Presented by:

SEEMA RANI 112

AASTHA SHARMA 121
Definitions of
Brand Equity
 Keller
• Brand equity represents a condition in which
the consumer is familiar with the brand and
recalls some favourable, strong and unique
brand associations. Hence, there is a
differential effect of brand knowledge on
consumer response to the marketing of a
brand.
 Leuthesser
The set of associations and behaviour on the
part of a brand's customers, channel
members and parent corporation that permits
the brand to earn greater volume or greater
margins than it could without the brand
name is called as Brand Equity.
 Srivastava and Shocker
The aggregation of all accumulated attitudes
and behavior patterns in the extended minds
of consumers, distribution channels and
influence agents, which will enhance future
profits and long term cash flow.
 Ambler and Styles
Managers of brands choose between taking
profits today or storing them for the future,
with brand equity being the ``. . . store of
profits to be realised at a later date.''
 Kotler
Brand Equity is the added value endowed on
products and services. It may be 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 for the firm.
 Davis
The potential strategic contributions and
benefits that a brand can make to a company.

Winters
Brand equity involves the value added to a
product by consumers' associations and
perceptions of a particular brand name
Brand Equity Survey (2010)

1. NOKIA INDIA
Brand Equity Survey (2010)

2. COLGATE
Brand Equity Survey (2010)

3. LUX
Brand Equity Survey (2010)

4. DETTOL
Brand Equity Survey (2010)

5. BRITANNIA
 Brand equity is
The totality of the brand’s
perception, including the relative
quality of products and services,
financial performance, customer
loyalty, satisfaction and overall
esteem toward s the brand.
VALUE ADDED BY BRAND
Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations
 Brand Loyalty
• Brand loyalty is a measure of the attachment
that a customer has to a brand.
• It reflects how likely a customer will be to
switch to another brand, especially when that
brand makes a change, either in price or in
product features
 Brand Loyalty Pyramid
Committed

Fence Sitters
(Considers it a friend)

Passively Loyal
(With switching costs)

Satisfied / Habitual
Buyer (No
reason to change)

Switchers / Price
Sensitive
(No brand loyalty)

Indifferent
 Measuring Brand Loyalty
• Purchase Behavior Patterns
• Switching Cost Analysis
• Satisfaction Measurement
 Strategic Value of Brand Loyalty
• Reduce marketing cost
• Trade (channel distribution) leverage
• Attracting new customers
 Enhancing Brand Loyalty

• Treat the customer right

• Stay close to the customer
• Measure/manage customer satisfaction
• Create switching cost
• Provide extras
 Brand Awareness is
the ability of a potential buyer
to recognize or recall that a
brand is a member of a certain
product category
Brand Awareness Hierarchy
• Top of Mind
• Brand Recall
• Brand Recognition
• Unaware of Brand
 How to Achieve Brand Awareness
• Be different, memorable
• Involve a slogan or jingle
• Symbol exposure
• Publicity
• Event sponsorship
 Perceived Quality
The customer's perception of the overall
quality or superiority of a product or service
with respect to its intended purpose, relative
to alternatives. Perceived quality is a
perception by customers.
 The Value of Perceived Quality
• Reason-to-Buy
• Differentiate/Position
• A Price Premium
• Channel Member Interest
• Brand Extensions
 Brand Association
A brand association is anything
"linked" in memory to a brand.

Thus, McDonald's could be linked to a

character such as Ronald McDonald, a
consumer segment such as kids, a feeling such
as having fun, a product characteristic such as
service, or a symbol such as the Golden Arches.
 The Value of Brand Associations
• Differentiate/Position
• Reason-to-Buy
• Create Positive Attitudes/Feelings
• Basis for Extensions
 BUSINESS MODEL
Franchise Model – Only 15% of the total number of restaurants are owned
by the Company. The remaining 85% is operated by franchises

Product Consistency – By developing a sophisticated supplier networked

operation and distribution system, the company has been able to achieve
consistent product taste and quality across geographies

Act like a retailer and think like a brand – McDonald’s focuses not only on
delivering sales for the immediate present, but also protecting its long
term brand reputation.
 Mc DONALD’S IN INDIA
Challenges in Entering Indian Markets
• Regiocentricism: Re-engineering the menu - McDonald’s has
continually adapted to the customer’s tastes, value systems, lifestyle,
language and perception. Globally McDonald’s was known for its
hamburgers, beef and pork burgers. Most Indians are barred by
religion not to consume beef or pork. To survive, the company had to
be responsive to the Indian sensitivities. So McDonald’s came up with
chicken, lamb and fish burgers to suite the Indian palate.
• The vegetarian customer – India has a huge population of vegetarians.
To cater to this customer segment, the company came up with a
completely new line of vegetarian items like McVeggie burger and
McAlooTikki. The separation of vegetarian and non-vegetarian
sections is maintained throughout the various stages.
 Mc DONALD’S IN INDIA
• Mc Donald’s mein hai kuch baat” projects
McDonald’s as a place for the whole family to
enjoy. When McDonald’s entered in India it was
mainly perceived as targeting the urban upper class
people. Today it positions itself as an affordable
place to eat without compromising on the quality of
food, service and hygiene. The outlet ambience and
mild background music highlight the comfort that
McDonald’s promises in slogans like“You deserve a
Break Today” & “Feed your inner child”.
CUSTOMER PERCEPTION AND EXPECTATION

• Target Segment
• What is McDonald’s for me?
• A Family with children: A treat to children, a fun
place to be for the children.
• Urban customer on the move: Great taste, quick
service without affecting the work schedule
• Teenager: Hangout with friends
 Mc DONALD’S IN INDIA
• There are three main objectives of advertising for McDonald’s are
to make people aware of an item, feel positive about it
and remember it. McDonald’s does its promotion through television,
hoardings and bus shelters. They use print ads and the television
programs are also an important marketing medium for promotion.
McDonalds has certain value pricing and bundling strategies such
as happy meal, combo meal, family meal etc to increase overall sales.
Some of the most famous marketing campaigns of McDonald’s are:
• “You Deserve a break today, so get up and get away- To McDonald’s”
• “Aap ke zamane mein ,baap ke zamane ke daam”.
• “Food, Folks, and Fun”
• “I’m loving it”
 RESULTS
• McDonald’s has 132 restaurants in India of which 79 are in North & East India
and 53 in West & South India. 
It has won many ACCOLADES in INDIA, they are:
• Most Respected Company' for four consecutive years, 2003-2007 in the Food
Services sector, by Businessworld
• Most Wanted Brand of the Year' Award 2003 & 2004 by Franchising Holdings
India Ltd.
• Retailer of the Year' Award for catering services, 2004-2006 at the Images Retail
Awards.
• The 'Most Preferred Fast Food Outlet' 2006 & 2007 by Awaaz Consumer Award,
hosted by CNBC.
• Star Retailer - The Consumer Way, Food Services Retailer' of the Year 2006 &
2007, by Franchise India
• Amity Corporate Excellence Award'-in 2007 & 2008
 Objective
Launch and position Bacardi as a preferred brand of the
young, trendy & classy adults

Expand market for white spirits and build Bacardi as the market
leader in that segment
Develop top-of-mind salience for the brand amongst customers
& consumers
Provide Merchandising & Promotion solutions on a turnkey
basis
 STRATEGY

Developed merchandising strategy and calendar of

events to enhance brand salience, generate trials
and product sales

Product launch functions :

On-premise Presence
Retail In-store Presence & Signage
Consumer Promotions
Sponsored events
 Wi
nd
ow
Dis plays Dis
pl
ow ays
Wind
Back Bar Display
 RESULTS

Partnered Bacardi for successful

brand launch in India, to make it a
top-of-mind recall brand

Enhanced presence for Bacardi in 3000 outlets,

across channels

Bacardi merchandising & promotions set the benchmarks and

standards, not only for the category, but also for the industry
 Models
• AAKERs MODEL
• KELLER’S BRAND
AAKERS MODEL
 KELLER’S MODEL
Price
Price
Brand
Brand
Recognition
Recognition Packaging
Packaging
Brand
Brand Non-
Non-
Awareness
Awareness Brand
Brand Recall
Recall User
User Imagery
Imagery
product
product
related
related Usage
Usage Imagery
Imagery
BRAND
BRAND Attribute
Attribute Product
Product
KNOWLEDGE
KNOWLEDGE Types
Types of
of brand
brand related
related
association
association
Attitudes
Attitudes
Brand
Brand Favorability
Favorability
Image of
of brand
brand
Image Functional
Functional
association
association
Benefits
Benefits
Strength
Experiential
Experiential
Strength of
of brand
brand
association
association Symbolic
Symbolic
Uniqueness
Uniqueness of
of
brand
brand association
association
12/08/2021
Building
Brand
Equity
Drivers of Building Brand Equity
1) Initial choices for brand elements.
2) Product and service and all
accompanying marketing activities
& supporting marketing programs.
3) Other secondary associations are
indirectly transferred to the brand
by linking it some other entity.
 1st

Choosing Brand Elements

1) Brand Names
2) URLs http://www.tata.com/
http://www.tatamotors.com/

3) Logos & symbols

4) Slogans
5) characters
6) Packages
 Brand Element
Choice Criteria
•Memorable

• Meaningful

• Likable

• Transferable

• Adaptable

• Protectable
 2nd

Designing Holistic Marketing Activities.

Marketers creating brand contacts &
building brand equity through many
avenues.

Marketers emphasize on 3 important themes in

designing brand building marketing programs:

• Personalization
• Integration
• Internalization
Personalization
Personalization
Internet & mobile phone created opportunity to
personalize marketing.

Marketers are integrating new marketing

approaches
1. Experiential marketing.
2. One-to-one marketing.
3. Permission marketing.
D
Personalization
Integration
It’s all about mixing & matching marketing
activities.

To create right brand image in the mind of

consumers, marketer must convey brand identity
through every appropriate available
communication vehicle and brand contact.

Different marketing activities have different

strength.
 Internalization
It includes activities & process that can help to
inform & inspire employees.

Brand bonding occurs when customers

experience the company as delivering on its
brand promise.

Principles of internal branding are:

1. Choose the right moment
2. Link internal & external marketing
3. Bring the brand alive for employee
 Customer-Based Brand Equity

• Customer-based brand equity is the differential effect that

brand knowledge has on consumer response to the
marketing of that brand.

• Brand knowledge can be characterized in terms of two

components:
1) Brand awareness is related to the strength of the brand
node or trace in memory, as reflected by consumers’ ability
to recall or recognize the brand under different conditions.

2) Brand image is defined as consumer perceptions of a

brand as reflected by the brand associations held in
consumers’ memory.
 Customer-Based Brand Equity

• Customer-based brand equity occurs when the consumer

has a high level of awareness and familiarity with brand and
holds some strong, favourable, and unique brand
associations in memory.

• The CBBE model maintains that building a strong brand

involves a series of logical steps:
(1) establishing the proper brand identity,
(2) creating the appropriate brand meaning,
(3) eliciting the right brand responses, and
(4) forging appropriate brand relationships with customers.
Customer-Based Brand Equity Model

INTENSE,
INTENSE,ACTIVE
Consumer ACTIVE
LOYALTY
LOYALTY
- Brand
Resonance

RATIONAL
RATIONAL&&
Consumer Consumer EMOTIONAL
EMOTIONAL
Judgments Feelings REACTIONS
REACTIONS

POINTS-OF-
POINTS-OF-
PARITY
PARITY&&
Brand Brand POINTS-OF-
POINTS-OF-
DIFFERENCE
Performance Imagery DIFFERENCE

DEEP,
DEEP,BROAD
BROAD
Brand Salience BRAND
BRAND
AWARENESS
AWARENESS
Salience Dimensions Performance
Dimensions
• Depth of brand awareness • Primary characteristics &
– Ease of recognition & supplementary features
recall • Product reliability, durability,
– Strength & clarity of and serviceability
category membership • Service effectiveness, efficiency,
and empathy
• Breadth of brand awareness
– Purchase consideration • Style and design
– Consumption • Price
consideration
 Imagery Dimensions
• User profiles
– Demographic & psychographic characteristics
– Actual or aspirational
– Group perceptions -- popularity
• Purchase & usage situations
– Type of channel, specific stores, ease of purchase
– Time (day, week, month, year, etc.), location, and context of usage
• Personality & values
– Sincerity, excitement, competence, sophistication, & ruggedness
• History, heritage, & experiences
– Nostalgia
– Memories
Judgment Feelings
Dimensions Dimensions
• Brand quality • Warmth
– Value
– Satisfaction • Fun
• Brand credibility
– Expertise • Excitement
– Trustworthiness
– Likability • Security
• Brand consideration
• Social approval
– Relevance
• Brand superiority
• Self-respect
– Differentiation
 Resonance Dimensions
• Behavioral loyalty
– Frequency and amount of repeat purchases
• Attitudinal attachment
– Love brand (favorite possessions; “a little pleasure”)
– Proud of brand
• Sense of community
– Kinship
– Affiliation
• Active engagement
– Seek information
– Join club
– Visit web site, chat rooms
• In the CBBE model, the most valuable brand
building block, brand resonance, occurs when
all the other core brand values are completely
“in sync” with respect to consumers’ needs,
wants, and desires.
• Thus the true measure of the strength of a
brand depends on how consumers think, feel,
and act with respect to that brand.