David Aaker Model

David Aaker Model- Deepak Bhandari

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• Mission

To refresh the world...To inspire moments of optimism...To create value and make a difference.

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• Established in 1886• World’s largest beverage company with over 500 brands• Company’s portfolio includes 12 billion $ brands• Operational Reach = 200+ countries• 1.6 billion servings per day• Owns 4 of the world’s top 5 non alcoholic sparkling beverage brands

(Coca-Cola, Diet Coke, Sprite, Fanta)

Source: http://www.thecoca-colacompany.com/

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• Ranked #1 in the ‘Best Global Brands Survey 2009’ for the 10th straight year by Interbrand

• Brand Equity = 68734 $m• Change in brand value from 2008 : 3%

source: www.interbrand.com, JP Morgan Chase

The Brand

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Interbrand Survey

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Perspective of a Strong Brand

• A product• An organization• A person• A symbol

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Awareness/familiarity with the brand

Information on brand attributes or benefits

Creation of brand image/personality

Association of feeling with the brand

Linkage of the brand with peers, experts and group norms

Reminder or inducement to brand trial

Ad Exposure

Brand Attitude

Purchase Behavior

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Familiarity built from aggressive branding and innovative campaigns

The refreshing qualities of the beverage conveyed to consumers

Coca-Cola perceived as the ‘Real Refresher’

Coca-Cola became the symbol of fun, carefree American lifestyles

Coca-Cola launched several variants like Diet Coke, Coke BlāK

Coca Cola distributed free drinks coupon in early 19th century

Ad Exposure

Favorable Brand Attitude

Purchase Behavior

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David Aaker Model: 2 Routes

Route#1

Route#2

Attitude Purchase BehaviorBrand Advertisement

Purchase Behavior AttitudeBrand Advertisement

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Coca-Cola’s case: Route#1

• Advertisements show features, benefits, values over and above rivals

• Advertisements lead to formation of images and personalities of the brand in the minds of consumers

• Formation of feeling and association with the brand• Coke by route#1 commands long lasting loyalty with the

customers

Attitude Purchase BehaviorBrand Advertisement

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RC Cola and Virgin Cola: Route#2

• Purchase activity helps in formation of +ve/-ve attitude towards the brand• RC Cola and Virgin Cola went the heavy sales promotion way, RC Cola has

been reduced to a discount brand and Virgin Cola is almost extinct except a few places in Europe.

Purchase Behavior AttitudeBrand Advertisement

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Evolving advertisements