Brand Equity

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Strategic Brand Management

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Mental maps

Competitive frame of reference

Points-of-parity and points-of-difference

Core brand values

Brand mantra

Mixing and matching of brand elements

Integrating brand marketing activities

Leveraging of secondary associations

Brand Value Chain

Brand audits

Brand tracking

Brand equity management system

Brand-product matrix

Brand portfolios and hierarchies

Brand expansion strategies

Brand reinforcement and revitalization

KEY CONCEPTSSTEPS

Grow and Sustain

Brand Equity

Identify and Establish

Brand Positioning and Values

Plan and Implement

Brand Marketing Programs

Measure and Interpret

Brand Performance

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Concept of

Customer Based

Brand Equity

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Keller’s Definition of Brand Equity

Brand equity is defined as the differential effect that knowledge about the brand has on consumer response

to the marketing of that brand

Professor Kevin Keller

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What Is Brand Equity?

Brand Equity is simply what consumers’ hold in their head about a

brand and how that affects their behaviour

What consumers doWhat consumers know

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Consumer Based Brand Equity

Positive customer-based brand equity results when consumers respond more favorably to the marketing

activities when the brand is identified than when it is not

The Pepsi Challenge” where consumers prefer

Pepsi in a blind taste test but choose Coke

when the brand is exposed

Nestle Pure Life where consumers are willing to pay price premium as compared to ordinary tap water

Classic Examples:

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Benefits of Equity

• Loyal Customers

• Charge a price premium

• Trade co-operation

• Brand extensions

• Communication messages get through

etc etc ………

Building brand equity will improve brand profitability

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Elements of Brand Equity:

Brand Loyalty

Brand Awareness

Perceived Quality

Brand Associations

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Brand Loyalty

Brand loyalty is a measure of the

attachment that a customer has to a

brand.

It reflects how likely a customer will be to

switch to another brand, especially when that

brand makes a change, either in price or in

product features.

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Brand Loyalty Pyramid

Committed Buyer

Likes the Brand - Considers it a Friend

Satisfied Buyer With Switching Costs

Habitual Buyer - No Reason to Change

Indifferent – No Brand Loyalty

Switchers / Price Sensitive

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Measuring Brand Loyalty

• Purchase Behavior Patterns

• Switching Cost Analysis

• Satisfaction Measurement

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Strategic Value of Brand Loyalty

• Reduce marketing cost

• Trade (channel distribution) leverage

• Attracting new customers

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Enhancing

Brand Loyalty

• Treat the customer right

• Stay close to the customer

• Measure/manage customer

satisfaction

• Create switching cost

• Provide extras

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Brand Loyalty

Brand Awareness

Perceived Quality

Brand Associations

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Brand Awareness is

the ability of a potential

buyer to recognize or recall

that a brand is a member of

a certain product category

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Brand Awareness Hierarchy

Top of Mind

Brand Recall

Brand Recognition

Unaware of Brand

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Value of Brand Awareness

• Anchor to which other associations can be

attached

• Familiarity and liking

• Signal of substance/commitment

• Brand to be considered

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How to Achieve

Brand Awareness

Be different, memorable

Involve a slogan or jingle

Symbol exposure

Publicity

Event sponsorship

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Brand Loyalty

Brand Awareness

Perceived Quality

Brand Associations

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The customer's perception of the overall

quality or superiority of a product or service

with respect to its intended purpose, relative to

alternatives. Perceived quality is a perception

by customers.

Perceived Quality

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What

Influences

Perceived

Quality of

Product?

• Performance

• Features

• Conformance with

specifications

• Reliability

• Durability

• Serviceability

• Fit and finish

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What

Influences

Perceived

Quality of

Service?

Appearance

Reliability

Competence

Responsiveness

Empathy

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The Value of Perceived Quality

• Reason-to-Buy

• Differentiate/Position

• A Price Premium

• Channel Member Interest

• Brand Extensions

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Brand Loyalty

Brand Awareness

Perceived Quality

Brand Associations

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Brand Association

A brand association is anything

"linked" in memory to a brand.

Thus, McDonald's could be linked to a

character such as Ronald McDonald, a

consumer segment such as kids, a feeling

such as having fun, a product characteristic

such as service, or a symbol such as the

Golden Arches.

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Some Types of

Associations

• Product Attributes

• Customer Benefits

• Relative Price

• Lifestyle/Personality

• Celebrity/Person

• Use/Application

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The Value of Brand

Associations

• Help Process/Retrieve

Information

• Differentiate/Position

• Reason-to-Buy

• Create Positive

Attitudes/Feelings

• Basis for Extensions

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Maintaining

Associations

• Be consistent over time

• Be consistent over

elements of the marketing

program

• Manage disasters in order

to minimize their damage

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Criteria for

Brand Name Selection

• Be easy to learn and remember

• Suggest the product class

• Support a symbol or slogan

• Suggest desired association without

being boring or trivial

• Not suggest undesired associations

• Be distinctive

• Be available and protectable legally

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Measuring Equity

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Gauging Equity is about determining what is inside a consumer’s

head concerning a brand . . .

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. . . And it impacts on how consumers actually react to a brand.

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This means that managing brand equity requires more than just

creating awareness and building favorable associations

1) SOURCES 2)

OUTCOMES

Managing brands involves knowing your sources of brand equity

Brand equity must result in tangible outcomes

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The Outcome Must Be…….

• It is a favourite brand amongst consumers

• It is a brand consumers are happy to recommend to someone else

• It is a brand for which consumers are more willing to pay higher prices

Based on the above principle Brand Equity Index for each brand is calculated

This index is a single measure of how strong a brand is

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So to Gauge Equity……

What does my consumer find important in this category

and how is my brand performing on those drivers?

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Category Drivers: Add up to 100% Are a result of all that has happened in the category in the past

Change over time through marketing effort: mid to long term

Show you how you or your competitor are changing the rules across consumer segments

Set the framework for evaluating our brand strength (Equity)

Category Drivers - Explained...

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Brand Equity Index - Explained...

Brand Equity Index: Range from 0 to 10 Is a measure of a brands strength on current category drivers

Changes over time through marketing effort:short to mid term

Shows how you or your competitor are performing within a consumer segment

Can be tracked over time to evaluate effectiveness of mktg initiatives

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Category Drivers What consumers do or feel

Consumer

Loyalty

Price

Premium

Drivers of the Chocolate Category

Awareness (27 % )

Consideration (9 % )

Advertising (16 % )

Product benefit ( 22 % )

For everyone ( 18 % )

Special Benefits(8 % )

Brand

Equity Index

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For everyone

Product Benefit

Advertising

Special Benefits

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Brand Equity Indices

Initially Galaxy had high equity followed by Nestle

Snickers low on equity - low score on Product Benefit - key category driver

Min = 0

Max = 10

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How do the main brands perform on key dimensions?

Galaxy & Nestle are strong on product benefit which is the most

important Equity driver

Product Benefit For EveryoneAdvertisi

ngSpecial Benefits

Nestle High High High Low

Galaxy High Medium High Low

Cadburys Medium High Medium Low

Mars Medium Medium Low Low

Snickers Low Low Low High

Way

Forward

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Mirza Shakeel

Brand Equity

Business

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