Professional Documents
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Brand Equity - Sept 16
Brand Equity - Sept 16
Competitive strategies
Govt. regulations
Internal forces
Changes in strategic focus of the company.
a. Reinforcing brands
b. Revitalising brands c. Adjusting brand portfolio
REINFORCING BRANDS
Reinforcing brands
Brand equity is reinforced by marketing actions that consistently convey the MEANING of the brand to consumers in terms of BRAND AWARENESS and BRAND IMAGE. Reinforced marketing actions, along with product development, branding strategies etc. also help in keeping the brand meaning in terms of products, benefits and needs as well as in terms of product differentiation intact.
On the other hand, capitalizing on existing brand equity to reap accruing benefits in terms of cost savings (reduced communication expenditure) and revenue opportunities (seeking increasingly higher premium and introducing brand extensions.)
REVITALISING BRANDS
Reinvention
Marketing Program Failures Insufficient Consumers Less Damaging Enforce positive Associations
Positioning Failures Sufficient but dissatisfied Consumers Extremely damaging Difficult to overcome negative associations
Approaches to Revitalisation
1. Expanding Brand Awareness
Event
Replacement cycles
Performance
Consumers educated about the merits of regular and increased usage.
1b. Identifying new & completely different ways to use the brand
New and different usage application Only new ad campaigns not enough New uses may arise from new packaging Egs Milkmaid, Amul Cheese, McDonalds
Repositioning
Repositioning
Repositioning
Establishing more compelling points of difference Remind consumers of virtues of brands that have been taken for granted Nostalgia and heritage Establish a point of parity on key image dimension Negative product-related associations due to changes in consumer tastes
Modification of Brand name Other Brand Elements Packaging, logos etc. Moderate and evolutionary in nature Preserve salient aspects of Brand elements E.g.: Adidas, Federal Express, GE
New market segments based on cultural dimensions Retaining existing Customers and Regaining Lost Customers
1. Migration Strategy
Entry-Level Brands Critical in bringing new customers Logical ordering Hierarchical structure in consumers mind. E.g. BMW with 3,5,7 Series
3. Retiring Brands
Options 1. Marketing Support (Orphan Brand)
Reduce no. of product types Almost no advertising and promotional expenditure
2.
Consolidation
Stronger Brand HLL POWER BRANDS Cut Costs Focus marketing Efforts
3.
Discontinue product
Spin off Orphan Brands after a cut off of low sales Sell Orphan Brands Fade away or discontinue consciously. E.g. - Citra
Competitive intensity
CA of Competitors Willingness to exit Brand Loyalty of Customers and Price pressures
Brand Strength
Strong Associations Market share and position in the market CA w.r.t. key Segments Brands fit in the Strategic Thrust Exit Barriers
Disadvantages
Differences in consumer needs, wants and usage patterns Differences in consumer response to 4 Ps Differences in brand and product development and competitive environment Differences in legal environment Differences in marketing institutions Differences in administrative procedures
Demographic Environment Size of population Number of households Household size Age distribution Occupation distribution Education level Employment rate Income levels
Political/Legal Environment Government policies Laws and regulations Political stability Nationalism
5. Brand Partnership
Alternative ways of entry:
1. 2. 3. Exporting existing brands (geographic extension) Acquiring brands (Brand Acquisition) Brand alliance
Standardized marketing:
LOreal: Because Im Worth It.
Customized marketing:
7.
Price
Consumer perceptions of value, willingness to pay, elasticity to price change Pressures for international price alignment: Gray imports Price Corridor takes in account differences in countries and alignment pressures
8. Operable Guidelines
BRAND MANAGEMENT GUIDELINES
9. Global BEMS
Brand Asset Valuator
Interbrand Method
THANK YOU
COURSE RECAP
3 QUIZZES: 20 7 CASES: 20 1 MIDTERM: 30 1 END TERM: 30
INTRODUCTION
BRAND, BRANDING, BRAND MANAGEMENT TYPES OF BRANDS NAMES HISTORICAL ORIGIN OF BRANDING BRAND EQUITY CUSTOMER BASED BRAND EQUITY
BRAND KNOWLEDGE
BRAND AWARENESS
BRAND RECALL BRAND RECOGNITION
BRAND IMAGE
STRENGTH
RELEVANCE CONSISTENCY
FAVOURABILITY
DESIRABLE DELIVERABLE
UNIQUENESS
POD POP
DIFFERENTIAL EFFECT
PRIMARY BRAND ELEMENTS
BRAND ELEMENT CHOICE CRITERIA
MEMORABILITY MEANINGFULNESS TRANSFERABILITY ADAPTABILITY PROTECTABILITY
CUSTOMER MINDSET
MARKET PLACE CONDITION (MULTIPLIER)
MARKETING ENVIRONMENT
INVESTOR SENTIMENT (MULTIPLIER)
STAKEHOLDERS
METHODS TO MEASURE
PRICE
PRICE PREMIUM PRICE PREMIUM AT EQUALISATION PRICE PREMIUM AT INDIFFERENCE
COST
HISTORICAL COST REPLACEMENT COST DCF METHOD BRAND CONTRIBUTION INTERBRAND METHOD MARKET VALUE METHOD
CUSTOMER
BRAND KNOWLEDGE BLIND TEST ATTRIBUTE BASED
BRAND HIERARCHY
CORPORATE FAMILY INDIVIDUAL MODIFIER
BRANDING STRATEGY
BRAND HIERARCHY SUB-BRANDING & BRAND EXTENSIONS DECISIONS GRAY & SMELTZER BRAND PRODUCT RELATIONSHIP PRINCIPLES OF BRANDING
SIMPLICITY RELEVANCE PROMINENCE DIFFERENTIATION COMMONALITY
REVITALISING BRANDS
Lifebuoy
Liril Rexona
Closeup
Kissan Annapurna
Lipton Taaza
Bru Dalda
BACK Retiring Brands
THANK YOU