Branding persuades people to make

economic
decisions
based
on
emotional
rather
than
rational
criteria

Brand Equity

Other
proprietary
brand assets

Brand Awareness
Brand awareness is the ability of a potential

buyer to recognize or recall that a brand is a

member of a certain product category
GE story
Brand

% would prefer

Rubbermaid

14.6

General Electric

12.8

Black & Decker

3.0

Awareness Pyramid
Top of mind

Brand Recall
Brand
Recognition

Unaware of
Brand

Brand Awareness
Brand recognition: Aided recall test
Minimal level
However, its important when the choice
happening at the point of purchase
Brand recall: Unaided recall
Associated with stronger brand position
Top of Mind: First brand named in unaided
Dominant brand: the only brand recalled

A strong competitive advantage which challenges

availability at all times

How Awareness Helps

Creates value
Anchor to which other
associations can be attached
Familiarity* Liking
Brand Awareness

Signal of substance
Brand to be considered

e absence of motivation to engage in attribute evaluation, familiarity may be en

Brand Recall and Buying Decisions

People should want to know you
People have to know you to start thinking of

you
People have to think of you to start
approaching you
Recall is crucial to get into the consideration
set
Difference in preference and purchase
likelihood is sometimes just the sequence of
recall

Limitations of Awareness
Although a key brand asset, cannot by itself

create sales
Limited specially in the absence of reason to

buy

Especially, only awareness has no meaning

for new products

Awareness is
recognize the
face but cannot tell the name

Need to move beyond

Brand Loyalty
Micropro vs.IBM
Core of brand equity
Measure of attachment that customer has with the brand
Qualitatively different from others tied most closely to

use experience
As brand loyalty increases vulnerability to competition
decreases
Only indicator of brand equity which is linked to future
performance
Like financial value , its a consequence of the brand
equity
And its all about reluctance to switch brands

High degree of bonding with the brand and absence of

much of an urge to switch

Levels of Brand Loyalty

HARD CORE LOYALS
COMMITTED
BUYER
Likes the brand
Satisfied buyer
with switching
costs
Habitual Buyer
No Reason
Switchers No
loyaltyC

SPLIT LOYALS

SHIFTING LOYALS

Brand Loyalty Model

PERCEIVED RISK IN SWITCHING

high

low

low

high

SATISFACTION

FRUSTRATED

SWITCHABLE

LOYAL

VULNERABLE

PERCEIVED RISK IN SWITCHING

Brand Loyalty Model

SATISFACTION

FRUSTRATED

LOYAL

SWITCHABLE

VULNERABLE

Behavioral Measures of Loyalty

Actual purchase pattern
Repurchase rates
Percent of purchases
Number of brand purchased
Behavioral data although objective , has

limitations
Limited diagnostics about future

A key diagnostic for every level of loyalty is the

measurement of satisfaction
And, perhaps, more important, dissatisfaction

If sustained, its a major competitive advantage with the

consumer and with trade

Preference formed

BRAND
LOYALTY
BRAND
ATTITUDE

Associations build

Learning occurs
BRAND
SALIENCE

BRAND
AWARENES
S

Value of Brand Loyalty

Reduced Marketing Costs
Trade Leverage
Brand Loyalty

C to C Marketing
Time to respond to competitive threats

Value of Brand Loyalty

Reduced Marketing Costs
Trade Leverage
Brand Loyalty

C to C
Marketing
Time to respond to competitive threats

Brand Equity

Other
proprietary
brand assets

Brand Equity
The component of overall preference not

explained by objectively measured attributes

The set of consumer associations & behaviors
that permits the brand to earn greater
volume or margins than it could without the
brand name

Perceived Quality
It pays to give products an image of quality
a first class ticket
David Ogilvy

Perceived Quality
Customers perception of the overall quality

or superiority of a product or service

Perceived quality cannot necessarily be
objectively determined
Its perception
Defined relatively

Perceived Quality
Dictates satisfaction
Linked to final action so can make marketing

more effective
Provides an option of charging a premium
price
You get what you pay for especially

important where objective information is not

readily available

What Influences Perceived Quality

The product context
Performance : primary operating characteristics
Features: Signals that the firm understands the
needs of product users
Conformance with specifications :
manufacturing oriented view of quality
Success of Japanese automakers

Reliability: Consistency of performance

Durability: Economic life of the product
Volvo cars

What Influences Perceived Quality

The product context

Performance

: primary operating characteristics

Features: Signals that the firm understands the needs of product

users
Conformance with specifications : manufacturing oriented view of
quality
Success of Japanese automakers

Reliability: Consistency of performance

Durability: Economic life of the product
Volvo cars

Managing Expectations

Managing Expectations
Achieving High Quality is not enough
Actual quality has to be translated into perceived
quality
When quality difficult for customer to interpret
Signals of quality play an important role
Durability and service warranty
Surgeon and number of patients
And some categories have perceived but established

cues of quality
Detergents
Ketchup
Cars

Brand Associations
A well positioned brand will have a

competitively attractive position supported by

strong associations
Every aspect of the relationship between a
brand and the consumer contributes to
learning that leads to the associations in
memory that constitute brand attitude
How knowledge and assumptions about
brand might be organized

Brand Associations
When consumer is seeking basic benefits,

functional domain becomes the key Close Up

When choices are not easy and more trust in a
brand is needed, emotional associations become
more important Close Up
What takes the cake is socially or personally
relevant experiences
Emotional association is the area of more
Reflect objective vs. subjective product
characteristics, but within either a functional or
emotional domain

How Brand Associations Create

Value
Helping to process / retrieve information

Monk used to introduce Xerox

Generating a reason to buy
Some associations provide credibility &

confidence
Professional hair stylist uses a hair color

Creating positive attitudes/ feelings

Drinking Coke
Formidable barrier to competition

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

Life style
/personality
Celebrity/
Person

Use / application
Use / Customer

Types of Associations

Product attributes ( Hyundai cars that make sen

Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

Life style
/personality
Celebrity/
Person

Use / application
Use / Customer

Types of Associations
Product attributes

Intangibles (nutrition)

Country /
Geographic area

Customer benefits
( psychological links fairness crea

Competitors

Product class

Relative Price

Life style
/personality
Celebrity/
Person

Use / application
Use / Customer

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer

benefits

(Psychological links fairness cre

Competitors

Product class

Relative Price

Life style
/personality
Celebrity/
Person

Use / application
Use / Customer

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

Life style
/personality
Celebrity/
Person

( big bazaar)
Use / application
Use / Customer

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

Life style
/personality
Celebrity/
Person

Use / application ( Glucon D)

Use / Customer

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class
Life style
/personality

Relative Price
Use / application

Celebrity/
Use / Customer
Person ( it goes beyond the challenge of
building a credible argument, personalities can

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

Life style
/personality

Use / application

Celebrity/ Use / Customer

Person

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

Life style
Use
/personality(if Maggi were to
be/ application
come a human
being Use
.) / Customer
Celebrity/
Person

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

( 7up uncola)
Life style
/personality
Celebrity/
Person

Use / application
Use / Customer

Types of Associations
Product attributes
Intangibles
Country /
Geographic area

Customer benefits

Competitors
( Avis we are
no.2, we try harder)
Product class

Relative Price

Life style
/personality
Celebrity/
Person

Use / application
Use / Customer

Types of Associations
Product attributes
Intangibles

Country /
Geographic area

Customer benefits

Competitors

Product class

Relative Price

Life style
/personality
Celebrity/
Person

Use / application
Use / Customer

Evergood Coffee
Q1. Evergood has had an astounding success

in the market. What are the factors you

ascribe this success to? Is it just advertising or
more than that?
Q2. How is Evergood managing other
components of Brand Equity perceived
quality & brand associations in particular?
Q3.What kind of value has advertising created
for the brand?

Brand Equity

Other
proprietary
brand assets

Brand Equity

Other
proprietary
brand assets

In Conclusion
Brand Equity is an estimation of the hidden

value in brands
Qualitative element of psychological value
Quantitative dimension consisting of

economical values

Three things I never lend My horse, My wife and My name

Robert Surtee

Private Labels

Private Labels
Private labels represent $ 1 trillion in sales

worldwide
Ptivate labels nowcompete directly with
brands
About 10,000 manufacturers worldwide
These are promoted within the store and are
never sold outside and so 20-30% cheaper

Whats Driving the

Change
Open to experimentation than ever before

More pleasurable experience

Sensorial experience with less

dependence on planning and a fixed

list of brands
Assurance they get from knowing that
they can interact directly with the
retailer during their shopping trip

Are we talking serious

threat?
Shoppers Stop, Future Group, Tatas Croma and Aditya

Birla Retails More as consumers seek quality

products at affordable prices

Rapid technological and socio-economic changes over

the last decade have affected the buying behaviour of

consumers smarter buyers
More customised and more localised products to suit
local tastes
Food continues to dominate the private label market

at 76 per cent of total sales. Packaged grocery, for

example, has a particularly dominant position, as it
pulls in 53 per cent of total sales.

Are we talking serious

threat?
Rising inflation and regular recession has

boosted the appeal of private labels because of

their lower pricing.
According to a salesman in a Food Bazaar
outlet, consumers tend to downtrade during
challenging times. Consumer durables, staples
and home care segments are driving the private
label segment.

Are we talking serious

threat?
Much higher profit margins
Slowly and steadily, the effort is to expand

internally

Can private labels become real

brands?
They contain all the elements of the

marketing mix of national level brands

Not much out of store promotion but
Are they mysterious brands or non brands
Brand stretchability is it possible?
Unique advantage is visibility and end
delivery

Heres to heralding in a new age of retail

Reconceiving the Concept of Brand

Rational values are set to take a bigger stance
However, emotional stance ?
And the biggest evaluator will be delivery of

experience

Brands on the Internet

Physical delivery & returns, personal support

etc. are set to become hygiene

Building brand communities

Challenges Facing the

Brand
Shifting power
Comparison shopping
Pricing
Service

Brand Equity Online

Emotional connection
Online experience
Responsive service nature
Trust
Order fulfilment
Complaints and return

Final Tips on Building Strong Brands

Connecting with Customers
Looking after the products to the greatest

extent possible
Communicating well
And, finally, protecting the brand

Brands Role
Living Stage
Planning Stage
Shopping Stage
Experiencing stage

NOT ALL CATEGORIES HAVE ACHIEVED PRIVATE-LABEL SUCCESS

In spite of the robust growth in the private-label market, certain

categories have yet to make successful inroads. For example,

baby care and baby foods products have been less successful.
Retailers can help overcome the challenges that certain product
categories face by enhancing in-store awareness, increasing
visibility and providing value for money options.
As private labels gain traction, national brands need to focus
more on differentiating their products to prevent shoppers from
switching. Considering the steady growth rate of private labels
through modern trade, it looks as though Indias fast-moving
consumer goods market will continue to diversify with increasing
levels of private label and national brand products on offer.

According to market researcher Nielsen, if all

private labels of Indian retailers are put under

one roof then it would be the third-largest
FMCGsupplier in modern trade. "Private labels
offer a good way of economising without
compromising quality," Adrian Terron,
executive director at Nielsen, says.

"However, this also means that shoppers are moving

away from the traditional list of loyal brands, and are

willing to experiment with different brands in certain
categories. This signals a new competitive force for
manufacturer brands," he adds.
Retailers make up for lack of media marketing through
in-store promotions and prominent display. Asitava
Sen, head of food and agri business research at
Rabobank International, says private labels are still
too small to threaten national brands. "While it is still
not threatening, consumer companies should take
note of the growing share of private brands," he says.

Caf Coffee Day

Caf Coffee Day

Specific role of brand associations
Consumer has changed
There is a new consumer now
CCD has to reassess brand associations
So that recall is positively impacted