CREATING BRAND EQUITY

What is a BRAND?
The American Marketing Association defines a brand as a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

What Is A Brand?????
One of the most valuable Intangible asset. Requires: Careful Planning Long-term commitment Creatively designed Executed marketing Reason for Intense Customer Loyalty

The Role of Brand

It identify the source or maker. Evaluation of the product through its brand. Simplify decision making and reduce risk. Its a valuable asset of the firm. It signifies Quality. It creates a pool of loyal customer. It can make a customer pay higher price.

THE SCOPE OF BRANDING

Branding is endowing products and services with the power of a brand. Branding can be applied virtually anywhere a consumer has a choice. It is possible to brand a physical good (Pantene shampoo), a service (Indian Airlines), a store (Big Bazaar), a person (Rani Mukharjee), a place (the city of Education), an organisation (UNICEF), or an idea (freedom of speech).

Brand Equity:
Brand Equity is the added value endowed on products and services. It is reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands. Higher the above stated factors indicate greater brand equity.

Consumer-based brand equity:

Customer-based brand equity can be defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.

Positive customer-based brand equity Negative customer-based brand equity

 Three components of customer-based brand equity: It arises from difference in consumer response (no difference shows competition based on price). Difference in response are a result of brand knowledge. E.g. Reebok for durability and comfort. It is reflected in perception, preference and behavior related to all aspects of the marketing of the brand.

BRAND EQUITY MODELS

There are 3 models:

1. BRAND ASSET VALUATOR 2. BRANDZ(Brand Dynamics Pyramid) 3. BRAND RESONANCE

1. BRAND ASSET VALUATOR

Developed by Advertising agency Young and Rubicam (Y&R) . There are four key componentsor pillarsof brand equity, according to BAV: Differentiation measures the degree to which a brand is seen as different from others. Relevance measures the breadth of a brands appeal. Esteem measures how well the brand is regarded and respected. Knowledge measures how familiar and intimate consumers are with the brand.

Differentiation and Relevance determine Brand Strength. Esteem and Knowledge together create Brand Stature.

BAV POWER GRID

The Universe of Brand Performance

3. BRANDZ
Millward Brown and WPP have developed the BRANDZ model of brand strength, at the heart of which is the Brand Dynamics pyramid.

4. BRAND RESONANCE
Brand salience elates to how often and easily the brand is evoked under various purchase or consumption situations. Brand performance relates to how the product or service meets customers functional needs. Brand imagery deals with the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers psychological or social needs. Brand judgments focus on customers own personal opinions and evaluations. Brand feelings are customers emotional responses and reactions with respect to the brand. Brand resonance refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are in sync with the brand.

Brand Resonance Model

BUILDING BRAND EQUITY

The initial choices for the brand elements or identities making up the brand. The product and service and all accompanying marketing activities and supporting marketing programs. Other associations indirectly transferred to the brand by linking it to some other entity (e.g., a person, place, or thing).

CHOOSING BRAND ELEMENTS

Brand elements are those trademarkable devices that serve to identify and differentiate the brand. Most strong brands employ multiple brand elements. Mc Donalds Restaurant has the distinctive M logo, the empowering Im Loving It slogan, and the Mc Donald name based on the founders Identity.

Brand elements can be chosen to build as much brand as possible. Based on its name alone, a consumer might expect ColorStay lipsticks to be long-lasting and SnackWell to be healthful snack foods.

BRAND ELEMENT CHOICE CRITERIA

Memorable. How easily is the brand element recalled, recognised? Short brand name such as Tide. Meaningful. Does it suggest something about a product ingredient or the type of person who might use the brand? Consider the inherent meaning in names such as Mothers Recipe Pickles. Likeability. How aesthetically appealing do consumers find the brand element? Concrete brand names such as Sunkist, Spic and Span, and Firebird evoke much imagery.

 Transferable. To what extent does the brand element add to brand equity across geographic boundaries and market segments? Adaptable. How adaptable and updatable is the brand element? Betty Crocker has received over eight makeovers through the yearsalthough she is over 75 years old, she doesnt look a day over 35!! Protectable. How legally protectable is the brand element? Can it be easily copied?

DEVELOPING BRAND ELEMENTS

Before choosing a brand name generating a list of possible names debating their merits eliminating all but a few testing them with target consumers making a final choice.

Today, many companies hire a marketing research firm to develop and test names. association tests (what images come to mind?) learning tests (How easily is the name pronounced?) memory tests (How well is the name remembered?) preference tests (Which names are preferred?). Of course, the firm must also conduct searches to make sure the chosen name has not already been registered.

Measuring Brand Equity

INDIRECT APPROACH Assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structure. Assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.

DIRECT APPROACH

Brand Value Chain

Managing Brand Equity

Brand Reinforcement:
The brand should be managed in a way to maintain its value. e.g. Parachute Hair Oil- The way it managed to enter into market of total hair-care(shampoos, Lotions etc.) after it began with hair oil. Reinforcing require that brand should move forward with new and more compelling products and offerings.

Marico and its products

Brand Revitalization
It refers to change in marketing strategy to keep the brand alive amidst the changing market. The first thing to do with is to understand whether the current factors associated with the brands are losing their attractiveness or relevance. e.g. Vespa Scooters.

Old Vespa vs. New Vespa

Devising a Branding Strategy

Branding Strategy is number and nature of common and distinctive brand elements applied to different products sold by the firm. Decides the nature of new and existing brand elements to be applied to new and existing product.

 How to brand a new product ?

1. New brand elements for new product. 2. Apply some of its existing brand elements. 3. Use combination of new and existing brand elements.

Brand Extension
Introduce new product using established brand.

Brand Extension

Line Extension
New product targets new market segment under parent brand name.

Category Extension
Parent brand name used to enter into a different product category.

Brand Names
1. Individual names : P&G has several individual brands such as Vicks (Health Care), Ariel and Tide (Fabric Care), Pantene (Hair Care) etc. 2. Blanket family names: Tata uses its name in diverse product categories such as Tata tea, coffee, automobiles and steel. 3. Separate family names for all products: Aditya birla Group Hindalco aluminum, Ultra Tech cement, Grasim suiting. 4. Corporate name combined with individual poduct names: Kelloggs Raisin Bran and Kelloggs Corn Flakes.

Advantages of Brand Extension

Facilitates new-product acceptance. Customers will associate the quality of the established brand name with the new product. Promotional launch costs (particularly advertising) are likely to be substantially lower. Distributors may perceive there is less risk with a new product if it carries a familiar brand name.

Disadvantages of Brand Extension

Risk of brand dilution. Cannibalization of parent brand.

Brand Portfolio
Brand Portfolio is the set of all brands and brand lines a firm offers for sale to buyers in particular category. Different brands may be marketed and designed to appeal to different market segments.

Roles of Brand
Flankers Cash Cows Low End Entry level High-End Prestige

10 MOST TRUSTED BRANDS OF INDIA

NOKIA COLGATE LUX Hindustan Unilever Ltd. LIFEBUOY Hindustan Unilever Ltd. DETTOL HORLICKS Glaxo Smith Kline TATA SALT Tata Group PEPSODENT BRITANNIA RELIANCE MOBILE Reliance Communications