Brand Equity

Presented by : Robinson (2405531)

Content
Brand equity: Introduction Brand assets Brand building process Power of internet and Brand management Brand valuation

Brand Equity

Brand equity is set of brand assets and liabilities linked to the brand, its name or symbol, that adds or subtracts value to a product or service for a firm/ or its customer. Brand equity is an intangible asset that depends on associations made by consumer.

Brand assets
Brand awareness Brand association Perceive quality Other proprietary brand assets like patents, trademarks, channel relationship etc. Brand loyalty

Brand Awareness
The customer should able to identify a firms product in the retail stores or be able to recall its brand whenever he or she thinks of the product class.

The Awareness Continuum

Brand equity high Vulnerable equity Diffused equity Unaware of brand Low Top of the mind awareness Brand recall High

Brand recognition

No equity

The contribution of awareness to building up an equity for the brand can be gauged by the fact that high awareness creates associations in the customers mind.

To Achieve High Brand Awareness

Be different and memorable Involve a slogan or jingle Publicize the brand through sponsor major events Consider extending brand to the other product Repeat yourself constantly
Web, TV, Posters, events etc

Brand Association
Brand association is anything linked to the memory of a brand e.g product attributes, use eyc, etc NIRMA: washing powder NIRMA is recognized by a dancing girl TATA is known for its quality NOKIA for its reliability Intangible image such as after sale service e.g. Hyundai Brand sponsored by celebrity e.g Sugar free by Bipasha basu

Brand association make Brand equity

Helping a customer to process and quickly retrieve product of particular brand information and differentiate from the competition High brand association helping in creating positive attitude or feeling towards the brand and provide customer a reason to buy

Perceived quality
Perceived quality is the benchmark by which the customers evaluate different brands on quality in same category.
Brand name Past experience Attribute Level of advertising Word of mouth Category dependent, brand A might be better in one subcategory but not in another. A relative concept that occurs mainly in a competitive setting.

If the brand is perceived to be premium quality, the customer will be willing to pay a premium for it, For example perceived quality of Audi compared to Fiat.

Other Brand Assets

Other proprietary assets of a brand include its name, patent, channel relationship etc. Good and cordial relationship with channel members can always help enhance brand equity because interest channel will have in the firms brands.

Brand Loyalty
The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category. For example if any customer walk extra mile to get any particular product in spite of availability of other brands in same category.

Brand loyalty is different then habitual buying behavior. There could be several reasons such as unavailability of competitor brands, money constraints etc.

Brand Loyalty
Committed buyer brand equity is high

Likes the brand Clear brand assets

Satisfied buyer with switching costs Equity with point of vulnerability

Satisfied/Habitual buyers No reason to change: equity diffuse

Brand switchers/price sensitive buyers/Indifferent brand No Loyalty-No equity

Measuring Brand Loyalty

Buyer behavior

Customer satisfaction survey

Forced choice method

Operations Researches Group

Brand Building Process

Packaging Vehicles

Developing an effective implementation plan

Point of purchase material Retail outlet Marketing communications Employee

Event management and sponsorship

Co-branding

Crafting appropriate brand strategy

To achieve Vision and Long term strategy

Brand leader strategy Follower and Niche strategy

Defining brand objectives

Long, Mid & Short Objectives

Derived from Brand Vision e.g Market penetration, Brand awareness, etc Technology Price Convenience, Comfort, service, self esteem Practical and ingenious solution Harnessing the chain reaction of new idea Market and Competitor Commitment and belief to brand

Determine brand values

Tangible and Intangible belief

Setting the brand vision

Brand promise and Brand essence

Analysis of brand environment

Internal and external environment

Power of internet and Brand management

Every brand must have web page with all necessary technical information and online buying option, online problem solving and customer feedback facility e.g. banking through internet, noukari.com, shaadi.com and stock market trading etc Advertising through bulk e-mailing Promotion through Social networking sites Internet as a unlimited source of information so availability of brand information help customer to access easily

Benefits of high Brand equity

High Brand equity

Prime Premium

Brand name

Low marketing cost and Better negotiation with distributors

Future earning/ Brand Extension

Thank You!