels and firm that permit the brand to enjoy sustainable and
differential competitive advantages

 Brand value is the financial outcome of management ability to leverage

brand strengths

 Brand equity provides a common denominator for interpretation marketing

strategies and assessing the value of the brand.
 Building Brand Equity

MARKETING IS THE ART OF BRAND BUILDING

*
IF YOU ARE NOT A BRAND,
YOU ARE A COMMODITY.

*
THEN PRICE IS EVERYTHING
AND THE LOW-COST PRODUCER
IS THE ONLY WINNER!
Why is a Brand Worth Building?
f ec yc l e
d Li
Bran

Value

Product

Time
Strong brands establish a long-lasting place in short-lived markets
When Does Positioning Strategy
Convert to a Brand?
When the positioning strategy evidence
comes into contact with the customer

And, the customer agrees with it,

Time and time again

 Customer based brand equity
(CBBE)
 The power of brand lies in what resides in the minds of customer.
OR
 Differential effect that brand knowledge has on consumer response to the
marketing of the brand.

 +ve CBBE when consumer react more favorably towards the product and
the way it is marketed when the brand is identified as compared to when it
is not.

 -ve CBBE if consumer react less favorably to make the marketing activity
for the brand under same circumstances.

 Differential effect
 Brand knowledge
 Consumer response
 Brand equity as a bridge
Brand equity provides marketers with a vital strategic
bridge from their past to the future.

 Brand as a reflection of past.

 Brand as direction of future.

Brand promise is the marketer’s vision of what the

brand must be and do for consumers.
the true value and future prospect of a brand rest with
consumers, their knowledge about the brand, and
their likely response
 Brand Identity Model

1) CCBE pyramid or brand resonance pyramid.

2) Brand Asset Valuator ( BAV power grid)

3) BRANDZ

4) AAKER Model
 Relationships Intense,
What about you & me Resonance Active Loyalty

Response Positive
What about You? Judgment Feeling accessible reaction

Meaning Strong Favourable &

Performance Imagery
what are you? unique brand association

Identity Salience
Deep, board
Who are you?
Brand awareness

Brand Resonance Pyramid or

CBBE Pyramid
 Leadership

Niche/ Unrealized Declining

Potential

Brand Strength
( differentiation
and relevance)
New/ Unfocused
Eroding

Brand Stature
( Esteem and Knowledge)

Brand Asset Valuator

( BAV power grid)
 BRANDZ
 This model is developed by Millward Brown.

 According to this brand building involves a sequential series

of steps, where each step is contingent upon successfully
accomplishing the previous step. Objectives of each steps are

 Presence:- Do I know about it?

 Relevance:- Does it offer me something?

 Performance:- Can it deliver?

 Advantage:- Does it offer something better than others?

 Bonding:- Nothing else can beat it.

 AAKER Model
 Brand equity as a set of five categories of brand asset
and liabilities linked to a brand that add to or subtract
from the value provided by a product/ service

1) Brand loyalty

2) Brand awareness

3) Perceived quality

4) Brand association

5) Other proprietary asset

 Building Brand Equity
VALIDATED
POSITIONING
INTEGRATED STRATEGY
MARKETING,
SALES PROGRAMS

BRAND LONG-TERM
EQUITY PERSPECTIVE
QUALITY
PRODUCT/SERVICE
EXPERIENCE

MANAGEMENT TEAM
CREDIBILITY SUPPORTING
CORPORATE CULTURE
ALIGNED
EMPLOYEE BASE
 Building Brand Equity Strategy
Strategy Evidence Market Leverage

EXISTING
Positioning Company

Messages, Brand Strategy and Programs

• ________
Strategy • ________
Statement • ________
Investors
• ________
• ________
Sales
Company Channels
Positioning
Business
Strategy Target
Strategy
NEEDED Accounts Market
• ________ Entry
• ________ Customer
Partners
• ________ Segment
• ________
• ________ Industry &
Financial
Analysts
Trade &
Business
Press
 Building Brand Equity
1) The initial choice for the brand elements or identities
making up the brand.( logo, URL, brand names, symbols)

2) The product and service and all accompanying marketing

activities and supporting marketing programs.

3) Other associations indirectly transferred to the brand by

liking it to some other entity( person , place, thing)
Criteria for choosing brand elements
1) Memorability
easily recognized
easily recalled e.g. Tide, Crest etc

2) Meaningful
descriptive
persuasive e.g. Duracell

3) Likeable
Fun and interesting
rich visual and verbal imagery
aesthetically pleasing
4) Transferable
within and across product categories.
across geographic boundaries and culture.

5) Adoptable
Flexible
Updateable

6) Protectable
Legally
competitively e.g. Xerox ,7up
Thank you