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10

Creating
Brand Equity
Mr. Ajit Arya
Faculty-Marketing
Department of Business Studies
C. U. Shah College of Engg. & Tech.
Chapter Questions

• What is a brand and how does


branding work?
• What is brand equity?
• How is brand equity built, measured,
and managed?
• What are the important decisions in
developing a branding strategy?
BARISTA: A Strong Brand
Kerala Tourism has successfully branded the
destination with a brand name, logo, and the tagline
“God’s Own Country”
What is a Brand?

A brand is a name, term, sign, symbol


or design, or a combination of them,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them from
those of competitors.
The Role of Brands

Identify the maker

Simplify product handling

Organize accounting

Offer legal protection


The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitive
advantage

Secure price premium


What is Branding?

Branding is endowing
products and services with the
power of the brand.
Advantages of Branding
• Consumer’s viewpoint
1. Product quality
2. Increased shopper efficiency
3. Calls attention to new products
4. Reduces psychological risk

• Seller’s viewpoint
1. Handling orders, accounting, tracking down problems
2. Trademark identification – legal protection
3. Brand loyalty
4. Reduces need for in-store contact
5. Facilitates segmentation, promotion, and pricing
(competitive advantage)
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.
Brand Knowledge

Thoughts Feelings

Knowledge

Images
Beliefs
Experiences
Advantages of Strong Brands

• Improved perceptions
of product • Larger margins
performance • More inelastic
• Greater loyalty consumer response
• Less vulnerability to • Greater trade
competitive marketing cooperation
actions • Increased marketing
• Less vulnerability to communications
crises effectiveness
• Possible licensing
opportunities
Apple is a Strong Brand
What is a Brand Promise?

A brand promise is the marketer’s


vision of what the brand must be and
do for consumers.
Brand Equity Models

• Brand Asset Valuator


• Aaker Model
• BRANDZ
• Brand Resonance
BAV Key Components

Differentiation

Energy

Relevance

Esteem

Knowledge
Brand Dynamics Pyramid
Strong Relationship

Bonding

Advantage

Performance

Relevance

Presence
Weak Relationship
Aaker Model

Core Identity
Brand Identity
Elements

Extended Identity
Brand Essence
Elements
Brand Resonance Pyramid
Drivers of Brand Equity

Brand Elements

Marketing Activities

Meaning Transference
Brand Elements

Brand
names URLs

Slogans
Elements
Logos

Characters
Symbols
Brand Element Choice Criteria

• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
Slogans

• Like a good neighbor, • We try harder


State Farm is there • We’ll pick you up
• Just do it • Nextel – Done
• Nothing runs like a • Zoom Zoom
Deere • I’m lovin’ it
• Save 15% or more in • Innovation at work
15 minutes or less
• This Bud’s for you
• Always low prices
Designing Holistic Marketing Activities

Personalization

Integration

Internalization
Internal Branding

• Choose the right moment


• Link internal and external marketing
• Bring the brand alive for employees
Secondary Sources of Brand Knowledge
Measuring Brand Equity

Brand Audits

Brand Tracking

Brand Valuation
The 10 Most Valuable Brands

Brand 2006 Brand Value (Billions)


Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13
Managing Brand Equity

Brand Reinforcement

Brand Revitalization

Brand Crises
Interbrand’s Steps in Calculating Brand Equity

• Market segmentation
• Financial analysis
• Role of branding
• Brand strength
• Brand value calculation
Devising a Branding Strategy

Develop new brand


elements

Apply existing brand


elements

Use a combination of
old and new
Branding Terms

• Brand line • Line extension


• Brand mix • Category
• Brand extension extension
• Sub-brand • Branded variants
• Parent brand • Licensed product
• Family brand • Brand dilution
• Brand portfolio
• Line extensions refers to new sizes,
styles, or related products
– Coca-Cola line extensions
• Brand licensing:
licensing
practice allowing
other companies to
use a brand name
in exchange for a
payment
– Nabisco
Licenses Its
Oreo Brand to
Post Cereal
• Brand extension:
extension
application of a
popular brand
name to a new
product in an
unrelated product
category
– Example: Utility
Lighter – A Bic
Brand
Extension
• Family brand:
brand
brand name that
identifies several
related products
– Heinz
A well known family
brand
Brand Naming

Individual names

Blanket family names

Separate family names

Corporate name-
individual name combo
Reasons for Brand Portfolios

• Increasing shelf presence and retailer


dependence in the store
• Attracting consumers seeking variety
• Increasing internal competition within
the firm
• Yielding economies of scale in
advertising, sales, merchandising, and
distribution
Brand Roles in a Brand Portfolio

Flankers Cash Cows

Low-end High-end
Entry-level Prestige
Thank You!!!