Brand Value &

Positioning
What is Brand Equity?
Brand equity is the added value endowed
on products and services, which may be
reflected in the way consumers, think, feel,
and act with respect to the brand.
Definitions
Customer Brand Equity – brand value to customers
Value received by individual customers from a branded product
or service, over and above the value received from an
unbranded version of the same product or service.
Firm Brand Equity – brand value to the firm
Ultimately measured by the cash flow streams resulting from
the brand’s ability to attract, retain, and grow customers, over
and above an unbranded alternative.
Customer Brand Equity
Pre-purchase equity
The value the customer receives by virtue of information
contained in brand names or other signifiers. This value
reduces both the customer’s search costs and the economic
and psychological risk.
Post-purchase equity
The value the customer receives when the brand enhances the
consumption experience. Brands transform the consumption
experience by offering such psychological benefits as status
and prestige. Brands may also provide the assurance of
continued functional benefits, and such economic benefits as
low cost of ownership.
 High Customer Brand Equity – Impact on Firm Brand Equity:
Illustration – Toyota Corolla versus GM Geo Prizm
$11,500

Toyota Corolla
$11,000 $11,100

Wholesale GM Geo Prizm

Price Premium – $400
Price ($) $10,700
80,000 200,000
$10,500 Volume Benefit
120,000 units

$10,000
0 100,000 200,000
Annual Quantity Sold
High Customer Brand Equity – Impact on Firm Brand Equity:
Illustration – Toyota Corolla versus GM Geo Prizm

Toyota benefit = 120,000 x $400

= $48 million
Brand Equity Models

 Brand Asset Valuator

 Aaker Model
 BRANDZ
 Brand Resonance
Brand Knowledge
Thoughts Feelings

Knowledge

Images
Beliefs
Experiences
BAV Key Components for
measurement
Differentiation
Degree of difference

Energy
Brand momentum

Relevance
appeal

Esteem
Respect & regard

Knowledge
Familiarity & intimacy
Young & Rubicam Brand Asset Valuator Patterns of Brand Equity
Brand Dynamics Pyramid
Strong Relationship

Bonding
Nothing beats it
Advantage
Better offering
Performance
Can it deliver
Relevance
Is it relevent to you
Presence
Do you know about it
Weak Relationship
Aaker Model
Core Identity
Brand Identity Elements
Spirit of excellence
Technology that fits

Extended Identity Brand Essence

Elements Global network
Open communicator Local expert
Confident and competent
Brand Resonance Pyramid
 Brand Health Check
Type of Measure Measure Description of Measure

Purchasing and sales Market breadth Number and type of customers purchasing the brand

Market depth Extent of repeat purchase

Market share Brand sales as a percentage of total market sales (units and/or dollars)

Perceptual Awareness Degree of brand awareness

Brand image Brand associations, congruence with brand identity

Quality Perception of brand quality (from blind tests)

Uniqueness Extent of differentiation from competition

Value Extent to which the brand provides good value for money

Marketing support Market share/advertising share

Advertising
Advertising/total marketing spend

Extent of distribution coverage in target outlets

Distribution
For retail goods, quality of display, especially key accounts

Relative price Price compared to competitive brands

Profitability Gross margin earned from the brand

Profit
Economic value added (EVA) of the brand
Managing Brand Architecture
• Umbrella branding versus multi-branding

• Brand broadening (leveraging)

• Brand migration
• Associate old brand with new brand
• Drop old brand
• Alliances and partnerships
• Aging and defunct brands
• Target new market segment (s)
• Change brand associations
• Alter competitor target
What is Positioning?
Positioning is the act of designing the
company’s offering and image to occupy a
distinctive place in the mind of the target
market.
 Defining Associations
Points-of-difference Points-of-parity
(PODs) (POPs)
• Attributes or benefits • Associations that
consumers strongly are not
associate with a
brand, positively necessarily
evaluate, and believe unique to the
they could not find to brand but may be
the same extent with a shared with other
competitive brand brands
Differentiation Strategies

Product Personnel

Channel Image
Personnel Differentiation:
Singapore Airlines
Nature’s
Basket
Image Differentiation