Brand Equity

Atish Panda 4th Semester MBA CI&SM

Definition
Brand equity is the set of brand assets and liabilities linked to the brand, its name and symbol, that adds or subtracts value to a product or service for a firm/ or its customers (David Aaker). Brand equity is everything the customer walks into the store with (Peter Farquhar)

 Brand equity is terms of marketing effects uniquely attributable to the brands for example, when certain outcomes result from the marketing of a product or services because of its brand name that would not occur if the same product or service did not have the same (Kevin Lane Keller) A set of associations which are most strongly linked to a brand name (Andrea Dunham)

Brand Dynamics Pyramid

Can it deliver? Bonding Strong relationship/ High share of category expenditure

Does it offer something better Advantage than the others? Can it deliver? Do it offer me something? Do I know about it? Performance Relevance Presence Weak relationship/ Low share of category expenditure

Keller Model of Brand Equity

 Keller's Brand Equity Model is also known as the Customer-Based Brand Equity (CBBE) Model. Figure 1 Keller's Brand Equity Model It consist of four steps The four steps contain six building blocks.

Step 1: Brand Identity Who Are You? To create "brand salience," or awareness. Step 2: Brand Meaning What Are You? To identify and communicate people about your brand. The two building blocks in this step are: (i)Performance (ii)Imagery

Step 3: Brand Response What do i think, or feel, about brand? Customers' responses to your brand fall into two categories: (i)judgments (ii)feelings Judgement are made in these kinds Quality Credibility Feelings are also a kind of response.

Step 4: Brand Resonance How Much of a Connection Would I Like to Have With You? Brand "resonance" sits at the top of the brand equity pyramid. It depends upon certain parameters like: Behavioural loyalty: This includes regular, repeat purchases. Attitudinal attachment: Your customers love for your brand.

Active engagement: Customers are actively engaged with your brand, even when they are not purchasing it or consuming it through various means like participating in events and online chats etc.

Managing Brand Equity

Why manage Brand Equity? Presence of a brand in consumers mind. Influence on their buying behaviour. Effects on brands market position and financial result. Financial value of the brand as a immaterial assets of the company.

Key Components of Brand Equity

Brand Awareness What is the Strength of the brand in memory? Brand Image What are the perceptions about the brand held in consumers memory?

 Brand Recognition Ability to confirm the brand name when given a cue. Brand Recall Ability to correctly retrieve the brand when given the category or some other non-brand cue. Brand Awareness Presence of the brand in consumers mind.

 Brand Loyalty When consumers become committed to your brand and make repeat purchases over time.

Brand Equity Pyramid

Brand Awareness
How do one get aware about a brand? Through the brand Appropriate name Use of Symbols Through the product Good performance/quality Distinctive benefits compared to competitors Through Advertisement Slogan/ Tagline

Brand Equity of Cadbury

Cadbury's Brand Awareness: Brand awareness consists of both brand recognition and brand recall. Brand recognition is consumers' ability to confirm their prior exposure to the brand when prompted the brand as a cue.

 Brand recall is the consumers' ability to retrieve the brand from their memory when given the product category, or a purchase or usage situation as a cue. So how did Cadbury successfully established its brand awareness? They have created the ultimate customer's brand experience in 3 ways: Making customers see it, hear it, and think about it. This is how they did it.

 See it

Range of Cadbury chocolates displayed in assortment.

Cadbury's Brand Image and Uniqueness:

Creating a positive brand image takes marketing programmes that link strong, favourable, and unique associations to the brand in memory. Cadbury has not doubt built a very successful brand image. from how they communicate their brand identity through the packaging with the Cadbury "glass and a half purple and swirling chocolate image to the consistency of their brand attributes in terms of TV advertisements and other advertising campaigns.

Thank You