Learning Objectives:

1.To comprehend how brands connect with customers?

2.To understand the concept of brand equity
3.To analyze brand building process
Top 10 brands in India and across the world
reveals

1.Connect with the consumer

2.Building consumer community
3.Society as a stakeholder
4.Innovations
5.Consistent brand value
6.Perceived Competitive Differentiation
7.Consistency in Communication
Brand Equity

Brands’ assets can be categorized in five groups:

1.Brand loyalty
2.Brand name awareness
3.Brand’s perceived quality
4.Brand association in addition to the perceived quality
5.Other proprietary brand assets like patents, trademarks, channel
relationships etc.
Constructs of Brand Equity(aakers model)
Brand Valuation
Brand’s value is a function of the customer’s perception his/her attitude towards
it, and the economic value or price that he or she attaches to the brand.

Approaches to Brand Valuation

1.Price premium that a name or brand supports in a competitive market
2.Impact of the name or symbol on customer preferences
3.Replacement value, i.e. what it will cost to replace the existing brand
4.Stock or market price of the firm’s shares
5.Earning power of the brand
Price Premium

Approaches to Assess the Price Premium

Observe Price Levels in the Market

Research to Assess Preferences or Purchase Likelihood

Conjoint Analysis or Trade Off

Impact of Name on Customer Preferences
Replacement Cost
Stock Price Movements
Future Earnings

Brand Loyalty

Measuring Brand Loyalty

Buyer Behaviour

Observe actual buying behavior as represented by customers’ repeat purchases ;

One brand as a percentage of last few purchases, and the number of brands
purchased by a average target customer during the last few shopping cycles
Another approach is the `forced choice method’
Make available only a particular brand at selected retail outlet(s) for a fixed
period of time. Customer’s buying behavior is then monitored. Does the
customer accept what is being offered or does he or she refuse and go to the next
store to buy his or her preferred brand; what percent of customers do that; and
when the freedom of choice is restored, do they revert to their earlier brand or
stay with the `new’ brand.
Psychological and Economic Barriers

Studying barriers to brand switching

Most important barrier economic, or high switching costs
Psychological barriers customer satisfaction, customers’ liking for the
brand, and commitment to buy the preferred brand
Brand Awareness
Ability of a potential buyer to recognize/recall that a brand is
part of a product category
Steps for Creating High Awareness

To achieve high awareness, Aaker suggests the following communication

tasks:
(a)be different and memorable
(b)involve a slogan or jingle
(c)expose the brand symbol
(d)get into the press as a news item, or publicise the brand
(e)sponsor major events
(f)consider extending brand to other products
(g)use cues of either the product class, the brand, or both
(h)repeat yourself constantly
Brand Association is Important for a Band
Brand association helps build brand equity by:

(a)helping a customer to process and quickly retrieve product information

(b)differentiate the brand from the competition
(c)providing the customer a reason to buy
(d)helping in creating positive attitudes or feelings towards the brand
(e)providing the basis for product line extensions
Among the type of associations that a brand may
develop, are:
(a) country or geographic area, or the home of the brand (particularly useful in global
marketing)
(b) product attributes like a herbal beauty cream, tooth paste, or tooth powder
associated with the Vicco brand or Himalaya brand
(c) intangibles, like the image of prompt after sales service or customer service with
the international banks like HSBC, Citibank and national private banks like
HDFC and ICICI
(d) customer benefits – these could even be psychological
(e) relative price-premium price brands, in different product groups reflect
customer’s perception of their quality
(f) use or application
(g) user or customer
(h) celebrity or person – ‘The beauty soap of the film stars’
(i) lifestyle or personality
(j) product class
(k) competitors
Perceived Quality
Benchmark by which the customers evaluate different brand on
quality

Other Proprietary Assets

Include name, patent, channel relationship etc.
Brand Building Process

Brand building process involves:

a.Analysis of brand environment
b.Setting the brand vision
c.Determining brand values
d.Defining brand objectives
e.Crafting appropriate brand strategy
f.Developing an effective implementation plan
Brand Archetypes

Psychological concept
Archetype routed in the universally recognized symbol that
becomes identified with the specific brand