Professional Documents
Culture Documents
Brand Management
Brand Management
Brand Management
Legal right to
Vocalized part of Symbol, design, Part of the brand
reproduce,
the brand... color, letters given legal
publish and sell the
Tide, Avon, Chevrolet, Pillsbury doughboy, protection to
matter and form of a
Disneyland, MGM Lion, brand name
literary musical or
AMEX K on Kodak box or brand mark
artistic work
Product
quality
Growth Firm
rate of familiarity
the with the
market market
Low market
concentration
Findings on Brand introductions
Managers should expect better results in terms of market share in markets where a
1
limited number of brands hold a large share which renders such market more
attractive to new brands
2 A new brand should be supported with a larger effort when introduce into a fast
growing market than when the market is mature
Involvement in
High purchase Low
Consumer sees
differences in Variety seeking
Complex buying
brands buying
behaviour
behaviour
‘‘brands are created because buyers crave information. They see a huge
range of products that look the same and seem to perform similar . . .
Help Process / Retrieve Summarize a set of facts/specifications that are difficult for the
Information customer to process/access, and expensive to communicate
Differentiate
Image differentiation
Basis for brand Generates more opportunities in other product categories through
extensions brand extensions
Strategic question in branding...
Weber's Law states that the stimulus change needed to reach the differential threshold
(produce a “just noticeable difference”) is a constant proportion of the starting stimulus
value for any brand to “get noticed”
High
Action
Involvement Desire
in the
decision Interest
Memory
Top of the
mind
Product
class choice
criteria
(critical
product
Beliefs and
attributes)
attitudes about
product class
Product class
Terminal values selection
Brand class
selection
Instrumental
values Brand Beliefs and
choice attitudes about
criteria brand class
(critical
brand
attributes)
Levels of brand exposure
– Power
Power Brands
Brands
Brand power
– Brands
Brands
– Names
Names
Market presence
Identity Image
Signals
Brand Identity Brand Image
Transmitted
Competition
and
Noise
Brand Types
Decreasing size of
the market
Creating Loyalty for the brand Varying degrees of
brand loyalty
Non-consumers
Price switchers
Brand loyalty
Belief Attitude
reinforcement reinforcement
Beliefs Attitudes
Trials
Expectations
Awareness
Unawareness
Branding realities on loyalty
For Brands with smaller user shares the retained fraction of new customers
has to be higher, which necessitates more marketing effort in retention
Research show that large market share business have lower advertising
to sales ratio.
Brand Brand
Buys the
brand deserter champion
Target
buyer
Does not buy Brand
the brand Non Trier
apostle
Brand
Brand Equity
Equity is
is aa set
set of
of assets
assets (&
(& liabilities)
liabilities) linked
linked to
to the
the brand
brand name
name &
& symbol
symbol that
that adds
adds to
to
(or
(or subtracts
subtracts from)
from) thethe value
value provided
provided by by aa product
product
Brand
Brand Equity
Equity is
is aa set
set of
of assets,
assets, Brand
Brand Equity
Equity adds
adds value
value to
to the
the
thus
thus management
management of of consumer
consumer and
and the
the firm
firm
brand
brand equity
equity involves
involves investment
investment
to
to create
create and
and enlarge
enlarge these
these assets
assets
Consumer-Based Brand Equity Pyramid
Brand Brand
Imagery 2 Points of Difference
Performance
Loyalty
Resonance Attachment
4 Brand Relationships (WHAT
Community About You AND ME?)
Engagement
Category Identification
Needs Satisfied
1 Brand Identity (WHO Are You?)
Salience
How does the brand relate to the customer?
Esteem Is the brand held in high regard and considered the best in
its class?
External Reputation
In
ta
“tells others that I am “Design and performance”
its
ng
successful”
ef
ib
Evolution
en
le
B
Perceived value
A
“Will become the leader in high-
ss
na
performance machines””
”very expensive, but worth it”
o
io
ci
ot
at
Em
io
ns
What the Brand Brand Who the
brand offers brand is
benefits identity
Functional
R
at
Activities
io
“easy in driving”
e
na
nc
“Sponsors premier racing
l
Process
e
events”
be
es
n
Pr
“Dealer network that knows my
ef
difference, a brand’s value will quality with perceptions of a understand what the brand stands for,
but those who do hold it in
be low. growth or decline in popularity.
high regard.
>> Relevance comes next. >> Knowledge indicates that >> Conversely a brand may have high
the customer not only is aware knowledge but low esteem.This means
Unless a brand is relevant to a
that more people know what the brand
significant segment, it will not of the brand but also
stands for, but relatively few hold it in
understands what the brand
attract a large customer base. high regard.
stands for.
The Y&R grid
Low High
Disney
High Swatch watches
Sony
Brand
Differentiation
and relevance
Low Bayer
Starbucks coffee
Oldsmobile
Inter brand (UK) valuation of brands
500 brands were evaluated under these criteria and rated for maximum value under
these criteria . . .
Leadership: A brand that leads its market sector is more stable and powerful than the
second, third, & the fourth place brands
Stability: Long lived brands with identities that have become part of fabric of the market and
even the culture are particularly powerful and valuable
Market : Brands are more valuable when they are in markets with growing or stable sales levels
and a price structure in which successful firms can be profitable
International : Brands that are international are more valuable than national or regional brands,
in part because of economies of scale
Inter brand (UK) valuation of brands
Trend : The overall long-term trend of the brand in terms of sales can be expected to reflect
future prospects
Support : Brands that have received consistent investment and focused support are regarded as
stronger than those who have not
Protection : The strength and breadth of a brands legal trademark protection is critical to the
brand’s strength.
Aaker’s Brand equity is based on understanding of the following critical areas ...
Customer Satisfaction
Price Premium Perceived Quality
/ Loyalty
Leadership / Popularity
People want to be
apart of the
bandwagon and
are uneasy
against the flow
A brand can
move head
It reflects in part technologically
the
“number one LG leader in
Plasma TV
syndrome”.
Aaker’s Brand equity is based on understanding of the following critical areas ...
Perceived value
Perceived value is mentioned along the following
dimensions ...
Comparatively
Yes Winner brands
superior brands
Whether there is a
reason to buy this
brand over others
No Non differentiated
Loser brands
brands
Aaker’s Brand equity is based on understanding of the following critical areas ...
Brand Awareness
Market
share
Brand Equity
Products
Existing New
Brands
Brand
Extensions
Brand extensions represent an opportunity for firms to use the equity built up in the
names of existing brands in order to enhance marketing productivity
Impact of extensions on equity?
Brand extensions can affect the brand and its equity in one of the three different ways:
• Certain brands exploit the brand capital. The product sells thanks to the brand’s
contribution. This is the case when the concerned product scarcely differs from
existing market competition.
• Certain extensions destroy the brand’s equity. If the new product introduced under
an existing brand has no relationship with the core values of parent brand then the
brand equity can get eroded.
• Certain extensions have a neutral effect. Here the brand simply falls in line with
what is expected of the brand.
How does the brand extension logic work ?
Category
Category Based
Based Affect
Affect Transfer
Transfer
•• The
The affect
affect associated
associated with
with the
the parent
parent brand
brand is
is transferred
transferred to
to the
the brand
brand extension
extension only
only when
when
there
there is
is aa fit
fit between
between the
the parent
parent and
and the
the extension
extension categories.
categories.
•• Fit
Fit serves
serves as
as aa signal
signal or
or cue
cue that
that the
the consumers
consumers use
use to
to make
make inferences
inferences about
about aa new
new product.
product.
•• Attitude
Attitude (Consumer
(Consumer opinion)towards
opinion)towards the
the extension
extension was
was higher
higher when
when there
there was
was aa fit
fit between
between the
the
extension
extension and
and the
the parent
parent product
product classes
classes along
along one
one of
of the
the dimensions
dimensions
•• Transfer
Transfer // Complementary
Complementary products.
products.
How does the brand extension logic work . . .
Brand
Brand has
has aa positive
positive impact
impact on
on the
the success
success of
of an
an extension
extension ifif the
the extension
extension is
is in
in aa similar
similar
product
product category.
category.
There are several factors that can affect the brand extension’s timing of entry decision.
4the high-product failure rates in young markets will subject an extension’s parent
brand to risk,
and
4extensions may have positioning difficulties in young markets.
The results indicate that early-entering brand extensions do not perform as well on average as
either early-entering new-name products or late-entering brand extensions.
Good to be early or better to be late ?
1) the brand extensions were introduced later on average than the new-name products.
2) the early brand extensions had a lower probability of surviving than either the early-entering
3) the brand extensions earned higher market shares on average than the new-name products,
4) the extensions obtained smaller market share from entering early than did new-name
products.
The extensions of brands
Market based possibilities
Upward
Extensions are extension
successful Esteem
brand Downward
and unsuccessful in extension
all categories
Related
(High Fit)
Upward
Average extension
Brand brand
Downward
extension
extensions
Upward
extension
Esteem
brand Downward
extension
Unrelated
(Low Fit)
Upward
Average extension
brand
Downward
extension
The Effects of Sequential Introduction of Brand Extensions
The use of established brand names to enter new product categories or classes can substantially reduce
introductory marketing expenses and enhance the prospects of success by helping gain retailer and
customer acceptance.
Dr Aaker & Dr. Keller on sequential entry
Study aimed at finding out : how is the knowledge about the core brand, and any previous extensions and the perceptions
about the fit between those products and the proposed extensions affect the evaluation of the extensions
Findings:
Findings:
•• High
High quality
quality brands
brands stretch
stretch farther
farther than
than average
average quality
quality brands.
brands.
•• Successful
Successful intervening
intervening extensions
extensions improved
improved evaluations
evaluations of
of aa proposed
proposed extension
extension for
for an
an average
average quality
quality
core
core brand:
brand:
•• Unsuccessful
Unsuccessful intervening
intervening extensions
extensions decreased
decreased evaluations
evaluations of
of aa proposed
proposed extension
extension for
for aa high
high quality
quality
core
core brand.
brand.
•• A
A successful
successful intervening
intervening extension
extension increased
increased evaluations
evaluations ofof an
an average
average quality
quality core
core brand,
brand, but
but an
an
unsuccessful
unsuccessful intervening
intervening extension
extension did
did not
not affect
affect evaluation
evaluation of
of the
the core
core brand.
brand.
The Effects of Sequential Introduction of Brand Extensions
Findings
Findings
•• Perceived
Perceived company
company credibility
credibility and
and fit
fit appear
appear to
to mediate
mediate the
the effects
effects of
of intervening
intervening extensions
extensions on
on
evaluations
evaluations of
of aa proposed
proposed extension.
extension.
•• The
The relative
relative similarity
similarity of
of intervening
intervening extensions
extensions had
had little
little differential
differential impact
impact on
on evaluations
evaluations of
of aa
proposed
proposed extension.
extension.
•• Multiple
Multiple intervening
intervening extensions
extensions can
can have
have different
different effects
effects than
than aa single
single intervening
intervening extension.
extension.
•• Intervening
Intervening extensions
extensions of of mixed
mixed success
success have
have effects
effects more
more like
like those
those of
of aa single
single failed
failed intervening
intervening
extension
extension than
than those
those of
of aa single
single successful
successful intervening
intervening extension.
extension.
•• An
An unsuccessful
unsuccessful extension
extension does
does not
not prevent
prevent the
the firm
firm from
from backtracking.
backtracking.
Brand positioning and advertising thrust for share maintenance
BRANDS - Brand Positioning
2) For Whom? This indicates a target. e.g.- 7 Up- Teenagers, Canada Dry-
Adults
3)When? Indicates the occasion on which to use the product. e.g. Titan as
gift.
High
Find a defensible niche Increase advertising and
and decrease defend position for brand
advertising for the brand
Competitors share
of Voice
Maintain modest
Attack with large SOV
advertising premium to
premium to generate
maintain brand salience
brand effects
Low