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V ´Borrowingµ some brand knowledge and

depending on the nature of associations

or responses, some brand equity
V Unlike brand elements and
communication strategies, this is an
indirect approach to build brand equity.
Ingredients Company

Alliances  Extensions

Events Employees



3rd Party Endorsers



Country of Origin Channels

V By making a connection between and
other entities, consumers form a mental
V 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
wareness and knowledge of the entity
 3 they have the knowledge
 3o they hold unique associations
V Jeaningfulness of the knowledge
 !s the knowledge relevant and meaningful
for the brand
 3oes it have connection to the brand
V Transferability
 aow strongly will this impact the choice of
the new brand
V 3oes the new product fit into the established
product family?
V 3oes the brand have attributes or features that
easily and effectively carry into new categories?
V Is the brand name strengthened or diluted by
representing two (or more) differentiated
V 3oes your company have facilities necessary to
manufacture and distribute a new and
differentiated product?
V Will sales of the new product cover the cost of
product development and marketing?
V A brand leveraging strategy can be extremely
successful and profitable if it is correctly
implemented and provides new products with the
right image.
V Oommonality: when consumers have
associations to another entity that are
congruent with desired brand

V Oomplementarity: when there is not the

level of congruence required, how much
can associations add to the brand
½rito LayŒ name is extended from potato chips
into other types of snack foods and dips. An
introduction of ½rito LayŒ lemonade did not
succeed because the fruity, sweet drink had
little connection to other ½rito LayŒ

V Other examples that did not work in the

consumer market include
 ½ruit of the LoomŒ laundry detergent.

V aowever, M&MŒ ice cream, Reese·sŒ

peanut butter, and Minute MaidΠorange
soda experienced success because the
brands held direct and logical connections
to their new categories.
V 6icΠis a strong brand name with years
of experience in marketing low-cost
disposable plastic products such as the
6icΠpen. Thus, 6icΠis positioned well to
introduce products that capitalize on
these same basic strengths ² products
such as disposable razors and cigarette
V More products mean greater shelf space for
the brand and more opportunities to make a
V The cost of introducing a brand leveraged
product is less than introducing an
independently new product due to a much
smaller investment in brand development and
advertising designed to gain brand
V A full line permits coordination of product
offerings, such as bagels and cream cheese,
potato chips and ranch dip, peanut butter and
jelly, etc.
V A greater number of products increase
efficiency of manufacturing facilities and raw
V 6rand leveraging does present
 6rand dilution

 Potential exists for damaging the reputation

of the parent product if new products fail.

 Manufacturing and inventory costs may be

higher as a result of product diversification.
V Create a new brand
V Adopt or modify an existing brand
V Combine an existing or a new brand

e Identity

e Corporat
Communi e Image
Corporate 6rand vs. Product
ion channels: ½unctional Communicat
Total resp.: ion channels:
corporate Most/All Communicat
communicati 3epartments ion mix

Stakeholder General
General Stakeholder
focus: responsibility:
responsibility: focus:
Multiple Marketing
All personnel Consumer
Stakeholders personnel

Medium /
V Is Land Rover 6ritish, German or
V rigins of the brand are more important
than who the owner becomes latter in
V Lamborghini is owned by German-VW,
yet it keeps this !talian identity.
V Rolls-Royce is now owned by German
BJW, it still is associated with English
V !t is like a child, the first years are the
most important for his identity.
V ºtates: !daho Potatoes
V Regions: !rish ºpring ºoap
V Oities: !mpulse London Vibe
V ºtrong associations may hinder
V Favourability of the country of origin
 3omestic Perspective
 Foreign Perspective
 !ndividualistic vs collectivist societies
V Patriotic
 Lack uniqueness
ssociations with
 Oredit Policy
 Quality of ºervice
 Results in associations of brands by retailers
´!f its sold in Nordstrom, it must be of good

!n Bangladesh context?????
V Exclusive
V Intensive distribution
V ae was the little tan bear millions of kids grew up with. ae
tagged along with Christopher Robin, stuck his hand in the
honey pot, and figured out new ways to cause harmless
mischief. And no matter where children came from or what
their parents did for a living, the name Winnie-the-Pooh
conjured up a single image gleaned from the classic books
by A.A. Milne.

V Today's kids, however, won't have that common

touchstone. These days, their image of Pooh depends a lot
on where they live and how much money their parents
make. That's because the Walt 3isney Co., which owns the
rights to Milne's make-believe menagerie, is carefully
marketing two distinct Poohs. The original line-drawn figure
appears on fine china, pewter spoons, and pricey kids'
stationery found in upscale specialty and department stores
such as Nordstrom and 6loomingdale's. The plump,
cartoonlike Pooh, clad in a red T-shirt and a goofy smile,
adorns plastic key chains, polyester bedsheets, and
animated videos. It sells in Wal-Mart stores and five-and-
dime shops. Except for at 3isney's own stores, the two Poohs
do not share the same retail shelf.
V ccurs when two or more existing
brands are combined into a joint
product or are marketed together in
some fashion
V ºony Ericsson
V Yoplait Trix Yogurt
V Oo-branding is nothing new, and it's something that
we as consumers take somewhat for granted. Visit
a grocery store and you'll see dozens of examples,
from the ice cream aisle (Breyer's (UL) and aershey
to the snack aisle (Lay's and KO Jasterpiece
(OLX)) to the cereal aisle (Kellogg's (K) and aealthy
Ohoice) to the dessert aisle (Oinnabon and Jrs.
ºmith's). You can also find co-branding examples
in the automotive world (Ooach (O a) and Lexus
(TJ)), the hospitality industry (Bulgari and Ritz-
Oarlton), the footwear business (3isney (3!º) and
Orocs (OR X), the franchising world (Tim aortons
(Ta!) and Oold ºtone, the airline industry (ºouthwest
(LUV) and ºeaWorld), and even in product
catalogs stuffed into airplane seat pockets (" rder
your Braun ral-B Plaque Remover today").
V ½or example, a restaurant could co-brand
with a local packaged-foods maker to
create a new menu item, an accounting
firm could co-brand with an information-
technology provider to create a new
consulting offering, or a physician might co-
brand with a hospital on a new service line.
A good place to start generating ideas is by
thinking about other types of companies
that do a good job serving your target
market. You might even ask your customers
to identify other companies with which they
do business and see if you come across any
V 6orrow needed expertise
V Leverage equity you don·t have
V Reduce cost of product introduction
V Expand brand meaning into related
V 6roaden meaning
V Increase access points
V Source of additional revenue
V Loss of control
V Risk of brand equity dilution
V Negative feedback effects
V Lack of brand focus and clarity
V Organizational distractions
special case of co-
branding that involves
creating brand equity for
or parts that are
necessarily contained
other branded products
V Examples:
V Betty Orocker baking
mixes with aershey·s
V chocolate syrup
V !ntel inside
V Involves contractual arrangements whereby
firms can use the names, logos, characters, and
so forth of other brands for some fixed fee
V Entertainment (Star Wars, Jurassic Park, etc.)
V Television and cartoon characters (The
V 3esigner apparel and accessories (Calvin
V Pierre Cardin, etc.)
V 3raws attention to the brand
V ºhapes the perceptions of the brand
V Oelebrity should have a high level of
visibility and a rich set of useful
associations, judgments, and feelings
V Celebrity endorsers can be overused by
endorsing many products that are too varied.
V There must be a reasonable match between
the celebrity and the product.
V Celebrity endorsers can get in trouble or lose
V Many consumers feel that celebrities are doing
the endorsement for money and do not
necessarily believe in the endorsed brand.
V Celebrities may distract attention from the
V ºponsored events can contribute to brand
equity by becoming associated to the
brand and improving brand awareness,
adding new associations, or improving the
strength, favorability, and uniqueness of
existing associations.
V The main means by which an event can
transfer associations is credibility.

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