Brand Equity

Concept of Brand Equity

*What is your brand equity? ( strongest Value)

Concept of Brand Equity

*How to increase your brand equity for your company
*Awareness – Recognition and recall
*Image and personality – Go getter , doer, intelligent, task oriented,
exceptional
*Association : With bosses, you are like a …
*Loyalty : Loyal to the organization

*Brand Equity : the value built up in a brand

*How much is a brand worth?

Brand Equity
*Brand's power derived from the goodwill and name recognition it
has earned over time,

*Brand's power derived from the goodwill and name recognition it

has earned over time,

Brand Equity
*Which translates into higher sales volume and higher profit margins against
competing brands.
*It denotes the degree of establishment of brand in customers' minds.

*Brand equity does not develop instantaneously. A brand needs to be

carefully nurtured and marketed so consumers feel real value
and trust towards that brand.

Defining Brand Equity

*The added value endowed to a product or service: brand equity
*Brand equity reflected in the way consumers think, feel, act with
respect to the brand, as well as the price, market share &
profitability that the brand commands for the firm
*BE is an important intangible asset that has psychological & financial
value to the firm

What does strong brand equity translate to?

*Category/ market leadership
*Better sales
*Creates greater value for stake holders
*Better earnings & profit margins for company
*Demands a premium during sale of brand

Sources of Brand Equity

Aaker’s Model
*According to David Aaker, brand equity is a set of 5 categories of brand assets
& liabilities that add/ subtract value provided by the product/service to a firm
&/or to a firm’s customers
*Brand Loyalty
*Brand Awareness
*Perceived Quality
*Brand Associations
*Other proprietary assets such as patents, trademarks & channel relationships

Components of Brand Equity

Terms
*Brand Loyalty is a measure of attachment that a customer has to a
brand and reflects the likelihood of a customer switching to another
brand in case of change in that brand, either in price or in product
features.
*Perceived Value is defined as the consumers’ perception of the overall
value or superior value of the product with respect to its intended
purposes, relative to alternatives.
*Brand Association is defined as the linkage that a consumer makes
with a brand that might include product attributes, celebrity
spokesperson or even a particular symbol.
*Perceived Market Position is a perception that a consumer
has about the company’s market position relative to its
 competitors in the same product category
*Brand Dilution is the phenomenon said to occur when
consumers are no longer able to differentiate a specific
brand from similar brands/products.
*Brand Conviction represents the formation of a trust and
strong attitude towards the brand in the consumer’s mind.
*Brand Identity: The unique set of brand associations that
represent what the brand stands for & promises to customers

*Brand Personality : Brand Personality describes brands in terms of

human characteristics.
Brand Association
*The definition of Brand Association is anything that connects the
consumers to the brand. this can include
*Imagery
*Product attributes,
*Use situations,
*Organizational associations,
*Brand personality and
*Symbols.
*Film Stars

Brand Association
Brand Associations can be;
*Qualitative, e.g. it feels good after having a Pepsi.
*Quantitative, e.g. a little Axion is enough to clean a large number of utensils.
*Absolute, e.g. Wheel removes stains on clothes.
*Relative, e.g. Nirma does not provide whiteness like Rin does
*Negative, e.g. Nirma powder fades colored clothes.
*Positive, e.g. Frooti has a good taste.
*Generic, e.g. any drink in a TetraPak is a Frooti, any bottled water is Bisleri, and
any chocolate is a Cadbury, any noodle is maggi.

Brand Association
Five Ways
*Basis For Extensions
*Differentiate
*1st Choice
*Enforce Perceptions
*Evoke Favorable Attitude

Basis For Extensions

*Savlon was first introduced as a brand of antiseptic liquid which does
not burn. It was then extended to the soap category.
*Fair Glow was introduced as the first fairness soap. Then cream was
launched.
*Clinic plus was introduced as a shampoo first. Then a hair oil was
rolled out under the name.

Kellogg’s corn flakes was followed by biscuits.

Differentiate
*Savlon showed in the ad that it did not burn (like Dettol) although in
the ad the character expected it to.
*Captain Cook salt exhibited in the ad that its salt flowed freely unlike
the other salt (Tata salt).
*Dove is not a soap.
*Dove was positioned as ‘not just a common soap but one quarter
moisturizing cream of moisturizing cream’.

1st Choice
*For cracks of the feet - Krack Cream
*Krack entered the market, when there was no complete, dedicated solution for
cracked heels.
*For Common Cold - Vicks
*Butter - Amul
*Dish wash – Vim Bar - 100 year old brand
Enforce Perceptions
*Close-Up provides confidence as it ensures freshness because of
which one can interact with others at a close distance.

*Good Knight Expert helps me ensure that my child has sleep without
disturbance.

*Fair and lovely makes me fairer

Evoke favorable attitude
*Cadbury’s Dairy Milk is for all age groups. I can have it too. It would
not be embarrassing if I am seen having it
*Femina is for modern and forward looking women like me
Evoke favorable attitude
*I am a modern man so are my clothes
Brand Loyalty
*Brand loyalty, in marketing, consists of a consumer's commitment
to repurchase
*Other positive behaviors such as word of mouth advocacy.
Perceived Quality
*Perceived Quality: The overall perceptions of quality and image
attributed to a product, independent of its physical features.
*Mercedes and BMW have established their brand names as
synonymous with high-quality, luxurious automobiles.
*Consumers assume a high level of quality in everything they
produce
*Consumer's opinion of a product's (or a brand's) ability to fulfill his or
her expectations.
* It may have little or nothing to do with the actual excellence of the
product, and is based on the firm's (or brand's) current public image
* Consumer's experience with the firm's other products, and the
influence of the opinion leaders, consumer's peer group, and
others.

Brand Equity Purpose

*Retain Current customers and attract new ones
Product Trends
*In 2006, Close to 182,000 new products were introduced globally
*Almost 105,000 food and drink products were launched
*more than 77,000 non-food product launches hit the market
*a 17 percent gain on 2005 launches
*focusing on mind, body, and general good health.
Product Trends
*Yet in 2007 less than 90% of them were available on
shelves
*So what is the secret of brand sustenance?

*Clear product definition from customer point of view and proper

execution and implementation of that definition can lead to success
 and longevity in the market.
Brand Equity Value
*Monetary Value. The amount of additional income expected from a
branded product over and above from an identical, but unbranded
product.

*Example Hawkins versus unknown brand

Brand Equity Value

*Intangible. The intangible value associated with a product that
cannot be accounted for by price or features.
*Pepsi, Coke and Thums up have created many intangible benefits
for its products by associating them with film stars.
*Children and adults want to consume their products to feel some
association with these stars
Tangible Value of Brand Equity
*Ascertained from brand equity measurement

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