Presented By: Ankit Paul

Kartik Arora
Nitish Gupta
Kunwar Suyash Vikram
 Brand Equity
• Building and properly managing brand equity
has become a priority for companies of all
sizes, in all types of industries, in all types of
markets.
• The problem is, few managers are able to step
back and assess their brand’s particular
strengths and weaknesses objectively.
 Keller’s Brand Report card
• A systematic way for managers to think about
how to grade their & competitor’s brand’s
performance for 10 characteristics shared by top
brands.
• The report card can help identify areas that need
improvement, recognize areas in which brand is
strong, and learn more about how a particular
brand is configured.
 Rating the Brand
• Rate the brand on a scale of one to ten (one
being extremely poor and ten being extremely
good) for each characteristic below.

• Then create a bar chart that reflects the

scores.
 The Top Ten Characteristics
Characteristic
Delivers benefits desired by customers.
Stays relevant.
Prices are based on value.
Well positioned relative to competitors.
Is consistent.
The brand portfolio makes sense.
Marketing activities are coordinated.
What the brand means to customers is well
understood.
Is supported over the long run.
Sources of brand equity are monitored.
Examples
Starbucks offers “coffee house experience,” not just
coffee beans, and monitors bean selection and
roasting to preserve quality.
Gillette continuously invests in major product
improvements (MACH3), while using consistent
slogan “The best a man can get.”
P&G reduced operating costs and passed on savings
as “everyday low pricing,” thus growing margins.
Saturn competes on excellent customer service,
Mercedes on product superiority. Visa stresses
being “everywhere you want to be.”
Michelob tried several different positionings and
campaigns between 1970 and 1995, while watching
sales slip.
The Gap has Gap, Banana Republic, and Old Navy
stores for different market segments; BMW has the
3-, 5-, and 7-series.
Coca-Cola uses ads, promotions, catalogs,
sponsorships, and interactive media.
Bic couldn’t sell perfume in lighter-shaped bottles;
Gillette uses different brand names such as Oral-B
for toothbrushes to avoid this problem.
Coors cut back promotional support in favor of
Coors Light and Zima, and lost about 50% of its
sales over a four-year period.
Disney studies revealed that its characters were
becoming “overexposed” and sometimes used
inappropriately. They cut back on licensing and
other promotional activity as a result.
1. Delivers benefits customers desire

Customers buy the product that is a collection

of attributes, together with the brand’s image,
service, other tangible and intangible factors,
which creates an attractive whole.
For Example
 Rating criteria
• Have you attempted to uncover unmet
consumer needs and wants? By what
methods?
• Do you focus relentlessly on maximizing your
customers’ product and service experiences?
• Do you have a system in place for getting
comments from customers to the people who
can effect change?
2. Stays relevant, modified to fit the times
Actual
Quality of Intangible
Brand Equity factors
product or
service

User Usage
Imagery Imagery
the feeling
For Example Type of & the type
personality of
relationship

sincere, committed,
exciting,
casual,
competent,
rugged warm
 Rating criteria
• Have you invested in product improvements
that provide better value for your customers?
• Are you in touch with your customers’ tastes?
With the current market conditions?
• With new trends as they apply to your
offering?
• Are your marketing decisions based on your
knowledge of the above?
 3. Prices are based on value perceived

• Managers should be aware of how price can

and should relate to what customers think of a
product, and therefore avoid charging too
little or too much.
• For Example
 Rating criteria
• Have you optimized price, cost, and quality to
meet or exceed customers’ expectations?
• Do you have a system in place to monitor
customers’ perceptions of your brand’s value?
• Have you estimated how much value your
customers believe the brand adds to your
product?
 4. Is properly positioned

• clearly communicates its similarities and

differences from competing brands
• The most successful brands in this regard keep
up with competitors by creating points of
parity in those areas where competitors are
trying to find an advantage while at the same
time creating points of difference to achieve
advantages over competitors in some other
areas.
For Example
 Rating criteria
• Have you established necessary and
competitive points of parity with competitors?

• Have you established desirable and

deliverable points of difference?
5. THE BRAND IS CONSISTENT

• Striking the right balance between continuity in marketing activities and the
kind of change needed to stay relevant.

• The brands image must not get muddled or lost in a cacophony of marketing
efforts that confuse the customers by sending conflicting messages.

• For eg: Michelob beer manufacturer ran the following adds

(i) Where you are goin its Michelob in 1970.
(ii) Weekends are made for Michelob.
(iii) Put a little weekend in your week.
(iv) The night belongs to Michelob in mid 1980’s.
(v) Some days are better than other in 1994.
(vi) A special requires special beer.
(vii) Some days were made for Michelob.

All these campaigns made the confused the consumers that when to
consume Michelob beer. They had to look to the calendar in order to have
the beer.
6. THE BRAND PORTFOLIO AND HIERARCHY MAKE SENSE

• Most companies do not have only one brand they create and maintain
different brands for different market segments.

• Single product lines are often sold under different brand names and
different brands within a company hold a different power.

• The corporate or companywide brand acts as an umbrella.

• For eg: BMW company

It has well designed and implemented hierarchy.
BMW pioneers the luxury sports sedan.
Their slogan “the ultimate driving machine”. Reinforces the dual aspects
this image.
It has created a well-diffrentiated subbrands through its 3, 5 and 7 series
which suggest a logical order and hierarchy of quality and price.
7. THE BRAND MAKES USE OF AND COORDINATES A FULL REPERTOIRE OF
MARKETING ACTIVITIES TO BUILD EQUITY.

• At its most basic level a brand is made up of all the marketing elements
that can be trademarked logos, symbols, slogans, packaging, signage.

• Strong brands mix and match these elements to perform a number of

brand related functions.

• Managers of the strongest brands appreciate the specific roles that

different marketing activities can play in building brand equity.

• Some activities such as traditional advertising lend themselves best to

pull functions those meant to create consumer demand for a given
product.

• Coca-cola is one of the best examples.

8. The Brand managers understand what the
brand means to consumers
• Managers of strong brands appreciate the totality
of their brand’s image- perceptions, beliefs,
attitudes and behaviors.

• Managers are able to make decisions regarding

the brand with confidence- what customers like
and don’t like about a brand.

• Managers can take actions that can dovetail nicely

with the brand or create friction.
 Bic Brand illustration
• Bic brand (the french company “Societe Bic”) illustrates the kinds of
problems that can arise when managers don’t fully understand their
brand’s meaning.

• Bic emphasized on convenience, inexpensive and disposable products

like nonrefillable ballpoint pens, disposable lighters, razors etc.

• When Bic tried the same strategy with perfumes in US and Europe,
the effort bombed.

• The perfumes – both for men and women were packaged in quarter
ounce glass spray bottles were displayed in plastic packages on racks
at checkouts counters throughout Bic’s extensive distribution
channels.
• As described by the company Bic perfumes described as logical
extensions of the Bic heritage: “High quality at affordable prices,
convenient to purchase and use.”

• Company spent dollar 20 million on advertising and promotion blitz

and used tag line “Paris in your pocket.”

• What went wrong?

• Bic’s managers didn’t understand a certain cachet with customers- a

critical element when marketing something as tied to emotions as
perfume.

• They didn’t have a handle on the associations that the customers

has added to the brand image- a utilitarian, impersonal essence-
which didn’t at all lend itself to perfume.
9. The brand is given proper support, and
that support is sustained over the long run.
• Brand equity must be carefully constructed.

• Consumers must have the proper depth and breadth of

awareness and strong, favourable and unique associations
with the brand in their memory.

• Too often, managers want to take shortcuts and bypass more

basic branding considerations- such as achieving the
necessary level of brand awareness- in favor of concentrating
on flashier aspects of brand building related to image.
• A good example is “Shell Oil.”
10. The company monitors sources of brand
equity.
• Strong brands generally make good and frequent use of
in-depth brand audits and ongoing brand-tracking studies.
• A brand audit is an exercise designed to assess the health
of a given brand- internal description and external
investigation.
• It’s critical for managers holding the reins of a brand
portfolio to get a clear picture of the products and
services being offered, marketed and branded.
• Tapping customers’ perceptions and beliefs often
uncovers the true meaning of a brand, or group of brands.
• Tracking studies can build on brand audits by employing
quantitative measures to provide current information
about how a brand is performing for any given
dimension.

• The strongest brands, however, are also supported by

formal brand equity-management systems. Managers of
these brands have a written document- a “brand equity
charter”-that spells out the company’s general
philosophy with respect to brands and brand equity as
concepts (what a brand is, why brand matters, why brand
mgt is relevant to the company, and so on)

• Even a market leader can benefit by carefully monitoring

its brands, as Disney aptly demonstrates.
 The Value of Balance
• Maximize all 10 traits, builds a strong brand
• Each trait have a positive & synergetic effect on 1 another
• Difficult task- Improving 1 trait , other suffer

Consider a new market entrant being launched at relative lower

price as compared to a premium brand

• Lowering price for premium brand might stop new entrant from
gaining market share in short run.
• Short term boom in sales for a premium brand.
• Will have an adverse effect on that premium brand in long run.
• Definition of ‘Premium’ will somehow be changed in customer
minds i.e. affects the positioning of the brand.
• This particular brand is no longer solid nor in
the top line.
• It Involves to get a handle on how a brand
performs on all 10 attributes
• Then evaluating any move from all possible
perspectives
For e.g
• Effect of new ad campaign on the pricing
strategy
• Effect of new product line on the brand
hierarchy in portfolio.
• Monitoring Brand performance can have negative Repercussions if not followed
through decisively on what you have learned.

Taking an e.g of Levi-strauss in mid 1990s

• Followed a brand-equity measurement system.
• Brand image degrades from the time of installation.
• Levi’s tight fitting flagship was not in demand
• Customers which were mainly youth demanded baggier look which were being
provided by competitors
• Slow response to this , it came with trendy ad campaigns that again failed
• Its market share felled drastically in late 1990s
• Terminated its relationship with ad agency Foote, Cone & Belding
• Putting in the measurement system is not enough but adhering to branding
principles is necessary.

Requires
• Concentrating on innovating & staying relevant to its customers
• Deep understanding of Brand’s meaning & well defined Brand position
 Brand equity as a bridge
• Power of the brand lies in the minds of consumers in what they have experienced & learned
over time
• Consumer knowledge is at the heart of Brand Equity
• Provides marketers a Strategic bridge from past to future which means Reflections of the
past and Direction for the future
• All the marketing dollars spent each year on products and services should be thought of as
investment in consumer brand knowledge from the perspective of brand equity.
• Based on this knowledge & beliefs consumer will decide to take an appropriate or
inappropriate decision.
• There are numerous examples of brands that amass a great deal of brand equity by spending
on marketing activities that creates valuable, enduring memory traces in the consumers’
minds.

At the same time, the brand knowledge created by these marketing investments dictates
appropriate future directions for the brand. Consumers will decide, based on what they
think and feel about the brand, where (and how) they believe the brand should go and grant
permission (or not) to any marketing action or program.