Bm 8 brand equity & management

“ We can, We will ”

Brand Management 8

Brand Equity & its management

Shim, Jae hak

Cold Call

2015-04-13 Shim, Jaehak ([email protected]) 2

Brand platform?

Brand Identity?

Brand Essence?

Contents

Concept of the Brand Equity1

2

CBBE Management over time3

2015-04-13 Shim, Jaehak ([email protected])

What we will discuss and achieve today ?

3

Customer Based Brand Equity

Brand Name & Brand Extension 4

Brand Equity

“A set of associations and behaviors on the part of a brands

customers, channel members, and parent corporation that

permits the brand earn greater volume or greater margins than it

could without the brand name and that gives the brand a strong,

sustainable, and differentiated advantage over competitors”

(Marketing Science Institute,1989)


Definition of

Brand Equity

“Brand Equity is the set of brand assets and liabilities linked to a

brand that add or subtract from brand value”

(David A. Aaker)

“a set of memories in the extended minds of a brand's customers,

distribution channel members, parent company, and other key

members of its network that will impact future cash-flow. Memory

is here used in the sense of both what we have learned about how

to do things e.g. habits and behaviors, and things we remember

e.g. prior experience with the brand.”

(Srivastava and Shocker, 1991)


Practical meaning

of Brand Equity

2015-04-13Shim, Jaehak ([email protected])

6

http://www.revenuestrategy.com/Brand.htm

Tell me


Drivers of

Brand Equity

• Enduring preference

• Sponsorships, admired people using the product, corporate citizenship

• Seen as better / best fit for me (functionality, trust, long lasting)

• Share of mind

Brand Awareness

Perceived Quality

Brand Loyalty

Positive Associations


Brand

Equity

Other Assets

• Trade marks, exclusive channels, merchandising systems

4 Major Dimensions

Brand Awareness

An often undervalued asset

Has been shown to affect perceptions and even taste.

People like the familiar and are prepared to ascribe all sorts of

good attitudes to items that are familiar to them.

Which one ???

• TOM

• Aided Awareness

• Un Aided Awareness

The ‘Intel Inside’ campaign

• Dramatically transferred awareness

into perceptions of technological

superiority and market acceptance.


4 Major Dimensions

Perceived quality

Special type of association

Influences brand associations in many contexts

Empirically shows to affect profitability (as measured by both

ROI and stock return)

Brand loyalty

The heart of any brand’s value


4 Major Dimensions

Brand associations

Anything that connects the customer to the brand.

Such as user imagery, product attributes, use situations,

organizational associations, brand personality and symbols.

Much of brand management involves determining what

associations to develop and then creating programs that will link

the associations to the brand.


Brand Association

Anything which is deep seated in customer’s mind about

the brand

Not benefits, but are images and symbols associated

with a brand or a brand benefit.


Component of

Brand Association


Strength

Uniqueness

Favorability

Strength of B.A.

: Extensiveness or depth of information processing relevant to

a brand

Personal relevance

Consistency over time

Favorability of B.A.

: Extent of positive image and capability of satisfying consumers’ needs

Uniqueness of B.A.

: Image not shared with competing brands

How to form

Quality of the product

Product class/category to which the brand belongs;

Price at which the brand is sold

POP ( Point of purchase) displays; etc

Advertisements

Celebrity/big entity association

Word of mouth publicity;

Customers contact with the organization and it’s employees

Products and schemes offered by competitors;


Brand Association

Networks Process starts by understanding how brand is currently

perceived

IMAGE

2015-04-13 16Shim, Jaehak ([email protected])

Customer-basedBrand Equity (CBBE)

The added value by a brand to the physical product or

service as perceived by customers

“ Customer-based brand equity is defined as the differential effect

of brand knowledge on consumer response to the marketing of

the brand” (Keller 1993)


Powerful Brand

in CBBE Model


Powerful

Brand

1

2

3

4

Establish proper

Brand Identity

Create the appropriate

Brand Meaning

Elicit the right

Brand Responses

Forge appropriate

Brand Relationship

Practical Example

Case of C.R.M.

Quantitative research every month to track the trends

and bottle neck

Development marketing activities focus on bottle neck

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All Target LoyalRegularRepertoireTrialConsiderationAwareness

19Shim, Jaehak ([email protected])

• C.D.M. (Consumer Disposition Funnels)

The iconic bike design

The unparalleled performance engine

The unique low-slung rideThe legendary rallies

Harley Davidson Assets

Slides containing imagery/reference to other brands are not to

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Driver Analysis & Communication Objectives

DRIVER

ANALYSIS

What’s the

problem?

OBJECTIVE

What must the

communication

do?

Visibility

Aware/

Consider

Trial/

Repertoire

Regular/

LoyaltyRepertoire Regular Loyal

CDF Analysis

Old fashioned. Old technology

Few opportunities to ride.

Not for everyday transport.

Impractical.Expensive.

Just a bike.

Create desire and stand out

Boast classic performance creds

Invite them to belong to a community

Indulge your dreams.Own the legend.

Extension of personality. Provide finance.

Community. Personalise, Add value.

ASSETS/BENEFI

TS

What aspects of

the brand should

we leverage?

The bike The engine The experience

ATL, www, DM, Dealership POP

Dealerships, Custom options, HD Merch.,

H.O.G.®

H.O.G.® , www,Accessories HD Merch


be used externally, not to be printed or downloaded

“ My funnel issue is…

My bottle neck is …

Therefore I must …

By leveraging…”


Driver Analysis & Communication Objectives

DRIVER

ANALYSIS

What’s the

problem?

OBJECTIVE

What must the

communication do?

LowVisibility

Aware/

Consider

Trial/

Repertoire

Regular/

LoyaltyRepertoire Regular LoyalCDF Analysis

Old fashioned.

Old technology

Few opportunities

to ride.

Impractical.Expensive.

Just a bike.

Create desire and stand out

ASSETS/BENEFITS

What aspects of the

brand should we

leverage?

The bike

Boast classic

performance creds

The engine

Invite them to belong to a community

The experience

Not for everyday transport.

Indulge your dreams.Own the legend.

ATL, www, DM,

Dealership POP

Extension of personality.

Provide finance.

Dealerships, Custom

options, HD Merch.,

H.O.G.®

Community. Personalise, Add value.

H.O.G.® , www,

Accessories HD Merch


be used externally, not to be printed or downloaded2015-04-13 Shim, Jaehak ([email protected]) 22

Harley Davidson Assets

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Managing CBEE

Over Time


Rei

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Brand Vision

Rev

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Man

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the

Bra

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Port

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Objectives

Retain an appropriate range of brands to meet differentiation objectives

Managing the brand portfolio to meet customers’ needs and preferences

as they change over time

Multi-brand portfolio allows

Greater market coverage (as new segments emerge)

Increase customer relevance : right brand targeting right customer

Sustaining & building market size

Tactical flexibility

Careful consideration on

Retailer / manufacturing concentration & cost increase

Marketing budget

Retiring brands should be considered when

Brand has attained unchangeable negative associations

Source of uniqueness has dried up


Managing CBEE Over Time

Portfolio Management

Quantified Portfolio

Analysis [QPAⓒ]

To guide strategic

investment priorities by

market, business unit,

channel or brand because a

quantified process

To helps set priorities

objectively by using a

common scoring system

across markets and

countries




Management for Both of

Portfolio Width : Number of brands across product categories

Portfolio Depth : Number of brands within a product category






Low end entry point for customers

Scale economies in marketing activities

Increase shelf presence & retailer dependence

Cash cows milked for profit

Flanker for flagship brands

Cater for new segment

High end prestige brand to lend credibility

Brand

Portfolio

Brand

Portfolio

Brand Hierarchy

Ordering of brands according to a logical

organization of ‘ brand attributes and values’

Layers

Corporate Brand

• Signal product’s pedigree

• Easy to be protected legally

Family Brand

• Used as an umbrella

• Endorse individual brand value & characteristics

Individual brand

• Restricted to one product category

Modifier

• Used to designated a specific model or capability



NIVEA Sun

Caring Lotion

SPF 50

Brand Hierarchy

Corporate Brand

Family Brand

Individual Brand

Modifier

32

Brand Relationships

within a Portfolio Single brand across organization

These brands use a single name across all their activities

Examples include Virgin, Red Cross

Known to all their stakeholders – consumers, employees, shareholders, partners,

suppliers and other parties.

Endorsed brands

The endorsement of a parent brand should add credibility to the endorsed brand

in the eyes of consumers.

Like Nestle’s KitKat, Sony Playstation or Polo by Ralph Lauren

This strategy also allows companies who operate in many categories to

differentiate their different product groups’ positioning

House of brands

The individual sub-brands are offered to consumers, and the parent

brand gets little or no prominence

Like Procter & Gamble’s Pampers or Unilever’s Persil.

Other stakeholders, like shareholders or partners, know the company by

its parent brand


Brand Relationships

within a Portfolio


Migration strategies

Provide a clear path for customers to follow within the brand

franchise (e.g., BMW’s sequential numbering of models versus

Renault’s individual names)

Potential pitfall: attempting to cater for too diverse values and

lifestyles

Retreat and Refocus

As brands decline, return to the die-hard consumers, wind back

brand variations, use targeted media (e.g., Lux, West Coast Wine

Coolers)

Retiring Brands

Brand has attained unchangeable negative

associations

Source of uniqueness has dried up




Managing CBEE

Over Time

Simply

Retire it from Market

Fade out After milking more

Revitalize

Reposition


New brand built for new product

Brand Extension

Leverage an existing brand

Use combination of existing & new brand


Ansoff Matrix

The Ansoff Product-Market Growth Matrix (1957, Ansoff,)

Product strategy for diversification

Two variables in strategic marketing decision

• The market in which the firm was going to operate

• The product intended for sale

Two options for marketer

• Remain in the existing market

• Enter new ones


Maintain consistency in brand image over time

Require tactical adjustment to change with customer perceptions

and competitive activity

Fortify brands through

Maintaining relevance if associations are

symbolic or experiential

Innovation if brand associations are functional

Careful at repositioning

More challengeable than positioning

Sometimes only result in diluting

the original positioning


The need to revitalize : the result of consumer neglect

Prospects for revival

Is there residual goodwill among customers and distributors?

Is there a group of loyal customers with potential for growth?

Is it the brand or company which is responsible for the decline?

Revitalization should only be pursue where strong,

favorable and unique brand association remain

Method

Increase usage frequency / breadth of usage

situation

Improve brand image through reposition or change

brand elements


Continuously

Brand Evolution

Brand must evolve, Even the logo evolves


Brand Equity Case

- PEPSI


The first face of BI

Brand Name

One of the most powerful forces in branding Ambassador of the company

First impression to consumer

Words project both meaning and feeling

Strategically sound : Communicate in a way to fit brand strategy

Linguistic appealing : Roll off the tongue across languages

Must consider the globalization Legal issues (Trade mark)

Linguistic & Cultural value

Ex) Resxona (Unilever) : The world’s largest deodorant brand

• Degree in US / Sure in UK

• Shield in South Africa

• Rexena in some Asian countries

Nova


Can you sell the

in English Countries?


From Japan From Korea

Language

(Chevrolet case)


Nova (English Dictionary)

a star suddenly increasing in

brightness and then slowly returning to

normal. , ORIGIN Latin, from novus

‘new’ (because such stars were

thought to be newly formed)

Nova (Spanish Dictionary)

• No : adverbio (como respuesta) no;

(modificando adverbios, oraciones,

verbos) not

• Va : vdrbo (trasladarse, desplazarse)

to go;

The process of

Naming


Creative Mock-ups

Globalization possibility

Legal concerns : Trade Mark

Name conceptualization

Analytical Survey of the market

Positioning

Final Deliverable

48

+) Most defensible in media coverage

Rational business discussion

-) Can be constraining for future aspirations

(Expand to different industry)

+) Immediately differentiated

Easily registered

-) Substantial investment in communication

Limited application

+) Often more memorable and admirable

-) More time and huge budget required

Spectrum for generating

Brand Naming


Descriptive

Names

Associative

Names

Abstract

Names

Shoe Market

Ford Mondeo

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Strategic Options

Tendency of following endorsement option, expecting

Halo effect association in closed communication environment

Short ROI under shortened product life cycle

To enable efficient customer relationship focused marketing

But…


Target Audience

Product Life Stages

Budget & Risk

Strategic Opportunities

(Over brand)

Endorsement

Strategy

Free standing

Brand Strategy

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The importance of Fit

Customers’ perception that the brand extension ‘makes

sense’ Compatible functional benefits

Compatible brand image

Perceived fit is dependent on customer expertise

(level of technical knowledge) Low expertise usage situation must be complementary

High expertise company must have technical expertise

Plan brand extensions based on ‘Similarity of Customers’

not ‘Similarity of Products’

Require Comprehensive assessment of the market’s

perceptions of brand associations


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Brand Extensions

Vertical Extension

Extending the brand ‘up’ or

‘down’ the value spectrum

Horizontal extensions

Extending the brand within

its current value position


Key Questions in

Brand Extension

How does a band extension leverage the equity in the

parent brand ?

How effectively does the extension contribute to the

equity in the parent brand ?

Most importantly, ‘How consumer think ?’


Scope of

Brand Extension

Optimum level of extension


Focal Brand

Performance ($)

Number of

Brand Extension

Overstretched

Extension

can revitalize

the brand

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Brand Extensions


Reduce risk perceived by customers

Permits consumer variety seeking

Increase relevance of brand to new

markets (segmentation)

Increase probability of getting

distribution &trial

Increase efficiency of promotional

expenditures

Reduce costs of introduction &

developing new brand

Increase pricing breadth

Enhance parent brand image

Revitalize parent brand

Confuse customers (weaker

line logic)

May lead to retailer resistance

Both success and failure can

hurt parent brand’s image

Cannibalize parent brand’s

sales

Don’t always build category

demand

May dilute a brand’s meaning

Increased direct costs

Opportunity cost of developing

a new brand

+ Advantage Disadvantage --

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Wrap-up

Brand equity is set of brand assets and liabilities linked to a

brand that add or subtract from brand value

Customer Based Brand Equity

Management CBBE over time

Growth

Brand Portfolio

Migration

Retiring


Bm 8 brand equity & management

Business

Transcript of Bm 8 brand equity & management