brand management updated

8/6/2019 Brand Management Updated

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BRAND MANAGEMENT


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THE ORIGIN OF BRANDS

Livestock branding by Egyptians in 2700 BC toidentify stolen animals

IDENTIFY POSSESSION

10th century used by illiterate merchants totrack and route goods

SUPPLY CHAIN MANAGEMENT

Used by craftsmen to identify good fromdefectives

MARK OF QUALITY


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BRANDS vs PRODUCTS

Corebenefit Level - fundamental orbasicneed

Genericlevel - contains only thoseattributes absolutely necessary

Expected level attributes thatarenormally expected

Augmented level includes additional distinguishing attributes

Potentiallevel includes allaugmented and transformations that may beultimately required


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WHAT IS A BRAND ?


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WHAT IS A BRAND

Aproductwith additional dimensions that

differentiate it from other products satisfyingthe same need

- Keller

A brand is a name that influences buyers

No one ever got fired for buying IBM !


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WHAT IS A BRAND

A brand is thesymbolicembodiment ofalltheinformationconnected withaproduct or service

A brand typically includes aname,logo,and other visualelements suchasimages or symbols.

Italso encompasses theset ofexpectations associated withaproduct orservice whichtypically arises inthe minds ofpeople. Suchpeopleincludeemployees ofthebrand owner,peopleinvolved with distribution, sale orsupply oftheproduct or service,and ultimately consumers.


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WHAT IS A BRAND

The set ofexpectations has two aspects

Theexperientialaspect whichconsists ofthe sum ofallpoints ofcontact

withthebrand and is knownas theBRAND EXPERIENCE

Thepsychologicalaspect, whichis a symbolicconstructcreated withinthe

minds ofpeopleand consists ofalltheinformationand expectationsassociated withaproduct or serviceand referred to as theBRAND IMAGE


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WHAT IS A BRAND

Marketers seekto develop oralign theexpectations comprising thebrandexperiencethroughbranding, so thatabrand carries thepromisethataproduct orservicehas acertainquality orcharacteristic which makeit special orunique.

A brand image may be developed by attributing apersonalityto orassociating animage withaproduct or service, whereby thepersonality orimageis branded intotheconsciousness ofconsumers. A brand is therefore one ofthe most valuable

elements inanadvertising theme,as it demonstrates whatthebrand owneris ableto offerinthe marketplace.

The art of creating and maintaining a brand is called brand management.


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WHYBRANDING ?


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WHY BRANDING ?

A Brand is anamethatinfluences buyers

A Brand provides benefits thatare Salient

Differentiated

Trusted


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WHY BRANDING ?

Brands reducerisk

Functional Risk :will the brand perform toexpectations ?

Physical Risk :does it pose a hazardto health ?

Financial Risk :is itworth the price ?

Social Risk :will it result in embarrassment ?

Time Risk : whatis the opportunity cost offailure ?


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WHY BRANDING ?

Brands createunevenplaying ground for

competitors

Positive Brand experienceleads to brand

preferenceand emotionalattachmentthereby

inducing long term relationships withthe

product or service

Consumer Preferenceand Brand Loyalty enablepricing flexibility and margins


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WHY BRANDING ?


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WHY BRANDING ?

BRANDS ARE THEREFORE

BUSINESS ASSETS


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The Brand System

Brand Concept

(value proposition )

Brand Name & Symbols Product or service


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Brand Dimensions

Essence

Functions Image

Differences Source


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ANATOMY OF BRANDS

Identity the brand must idenify itself clearlyand unambiguously; name, legal protectionand design elements are important

Shorthand summary the brand says it all

Security reassurance and guarantee ofbenefits

Differentiation showuniqueness Added Value offer more than competition


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ANATOMY OF BRANDS

A good brand name should :

belegally protectable

beeasy to pronounce

beeasy to remember

beeasy to recognize attractattention

suggestproductbenefits orusage

distinguishtheproduct's positioning relativeto thecompetition.


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TYPES OF BRANDS

Premium Brand :typically costs more than other products.

Economy Brand :a brand targeted to a high price elastic market segment.

Fighting Brand :a brand created specifically to counter a competitive threat.

Corporate Brand :When a company's name is used as a product brand name

Family Branding :When one brand name is used for several related products

Individual Branding :When all a company's products are given different brandnames

Private Brand :When large retailers buy products in bulk from manufacturersand put their own brand name

Co Branding :When two or more brands work together to market their products

Brand Licensing :When a company sells the rights to use a brand name toanother company for use on a non-competing product or inanother geographical area


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BRANDS - TERMS


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BRAND RECOGNITION

A brand whichis widely knowninthe marketplaceacquires brand recognition


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BRAND FRANCHISE

Wherebrand recognitionbuilds upto a

point whereabrand enjoys a mass of

positive sentimentinthe marketplace,itis

said to haveachieved brand franchise


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BRAND MANAGEMENT

The art of creating and maintaining a brand is called brand management.

Brand management is theapplication of

marketing techniques to a specific

product,productline orbrand. It seeks to

increasetheproduct's perceived valueto the

customer and thereby increasebrand

franchise and brand equity.


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STRATEGIC BRAND MANAGEMENT - definition

Involves the designand implementation of

marketing programmes to BUILD, MEASURE &

MANAGE Brand Equity


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STRATEGIC BRAND MANAGEMENT -process

Identifying and establishing brand positioning

and values

Planning and implementing brand marketingprogrammes

Measuring and interpreting brand

performance

Growing and sustaining brand equity


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STRATEGIC BRAND MANAGEMENT -process

STEPS KEY CONCEPTS

Identify & establish brand

positioning & values

mental mapscompetitive frame of reference

points of paritypoints of differencecore brand values & brand mantra

Plan & implement brand

marketing programmes

mixing & matching of brand elementsintegrating brand marketing activitiesleverage of secondary associations

Measure & interpret brand

performance

Brand value chain

Brand audits

Brand trackingBrand equity management system

Grow & sustain brand equity Brand product matrixBrand portfolios & hierarchiesBrand expansion strategiesBrand reinforcement & revitalisation


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STRATEGIC BRAND MANAGEMENT

Identifying & EstablishingBrand Positioning & Values


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Identifying & Establishing Brand Positioning & Values

Brand Positioning is theact of designing the

companys offerand image so thatit occupies

a distinctand valued placeinthetarget

customers mind

- Kotler


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Identifying & Establishing Brand Positioning & Values

BRAND EQUITY


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BRAND EQUITY

Brand equity measures thetotal value ofthebrand to thebrand owner,andreflects theextent ofbrand franchiseand is the valuebuiltupinabrand. Itcanbecalculated by comparing theexpected futurerevenue from thebranded product withtheexpected futurerevenue from anequivalentnon-branded product.This calculationis atbestanapproximation.

This valuecancomprisebothtangible, functional attributes (eg. TWICE thecleaning power or HALF the fat)and intangible, emotional attributes (eg. Thebrand forpeople with styleand good taste).


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BRAND EQUITY

The set ofassociations and behaviour onthepart ofabrandscustomers,channel members and parentcorporationthatpermits the

brand to earn greater volume or greater margins thanitcould withoutthebrand name

- Leuthesser, 1988

A brand that does not make it possible to

create a profitable business has no value


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BRAND EQUITYBrand equity canbePOSITIVE orNEGATIVE

Positivebrand equity is created by ahistory ofeffectivepromotionand consistently meeting or

exceeding customerexpectations.

Negativebrand equity is usually theresult ofbad management. Positivebrand equity canbea significantbarrierto entry forprospectivecompetitors.

The greateracompany's brand equity,the greatertheprobability thatthecompany willusea family

branding strategy ratherthananindividualbranding strategy. This is because family branding allows

them to leverage offtheequity accumulated inthecorebrand. This makes New Product

Development / new productintroductions less risky and less expensive.


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BRAND EQUITYBrand equity arises from

Differentialeffectdifferences in customer response to the brand

Brand Knowledge different customer response arises out of brand

knowledge built over time

Consumerresponseto marketing


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Aakers model of Brand Equity

perceived quality

Nameawareness brand assocns.

Brand loyalty brand assets

BRANDEQUITY

CUSTOMER VALUEinformation processing/interpretation

confidence in buying

use satisfaction

COMPANY VAL

UEefficiency & effectiveness of

mktgbrand loyaltymarginsbrand extensionstrade leverage

competitive advantage


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BRAND EQUITY

from aw

areness to financial value

Brand Assets Brand Strength Brand Value

awareness Market share Net discounted cash

flows after capital ,production and

running costs

reputation leadership

personality penetration

values loyalty

imagery Growth rate

preference Price premium

Patents & rights


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SOURCES OF BRAND EQUITY

BRAND AWARENESS

Brand Recognition ability to confirm prior

exposure whengiven the brand as a cue.

Customeris ableto discriminate thebrand

from others

Brand Recall ability to generatethebrand

from memory whengiven the product

category or usage situation as a cue


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BRAND AWARENESS - CONSEQUENCES

Learning Advantage- register the brand in

customer memory

Consideration Advantage include the brandin the set being considered

Choice Advantage- affects choice amongst

brands in the consideration set


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ESTABLISHING BRAND AWARENESS

Repeated Exposure

Increased consumerexperiences

Visualand verbalreinforcement ofbrand

name


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BRAND BUILDING

1. Ensurebrand identification withcustomers and brand association with

specificproductclass orcustomerneed

2. Firmly establishbrand meaning incustomers mind by linking tangible

and intangiblebrand associations withcertainproperties

3. Elicitpropercustomerresponseto brand identificationand brandmeaning

4. Convertbrand associationto brand loyalty


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BRAND BUILDING

1. Who are youbrand identity

2. Whatare youbrand meaning

3. What do I thinkand feelabout youbrandresponse

4. Whatkind ofrelationship would I liketohave with youbrand relationship


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BRAND BUILDING

RESONANCE 4. Relationships

JUDGEMENTS FEELINGS 3. Response

PERFORMANCE IMAGERY 2. Meaning

SALIENCE 1. Identity


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BRAND BUILDING - IDENTITY

Achieving Identity involves creating Brand Salience

- the first step to building Brand Equity

Brand Salience arises out ofDEPTH and BREADTH of Brand Awareness

DEPTH likelihood ofbrand coming to mind and theease with whichit doesso

BREADTH therange ofpurchaseand usage situations whenthebrandcomes to mind


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BRAND BUILDING - MEANING

Meaning devolves from Brand Performance &Brand Imagery- the second step to buildingBrand Equity

Brand Performance relates to how welltheproduct or service meets customersfunctionalneeds PLUS DIFFERENTIATION.Deals withintrinsic properties

Brand Imageryconcerns how thebrandmeets psychological or socialneeds. Dealswithextrinsic properties


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BRAND BUILDING - RESPONSE

Judgements customers personal opinions and evaluations ofthebrand

Key judgements that influence brand building :

1. Brand Quality specific considerations concerning the attributes and benefits ofthe brand

2. Brand Credibility perceived expertise, trustworthiness, likeability

3. Brand Consideration howrelevant ?Will I consider it ?

4. Brand Superiority unique/differentiated/ advantages

Feelings emotionalresponseand reaction


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BRAND BUILDING - RESONANCE

The ULTIMATE relationshipcharacterised by

1. Behavioural Loyalty rrepeat purchase/brand sharewith customer

2. Attitudanal Attachment something speacial in a larger context, lovethe brand, favourite possession, etc.

3. Sense of Community kinship /assocn. With other brand users

4. Active Engagement spend time with the brand


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BRAND BUILDING

RESONANCE 4. Relationships

intense, active loyalty

JUDGEMENTS FEELINGS 3. Response

positive reactions

PERFORMANCE IMAGERY 2. Meaningpoints of parity & difference

difference

SALIENCE 1. Identity

deep, broad awareness


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STRONG BRANDS - ADVANTAGES

Greater Loyalty

Less Competitive Vulnerability

Larger margins

Higher Distribution Support

Accelerated Communication Effectiveness

Licensing Opportunities

Brand Extensions

INCREASED SHAREHOLDER VALUE


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BRAND POSITIONING


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BRAND POSITIONING

Theact of designing thecompanys offerand image so thatit occupies

adistinctand valuedplaceinthecustomers mind- Kotler


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BRAND POSITIONING

Who is thetargetconsumer

Who arethe maincompetitors

How is thebrand similarto competitors

How is thebrand different from competitors


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BRAND POSITIONING

Market Segmentation Market:set ofallactualand potential

buyers who haveinterestin,income forand

access to theproduct

Market Segmentation : dividethetarget

marketinto distinct groups of

homogeneous consumers with similarneeds and consumerbehaviour


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BRAND POSITIONING

Market Segmentation

Descriptive orcustomer oriented :related

to whatkind ofperson or organizationuses

theproduct

Behavioural orproduct oriented :

how thecustomerthinks oruses the

product


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BRAND POSITIONING

M

arket Segmentation Behavioural:user status,usagerate,usage

occasions,brand loyalty,

benefits sought Demographic:age, sex,income, family size,

etc.

Psychographic:values,attitudes,lifestyle,

opinions Geographic:national,international,regional,

etc.


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BRAND POSITIONING

Market Segmentation

Overriding consideration for segmentationis profitability

Somekey criteria for deciding segments

Identifiabilitycanitbeeasily determined ?

Size is thereadequatepotential ?

Accessibilitycanthe segmentbereached thru distribution & communication ?

Responsiveness to tailored marketing programmes


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BRAND POSITIONING

Competition

Factorincompetition

who is meeting theirneed now ?

who is likely to meettheirneeds in futurehow muchresources do they have

whataretheir futurebusiness plans

Likelihood ofBrand Switching


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BRAND POSITIONINGCompetition Brand Switching

Users

Convertible on the threshold of change

Shallow not likely to switch butweighing options

Averagecomfortable now

Entrenchedfiercely loyal

Non Users

Strongly unavailable attached to present brand

Weakly Unavailableprefer current brand

Ambivalentfence sitters

Availableprefer other brand but have not yet switched


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BRAND POSITIONINGPoints of Difference Associations

Points of Difference are STRONG, UNIQUE and FAVOURABLE associations with a

brand.

PODs can be attribute related or benefit related

PODs give sustainable competitve advantage in the long run


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BRAND POSITIONING

Points of Parity Associations

Points of Parity are FAVOURABLE associations that may be shared withother brands

POPs can be classified underCATEGORYandCOMPETITIVE

CATEGORY POPs necessary for the product or service category to becomea LEGITIMATE and CREDIBLE offering; may change over time

COMPETITIVE POPs designed to negate competitor PODs


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BRAND POSITIONINGPositioning Guidelines

Key issues for optimal brand positioning

Define & Communicatecompetitive frame ofreference

Chooseand establish POPs and PODs


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Define & Communicate competitive frame of reference

Determinecategory membership products or sets ofproducts with whichthebrand is likely to compete

Communicatethecategory membership so thattheconsumeris aware ofthegoals thatthey mightachieveby using theproduct or service.- Sometimes new categories may becreated.- Brand can straddletwo categories

Reinforcecategory membershipbyrepeating benefitsreferto exemplars inthatcategoryappropriateproduct descriptors


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BRAND POSITIONING

Positioning Guidelines

Criteria for PODs and POPs

DESIRABILITY

Relevance

DistinctivenessBelievability

DELIVERABILITY

Feasibility

Communicatability

Sustainability


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BRAND POSITIONING


Establishing PODs and POPs

POPs and POPs canclash witheach otherand causeconfusion.How does one

trade off ?

Separate the attributes

Leverage equity of another entity

Remove the confusion


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Update Positioning over time

Keep it relevant at all points in time Deepen meaning of the brand - LADDERING

Respond to competitive moves - REACTING

- do nothing- defensive moves- offensive moves


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BRAND POSITIONING


Establish Core Brand Values

Identify set of attributes and benefits that characterise the most important

dimensions of the brand

Obtain customer brand asociations and categorise them

Design a brand mantra


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Elements of a Brand Mantra

Brand Functions describes the nature of the product or service or the type of

experience or benefits provided

DescriptiveModifierfurther clarifies the functions

EmotionalModifierfurther qualifies the benefits on an abstract plane


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BRAND POSITIONING


Considerations for a Brand Mantra

Communicate defines the business category, sets brand boundaries and

clarifieswhat is unique

Simplifyshort, crisp and vivid and summaries the whole brand

Inspire taps into higher level meaning with consumers and stokes brand values

in the subconscious


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BRAND MARKETING PROGRAMMESBRAND ELEMENTS

BRAND ELEMENTS ARE THOSE TRADEMARKABLE DEVICES THAT SERVE TO

IDENTIFY & DIFFERENTIATETHE BRAND. ALSO KNOWN AS BRAND IDENTITIES

MAIN ELEMENTS ARE LOGOS, SYMBOLS, CHARACTERS, SLOGANS, JINGLES,

ETC.

BRAND ELEMENTS ARE INDEPENDENT OF THE PRODUCT OR SERVICE


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BRAND MARKETING PROGRAMMESBRAND ELEMENTS CRITERIA FOR CHOICE

MEMORABLE easily recognized, easily recalled

MEANINGFUL descriptive, persuasive

LIKEABLE fun & interesting, rich visual & verbalimagery, aesthetically pleasing

TRANSFERABLE within & across product categories,across geographical boundaries &cultures

ADAPTABLE flexible, updateable

PROTECTABLE legally, competitively

Ultimate objective is to improve brand aw

areness and brand associations


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BRAND MARKETING PROGRAMMESBRAND NAME PROCEDURE

1. Definebranding objectives

2. Generateas many names and concepts

3. Eliminatebased onbrand elementcriteriaand createa shortlist

4. Testthe shortlistand makea finalchoice


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BRAND MARKETING PROGRAMMESBRAND NAME GUIDELINES

DESCRIPTIVE describes functiongenerally not registerable

Indian Airlines

LIC

SUGGESTIVE suggests functionor benefit

First Flight

Dreamz

Unlimited

COMPOUNDS Two or more words, oftenunexpected

Red herring

CLASSICAL Esoteric languages Mercator

ARBITRARY Words with no linkage toco. or business

Kodak

FANCIFUL Words with no meaning Abracadabra


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BRAND MARKETING PROGRAMMESBRAND LOGOS & CHARACTERS

Logos & Characters are symbols to reinforcebrand meaning

A valuable way to identify thebrand

Canbechanged overtime sinceitis only oneelement ofthebrand

Strengthens brand associations attheemotionallevel


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BRAND MARKETING PROGRAMMESBRAND SLOGANS

Slogans are shortphrases thatcommunicate descriptiveand persuasive

informationaboutthebrand

Effective shorthand means to build brand equity

Summarisetheintent ofthe marketing programme

Reinforcebrand positioning and PODs


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BRAND MARKETING PROGRAMMESBRAND PACKAGING

Identifies thebrand

Conveys descriptiveand persuasiveinformation

Facilitates producttransportationand protection

Assists in-houseand at-home storage

Aids productconsumption


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BRAND MARKETING PROGRAMMESBRAND PACKAGING - GUIDELINES

Know yourconsumerget inside his head

Getthebig picturelook at other packaging in the category

Aesthetics and functionarebothcriticalneed to rise above the

clutter

Know your distributionchannels howdo dealers viewyour package

Educate senior managementget the resources


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BRAND MARKETING PROGRAMMESBRAND ELEMENTS- SUMMARY

CRITERIA

Memorability

Meaningfulness

LikeabilityTransferability

Adaptability

Protectability

BRAND ELEMENT

Names

Logos & Symbols

Characters

Slogans

Packaging


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BRAND MARKETING PROGRAMMESCHANGES IN THE ENVIRONMENT

Digitilisation & Connectivity internet, intranet, mobile devices

Disintermediation & Reintermediationnewchannels & middlemen

Customisation & Customerisationtailored products, providing ingredients

to make own products

Industry convergenceblurring of industry boundaries

New customer & company capabilities

The above lead to ..


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BRAND MARKETING PROGRAMMES

CHANGES IN THE ENVIRONMENT

Consumers

Inc. inconsumerpower

Variety ofavailable goods &

services

Moreinfo aboutalmostanything

Ease ofinteraction

Ability to compare & evaluate

Companies

Moreinfo & reach on

mkts.

Easiertwo way

communication

Customised offerings

Directreach

Bettercommunication


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BRAND MARKETING PROGRAMMESCHANGES IN THE ENVIRONMENT

Consumers arebecoming moreindividualistic

Brands becoming fragmented

Movementaway from mass brands

High decibellevels intruding privacy and putting consumers off

Leading to personalised marketing approaches..


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BRAND MARKETING PROGRAMMESPERSONALISED MARKETING APPROACHES

Experiential Marketing not just about product benefits but also connecting itwithunique & interesting experiences

Oneto One Marketing consumers help to add value by providing info to marketeers;in turn marketeers use the info to add value by generating rewarding experiences toconsumers

Permission Marketing seek permission before exposing consumers to a marketingprogramme

Any which way, get consumers more actively involved with the brand !


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BRAND MARKETING PROGRAMMESPRODUCT STRATEGY

Theproductis thecore ofbrand equity sinceitis theprimary

influence onthebrand experience

Designing & delivering aproductthat satisfies customerneeds is a

prerequisiteto successfulbrand building

To createbrand loyalty,product must surpass expectations


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BRAND MARKETING PROGRAMMESPRODUCT STRATEGY

The product strategy is developed on two critical platforms

Perceived Quality & Value howconsumers form opinions on the

quality and value of the product

Relationship Marketing howthe strategy transcends the actual

product to create stronger bonds and maximise brand resonance


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BRAND MARKETING PROGRAMMESPRODUCT STRATEGY PERCEIVED QUALITY& VALUE

Perceived Quality is defined as customers perception of the overall

quality or superiority of a product or service relative to relevant

alternatives and with respect to its intended purpose

- Keller


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BRAND MARKETING PROGRAMMESPRODUCT STRATEGY RELATIONSHIP MARKETING

Relationship Marketing is based on the premise that current customersare the key to long term business success

Relationship Marketing involves three important marketing issues

Mass Customisation

Aftermarketing

Loyalty Programs


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Mass Customisation

between mass production and totalcustomisation a compromise

supply side benefits lower inventory

not all products can be mass customised


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Aftermarketing

addresses both purchase AND consumption

issues

enhances consumption experiences

balances marketing funds betweenCONQUEST & RETENTION


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Aftermarketing activities include

maintaining a database

identifying points ofinteraction withcustomers

analysing customer feedback

conducting customer satisfaction surveys

communicationprogrammes

hosting specialcustomerevens orprograms

recovering lostcustomers


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Loyalty Programmes reduce defectionrateand increasecustomerretention

Building effective loyalty programmes entail

knowing yourcustomer segment

updating programmes to provide variety and attractnew customers

listening to customercomplaints and suggestions

making theprogrammeeasy to useand rewarding those who join


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BRAND MARKETING PROGRAMMESPRICING STRATEGY

Priceis onerevenue generating element ofthe marketing mix

Pricepremiums are one ofthe mostimportantbenefits ofbrand

equity

Pricing reinforces brand positioning


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BRAND MARKETING PROGRAMMESPRICING STRATEGY CONSUMER PRICE PERCEPTIONS

Consumers interpretpricebased onpriorpurchaseexperience,

formaland informalcommunication,point ofpurchaseinfo,etc.

Consumers evaluateprices againstinternaland external frames of

referenceand arriveataperceived price

Differencebetweenperceived priceand stated pricecancause

pleasant orunpleasantemotions

HENCE THE VALUE PRICING APPROACH


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BRAND MARKETING PROGRAMMESPRICING STRATEGY VALUE PRICING

The objective of value pricing is to find the right blend of product

quality, product costs and product pices that fully satisfies

consumer needs and wants and company profit targets


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BRAND MARKETING PROGRAMMESPRICING STRATEGY VALUE PRICING

Key elements in Value Pricing

Product Design & Delivery making it better

Product Cost making it cheaper

Product Price howmuch premiumwill the customer pay over the

cost


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BRAND MARKETING PROGRAMMESPRICING STRATEGY VALUE PRICING PROCESS

Assess what valuetheconsumerplaces ontheproduct or service

Look for variations inhow consumers valuetheproduct

How sensitiveis theconsumerto price

Identify an optimalpricing structure

Factorincompetitiveresponse

Monitorprices atthetransactionallevel

Assess consumeremotionalresponse

Arereturns worththecost


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BRAND MARKETING PROGRAMMESCHANNEL STRATEGY

Marketing channels are sets ofinterdependent organizations involved in

making the product or service availableto the consumer

Channel strategy involves the design and

management of marketing channels


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BRAND MARK

ETING PROGRAMMESCHANNEL STRATEGY

Channels can broadly be classified into Direct and Indirectchannels

Direct channels involve selling through personal contact withthe consumer B to C

Indirect channels involve selling through intermediaries B toB



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BRAND MARKETING PROGRAMMESCHANNEL STRATEGY

Direct Channels

Product info needs are high

High customisation

Quality assurance is critical

Purchase lot size is important

Logistics considerations

Indirect Channels

Broad assortment essential

Availability critical

After sales service important

Logistics considerations


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BRAND MARKETING PROGRAMMESCHANNEL STRATEGY- INDIRECT CHANNELS

Retailers most important since they can

directly influence Brand Equity

Retailers create their own brand equity

and interplay between store image and

brand image is often very strong


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BRAND MARKETING PROGRAMMESCHANNEL STRATEGY- DIRECT CHANNELS

Company Owned Stores

Web Strategies

Direct Marketing moves


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BRAND MARKETING PROGRAMMESCHANNEL STRATEGY- DIRECT CHANNELS

Company Owned Stores

Web Strategies

Direct Marketing moves


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY

Marketing communications are the tools

to inform,persuade and remindconsumers directlyor indirectlyabout

the brands they sell

`


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`

CurrentBrandKnowledge

Desired BrandKnowledge

communication

BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY - PROCESS

Senderwho sends the message Encoding putting thoughtin symbolic form Message set of symbols thatthe sendertransmits Media channels thru whichthe message moves Decoding how does thereceiverassign meaning to the symbols

transmitted Receiverwho receives the message Response the set ofreactions thatthereceiverhas afterbeing exposed to

the message Feedbackthatpart oftheresponse whichis communicated backto the

sender Noise unplanned distortion during thecommunicationprocess thatresults

inthereceiverreceiving a different message

`


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`BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY JOHARI WINDOW

Kn

own

known unknown

Unknown

Conventionalresearch

CreativeDiscovery

Communicate

OT

H

E

R

S

YOU


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- OBJEC TIVES

Exposuretheright people must see orhearit

Attentionpeople mustnoticeit

Comprehensionpeople mustunderstand it

Acceptancepeople mustrespond favourably

Intentions people mustplanto act

Behaviourpeople mustactually actinthe desiredmanner


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- OPTIONS

Advertising tv,radio,print, directresponse, websites, outdoor,POP

Promotionconsumerpromotions,tradepromotions,

Event Marketing & sponsorships

Public Relations & Publicity

Personal Selling


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- ADVERTISING

Any paid form ofnonpersonalpresentationand promotion ofideas

Advertising gives areasonto buy

Effect ofadvertising is long term by

nature



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BRAND MARKETING PROGRAMMESADVERTISING GUIDELINES - Television

Message Strategy which definesPositioning (what thead conveys )

Competitive frame of reference

Nature of competition

Target market

POPs- necessary & deliverable PODs- desirable & deliverable

Creative Strategy (how thead conveys )

Informational- problem & solution,demonstration, product comparison,testimonials

Transformational or image potrayaltypical or aspirational usage situation or

user of the product, brand personality &values

Motivational- humour, warmth, sexappeal, special effects

POPs- necessary & deliverable

PODs- desirable & deliverable

COPY TESTTHE AD IN VARIOUSSITUATIONSTO ESTABLISH EFFECTIVENESS


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BRAND MARK

ETING PROGRAMMESADVERTISING GUIDELINES - Print

Printads should have CLARITY,CONSISTENCY & BRANDING

Is the messageclearata glance ? Is thebenefitintheheadline ? Does theillustration supporttheheadline

? Does the firstline ofthecopy supportthe

headline & illustration ? Is thead easy to read & follow ?


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BRAND MARK

ETING PROGRAMMESADVERTISING GUIDELINES - Outdoor

Outdoorads createawareness and reinforcerecall & brand equity

Is the messageclearata glance ?

Is thebenefitintheheadline ? Does theillustration supporttheheadline ?

Is theproducteasily identified ?

Is thebrand or sponsoreasily identified ?


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- PROMOTION

Shortterm incentives to encouragetrialorusage ofaproduct or service

Promotion gives anincentiveto buy

Effect ofpromotionis shortterm


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BRAND MARKETING PROGRAMMESPROMOTION - GUIDELINES

Typeimmediate vs delayed value, price cut vs added value

Product Scopemodels, sizes, multiple or selective, more or less

popular, in line or off line

Market Scopenational, regional, which segment

Timingwhen, how long, in season or off season,when to announce,frequency

Discount Rateexplicit or implicit, deep or shallow

Terms explicit or implicit, deep or shallow


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- EVENT MKTG & SPONSORSHIPS

Public sponsorship ofevents oractivities related to sports,art,entertainment or socialcauses

Identify withaparticulartarget mkt orlifestyle

Increaseawareness ofthecompany orproductname

Create orreinforceconsumerperceptions ofkey brand imageassociations

Enhancecorporateimage

Createexperiences & evoke feelings

Express commitmentto community or socialcauses

Entertainkey clients

Permit merchandising orpromotionalactivities


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- PUBLIC RELATIONS & PUBLICITY

Publicity refers to nonpersonal

communication,eg press releases, mediainterviews,press conferences, feature

articles,etc.

Public Relations refers to personal

communication ona mass scale,eg fund

raising, membership drives,etc


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- BUZZ MARKETING

Word of mouthpublicity withlittle orno

formalcommunicationinputs

Works well whenthe message originatesfrom anindependent sourceinstead of

thecompany

Messages are simple, says somethingnew, delivers promise


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- PERSONAL SELLING

Faceto faceinteraction with one or moreprospectivepurchasers forthepurpose of

marketing and sales

Detailed CUSTOMISED messages canbesentand feedback generated,tailoredsolutions offered

However,costis highand coveragenarrow


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BRAND MARKETING PROGRAMMESCOMMUNICATION STRATEGY- SHARE OF VOICE

SOV/SOM is akey ifnotthebestindicator of whatlevel of media

supportneeded to drive share growth.

Leading brands that grew share maintained SOV/SOM ratios

exceeding 100%

Substantiallag effectin from SOV/SOM ratio changes and actual

market shareimpacts.

SOV/SOM mustbe sustained foralong period to drive sharechanges.

The greateruniformity/equality thatexists among thecompetition on

thequality ofadvertising and brand benefits,the strongerthe

correlation of SOV/SOM.

Brands withnews orhigh growthcategories getabetterreturn on

increased SOV/SOM ratio.


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Circumstances requiring greater SOV/SOM ratio to grow

share:

New brands generally need a disproportionateratio (150 to 200 indexes)to geta foothold and grow.

Longerpurchasecycles.

New brands withoutaquality orequity difference.

Wheretheory of SOV/SOM ratio does nothold :

A majorpricechangeby onebrand A brand pre-launch or significantnew innovation

Entry ofa significant, dynamicbrand

Much morecompelling message,copy orcreative


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Guiding principles to navigatethecorrectlevels of SOV

investment:

SOV aloneis notenough. Using therightcopy is criticalto drivereturns SOV/SOM differential matters. Excess SOV delivers growth:typically, 0.5%

fora 10-point differential

Brand size matters. Marketleaders drive greaterreturns from SOV than

challengers.

Newness delivers higher gains. Launches/youngercategories respond at

ahigherlevel.

Short-Term is dangerous. Correctlevel of SOV + quality campaign =

strongerbrand


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BRAND MARKETING PROGRAMMESINTEGRATED MARKETING COMMUNICATIONS

Mix & Match : different communication options that share common meaning & content

but also offer different complementary advantages

Option AOption B

Option C


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LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD

BRAND EQUITY

Brands may belinked to otherentities withtheir ownknowledge structures intheconsumer mind

Thrutheselinkages consumers may inferthat some oftheseassociations withthese otherentities arealso true forthebrandand these gettransferred to thebrand

Depending onthenatureand extent oftheseassociations,brand equity gets affected

This indirect approach to building brand equity is known as leveragingsecondary associations


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BRAND EQUITY

Secondary associations canbeused very effectively to

Create strong, favourable,uniqueand positiveresponses

wherenone exist

Reinforceexisting associations inanew and different way


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BRAND EQUITY

Extent ofleverage depends on

Awareness & knowledge oftheentity

Meaningfulness oftheknowledge oftheentity

Transferability oftheknowledge oftheentity to thebrand


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BRAND EQUITY

Secondary associations arenormally createdby linking thebrand to one or more ofthe

following : Companies thru branding strategies Countries thru product origin Channels

Otherbrands thru Co-Branding Characters thru licensing Spokespersons thru endorsements Events thru sponsorships

SOURCE

RELATEDENTITIES


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LEVERAGING SECONDARY BRAND KNOWLEDGE Companies

Three mainbranding options exist witha

corporatebrand

Createanew brand

Adopt or modify anexisting brand

Combineanexisting and new brand


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LEVERAGING SECONDARY BRAND KNOWLEDGE

Country of Origin

Leveragecountry orregionbrand equity

arising out ofbeliefs aboutquality of

certaintypes ofproducts ortheimagethatthesetypes ofproducts

communicate vis a vis certainproduct

categories

Serves to createa strong POD because of

consumers identificationand beliefs

aboutthecountry orregion


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LEVERAGING SECONDARY BRAND KNOWLEDGEChannels

Stores havetheir ownassociationin

consumers mind whichcanhavea veryfavourableassociation

Channeland Brand associations mustbe

insynch


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LEVERAGING SECONDARY BRAND KNOWLEDGE Other

Brands Co-Branding

Co-Branding occurs whentwo or more

existing brands arecombined into ajoint

product orare marketed togetherin someway

An offshoot of Co-Branding is Ingredient

Branding

LEVERAGING SECONDARY BRAND KNOWLEDGE Other Brands

C B di


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Co-Branding

Advantages

Borrow needed expertise

Leverageequity you donthave

Reduceproductintroduction

costs Expand brand meaning into

related categories (broaden

meaning,increaseaccess

points )

Generateaddlrevenue

Disadvantages

Loss ofcontrol

Risk ofbrand equity dilution

Negative feedbackeffects

Lack ofbrand focus & clarity Organizational distraction


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Brands Co-Branding

For successful Co-Branding

Bothbrands musthaveadequateawareness

Each should have strong, favourableanduniqueassociations

Positiveconsumerjudgements andfeelings Each should separately have somebrand

equity

Logical fitbetweenthebrands



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Brands Co-Branding

For successful Co-Branding ask yourself

Whatcapabilities do younothave ?

Whatare yourresourceconstraints ?

What growth orrevenue goals do youhave ?

Is itaprofitable venture ?

How does ithelpto maintain or strengthenbrand equity ?

Whatis therisk of diluting brand equity ?

What otheradvantages does it offer ?


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LEVERAGING SECONDARY BRAND KNOWLEDGE Co-Branding

Ingredient Branding

Ingredientbrands canthereforebecomeindustry standards to consumers to an

extent wheretheproduct would notbebought withoutit

Ingredientbrands canbecomecategorypoints of parity

Consumers do notnecessarily havetoknow how theingredient works onlythatitadds value

LEVERAGING SECONDARY BRAND KNOWLEDGE Co Branding


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LEVERAGING SECONDARY BRAND KNOWLEDGE Co-Branding

Ingredient Branding

Guidelines for successfulingredientbranding

Consumers mustperceivethattheingredientenhances performance &adds value. Intrinsic value should beeasily visible & experienced

Consumers mustperceivethattheingredientis differentiated. Ingredientshould have someinnovation or other substantialadvantage over otheralternatives

Distinctive, simpleand versatilelogo to credibly communicatequality andconfidenceto consumers

Coordinated push & pullprogram to ensurethatconsumers understand

the value oftheingredient



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Licensing

Licensing involves contractualarrangements whereby names,logos,characters,etc of otherbrands areused to marketanotherbrand fora fixed fee

Shortcutto building brand equity

Lucrative forthelicensor

Dangerthelicensed brand is a fad withno long term benefits beclearaboutthe objective

Multiplelicensing ofthe samebrand canleato overexposureand

dilution ofbenefits


Endorsements


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Endorsements

Similarto licensing butacelebrity is involved

Celebrity should haveahighawareness leveland arich set ofpotentially useful

associations,judgements and feelings Expensive,hencetheabovebenefits should

sustain overtime

Endorsement ofbrands orproducts whichtriggerconflicting associations inconsumermind can dilutetheutility ofthis endorsement


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BRAND STRATEGIES


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BRAND STRATEGIESTHE BRAND PRODUCT MATRIX

Graphicalrepresentation ofallthebrands andproducts/categories sold by the firm

Rows representbrand-productrelationships andindicatethebrand extension strategy interms ofnumberand nature ofproducts/categories.

Columns representproduct-brand relationships andcapturethebrand portfolio strategy interms ofthe

numberand nature ofbrands to be marketed ineachcategory


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A brand line consists ofallproducts/categories(incl. Extensions ) sold underabrand. Eachrow is thereforeabrand line

Thebrand portfolio is the set ofallbrands and brand lines thatareoffered for saleinaparticularcategory. Eachcolumnthereforeis abrand portfolio


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Aproduct line is a set ofproducts withinacategory becausethey areclosely related,function similarly and address samecustomer groups, marketed through sameoutlets or fallina givenpricerange. A productline may comprise of differentbrands,a single family brand ora singlebrand thathas beenlineextended

Aproduct mixis the set ofallproductlines and/oritems on offer. Product Linesrepresentdifferent sets of columns inthe matrix thatintotal makeuptheproductmix

A brand mixis the set ofallbrand lines on offer


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BRAND STRATEGIESBRANDING STRATEGY

Branding strategies canbeclassified interms ofBREADTH and DEPTH

Breadth ofthe strategy relates to brand-productrelationships and brand extension strategy

Depthis characterised by product-brandrelationships and thebrand portfolio or mix


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BRAND STRATEGY - BREADTHBREADTHOF THE PRODUCT MIX - FACTORS

MARKET CATEGORY ENVIRONMENT

size new entrant threat technological

growth buyer bargaining power political

Stage in product life cycle category rivalry economic

Sales cyclicity substitute pressure regulatory

seasonality Category capacity social

profits

BRAND STRATEGY BREADTH


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BRAND STRATEGY - BREADTH

DEPTH

OF TH

E PRODUCT MIX - FACTORS

Depth oftheproduct mix concerns decisions on optimalproductline strategies and productlineanalysis

Whichproducts should beattached to whichbrands theissue ofbrand extension

Whichbrands should beattached to whichproductcategory theissue ofbrand portfolio


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BRAND STRATEGY DEPTH

THE BRAND PORTFOLIO- SUMMARY

Brands can play multifarious roles within the portfolio basedon issues related to consumers, competition and the firm

Brands can expand coverage, provide protection, enhanceand extend image, etc.

Basic criteria for brand portfolio decisions :> well defined role as to what the brand is supposed to do> well defined positioning as to what benefits or promises

it offers> what associations the brand is to own or represent


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BRAND HIERARCHY

Corporate orcompany brand (e.g. HP )

Family Brand (e.g. Compaq)

Individual Brand (e. g. Pressario )

Modifier(e.g. nx9010 )


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BRAND HIERARCHY

FAMILY BRAND

Family brands areapplied across arange ofproductcategories

Distinctive family brands evokea specific set ofassociations across a group ofrelated but differentproducts

Family brands makenew productintroductioneasier.However, onproduct failurecanaffecttheimage ofthefamily brand and therefore multipleproducts


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BRAND HIERARCHY


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DECISIONS

Number of levels Principle of simplicityemploy as few levels as possible

Levels of awareness and types

of associations to be created at

each level

Principle of relevance

create abstract associations that arerelevant across as many associations as

possible

Principle of differentiation

differentiate individual items and brands

Link brands from different levels

for a product

Principle of prominence

relative prominence of brand elements

affects perception of product distance and

type of image for new products

Link a brand across products Principle of commonalitythe more common elements shared by

products, the stronger the linkages

NEW PRODUCTS & BRAND EXTENSIONS


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Current

Products

New

Products

CurrentMarkets

MarketPenetration

ProductDevelopment

New

Markets MarketDevelopment

Diversification


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NEW

PRODUCTS & BRAND EXTENSIONS

1. Developanew brand forthenew product

2. Apply in some way,anexisting brand

3. Useacombination ofnew and existing brand

A brand extension is whenanestablished brand is used foranew product( 2 & 3above)

Whenanew brand is combined withanexisting brand ( 3 above) thebrandextensioncanalso becalled asub brand

Anexisting brand that gives riseto abrand extensionis referred to as theparentbrand

If the parent brand is already associatedwith multiple products through brandextensions, it may also be called a family brand


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NEW

PRODUCTS & BRAND EXTENSIONS

Brand extensions canbroadly beclasssified as under

Line Extension theparentbrand is used to brand anew product

thattargets anew market segmentwithin a product categorycurrently served by the parent brand

Category Extension theparentbrand is used to enter a differentproduct category from that currently served by the parent brand

=


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BRAND EXTENSIONS -ADVANTAGES

FACILITATE NEW PRODUCT ACCEPTANCE Improvebrand image Reduceriskperceived by customers Increaseprobability of gaining distribution & trial Increaseefficiency ofpromotional measures

Reducecosts ofintroductory and follow up marketing programmes Avoid cost of developing new brand Packaging and labelling efficiencies Permitconsumer variety seeking

FEEDBACK TO PARENT BRAND & COMPANY Clarify brand meaning Enhanceparentbrand image

Bring new customers into brand franchise & increase marketcoverage Revitalisethebrand Permit subsequentextensions


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BRAND EXTENSIONS - DISADVANTAGE

S

Canconfuse or frustratecustomers Canencounterretailerresistance

Can failand hurtparentbrand image Can succeed buthurtparentbrand image Can succeed butcannibalise sales ofparentbrand Can succeed but diminishidentification withany onecategory Can dilutebrand meaning Cancausecompany to forego thechanceto developanew brand

BRAND EXTENSIONS

BASIC ASSUMPTIONS


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BASIC ASSUMPTIONS

Positive Associations aboutparentbrand existinconsumer memory

Thebrand extension willevoke some ofthesepositive

associations Negativeassociations oftheparentbrand will notbe

transferred to theextension the Cadbury wormexample

Thebrand extension willnotcreateany negative

associations


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BRAND EXTENSIONS

THEPROCESS

Defineactualand desired consumerknowledgeaboutthebrand Identify possibleextensions based onparentbrand associations and

similarity/fitto parentbrand

Evaluatepotential ofextensionto createbrand equitysalience ofparentbrand associationsfavourability ofinferredextensionassociationsuniqueness ofinferredextensionassociations

Evaluate feedback ofproposed extensionbased oncompelling,relevant,strong and consistentevidence

Considercompetitiveadvantages as perceived by customers and possible

consumerreaction Design of marketing programmes Evaluateextension success and effects onparentbrand equity

BRAND EXTENSIONS


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PROVEN CONCLUSIONS

Favourableparentbrand associations coupled with good fit withextension Highquality brands stretch fartherthanaveragequality brands A brand thatbecomes protypical ofaproductcategory is difficultto extend Concreteattributeassociations are more difficultto extend thanabstract

associations Positiveassociations aboutaparentbrand canbecomenegativeintheextension

context Successfulextensions contributeto parentbrand equity and permit further

extensions Anunsuccessfulextensionhurts theparentbrand only ifthereis a good fit Verticalextensions are difficultand require subbranding strategies

Effectivecommunication strategies foranextensionemphasizeinformationabouttheextensionratherthanreminders abouttheparentbrand


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BRAND ARCHITECTURE

MANAGING BRAND PRODUCT RELATIONSHIPS

A brand has two basic functions :Distinguishing products from oneanotherCertifying aproducts origin

In multiproduct situations how should the system ofnames and symbols beorganized so thatthe overall offerand structureis easily understood by prospectivebuyers

The system should belogicaland follow rules thatcanbeapplied internally The system should help sales and productpromotions inthe shortterm and

promotebrand equity inthelong term The system should havethe flexibility to anticipate futureand possibleevolutions in

productlines and productrange so thatitcanlast overtime

Brand Architecture involves positioning alternative branding strategies ofmanaging brand product relationships so that these twin objectives are served


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BRAND ARCHITECTURE

PRODUCT BRAND STRATEGY

A particularbrand nameis assigned to oneand only oneproduct orproductline. Thereforethebrand portfolio and productportfolio fullycorrespond to each other.

Products and brands canbe sharply differentiated Freedom to move wheneverand wherever depending on opportunities Failure of onebrand does notaffect others Permits sharp focus on one market offensive strategy to capturethe

entire market Inanew segment,ithas first moveradvantages and has thepotentialto

becomethereferencepoint forall futurecompeting brands

Disadvantageis interms ofcosts oflaunching and sustaining multiplebrands


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BRAND ARCHITECTURE

LINE BRAND STRATEGY

Involves exploitation ofa successfulconceptby extending itbut staying very closeto

theinitialproduct

This extensioninvolves only marginalcostincreases linked to distribution margins,packaging,etc. IT DOES NOT NEED ADDITIONAL ADVERTISING

Itreinforces thebrand image

Facilitates distribution

Reduces launchcosts

Disadvantageis interms ofthelimits to suchextension only closely related

products canbeincluded

CH C


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BRAND ARCHITECTURE

RANGE BRAND STRATEGY

Useasingle brand name andpromote through a single promise,arange ofproducts

belonging to thesame area of competence

Theline structures the offerby putting togetherproducts whichareheterogeneousbuthavethe samebasic function

Avoids random spread ofcommunicationby focussing ona singleentity

Cost ofnew launches is low sincenew products thatareadded areconsistent with

thebrand promiseand perform the samebasic function


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BRAND ARCHITECTURE


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BRAND ARCHITECTURE

SOURCE BRAND STRATEGY

Sourcebrands are sameas umbrellabrands exceptthateachproducthas its own

brand name.

The sourcebrand is the driver ofthepurchase

This is atwo tierbranding structure. Thecorebrand provides a set ofassociations

whichare modified and complemented by the second tierbrand values therebygiving a sense of differenceand depth yetacommonality across the second tier

brands

Limitations areinterms ofthenature of second tierbrands thatcanbeassociated

withthecorebrand; only names thatarerelated withthecorebrands field of

activity canbeassociated withitand allproducts should share the same spirit

BRAND ARCHITECTURE


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BRAND ARCHITECTURE

ENDORSING BRAND STRATEGY

Theendorsing brand gives its approvalto a wide diversity ofbrands grouped under

product,line or family brands

Theproduct orline or family brand is the driver ofthepurchase

Itis acosteffective way of giving substanceto acompany nameand allowing itto

achievea minimalbrand status withoutalltheinputs required to build acorporate

brand

BRAND ARCHITECTURE

CHOOSING THE RIGHT BRAND STRATEGY


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CHOOSING THE RIGHT BRAND STRATEGY

Whatis thecorporate strategy ?

Whatis thebusiness model ?

Whatis theaccepted cultureinthe market ?

Whatis thepace ofinnovationinthe market ?

Whatis theadded valuelever ?

Whatis thelevel ofresources available ?

BRAND ARCHITECTURECHOOSING THE RIGHT BRAND STRATEGY


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Indicator oforiginsource effectreassurance

Product differentiationpersonalisation

* Product brand

* Line brand

* Family brand

* Source brand

* Umbrella brand

* corporate Endorsing brand

* corporate source brand

* Corporate umbrella brand

* Generic brand


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MANAGING BRANDS OVER TIME Reinforcing brands

Revitalising brands

Adjusting brand portfolios

MANAGING BRANDS OVER TIME


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Reinforcing Brands Brand equity is reinforced by constantly asking yourself

whatproducts and how arethey superior, whatbenefits does it offer, whatneeds does it supply, whatarethe strong,uniqueand favourableassociations inthecustomer mind

Maintainbrand consistency throughconsistent,adequateand focussedmarketing supportto protectthe sources ofbrand equity

Adequateresearchand technological developmentis akey augmentertomarketing programmes youcant winbattles withatin sword; or withasword wherearifleis required

Dontalways milk orleveragethebrand; also fortify it. Ifleveraging thebrand, do so ina mannerthatalso fortifies brand equity



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Revitalising Brands Brands canlosetheirlustre overtime dueto a variety of factors. Changes

incustomertastes,competition,technologicalchanges,changes incultureand values can makethebrand less relevant

Lack ofconsistent,adequateand focussed supportto protectthe sources

ofbrand equity is also areason forloss in vitality

Revitaliseabrand only ifthe values are salient

Brands mostlikely to respond to successfulrevitalisationarethose wherethe desired values existed strongly buthavebeenallowed to becomedormant. Bringing brands backis morelikebuilding from scratch takethe

values already existing,energisethem and add more values whicharesalient itis the makeover ofthebrand

REINFORCING BRANDS


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BRAND

AWARENESS

Consistent mktg

support

Products

benefits

needs

Innovation in

design, mfg,

packaging

BRANDREINFORCEMENT

STRATEGIES

Continuity in brandmeaning

changes in tactics

Protect sources of

brand equity

BRAND IMAGE

Relevance to user& user imagery

Strong

favourable

unique

Trade off

fortify vs leverage

CUSTOMER BASED BRAND EQUITY


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MEASURING BRAND EQUITY

A Brand Equity Measurement System is a

set ofresearchprocedures to provide

timely,accurateand actionable

information onbrands to enable short

and long term moves

The Brand Value Chainis a structured

approachto assessing the sources andoutcomes ofbrand equity



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BRAND VALUE CHAIN

VALUE

STAGESMktgProgramInvestment

Customer

Mindset

MarketPerformance

Shareholder

Value

ProgramQualityM

arketplaceConditions InvestorSentiment

Clarityrelevancedistinctivenessconsistency

Competitive reaction

Channel support

Customer size/profile

Market Dynamics

Growth Potential

Risk Profile

B

randContribution

MULTIPLIERS

Product

Communication

Trade

Employees

Others

Price premium

Price Elasticity

Market Share

Expansion Success

Cost & profitability

AwarenessAssociations

Attitudes

Attachment

Activity

Share Price

P/E Multiple

Mkt. Cap.


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FINANCIAL VALUATION OF BRANDS

Historical Costs

Replacement Costs

Market Price

Royalties

Future Earnings

Present Earnings



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HISTORICAL COST METHOD What Period ? Which Costs ? Discounting Rateto beapplied ?

This method is useful where valueisderived from advtg and mktgCONTINUOUSLY. Stopthecommunicationand thebrand dies.



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REPLACEMENT COST METHOD What willitcostto createanotherbrand

withthe sameequity ?

Issues arecost,timeperiod,relevance

This method is useful where marketentry

is notahindranceand brands canbe

created quickly; market segmentis

localised and well defined



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MARKET PRICE METHOD Whatis the value of similarbrands inthe

marketplace ? Howeverthereis no stock

exchange forbrands !

Subjective decision depending oneach

companys synergies



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ROYALTIES METHOD Whatannualroyalties would bereceived

onlicensing ?

However whilecompanies licensebrandsto reach markets,this fee does notincludethecost ofknow how and servicesthatthebrand owner supplies



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FUTURE EARNINGS METHOD Separateand isolatethenetincome from

thebrand Estimate futurecash flows

Apply aproper discounting rateandperiod

Issues areuncertainty of forecasts,

salience ofthebrand,period anddiscounting rate



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PRESENT EARNINGS METHOD This ratio links the market value ofthe

brand to thenetprofits from thebrand.

Thehigherthe multiplethe strongerthe

valuation

brand management updated

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