Brand Equity13TH AUGUST 2014

What is Brand Equity?

Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.

Brand equity

Brand Equity is a set of assets linked to a brand’s name and symbol that adds to the value provided by a product or service to a firm and/or that firm’s customers

Brand Equity is a set of liabilities linked to a brand’s name and symbol that subtracts from the value provided by a product or service to a firm and/or that firm’s customers

Brand equity: Key aspects

Brand equity is a set of assets Management of brand equity involves investment to create and

enhance these assets

Each brand equity asset creates value in a variety of very different ways It is imperative to be sensitive to the ways in which strong

brands create value

Brand equity creates value for customer and firm

For assets or liabilities to underlie brand equity, they must be linked to name/symbol of the brand

Brand Equity as a Bridge

• The quality of investment in brand building is the critical factor, not necessarily the quantity

Brand Promise• Marketer’s vision of what the brand must

be and do for the consumers.

Key Benefits of Brand Equity Improved perceptions of product performance

Greater Loyalty

Less vulnerability to competitive marketing

Less vulnerability to marketing crises

Larger Margins

More inelastic consumer response to price increase

Additional Brand extension opportunities

CREATING BRAND EQUITY

BUILDING A STRONG BRAND REQUIRES CAREFUL PLANNING & GREAT DEAL OF LONG-TERM INVESTMENT. AT THE HEART OF A SUCCESSFUL BRAND IS A GREAT PRODUCT OR SERVICE, BACKED BY A CREATIVELY DESIGNED & EXECUTED MARKETING.

Drivers of Brand Equity

Brand Elements

Marketing Activities

Meaning Transference

Brand Knowledge

Knowledge

Thoughts

Experiences

BeliefsImages

Feelings

Brand Elements

ElementsSlogans

Brand

names URLs

Logos

SymbolsCharacters

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 10-11

Brand Element Choice Criteria

Memorable Meaningful Likeability Transferable Adaptable Protectible

Slogans

Like a good neighbor, State Farm is there Just do it Nothing runs like a Deere Save 15% or more in 15 minutes or less

We try harder We’ll pick you up Nextel – Done Zoom Zoom I’m lovin’ it Innovation at work This Bud’s for you Always low prices

Designing Holistic Marketing Activities

Personalization

Integration

Internalization

Internal Branding

Choose the right moment

Link internal and external marketing

Bring the brand alive for employees

Figure 10.4 Secondary Sources of Brand Knowledge

Measuring Brand Equity

Brand AuditsBrand Audits

Brand TrackingBrand Tracking

Brand ValuationBrand Valuation

Table 10.2 The 10 Most Valuable Brands

Brand 2006 Brand Value (Billions)

Coca-Cola $67.00

Microsoft $56.93

IBM $56.20

GE $48.91

Intel $38.32

Nokia $30.13

Toyota $27.94

Disney $27.85

McDonald’s $27.50

Mercedes-Benz $22.13

Managing Brand Equity

Brand ReinforcementBrand Reinforcement

Brand RevitalizationBrand Revitalization

Brand CrisesBrand Crises

Interbrand’s Steps in Calculating Brand Equity

Market segmentation

Financial analysis

Role of branding

Brand strength

Brand value calculation

Devising a Branding Strategy

Develop new brand elements

Develop new brand elements

Apply existing brand elements

Apply existing brand elements

Use a combination of old and new

Use a combination of old and new

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 namesIndividual names

Blanket family namesBlanket family names

Separate family names

Separate family names

Corporate name-individual name

combo

Corporate name-individual name

combo