CREATING BRAND EQUITY

Neha Singh (56) Prerna Khosla (57) Roopreet Kaur

(58) Ayesha Chopra (59)
Manvi Kapoor(60)
Shivani Raina (61)
Brand
• 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.
(Kotler)

• ‘A mixture of tangible and

intangible attributes symbolised in
a trademark, which, if properly
managed, creates influence and
generates value.’ (Interbrand)

10-2
The Role of Brands
 Identify the maker  Signify quality
 Simplify product  Create barriers to entry
handling  Serve as a competitive
 Organize accounting advantage
 Offer legal protection  Secure price premium

10-3
Branding
“Endowing products and services with the power of
a brand.”

Brand Association should be strong, unique and

favorable.

10-4
Brand Equity
The differential effect that brand knowledge
has on consumer response to the marketing
of that brand.

10-5
Customer Based Brand Equity

10-6
Marketing Advantages of Strong Brands
 Improved perceptions of
product performance
 Greater loyalty
 Less vulnerable to
competition
 Less vulnerable to crises
 Larger margins
 Inelastic consumer
response to price increases
 Elastic consumer response
to price decreases
 Greater trade cooperation
 Increase in effectiveness of
IMC
 Licensing opportunities
 Brand extension
opportunities
10-7
Brand Promise

The marketer’s vision of what

the brand must be and do for
Consumers.

10-8
Brand Equity Models

 Brand Asset Valuator

 BRANDZ
 Aaker Model
 Brand Resonance

10-9
 Brand Asset Evaluator

Five key components:

• Differentiation
• Energy
• Relevance
• Esteem
• Knowledge

10-10
 BrandZ

• This model talks about

consumers satisfaction.

• Greater the level of

customer satisfaction,
higher will be the level on
the pyramid.

10-11
Aaker Model

Elements Of Brand Identity:

 Product Scope
 Product Attributes
 Quality
 Uses
 Users
 Country Of Origin
 Organizational Attributes
 Brand Personality
 Symbols
10-12
 Brand Resonance Model
Brand Building Blocks:

• Brand Salience
• Brand Performance
• Brand Imagery
• Brand Judgement
• Brand Feeling
• Brand Resonance

10-13
Brand Elements

 Brand elements are those trademarkable

devices that serve to identify and
differentiate the brand

 Brand names  URLs

 Slogans  Logos
 Characters  Symbols

10-14
Brand Element Choice Criteria

 Memorable
 Meaningful
 Likeability
 Transferable
 Adaptable
 Protectible

10-15
Developing Brand Elements

Brand elements should be :

 easily recognized
 recalled
 inherently descriptive
 persuasive.

10-16
 Personalisation - Get the consumer more actively
involved with a brand by creating an intense, active
relationship.
 Integration - Marketers need a variety of different
marketing activities that reinforce the brand promise
 Internalisation - Marketers must adopt an internal
perspective to consider what steps to take to be sure
employees and marketing partners appreciate and
understand how they can help—or hurt brand equity.
 Leveraging Secondary Associations

10-17
Measuring Brand Equity

 Brand audits
 Brand tracking
 Brand valuation

10-18
The 10 Most Valuable Brands

Brand 2006 Brand Value

(Billions)
Coca cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13
Managing Brand Equity

 Brand reinforcement
 Brand revitalization
 Brand crises

10-20
Interbrands Steps in Calculating
Brand Equity
 Market Segmentation
 Financial Analysis
 Role Of Branding
 Brand Strength
 Brand Value Calculation
Devising a Branding Strategy

 Develop new brand elements

 Apply existing brand elements
 Use a combination of old and new
Branding Terms
 Brand extension
 Sub-brands
 Line extension
 Category extension
 Brand Line
 Brand Mix
Branding Terms
 Brand extension
 Sub-brands
 Line extension
 Category extension
 Brand Line
 Brand Mix
Brand Decisions

 Individual names
 Blanket family names
 Separate family names
 Corporate name/individual name combo
Advantages of Brand Extension

 Facilitates new- product acceptance

 Provide positive feedback to the parent brand
and company

Disadvantages of Brand Extension

 Line Extension may cause the brand name to be less strongly
identified with any one product
 Brand Portfolios

The set of all brands & brand lines a particular firm offers for sale in a particular
category or market segment
Reasons for multiple brands in a category

Increasing shelf presence and

retailer dependence in the store

Attracting consumers seeking

variety

Increasing internal competition

within the firm

Yielding economies of scale in

advertising, sales, merchandising,
and distribution
Brand Roles in a Portfolio

FLANKERS CASH COWS LOW-END

ENTRY LEVEL
HIGH-END
Fighter brands Brands t are PRESTIGE
that are positioned able to A low- priced
with respect to brand in the A high-
maintain priced brand
competitors’
profitability portfolio
brands so that a used to that add
more important with prestige &
virtually no attract
flagship brand can customers to credibility
retain their desired marketing to the entire
positioning support the brand
franchise portfolio
despite
dwindling
sales
 Customer Equity
the sum of lifetime values of all customers
Customer lifetime value is affected by considering cost & profits related
to
Acquisition
Affected by the
number of prospects,
acquisition
probability of a
prospect,
&acquisition
spending per
prospect
Add- on spending
a function of efficiency Retention
of add- on selling, the influenced by the
number of add- on
selling offers given to
retention rate &
existing customers, & retention spending
the response rate to new level
offers
Slogans

 The Complete man  God’s Own Country

 Just do it  We try harder
 Nothing runs like a  World’s local bank
Deere  This Bud’s for you
 The Joy of Flying  Always low prices

10-31