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CREATING BRAND EQUITY

DAVID AAKER

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CREATING BRAND EQUITY

BUILDING A STRONG BRAND REQUIRESCAREFUL PLANNING & GREAT DEAL

OF LONG-TERM INVESTMENT.

AT THE HEART OF A SUCCESSFUL BRANDIS A GREAT PRODUCT OR SERVICE,

BACKED BY A CREATIVELY DESIGNED& EXECUTED MARKETING.

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The scope of branding

All about creating differences

Differences often related to attributes orbenefits of product itself, or

By understanding consumer motivations

& desires & creating relevant &appealing images round their products

Branding can be applied virtually

anywhere a consumer has a choice

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Defining brand equity

Brand equity is the added value endowed toproducts & services

Marketers & researchers use variousperspectives to study brand equity

Customer-based brand equity can be defined

as the differential effect that brandknowledge has on consumer response tomarketing of that brand

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Brand equity models

Aakers model

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A. Aakers model

DAVID AAKER VIEWS BRAND EQUITY AS A SET OF 5CATEGORIES OF ASSETS & LIABILITIES LINKED TO

BRAND THAT ADD OR SUBTRACT FROM THE VALUEPROVIDED BY THE PRODUCT OR SERIVICE TO FIRMAND/OR TO THE FIRMS CUSTOMERS:

These categories ofbrand assets are:

1. Brand loyalty

2. Brand awareness3. Perceived quality

4. Brand association

5. Other proprietary assets (patents, trademarks,

channel relationships)

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BRAND IDENTITY

BRAND IDENTITY IS A UNIQUE SET OF

BRAND ASSOCIATIONS THAT THE BRAND

STRATEGIST ASPIRES TO CREATE ORMAINTAIN THESE ASSOCIATIONS

REPRESENT WHAT THE BRAND STANDS FOR

& IMPLY A PROMISE TO CUSTOMERS FROMTHE ORGANIZATION MEMBERS

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BRAND IDENTITY( contd.)

BRAND IDENTITY SHOULD HELP

ESTABLISH A RELATIONSHIP

BETWEEN THE BRAND & THECUSTOMER BY GENERATING A VALUE

PROPOSITION INVOLVING

FUNCTIONAL, EMOTIONAL, OR SELF-EXPRESSIVE BENEFITS

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BRAND IDENTITY (contd.)

CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND4 PERSPECTIVES:

As a product: product scope, product attributes,quality/value, uses, user, country of origin

As an organization: organizational attributes, local vs.global

As a person: brand personality, brand-customerrelationships

As a symbol: visual imagery/metaphors, heritageCORE& EXTENDED IDENTITY: Core identity: central timeless essence of the brand

remains constant as brand travels to newmarkets/products

Extended identity: includes various brand identityelements, organised into cohesive & meaningful groups

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STRATEGIC BRAND ANALYSISCustomer analysis Competitor analysis Self-analysisTrends Brand image/identity Existing brand imageMotivation Strengths, strategies Brand heritageUnmet needs Vulnerabilities Strengths, capabilitiesSegmentation Organization values

BRAND IDENTITY SYSTEMSBRAND IDENTITY

Extended

Core

Brand as Brand as Brand as Brand asProduct organization person symbol1.Product scope 7.Organization attributes 9.Personality 11.Visual2.Product attributes 8.Local vs. global 10.Brand- imagery & 3.Quality/value customer metaphors4.Uses relationships 12.Brand5.Users heritage6.Country of origin

VALUE PROPOSITION CREDIBILITY*Functional *Emotional *Self-expressive *Support other brands

BRAND-CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION

BRAND POSITION*Subset of the brand identity& value proposition *To be actively communicated*At a target audience *Providing competitive advantage

EXECUTION*Generate alternatives *Symbols & metaphors *Testing

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A McDonalds Brand Identity

MCDONALDS, WHICH DOES ABOUT $26 BILLIONOF BUSINESS IN 79 COUNTRIES, HAS ONE OF

THE MOST SUCCESSFUL BRANDS.

THE FOCUS FOR MCDONALDS HAS BEEN ONVALUE, IN PART BECAUSE CUSTOMERS VALUE

CONSCIOUS & IN PART BECAUSE IT MUSTCOMPETE WITH AGGRESSIVE VALUE APPROACH

OF PEPSICOS TACO BELL.

HOWEVER, THE BRAND AS SYMBOLIZED BY THEGOLDEN ARCHES HAS A RICH IDENTITY THATPROVIDES SEVERAL LINKS TO THE CUSTOMER

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McDonalds Core Identity

Value offering: McDonalds provides value asdefined by the product, special offers, &buying experience given the price

Food quality: consistently hot, good-tastingat any McDonalds in the world

Service: fast, accurate, friendly, & hassle

freeCleanliness: operations are always spotless

on both sides of the counter

User: families & kids are a focus, but serves

a wide clientele

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McDonalds Extended Identity

Convenience: most convenient, quick-service restaurant located close to where people live, work, & gather; featuresefficient, time-saving service; & serves easy-to-eat food

Product scope: fast food, hamburgers, childrensentertainment

Sub-brands: Big Mac, Egg McMuffin, Happy Meals, Extra ValueMeals,

Corporate citizenship: Ronald McDonald childrens Charities,Ronald McDonald House

Brand personality: family oriented, all-American, genuine,wholesome, cheerful, fun

Relationship: family/fun associations are inclusive, McDonaldsis part of the good timesRonald McDonalds Childrens Charities engender respect,liking, & admiration

Logo: Golden Arches

Characters: Ronald McDonald; McDonalds dolls & toys

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McDonalds Value Proposition

Functional benefits: good-tasting hamburgers,fries, & drinks that provide value, extrassuch as play grounds, prizes, premiums, &

gamesEmotional benefits: Kids fun via excitement

of birthday parties, relationship with RonaldMcDonald & other characters, & feeling of

special family timesAdults warmth via link to family events &experiences reinforced by the McDonaldsemotional advertising