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BRAND EQUITY

PRESENTED BY: ARPANA


JUVEKAR
DEFINITION
• “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 service to a firm and/or to
that firm’s customers.”
DAVID
AAKER
STRONG BRAND EQUITY
PROVIDES THE FOLLOWING
BENEFITS:
 Facilitates a more predictable income stream.

 Increases cash flow by increasing market share.

 reducing promotional costs.

 and allowing premium pricing.


Brand equity is an asset that can be sold or leased.
• The assets and liabilities on which brand equity is
based will differ from context to context.
However, they can be usefully grouped into five
categories:
• 1] NAME AWARENESS
• 2] PERCEIVED QUALITY
• 3] BRAND ASSOCIATIONS
• 4] BRAND LOYALTY
• 5] OTHER PROPRIETARY ASSETS
1] BRAND AWARENESS
Is when people recognize your brand as yours.
Brand awareness is the ability of potential buyer
to recognize or recall that a brand is a member of
a certain product category.

E.g. Ice tea = Snapple, Running shoes = Nike


BRAND AWARENESS CONSISTS OF BOTH

 Brand Recognition, which is the ability of consumers to


confirm that they have previously been exposed to your
brand, and
 Brand Recall, which reflects the ability of consumers to
name your brand when given the product category, category
need, or some other similar cue.

 Aided awareness occurs when you show or read a list of


brands and the person expresses familiarity with your brand
only after they hear or see it.
 Top-of-mind awareness occurs when you ask a person
to name brands within a product category and your brand
pops up first on the list.
When you think about cell phone, and adhesive bandages, do
the brands Nokia, and Band-Aid® come to mind? These
brands enjoy strong top-of-mind awareness in their
respective categories.
THE AWARENESS PYRAMID
PERCEIVED QUALITY:
There is a reason to buy your product as you have
differentiated your product from others. It is the
customer's perception of the overall quality or
superiority of a product or service with respect to
its intended purpose, relative to alternatives.

Here, Brand Personality, Differentiators and


Positioning have a strong place in the mix, for they
are the attributes

customers use to make judgments about products


- your and your competitors.

Price and Loyalty play a role as well.


• Mercedes and BMW
Have established their brand names as
synonymous with high-quality, luxurious
automobiles.
Years of marketing, image building, brand
nurturing and quality manufacturing has lead
consumers to assume a high level of quality
in everything they produce. Consumers are
likely to perceive Mercedes and BMW as
providing superior quality to other brand
name automobiles, even when such a
perception is unwarranted.
3] BRAND ASSOCIATIONS:
Your brand is associated with certain emotions, feelings,
and qualities and also with some tangible benefits like
freebies.

• Though often difficult to quantify, associations with


which the brand is consciously linked - say with a sports
event, a charity, a celebrity, a joint venture - can
enhance a brand's perceived image.

E.g. Mcdonald's Happy meal, golden arches, big mac, fun,


quality, Ronald McDonald etc.
The associations for BMW are, mechanically superior,
fun to drive, German engineering, performance,
exhilaration, holding retail value, etc.
4] BRAND LOYALTY:
Consumer returns back to your product even after having a
choice of many other products in market.
This asset combines characteristics associated with
Image (Brand Loyalty, Name Awareness) and
Impact (Customer Life Value and Price Premium).

 Creating and maintaining Brand Loyalty


• Treat the customers right
• Stay close to the customer
• Measure/manage customer satisfaction
• Provide extras
OTHER PROPRIETARY ASSETS:
These will vary depending upon product, market
and situation. Examples include

 trademarks and patents,


 Strong distribution relationships,
 corporate integrity etc.
PROTECTING BRAND
EQUITY
• The marketing mix should focus on building and protecting brand
equity.

For example, if the brand is positioned as a premium product,


 the product quality should be consistent with what consumers
expect of the brand,
 low sale prices should not be used compete,
 the distribution channels should be consistent with what is
expected of a premium brand,
 and the promotional campaign should build consistent associations.
 Finally, potentially dilative extensions that are inconsistent with the
consumer's perception of the brand should be avoided.
 Extensions also should be avoided if the core brand is not yet
sufficiently strong.
AN OVERVIEW OF BRANDING
DECISION

BRAND NAME INDIVIDUAL LINE &BRAND


BRAND / PRIVATE & BLANKET EXTENSION REPOSITIONING
LICENED SEPARATE NO
NO BRAND MULTY & CO-
BRAND
FAMILY NAMES REPOSITION
CO.INDIVIDUAL
BRANDING
Contd…..
1. Branding Decision:-
• To Brand / Not To Brand: Branding is a strong
force. Hardly anyone goes for unbranded.
• Exception - E.g., people use unbranded paper
towels / spaghetti
2. Brand Sponsor decision:-
IBM under own Brands
3. Brand Name decision:-
• Individual: E.g., General rice
Company does not tie its reputation to products
Contd…..
• Blanket: E.g., Campbell, Heinz, G.E.
Company spends less on development , no
need for “name” research
• Separate Family Names:
e.g., Sears ( Craftsman for tools etc.)
When company offers different products.
• Company trade name with individual
product name: e.g., Kellogg's rice & cereals
Company legitimates while individual names &
products.
Contd…..
4.Brand Strategy Decision:-
• Line Extension: Additional items in the same
product category under the same brand name.
Such as new flavors, form & colour. E.g.,
(a) New, Classic, cherry Coke, Regular or diet
with or without caffeine, bottle or can.
(b) 20 varieties of Kleenex facial tissues.
Contd…..

• Brand Extension:Use existing


brand to launch new products in
other categories.
Vehicles for women
Honda
Babies doll for future
generation on H.D. purchase
Contd…..
• Multi Branding:

Higher price
(LASALLE)
SEIKRO
Low price
(PULSAR)
Contd…..
• CO-Branding: Volvo uses richlin tiers
• Joint venture ; G.E. – Hitachi light bulbs in Japan.
• Multiple Sponsor Co-branding :
• Toyota + 6 Japanese firm named “WICC” brands.

5. Repositioning:-
• SCHWINN BICYCLE – Fun, Dancing
STRATEGIC BRAND
MANAGEMENT

BRAND EQUITY

BRAND BRAND
LEVERAGING IDENTIFICATION
STRATEGY STRATEGY

BRAND SYSTEM
MANAGEMENT
BRAND IDENTIFICATION
STRATEGY
BRAND
IDENTIFICATION
STRATEGY
• Specific Product Branding: Crest,
Pampers, Ivory.
• Product Line Branding: Hartmarx
means apparel producer has several
brands of suits
• Corporate: IBM
• Combination Brands: Sears
• Private Branding: WALMART
BRAND LEVERAGING
STRATEGY
• Useful to introduce other products by
lining products to existing.
• Line Extension: BMW 300 500 700
• COLGATE total tooth paste
• Stretch Vertically: Different types of
products move up/down in
quality/price E.G., Kodak Films.
BRAND LEVERAGING
STRATEGY
• Brand Extension:
• Nike Apparels,
• Co-Branding: American Express
Credit Cards
• Licensing: Anhenser- Brusch
(Budweiser Bear)
MANAGING BRAND
SYSTEM
• Control commonalities to generate
synergy.
• Reduce brand identity damage
• Obtain clarity of products offerings
• Involve change & adoption
• Guide resources allocation among
brands
BRAND EQUITY
• Strong brand image – advantages
• Brands with High differentiation - Disney
• High Revenue – AT & T, KODAK
• High Esteem – BAND – AID, Rubber maid
• High Failiarty – COCA-COLA , KELLOGG’S

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