Introduction to brand equity

Session 2Holistic Brand Strategy

Patrick CollingsSagacite Brand Agency

Nairobi, Kenya26th & 27th May 2008

“If this business were split up, I would give you the land and bricks and mortar, and I

would take the brands and trademarks, and I would fare better than you”

John Stuart, Chairman of Quaker

tangible assets ruledhowever,

for much of the 20th century

brands were therebrands were theremanagement knew

but value not recorded

1980s

then the

arrived

the value of brands was recognized

(more about brand valuation in session four)

so a business perspective on brands(not to be confused with our market definition )

“Brands are intangible assets, assets that produces added benefits for the business. This is the domain of strategic brand management: how to create value with proper brand management ”

Jean-Noël Kapferer, The New Strategic Brand Management

what is brand equity

many different viewpoints and definitions

my mashup version

brand equity is the measurable value derived from marketing and other strategic and management efforts

attributable to a brand

brand equity is the measurable value derived from marketing and other strategic and management efforts

attributable to a brand

lets explore this value add

enables buying decisions1

builds customer loyalty2

1 + 2 =

builds market share3

protects market share4

helps command higher prices5

+20%

creates a halo effect6

apple itunes commercial

50% vs 17%

assists business expansion7

more trade support8

increases market value9

but...there is a flip side

a neglected brand erodes

value

the point we have arrived at

we have defined brands

we have defined brand equity

shown that a valuable brand adds overall value

now to build brand equity

kevin lane keller

E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College

customer-based brand equity

model

CBBE

approaches brand equity from the perspective of the consumer

customer-based brand equity is the differential effect that brand knowledge has on consumer

response to the marketing of the brand

customer-based brand equity is the differential effect that brand knowledge has on consumer

response to the marketing of the brand

customer-based brand equity is the differential effect that brand knowledge has on consumer

response to the marketing of the brand

customer-based brand equity is the differential effect that brand knowledge has on consumer

response to the marketing of the brand

taste perception of six beers when aware of the brands

coors

pabst

miller lite

budweiser

colt 45

guinness

taste perception of six beers when unaware of the brands

guinnesscoors

pabst

miller litebudweiser colt 45

a brand has positive cbbe when consumer react more favourably to an offering and its marketing when the brand is identified than

when it is not

a brand has negative cbbe when consumer react less favourably to an offering and its

marketing when the brand is identified than when it is not

“The challenge for marketers in building a strong brand is ensuring that customers have

the right type of experiences with products and services and their accompanying marketing

programs so that the desired thoughts, feelings, images, beliefs, perceptions, opinions,

and so on become linked to the brand.”Kevin Lane Keller

a point of difference

keller’s cbbe model is marketing focus whilst holistic brand strategy embraces

other management disciplines

building brand equity

four sequential steps

brand awareness

brand understanding

brand opinion

brand relationship

brand awareness

brand understanding

brand opinion

brand relationship

who are you?

what are you?

who do i think of you?

what about us?

brand awareness

brand understanding

brand opinion

brand relationship

who are you?

what are you?

who do i think of you?

what about us?

deep and broad brand awareness

points of parity & points of difference

positive accessible reactions

intense and active loyalty

customer-basedbrand equity

pyramid

brand awareness

brand understanding

brand opinion

brandresonance

loyal client base

potential market

takeaways

brand equity is the measurable value derived from activities unique to a brand 2

building brand equity with keller’s customer-based brand equity model4

1 value of brands only measured and recorded in the last two decades

a valuable brand helps an entire organization 3

presentation bypatrick collingssagacite brand agencypatrick@sagacite.co.za+2781 616 0967

www.sagacite.co.za