MNM3710 Brand Management: Past

Exams and Suggested Answers

Exam Suggested Solutions

These are answers that I would give.

A lecturer did not go over these answers
Don’t use bullet point in the exams

May/June 2017
May/June 2017
May/June 2017
May/June 2017
 May/June 2017

2.1.1 Aaker’s model (Brand equity)

Aaker’s model of brand equity identifies 5 major asset categories that make up brand equity
1. Brand awareness
2. Brand loyalty
3. Perceived quality
4. Brand associations
5. Other proprietary brand assets

4.2.1 The elements of a positioning concept

1. Consumer segmentation
a. A good knowledge of the target market and the segmentation variable used to derive the segments. The marketer should consider the
positioning and the target market for which the brand is intended as an integrated whole.
2. The benefit of the brand
a. The brand benefits that the company wants to offer must be relevant to the target market and able to establish a superior competitive
position
3. Consumer reception of the brand in relation to the competitor (perceptual mapping)
a. The marketer will have to create a perceptual map that replicates the mind of the consumer to be able to visualize the position of the brand
relative to other brands in the consideration set
4. Product class or structure of the market in which it will compete.
a. The marketer needs to establish what the structure of the market and the set of substitutes for the brand are and investigate these, so that
the positioning decision can be an informed decision.

Brand awareness: what the consumer remembers of the brand

# Recognition
# Recall
# Top of mind
# Dominant brand
May/June 2017

5.1 The brand relationship system

5.1.1 Monolithic strategy

Same brands with same identity
Virgin
Same brands with different identities
Anglo American/ Anglo Gold/ Anglo Plat

5.1.2 Dualithic strategy

v Sub-branding
§ Master brand is the main driver with the sub-brand as co-driver
¨ Ford (Master) Figo (Sub-brand)
v Endorsement brand
§ possible options
• Strong endorsement
¨ Polo jeans by Ralph Lauren
• Linked name
¨ McMeal
• Token endorsement
¨ Mention of another brand but as no real major player

5.1.3 Multilithic strategy

House of brands
§ Shadow endorser
• Toyota not being visibly connected to Lexus
§ Not Connected
• P&G who own over 80 brands in different categories

5.5 Changing the brand name

7 reasons why a brand would change its name:
1. Brand damage associated with name
2. Weak image/ negative publicity
3. Added-value difference between brands of the
same company
4. Limited possibilities
5. Name differences in different countries or
languages
6. Mergers, acquisitions and partnerships
7. Have legal problems with current name
 May/June 2017

8.2.1 Line extensions

- Organisation exploits only one brand in the market, it can launch a different product variants within the same product class under an already existing brand

8.2.2 Brand Extensions

8.2.3 Concept Extensions

An existing brand name is used for a new product that can be classified as belonging to another product type other than the flagship.
- Licensing strategy to leverage brand reputation.

8.2.4 Co-branding
8.3 Multi-brand strategies

8.4 Endorsement strategies

Hazards related to extension strategy

I vulnerability to failure
I overconfidence in the success of extensions
I dilution of the core brand concept
I lack of positioning flexibility
I cannibalism between products
I no transfer of association
I negative feedback
Oct/ Nov 2016
Oct/ Nov 2016
Oct/ Nov 2016

4.2.1 The elements of a positioning concept

1. Consumer segmentation
a. A good knowledge of the target market and the segmentation variable used to derive the segments. The
marketer should consider the positioning and the target market for which the brand is intended as an
integrated whole.
2. The benefit of the brand
a. The brand benefits that the company wants to offer must be relevant to the target market and able to
establish a superior competitive position
3. Consumer reception of the brand in relation to the competitor (perceptual mapping)
a. The marketer will have to create a perceptual map that replicates the mind of the consumer to be able
to visualize the position of the brand relative to other brands in the consideration set
4. Product class or structure of the market in which it will compete.
a. The marketer needs to establish what the structure of the market and the set of substitutes for the
brand are and investigate these, so that the positioning decision can be an informed decision.

1) Selecting of the position/ repositioning strategy

a) Positioning by corporate identity
b) Positioning by brand endorsement
c) Category related positioning
d) Features and attribute positioning
e) Benefit related positioning
f) Emotion positioning strategy
g) Price quality positioning
h) Positioning by usage, occasion, time and application
i) Positioning by competitor
j) Target user positioning strategy
k) Aspiration positioning strategy
Oct/ Nov 2016

7.2.2 Social branding through social media

1. Blogs
a. Short term web log/ online journal
2. Social networks
a. Applications that allow users to build personal websites that others can access
3. Content communities
a. Websites that organize and share particular types of content (YouTube)
4. Forums/bulletin boards
a. Sites for exchanging ideas and information around the same interest
5. Content aggregators
a. Applications that allow users to fully customize the web content (Google)

2.1.1 Aaker’s model (Brand equity)

Aaker’s model of brand equity identifies 5 major asset categories that make
up brand equity
1. Brand awareness
2. Brand loyalty
3. Perceived quality
4. Brand associations
5. Other proprietary brand assets

1. Blogs
a. Short term web log/ online journal
Oct/ Nov 2016

Brand awareness: what the consumer remembers of the brand

# Recognition
# Recall
# Top of mind
# Dominant brand

5.1 The brand relationship system

5.1.1 Monolithic strategy

Same brands with same identity
Virgin
Same brands with different identities
Anglo American/ Anglo Gold/ Anglo Plat

5.1.2 Dualithic strategy

v Sub-branding
§ Master brand is the main driver with the sub-brand as co-driver
¨ Ford (Master) Figo (Sub-brand)
v Endorsement brand
§ possible options
• Strong endorsement
¨ Polo jeans by Ralph Lauren
• Linked name
¨ McMeal
• Token endorsement
¨ Mention of another brand but as no real major player

5.1.3 Multilithic strategy

House of brands
§ Shadow endorser
• Toyota not being visibly connected to Lexus
§ Not Connected
• P&G who own over 80 brands in different categories

2.3 Building brand equity

(Keller)
ü Brand identity (who you are)
ü Brand meaning (what you are)
ü Brand response (what about you)
ü Brand relationships (what about you and me)
May/June 2016
May/June 2016
May/June 2016

8.2.1 Line extensions

- Organisation exploits only one brand in the market, it can launch a different product variants within the same product class under an already existing brand

8.2.2 Brand Extensions

8.2.3 Concept Extensions

An existing brand name is used for a new product that can be classified as belonging to another product type other than the flagship.
- Licensing strategy to leverage brand reputation.

8.2.4 Co-branding
8.3 Multi-brand strategies

8.4 Endorsement strategies

May/June 2016

Common brand valuation approaches:

ü Cost bases approaches- formulating a cost with creating the brand
ü Market based approaches- willing buyer- willing seller
ü Economic use or income based approaches- future value based net earnings (5% rule- royalty should always be 5%)
o Royalty relief
§ 5% rule whereby 5% should always be a royalty
o Price premium
§ Branded products sell at a premium over non-branded
o Conjoint analysis
§ Survey based multivariate technique- consumers decide based on brand their preferences
o Discounted cash flow
§ Forecast the brands earning or cash flows after tax and deductions
ü Formulary approaches- using brand, market and risk aspects to determine valuation
ü Special situation approaches- brand value based on circumstances (liquidation)

5.1 The brand relationship system

5.1.1 Monolithic strategy
Same brands with same identity
Virgin
Same brands with different identities
Anglo American/ Anglo Gold/ Anglo Plat
5.1.2 Dualithic strategy
v Sub-branding
§ Master brand is the main driver with the sub-brand as co-driver
¨ Ford (Master) Figo (Sub-brand)
v Endorsement brand
§ possible options
• Strong endorsement
¨ Polo jeans by Ralph Lauren
• Linked name
¨ McMeal
• Token endorsement
¨ Mention of another brand but as no real major player
5.1.3 Multilithic strategy
House of brands
§ Shadow endorser
• Toyota not being visibly connected to Lexus
§ Not Connected
• P&G who own over 80 brands in different categories
May/June 2016

4.3.2 Point of parity and points of difference

Points of parity- what it shares with other brands
Points of difference- what sets it apart from other brands

v Points of parity
o Competitive points of parity
§ To neutralize the competitor’s points of difference
v Points of difference
o USP (unique selling points)
o Sustainable competitive advantage (SCA)

9.2 Strengthening the brand in the maturity phase

1. Strengthening by adding further differentiation
2. Strengthening by using brand icons
3. Strengthening by using brand character
4. Strengthening by brand high jacking
5. Strengthening by adding value
6. Building brand trust and brand resonance
7. Strengthening by brand advocacy and creating brand tribes.
8. Strengthening by reinforcing the brand

Ü Tagline
o Emotively connects with external
stakeholders/ customers
Oct.Nov2015
Oct.Nov2015
Oct.Nov2015
Oct.Nov2015

5.1 The brand relationship system

5.1.1 Monolithic strategy
Same brands with same identity
Virgin
Same brands with different identities
Anglo American/ Anglo Gold/ Anglo Plat
5.1.2 Dualithic strategy
v Sub-branding
§ Master brand is the main driver with the sub-brand as co-driver
¨ Ford (Master) Figo (Sub-brand)
v Endorsement brand
§ possible options
• Strong endorsement
¨ Polo jeans by Ralph Lauren
• Linked name
¨ McMeal
• Token endorsement
¨ Mention of another brand but as no real major player
5.1.3 Multilithic strategy
House of brands
§ Shadow endorser
• Toyota not being visibly connected to Lexus
§ Not Connected
• P&G who own over 80 brands in different categories

7.2.2 Social branding through social media

1. Blogs
a. Short term web log/ online journal
2. Social networks
a. Applications that allow users to build personal websites that others can access
3. Content communities
a. Websites that organize and share particular types of content (YouTube)
4. Forums/bulletin boards
a. Sites for exchanging ideas and information around the same interest
5. Content aggregators
a. Applications that allow users to fully customize the web content (Google)
Oct.Nov2015

4.4 The positioning process (STEPS)

1) Identification and analysis of competitive brands
a) Production level- specific brand of red wine against another red wine
b) Category level- red wine against all other wines
c) Product-class level- red wine against all alcoholic beverages
2) Identification and measurement of significant determinant attributes
3) Identification of the brands current position
4) Creation of a perceptual/positioning map
a) Understanding of how buyers perceive
b) Insights regarding similarities
c) Repositioning existing brands
d) Track brand perceptions
e) Track promotional strategies
5) Determination of the desired position of the brand
6) Selecting of the position/ repositioning strategy
a) Positioning by corporate identity
b) Positioning by brand endorsement
c) Category related positioning
d) Features and attribute positioning
e) Benefit related positioning
f) Emotion positioning strategy
g) Price quality positioning
h) Positioning by usage, occasion, time and application
i) Positioning by competitor
j) Target user positioning strategy
k) Aspiration positioning strategy

5.3 Classification of brand names

4 types of brand names
Ü Fictitious
o Fantasy names- Rolex
o Establisher names- Ford
o Origin- Tabasco
o Nouns or verbs- Shell
o Foreign words- Xerox
o Abbreviations- BMW
Ü Associative
o Descriptive target audience- Playboy
o Moment of use- After Dark
o Stereotypical geographical location- Malibu
Ü Suggestive – dove
Ü Descriptive
o Wash & Go
 Oct.Nov2015

The ZERO- BASED planning of IMC programs

Step Description
1. Identify target audience • Analyze the various customer and prospect segments and establish who
to target
2. Analyse SWOTS • Review the internal and external environments
• Determine the success of the marketing communication function and
the media used in the preceding year
3. Determine the marketing • Decide what the marketing communication program should accomplish
communication objectives
4. Develop strategies and • Determine which marketing communication function should be used
tactics and to what extent
• Decide on brand messages and channel delivery
• Defend each strategy with justification
• Decide when each program will be activated and when it will end
5. Determine the budget • Decide what the overall budget will be and then how the money will be
spend amongst all the selected functions
6. Evaluate effectiveness • Conduct ongoing marketing communication tests in effort to be more
effective
• Monitor and evaluate all the IMC efforts

Winning brands adhere to 5 growth codes:

- Portal 1: Benefits and promise
consumers prefer you brand because it offers a compelling benefit
-Portal 2: Norms and values
consumers prefer you brand because it resolves and inner conflict
-Portal 3: Perceptions and programs
consumers prefer you brand because perceptions and behavior programs point to it as a logical choice
-Portal 4: Identity and self-expression
consumers prefer you brand because it expresses their character and identity
-Portal 5: emotions and love
consumers prefer you brand because they love the brand

2.1.1 Aaker’s model (Brand equity)

Aaker’s model of brand equity identifies 5 major asset
categories that make up brand equity
1. Brand awareness
2. Brand loyalty
3. Perceived quality
4. Brand associations
5. Other proprietary brand assets

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