Creating Brand

Equity

Learning Objectives
What is a brand and how does branding
work?
What is brand equity?
How is brand equity built, measured, and
managed?
What are the important decisions in
developing a branding strategy?

Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.

Related Terms
Brand name is that part that can be spoken,
including letters, words and ..
Brand names simplify shopping, guarantee a
certain level of quality and allow for self
expression.
Brand mark-elements of the brand that cannot
not be spoken, i.e. symbol
Trade Character i.e. Ronald McDonald, Pillsbury
Doughboy
Trade mark-legal designation that the owner has
exclusive rights to the brand or part of a brand.

Attributes of Strong Brands

Excels at delivering
desired benefits
Stays relevant
Priced to meet
perceptions of value
Positioned properly
Communicates
consistent brand
messages

Well-designed brand
hierarchy
Uses multiple
marketing activities
Understands
consumer-brand
relationship
Supported by
organization
Monitors sources of
brand equity

The Role of Brands

Identify
Identify the
the maker
maker
Simplify
Simplify product
product handling
handling
Organize
Organize accounting
accounting
Offer
Offer legal
legal protection
protection

The Role of Brands

Signify
Signify quality
quality
Create
Create barriers
barriers to
to entry
entry
Serve
Serve as
as aa competitive
competitive
advantage
advantage
Secure
Secure price
price premium
premium

Branding
Endowing products and services with the power of a
brand. Its all about creating differences.
To brand a product, it is necessary to teach consumers:
-Who the product is
-What the product does
-Why the consumers should care.
Branding involves creating mental structures and
helping consumers organize their knowledge about
products and services in a way that clarifies their
decision making and in the process provides value to
the firm.

Brand Equity
The differential effect that brand
knowledge has on consumer
response to the marketing of that
brand.

Brand Knowledge
Thoughts

Feelings
Knowledge
Images

Beliefs
Experiences

Marketing Advantages of Strong

Brands
Improved perceptions of
product performance
Greater loyalty
Less vulnerable to
competition
Less vulnerable to crises
Larger margins
Inelastic consumer
response to price
increases

Elastic consumer
response to price
decreases
Greater trade
cooperation
Increase in
effectiveness of IMC
Licensing opportunities
Brand extension
opportunities

Brand Associations
Strong
Unique
Favorable

Branding a Place

Brand Promise
The marketers vision of what
the brand must be and do for
Consumers.

Brand Equity Models

Brand Asset Valuator
Aaker Model
BRANDZ
Brand Resonance

Brand Asset Valuator (BAV)

Brand Equity

Knowledge

Esteem

Relevance

Differentiation

Brand Asset Valuator (BAV)

Differentiation: measures the degree to which a brand is
seen as different from others.
Relevance : measures the breadth of a brands appeal.
Esteem: measure how well the brand is regarded and
respected.
Knowledge: measures how familiar and intimate
consumers are with the brand.
Differentiation and Relevance determine Brand Strength,
points to the brands future value.
Esteem and Knowledge create Brand Stature, mentions
past performance.

Aaker Model Brand Identity

Brand-as-product

Brand-as-organization

Brand-as-person

Brand-as-symbol

Aaker Model Brand Identity

Brand As Product
Product Scope
Product Attributes
Quality/Value
Uses
Users
Country
Brand as Organization
(A brand is a personification of the
company it represents, which is
strategically crafted to exude
particular desirable attributes to the
consumer)
Organizational Attributes
Local vs. Global

Brand As Person
Personality
Brand-customer relationship
Brand As Symbol
Visual Imagery and
metaphors
Brand Heritage

The BRANDZ Model

Bonding
Advantage
Performance
Relevance
Presence

The BRANDZ Model

Millward Brown and WAP developed this Model.
Brand building involves a sequential series of
steps, where each step is contingent upon
successfully accomplishing the previous step.
Presence-Do I know about it?
Relevance- Does it offer me something?
Performance- Can it deliver?
Advantage- Does it offer something better than
others?
Bonding- Nothing else beat it?

Brand Resonance Pyramid

Brand Elements
Brand
names
Slogans

Characters

URLs

Elements

Symbols

Logos

Brand Elements Choice Criteria:

General Considerations
Memorable
Easily Recognized
Easily Recalled

Meaningful
Credible & Suggestive
Rich Visual & Verbal
Imagery

Appealing
Fun & Interesting
Aesthetics

Adaptable
Flexible & Updateable

Protectable
Legally
Competitively

Transferrable
Within & Across
Product Categories
Across Geographical
Boundaries & Cultures

Secondary Sources of Brand Knowledge

Measuring Brand Equity

Brand audit- is a consumer-focused exercise
that involves a series of procedures to assess
the health of the brand, uncover its sources of
brand equity and suggest ways to improve
and leverage its equity.
Brand Tracking-studies employ quantitative
measures to provide marketers with current
information as to how their brands and
marketing programmes are performing on the
basis of a number of key dimensions.
Brand Valuation-estimating the total financial
value of the brand.

10 most powerful global brands of 2007

According to Millward Brown Optimor,
Brand
Brand Value
1. Google
--$66.4 billion
2. General Electric --$61.9 billion
3. Microsoft
--$55 billion
4. Coca-Cola
--$44.1 billion
5. China Mobile
--$41.2 billion
6. Marlboro
--$39.2 billion
7. Wal-Mart
--$36.9 billion
8. Citigroup
--$33.7 billion
9. IBM
--$33.6 billion
10. Toyota Motor
--$33.4 billion

Interbrands Brand Equity

Formula
Brand earnings
Brand sales
Costs of sales
Marketing costs
Overhead expenses
Remuneration of
capital charge
Taxation

Brand strength
Leadership (25%)
Stability (15%)
Market (10%)
Geographic spread
(25%)
Trend (10%)
Support (10%)
Protection (5%)

Branding Terms
Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand

Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio

Brand Naming
Individual
Individual names
names
Blanket
Blanket family
family names
names
Separate
Separate family
family names
names
Corporate
Corporate namenameindividual
individual name
name combo
combo

Means of Brand Leveraging

By linking the brand to
Companies
Countries or geographic areas
Channels of distribution
Other brands Co-branding
Characters
Spokespersons
Events
Other third party sources

Co-branding
Co-branding (aka brand
bundling or brand
alliance) occurs when
two or more existing
brands are combined
into a joint product or
are marketed together
in some fashion

Advantages of Co-branding
Borrow needed expertise
Leverage equity you dont have
Reduce cost of product introduction
Expand brand meaning into related
categories
Broaden meaning
Increase access points

Source of additional revenue

Disadvantages of Cobranding
Loss of control
Risk of brand equity dilution
Negative feedback effects
Lack of brand focus and clarity
Organisational distraction

Ingredient Branding
A special case of co-branding
It contains creating equity for materials,
components or parts that are
necessarily contained within other
branded products
E.g.: Dolby noise reduction, Teflon
nonstick coating, Intel inside

Ingredient Branding