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Transcript of Building Brand Equity at Husqvarna 223896/FULLTEXT01.pdf · PDF file...

  • JÖNKÖP I NG INT ERNA T I ONAL BU S IN E S S SCHOOL JÖNKÖPING UNIVERSITY

    Internationella Handelshögskolan

    Bachelor Thesis in Business Administration

    Authors: Yulia Storozheva & Stephen Young

    Tutor: Erik Hunter

    Jönköping: May 2009

    B u i l d i n g B r a n d E q u i t y a t H u s q v a r n a M o t o r c y c l e s

  • i

    Acknowledgement

    Through this research and writing we have acquired four months of an

    in depth study in the primary subject area of brand management. Hav-

    ing the opportunity to visit the firm in Italy was an amazing experience

    inside the operations of one of the World’s greatest motorcycle compa-

    nies, Husqvarna.

    Through the various interviews and interactions with this culture of his-

    torians and motorcycle enthusiasts we have gained a broad knowledge

    of this industry. During our research and writing we have faced the

    many challenges and opportunities of working together as a group,

    which in turn has brought us together in a closer way and has given us a

    deeper understanding of the secrets to success in group dynamics.

    We would like to offer a warm thank you to Erik Hunter our tutor for

    continuing to inspire us and keep our group engaged into this very im-

    portant subject of brand management.

    A special thanks is offered to Mr Aioli and Mrs Radin for making this

    opportunity possible for us to write about this amazing company that

    has existed for over 100 years and continues to be recognized and have

    a strong presence in the market around the globe in 2009.

    Finally, we thank our family and friends for supporting and encouraging

    us through this process.

    ____________________ _____________________

    Yulia Storozheva Stephen Young

  • ii

    Bachelor thesis within Business Administration

    Title: Building brand equity at Husqvarna Motorcycles

    Authors: Stephen Young, Yulia Storozheva

    Tutor: Erik Hunter

    Date: May 2009

    Key words: brand equity, brand identity, leveraging the brand, brand meaning, brand

    responses, brand relationship, brand culture, Husqvarna Motorcycles

    Abstract

    Purpose

    The purpose of the thesis is to analyze the current challenges faced by Husqvarna Motorcycles in their brand building process, and to describe ways in which applying the brand equity principles will en- able an increase of the value of their brand.

    Background In the complex world of organizations and companies where the competitive position plays an important role in successful achieve- ments of the company, managers seek after building a sustainable competitive advantage. Building brand equity is an important focus for a large company’ improvement, since it raises interest of exist- ing and new customers. The process of building brand equity takes time but through this process a company will have a stronger mar- ket position which creates brand value.

    Method In order to answer the purpose, the qualitative method with im- plementation of semi-structured interviews for collecting data was used. The data was interpreted and then structured and analyzed using theoretical framework.

    Conclusions During the research performed it was found out that the managers are facing several challenges in respect to building brand equity. Therefore, five components of building brand equity were imple- mented to draw the conclusions of how the managers could streng- then their brand.

  • iii

    Table of Contents:

    1 Introduction ............................................................................... 1 1.1 Background ............................................................................................ 1 1.2 Husqvarna Motorcycles – company overview ........................................ 1 1.3 Problem Discussion ................................................................................ 3 1.4 Purpose .................................................................................................. 3 1.5 Research Questions ............................................................................... 4 1.6 Delimitations ........................................................................................... 4 1.7 Definitions ............................................................................................... 4

    2 Methodology .............................................................................. 6 2.1 Choice of Research Method ................................................................... 6 2.1.1 Deductive or inductive approach ............................................................ 6 2.1.2 Qualitative and quantitative research methods ....................................... 7 2.1.3 The Purpose of the Research ................................................................. 8 2.1.4 Research Design, Case study ................................................................ 9 2.2 Data Collection ..................................................................................... 10 2.2.1 Interview/ Discussion ............................................................................ 11 2.2.2 Indirect data collection .......................................................................... 13 2.3 Data Analysis ....................................................................................... 13 2.4 Quality of Data ...................................................................................... 14 2.4.1 Reliability .............................................................................................. 14 2.4.2 Validity .................................................................................................. 14

    3 Theoretical Framework ........................................................... 15 3.1 Building а strong brаnd ......................................................................... 15 3.2 The Five Components of Increasing Brand Equity: .............................. 18 3.2.1 Brand Identity and Physique: ................................................................ 18 3.2.2 Brand Meaning and leveraging the brand: ............................................ 19 3.2.3 Brand Responses and Reflections: ...................................................... 22 3.2.4 Brand Relationships: ............................................................................ 23 3.2.5 Brand Culture and Personality .............................................................. 24 3.3 Summary of Theoretical Framework..................................................... 26

    4 Empirical Findings .................................................................. 28 4.1 Presentation of Interviewees ................................................................ 28 4.2 Results of the interviews ....................................................................... 29 4.2.1 Brand Identity & Physique .................................................................... 29 4.2.2 Brand Meaning & Leveraging the Brand ............................................... 31 4.2.3 Brand Responses & Reflections ........................................................... 32 4.2.4 Brand Relationship ............................................................................... 34 4.2.5 Brand Culture & Personality ................................................................. 35

    5 Analysis ................................................................................... 38 5.1 Brand Identity & Physique .................................................................... 38 5.2 Brand Meaning & Image ....................................................................... 40 5.3 Brand Responses & Reflections ........................................................... 42 5.4 Brand Relationship ............................................................................... 44

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    5.5 Brand Culture & Personality ................................................................. 45

    6 Conclusions ............................................................................ 48

    7 Discussion ............................................................................... 50 7.1 Thesis criticism ..................................................................................... 50 7.2 Thesis contribution ............................................................................... 50 7.3 Further research ................................................................................... 51

    References ................................................................................. 522 Literature & Articles ........................................................................................... 52 Miscellaneous Resource Materials .................................................................... 54

    Appendices .................................................................................. 55 Appendix 1 ........................................................................................................ 55 Appendix 2 ........................................................................................................ 58

    List of figures:

    Figure 1 The process of collecting data using qualitative research method, adapted from Maylor and Blackmon (2005) p.221 ................................ 11

    Figure 2 Schedule of semi-structured interview