BRAND EQUITY ASSETS

Presentation

By
Paul Olola D65/68454/2013
Kamau Patrick D65/71325/2014

Pauline Njoroge D65/67753/2013

16th February,2015

Introduction to the concept of Brand Equity

Brand equity describes the value of having a well-known

brand name, based on the idea a well-known brand name

can generate more money from products with that brand
name than from products with a less well known name.

Brand equity refers to the marketing and financial values

linked with a brands strength in the market including :
proprietary brand assets, brand name awareness, brand
loyalty, perceived brand quality and brand associations
(Pride & Ferrell, 2003)

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 (Keller,2003)

Consumer Based Brand Equity

Customer based brand equity occurs when the consumer

has a high level of awareness and familiarity with the

brand and holds some strong, favourable and unique brand
associations in memory.

The five assets implicate that brand equity provides value

to the customer and the product.

Brand Equity Assets

There are five categories

of brand equity assets
which add value to the
product and the customer,
they are:

Brand loyalty
Brand awareness
Perceived quality
Brand associations
Other proprietary
assets

Brand Loyalty
Brand loyalty is basically how an

individual uses a product and if

he/she lacks that particular
product will go to the next shop to
look for the same product despite
the substitute available for the
same product.
Customers can be defined into five
categories depending on their
attribute towards the brand:

1.

Committed buyer - High brand equity, Likes the brand, has clear
brand assets.

2.

Satisfied buyer with switching costs - Equity with point of

vulnerability.

3.
4.

Satisfied habitual buyer- no reason to change, equity diffuse.

Brand switchers - Price sensitive buyers, no loyalty, no brand equity.

Measuring brand Loyalty

Behavioral Approach
This method involves observing the actual buying behaviour as
represented by customers, repeat purchases on one brand as a
percentage of last few purchases and the number of brands
purchased by an average target customer during the last few
shopping cycles.
A particular brand can also be made solely available at selected
retail outlets for a fixed period of time to determine how
choices will be influenced.
Involves creating economic or psychological barriers to brand
switching. The most important barrier is economic or high
switching cost. This could be in the nature of initial investment
in the equipment or the product, learning and the perceived
high risk in changing. Example incompatibility in servers e.g. in
Mac Book Laptops.
Among the psychological barriers are customer satisfaction,
customer liking the brand and commitment to buy the preferred
brand.

Brand Awareness
It is the durability of a brand
that is embedded in the
customer memory.

It is the ability of a potential

buyer to recognize or recall a

brand in a brand category.

Brand awareness relates to

consumers ability to confirm

prior exposure to the brand
when given the brand as a
cue in a product category.

Consequences of Brand Awareness

Consideration advantages- it is important that

consumers think of and consider the brand whenever

they are making a purchase for which the brand
could potentially be acceptable
Learning awareness - affects consumer decision
through influencing the formation and strength of the
brand association that make the brand image.
Choice advantages - brand awareness can affect
choices among brands in the consideration set even if
they are essentially no other association to those
brands

Achieving high brand awareness

To achieve high brand awareness, it is important to
undertake the following:
Be different and memorable
Involve a slogan or a jingle
Expose the brand symbol
Get in the press as a new item or publicize the brand
Sponsor major events : safari sevens, matter heart run
Consider extending brand to other products like:
Safaricom and mshwari.
Repeat yourself constantly
Use cues of either the product class, the brand or both

Brand Associations
Brand Associations is a node linked to
a particular brand (Keller, 2003)
It is anything linked in memory to a
brand (Aaker, 2001)
They provide bases purchasing
decisions and level of brand loyalty
They enable companies differentiate
their brands in the market and can
be a key competitive advantage

Brand associations can be classified in different categories,

these include: The company, other organizations, brand
personalities, celebrities and events, typical users, typical usage
situations, product category, price, communication, distribution,
product related attributes, functional benefits, experiential
benefits, symbolic benefits and attitudes.

Importance of brand association to brand equity

Brand association helps build brand equity by:
Helping a customer to process and quickly retrieve product
information.
Differentiate the product from competition.
Providing the customer a reason to buy.
Helping in creating a positive attitude or feelings towards
the brand.
Providing the basis for product line extensions.
Among the type of association that a brand may develop are:
Country or geographical area or the home of the brand, Product
attributes like a herbal beauty, Customer benefits which could
be psychological, Relative price premium brands in different
product group reflect customers perception of their quality, Use
or application, Use or customer, Celebrity or person, Lifestyle or
personality, Product class, Competitors.

Perceived quality
Perceived quality is the overall perception of

customers about brilliance and quality of the

products or services in comparison with rival
products.
Product quality is different from the perceived
quality of the product because the perceived
quality is the customers subjective appraisal of
the product.
Perceived quality can act as a key influencing
factor in determining consumer choices.
If the brand is perceived to be of a premium
quality, the customers will be willing to pay a
premium for it.
Perceived quality is the bench mark by which the
customers evaluate different brands on quality.

Other proprietary assets

Other proprietary assets of a brand include:

Brand name

Patent
Channels relationship
New product decisions

A good and cordial relationship with channel

members can always help enhance brand equity
because of the interest the channel members will
have in the firms brand.

References
Keller, K.L. (2003). Strategic Brand Management :

Building, measuring and managing brand equity (2nd ed.)

New Jersey: Prentice Hall International Inc.

Kotler, P. & Keller, K.L. (2012). Marketing Management

(14th ed.) Cerebellum Press.

Kotler, P. & Armstrong, G.(2012). Principles of Marketing

(14th ed.) New Jersey : Prentice Hall International Inc.

Thank you