Do you know…?

Brand equity

What is Brand?

Six Levels of Brand

Attributes Benefits Values Culture Personality User

Definitions of Brand Equity

“Brand equity is the set of brand assets and liabilities linked to the brand, its name, and symbol, that adds or subtracts value to a product or service for a firm/ or its customers” (David Aaker).

“Brand equity is the set of associations that permits the brand to earn greater volume than it would without the brand name” (Marketing Science Institute).

“Brand equity is everything the customer walks into the store with” (Peter Farquhar).

“A set of associations which are most strongly linked to a brand name” (Andrea Dunham).

The concept of brand equity

Brand Equity

Mental Brand Equity

Behavioural BrandEquity

Financial/EconomicalBrand Equity

Mental Brand response

Brand behavioural response

Market response

Types of Consumers

Entrenched users

users who are not available for conversion, remain loyal

Available consumers

non-users who prefer the brand in question to their current choice

Average users

secure users who are not available for conversion, committed to the brand

Ambivalent consumers

non-users equally attracted to the brand in question and current choice

Shallow users

beginning to show sign of wavering, loyalty below average, starting to consider other brands

Weakly unavailable consumers

non-users whose preference lies with their current brand, but not strongly

Convertible users

on the threshold for leaving the brand

Strongly unavailable consumers

non-users who have strong preference for their current brand

Secure users

Vulnerable users

Open non-users

Unavailable non-users

Why Manage Brand Equity?

Presence of a brand in consumers mind Influence on their buying behaviour Effects on brands market position and

financial result Financial value of the brand as a immaterial

assets of the company

Brand Equity Management

Brand ImageConsistencyCustomer EquityR & D Investment

Practical Examples

Virgin

Snapple Beverage Corporation

V/SV/S

What do you prefer?

5 8 %

4 2 %S p r i t e

7 u p

What motivates you to buy Sprite?

9 7 %

0 %3 %0 %T a s t e

S p e c a i l o f f e r s

P a c k a g i n g

P r i c e

Will you pay more for Sprite?

3 7

6 3

Y e s

N o

What motivates you to buy 7up?

9 9 %

0 %1 %0 %

T a s t e

P r i c e

P a c k a g i n g

S p e c i a l O f f e r s

Will you pay more for 7up?

4 0 %

6 0 %

Y e s

N o

Sprite Ice

Awareness Did like/ Didn’t like?

7up Ice

Awareness Did like/ Didn’t like?

Is Sprite available everywhere and every time you want it?

9 1 %

9 %

Y e s

N o

Is 7up available everywhere and every time you want it?

Y e s

N o

Conclusions

If Competition is a race then Brand Equity is Driving Skills!!!!!!!!!!