Measuring Outcomes of Brand Equity

&

Designing and Implementing Branding

StrategiesPRESENTATION BY:

Neetu Bhuyan

Priyanka Tiwari

Sourabh Shrivastava

Measuring Outcomes of Brand Equity

Research studies or experiments that examine consumer attitudes &

behavior toward a brand.

Estimate the benefits arising from having high level of awareness.

3 types:-

- Brand-based comparative approaches.

- Marketing-based comparative approaches.

- Conjoint analysis.

Comparative Methods

Consumer response is examined based on changes in brand identification.

Application example: Blind testing.

Critique.

Advantage- It isolates the value of the brand in a very real sense.

Disadvantage: The totality of what is learned depends on how many applications are examined.

Brand-Based Comparative Approaches-

The brand is held fixed and consumer response is examined based on changes in marketing programs.

Applications: Explore price premiums’ effect on switching, consumer evaluations of marketing activities, brand extensions, etc.

Advantage: Ease of implementation

Disadvantage: Difficult to determine whether consumer responses are caused by brand knowledge or generic product knowledge

Marketing Based Comparative Approaches-

A survey-based multivariate technique that enables marketers to profile the consumer

decision process with respect to products and brands.

Applications: Assess advertising effectiveness and brand value; analyze brand/price

trade-off.

Advantage: Allows for different brands or different aspects of the product to be

analyzed simultaneously.

Disadvantage: May violate consumers’ expectations based on what they already

know about brands

Conjoint Analysis-

Attempt to place an overall value on the brand in either abstract utility terms or concrete financial terms.

Net out various considerations to determine the unique contribution of the brand

Two methods:

-Residual approaches.

-Valuation approaches

Holistic Methods

Examine the value of the brand by subtracting consumers’ preferences

based on physical product attributes alone from their overall brand

preferences.

Advantage: Useful benchmark for interpreting brand equity, especially

from a financially oriented perspective.

Disadvantage: Static view. Limited diagnostic value for strategic

decision making

Residual Approaches-

Attempt to place a financial value on brand equity for accounting

purposes.

Useful in cases of mergers and acquisitions, brand licensing, fund

raising, and brand management decisions.

Valuation approaches:

-Accounting background.

-Historical perspectives.

-General approaches .

-Interbrand’s brand valuation methodology

Valuation Approaches-

Designing and Implementing

Branding Strategies

What is a BRAND ?

A Brand is a name, term, sign, symbol or design which is intended to

identify the goods or services of one seller or group of sellers and to

differentiate them from those of competitors.

PRODUCT + X = BRAND

Brand Architecture

Brand architecture is the structure of brands within an organizational entity.

It is the way in which the brands within a company’s portfolio are related to,

and differentiated from, one another.

The architecture should define the different leagues of branding within the

organization:-

• How the corporate brand and sub-brands relate to and support each other

&

• How the sub-brands reflect the core purpose of the corporate brand to

which they belong.

The role of brand architecture is to :-

• Clarify – Brand awareness : Improve customer understanding and

communicate similarity and difference between individual products.

• Motivate – Brand image : To maximize the transfer of equity.

Brand product matrix

The Brand product matrix is a tool used for the graphical representation

of all the brands and the products sold by the firm.

In this matrix the brands of a firm shown as in rows and the

corresponding products as columns.

Brand Line (rows) :

• Various products within a brand (original + extensions )

Product line (columns) :

• Set of products with similar function.

• Products across brand or brand extensions.

Brand portfolio is a set of all brand lines that a particular firm offers

for sale to buyers in a particular category.

Breadth of a Branding Strategy

The breath of a branding strategy describes the number and nature of different

products linked to the brands sold by the firm.

Breath of the product mix: Category attractive matrix

Depth of the product mix: once marketers have made their decision

concerning appropriate product categories and markets in which to

compete, they need to choose the optimal product line strategy.

Product line analysis required a clear understanding of the market and the

cost interdependencies between products.

Depth of a Branding Strategy

This is the number and nature of different brands marketed in the product

class sold by a firm.

The reason is to pursue different market segments, different channels of

distribution or different geographic boundaries.

Maximize market coverage and minimize brand overlap.

Brand Hierarchy

It is a useful means of graphically portraying a firm’s branding strategy

by displaying the number & nature of common & distinctive brand elements

across the firm’s products, revealing the explicit ordering of brand elements.

It’s based on the realization that we can brand a product in different ways

depending on how many new & existing brand elements we use & how we

combine them for any one product.

Example: ESPN

Building Equity at Different Hierarchy Levels:

Corporate Brand Level

Family Brand Level

Individual Brand Level

Modifier Level

Corporate Brand Level

Occurs when relevant constituents hold strong, favorable, and unique

associations about the corporate brand in memory

Encompasses a much wider range of associations than a product brand

Family Brand Level

Brands applied across a range of product categories

An efficient means to link common associations to multiple but distinct

products.

Individual Brand Level

Restricted to essentially one product category.

There may be multiple product types offered on the basis of different

models, package sizes, flavors, etc.

Modifier Level

Signals refinements or differences in the brand related to factors such as

quality levels, attributes, functions, etc.

Plays an important organizing role in communicating how different

products within a category that share the same brand name.

Corporate Image Dimensions

Corporate product attributes, benefits or attitudes

• Quality

• Customer orientation

Values and programs

• Concern with the environment

• Social responsibility

Corporate credibility

• Expertise

• Trustworthiness

• Likability

Designing a Branding Strategy

A branding strategy helps establish a product within the market and to

build a brand that will grow and mature in a saturated marketplace.

There is no uniform agreement on the one type of branding strategy that all

firms should adopt for all products.

Brand element of each level of hierarchy may contribute to build brand

equity through ability to create awareness as well as foster strong, favourable

& positive responses.

The challenges facing during Branding Strategy is to:

Design the proper Brand hierarchy (Number & Nature ).

Design the optimal supporting marketing program (Brand Awareness &

Brand Association).

Number of Level of Brand Hierarchy:

Sub-Branding:

Combination of existing brand with new brand.

Example: IBM ThinkPad

Principle of Simplicity: provide the right amount of branding information

to the consumer- no more, no less

Principles of Clarity: Logic & relationship of all brand elements employed

must be obvious & transparent.

for eg: sony has family brand name CyberShot for cameras, Wega for TV’s, Handycams for its

camcoders.

Desired Awareness & Image at each hierarchy Level:

Principle of Relevance: Based on the advantages of efficiency & economy.

Create abstract association that are relevant across as many individual items as

possible.

Eg: Nike Slogan “Just Do It”, this is relevant to virtually all the product itself.

Principle of differentiation: Is based on the disadvantages of redundancy.

Marketers should distinguish brand at the same level.

Eg.: Microsoft product : Media extender, Media connect, & Windows Connect.

Combining Brand Elements from Different Levels:

The prominence of a brand element is its relative visibility compared with other

brand elements.

Eg.: Assume Pepsico has addopted a sub-branding strategy to introduce new Cola

say “Vitacola”.

Prominence by Brand name element PEPSI vitacola OR VITACOLA By PEPSI

Principle of Prominence : Primary & Secondary.

Primary brand element should convey the main product positioning &

point of difference.

Secondary brand element convey a more restricted set of supporting

association such as point of parity.

Linking Brand Elements to Multiple Products:

It is a horizontal aspects of brand hierarchy that how to link any one brand

element with multiple products.

Principles of commonality: it states that the more common brand elements

product share, the stronger the linkage between the products.

Using Cause Marketing To Build Brand Equity

It came in 1980s.

It can be defined as the process of formulating & implementing

marketing activities that are characterized by an offer from the firm to

contribute a specified amount to a designated cause when customers

engage in revenue providing exchanges that satisfy organizational and

individual objectives.

Its distinctive feature is the link between the firms contribution to a

designated cause and customers' engaging in revenue producing

transactions with the firm.

Example- American Express was 1st to create awareness of the concept in

1983 by a campaign to “restore Statue of liberty” in which every credit

card transaction donate a penny and a dollar by new card issuing, like

this it contributed $1.7 million for the cause also its transaction

increased by 30 % and new card issuance by 15%.

Advantages Of Cause Marketing

It evoke positive response from the consumers.

It created positive image of the company that supported a cause.

Many consumers switched from their brand to the another brand who

support a cause.

It created a positive impact on the employees of the company who were in

the support of a cause and showed their loyalty towards the company.

It is Humanizing the firm.

It offers potential benefits by Cause or Corporate societal marketing(CSM) like-

i. Building brand awareness (by sponsorship etc)

ii. Enhancing brand image (kind, generous, valuable)

iii. Establishing brand credibility (doing the right things)

iv. Evoking brand feelings (social approval, self worth)

v. Creating a sense of brand community (online groups)

vi. Eliciting brand engagement (participation, ambassadors)

Designing Cause Marketing Programs

It is designed in association with advertising and promotional activities.

It may also be a part of product development.

Some designs it for uniquely positioning the product of a brand.

Creating a point of parity between the product and consumer.

Example- McDonald’s musket Ronald McDonald creates link with children and supports house charities which provide comfort and care to children.

Green Marketing

It is a special case of cause marketing which concerns for the environment

and environment friendly products.

The green marketing movement was born, and firm after firm tried to

capitalize on consumers’ perceived increased sensitivity to environmental

issues.

But it faced many obstacles like overexposure and lack of credibility (only

gimmicks), consumer behavior (reality & perception of public doesn't match), poor

implementation (failure in connection), possible solutions (meet consumer wishes with the

environment benefit of product).

THANK YOU