MANAGING BRAND EQUITY-2

Why is managing brand equity important over time?

Changing marketing environment (external
forces)
Shifts in consumer behaviour
Competitive strategies
Govt. regulations
Internal forces
Changes in strategic focus of the company.
STEPS FOR MANAGING BRANDS OVER TIME
a. Reinforcing brands

b. Revitalising brands

c. Adjusting brand portfolio
REINFORCING BRANDS
Brand equity is reinforced by marketing actions that consistently
convey the MEANING of the brand to consumers in terms of
BRAND AWARENESS and BRAND IMAGE.

Reinforced marketing actions, along with product development,
branding strategies etc. also help in keeping the brand meaning in
terms of products, benefits and needs as well as in terms of
product differentiation intact.

Reinforcing brands

Reinforcing depends on nature of the
brand associations
Product related performance associations
Product innovations are critical. Slide 72
Change in product may not be drastic, as brand meaning may be
associated with the product characteristics. Slide 73

Non-product related imagery associations
Relevance in user and usage imagery is critical. Slide 73
Potentially easier to change through major advertising campaigns
(no product innovation may be involved). Slide 74
Too frequent repositioning can blur the image of the brand and
confuse or even alienate the consumers.
Reinforcing of brands can be through
1. Maintaining brand consistency
2. Protecting sources of brand equity
3. Fortifying or Leveraging
4. Fine-tuning the marketing support program.

1. Maintaining brand consistency
Consistency of marketing support is essential
for maintaining strength and favorability of the
brand.
Shrinking R&D and communication budgets
may risk the brand becoming out-of-date,
irrelevant or even forgotten.
Consistency to be shown in brand
positioning.
Consistency doesnt mean no changes at all.
Tactics may change, but strategic positioning of
brand should not change.
Prices may go up or down, product features may
be added or deleted, brand extensions added or
withdrawn, ad campaigns may change .
Key elements of the marketing program and
brand meaning should be retained and
preserved
2. Protecting sources of brand equity
While looking at potentially powerful sources of brand equity, preserve
and defend the existing sources.
Unless there is some change with either consumers, competitors or the
company that makes the strategic positioning of the brand less powerful,
successful positioning should not be deviated from.
Key brand associations should not be altered.
E.g. Maggis new introductions.
3. Fortifying versus Leveraging
There is always a trade off between fortifying a brand and leveraging the
benefits of the brand to financial gains.
Fortifying means ways of increasing brand equity and furthering the brand
image through continuous marketing and advertising efforts.



On the other hand, capitalizing on existing brand equity to reap accruing
benefits in terms of cost savings (reduced communication expenditure) and
revenue opportunities (seeking increasingly higher premium and introducing
brand extensions.)
REVITALISING BRANDS
New and different
ways of use
New
opportunities
Attract new
Customers
Identify neglected
segments
Recapture lost
Customers
Retain vulnerable
Customers
BRAND
REVITALISING
STRATEGIS
Create new
sources of BE
Refresh old
sources of BE
Improve strength,
favorability, and
uniqueness of Brand
Associations
Expand
depth/breadth of
awareness and
usage of Brand
Increase
frequency of
Consumption
Increase quantity
of Consumption
Bolster fading
associations
Create new
associations
Neutralize
negative
Reverse Fortunes of Brands
Recapture lost sources of
Equity
Identify and establish new
sources of Brand Equity
Steps to Reverse Fortunes of
Brand
Revolutionaryor
Evolutionarychanges?
Revisit the basic values of
the brands
Determine current status of
sources of Brand Equity
Ascertain effectiveness of
key brand associations
Decisions on repositioning


Repositioning(RI)
Marketing Program (B2B)

Marketing Program
Failures
Insufficient Consumers
Less Damaging
Enforce positive
Associations
Positioning Failures
Sufficient but
dissatisfied Consumers
Extremely damaging
Difficult to overcome
negative associations
Back 2 Basics
Reinvention
Continuum
Approaches to Revitalisation
1. Expanding Brand Awareness

2. Improving Brand Image

3. Entering New Markets
1. Expanding Brand Awareness
Expand Breadth Increased
Usage
Quantity
Difficult to change
Function of particular beliefs
Exception Impulse
Consumption (availability)
Frequency
New opportunities
New Ways
1a. New usage Opportunities
Appropriateness &
Advantages of using
brands in new situations
Reminders to use brands
in those situations
Improving Top of the
mind awareness.
Functional Fixedness -
avoidance in non
traditional situations
Associated with special
occasions only.


1a. New usage opportunities contd
Retain premium brand
association
Consumer perception of usage
differs from the reality of
their usage.

Replacement cycles


Consumers educated about
the merits of regular and
increased usage.

Event
Performance
1b. Identifying new & completely
different ways to use the brand
New and different usage
application
Only new ad campaigns
not enough
New uses may arise from
new packaging
Egs Milkmaid, Amul
Cheese, McDonalds
2. Improving Brand Image
Changes in Brand
Awareness not sufficient
A new Marketing Program
Old positive associations
to bolstered
New positive associations
to be created
Negative associations to be
neutralized

Repositioning
Changing Brand Elements
Repositioning
Repositioning
Establishing more compelling
points of difference
Remind consumers of virtues of
brands that have been taken for
granted
Nostalgia and heritage
Establish a point of parity on key
image dimension
Negative product-related
associations due to changes in
consumer tastes

Changing brand elements
Modification of Brand
name
Other Brand Elements
Packaging, logos etc.
Moderate and
evolutionary in nature
Preserve salient aspects of
Brand elements
E.g.: Adidas, Federal
Express, GE
3. Entering New Markets
Reach out to new
Customer groups
Johnson and Johnson: Baby Soap,
Baby Shampoo
Reach out to decision
making segment instead of
the users
Women as decision makers
for mens products
Tapping the female
segment of the market
New market segments
based on cultural
dimensions
Retaining existing
Customers and Regaining
Lost Customers

ADJUSTMENTS TO BRAND
PORTFOLIO
Approaches adjustment to brand
portfolio
1. Migration Strategy

2. Acquiring new customers

3. Retiring Brands
1. Migration Strategy
Entry-Level Brands
Critical in bringing new
customers
Logical ordering
Hierarchical structure
in consumers mind.
E.g. BMW with 3,5,7
Series

2. Acquiring New Customers
To make up for loss of existing
customers
Important to attract younger
customers
Challenge Making Brand seem
relevant to customers
Each generation has a different
attitude from its preceding
generation
Strategies to encompass both
new and old customers
a. Multiple Marketing Program
Separate advertising
campaigns and
communication programs
for each segment
Blurring of images due to
media overlap
b. Brand Extensions and Sub-
Branding
New technology, features
and attributes
Needs of new customers
or changing needs of
existing customers
c. New Distribution Outlets
Making products more
available
3. Retiring Brands
Options
1. Marketing Support (Orphan
Brand)
Reduce no. of product types
Almost no advertising and
promotional expenditure
2. Consolidation
Stronger Brand HLL POWER
BRANDS
Cut Costs
Focus marketing Efforts
3. Discontinue product
Spin off Orphan Brands after a
cut off of low sales
Sell Orphan Brands
Fade away or discontinue
consciously. E.g. - Citra

Abandonment Decisions for
Retiring Brands
Markets prospects
Rate and type of decline
Segments of enduring demand
Reasons for decline
Competitive intensity
CA of Competitors
Willingness to exit
Brand Loyalty of Customers and Price pressures
Brand Strength
Strong Associations
Market share and position in the market
CA w.r.t. key Segments
Brands fit in the Strategic Thrust
Exit Barriers

MANAGING BRANDS OVER
GEOGRAPHIC BOUNDARIES
AND MARKET SEGMENTS
Rationale For Going Abroad
1. Slow growth and increased competition in
domestic markets
2. Overseas growth and profit
3. Economies of scale
4. Diversify risk
5. Global mobility of customers
Advantages Of Global Marketing
Economies of Scale
Lower Marketing Costs
Power and Scope
Consistency in Brand Image
Leverage good ideas quickly and efficiently
Uniform marketing practices
Disadvantages
Differences in consumer needs, wants and
usage patterns
Differences in consumer response to 4 Ps
Differences in brand and product
development and competitive environment
Differences in legal environment
Differences in marketing institutions
Differences in administrative procedures

Global Branding Decisions
1. Deciding which markets to enter
2. Deciding how to enter the market
3. Deciding on the marketing program
4. Deciding on marketing organisation
Selecting Global Markets
Economic Environment
Stage of development
Standard of living
Per capita income
Distribution of wealth
Currency stability
Exchange rates
Demographic Environment
Size of population
Number of households
Household size
Age distribution
Occupation distribution
Education level
Employment rate
Income levels
Political/Legal Environment
Government policies
Laws and regulations
Political stability
Nationalism

Cultural Environment
Language
Lifestyle
Values
Norms and customs
Ethics
Taboos
International Marketing and Promotional Decisions
Global Customer Based Brand Equity
Creating Brand Salience

Crafting Brand Image

Eliciting Brand Response

Cultivating resonance

Building Global Customer Based
Brand Equity
1. Understand similarities and differences in the global
branding landscapes
2. No shortcuts
3. Establish Marketing Infrastructure
4. Integrated Marketing Communication
5. Brand Partnership
6. Balance Standardization & Customization
7. Local and global control
8. Establish operable guidelines
9. Global BEMS
10. Brand Elements


1. Understand similarities and differences in
the global branding landscapes

Developed &
Developing Markets

Landscape of Global
Brands
2. Sustained activity in Brand
Management
Continuous activities
Greater focus on R&D
Product Life Cycle
critical to brands
growth


3. Establish Marketing Infrastructure
Blend push and pull
strategies to build
brand equity
Infrastructure
constraints. Ex. Nestle
in China

4. Integrated Marketing Communication
Establish awareness
and key points of
parity. Ex. Kelloggs
Positioning same but
creative strategies may
differ. Ex. Dove
Easily available media
options: cable and
satellite; niche
magazines

5. Brand Partnership
Alternative ways of entry:
1. Exporting existing brands
(geographic extension)
2. Acquiring brands (Brand
Acquisition)
3. Brand alliance

Trade off between key criteria:
speed, control and
investment.


Heinekens Sequential Strategy
Export to build brand
awareness
License to local brewer to
expand volume
Take equity stake or forge a
joint venture (piggyback sales
of high priced Heineken
brand with established local
brand)
Heinekens takeover of DB
Breweries in New Zealand
successful



6. Balance Standardization &
Customization
Standardization versus
Customization
- Globally standardized items:
advanced, functional, reliable
and low priced.
Ex.: McDonalds: Ronald McDonald
appears worldwide but the food and
marketing is localized.
Standardization and
Customization:
Standardized marketing:
LOreal: Because Im Worth It.
Customized marketing:
Tide in Russia positioned as economy
brand. (Little specific knowledge in
Russia)

Factors favoring standardization
1. Common customer needs
2. Global customers and channels
3. Favorable trade policies and common regulations
4. Compatible technical standards
5. Transferable marketing skills
6. Essential criteria for development of global brand:
- positioning and branding applied globally
- technology which can be applied globally
- capabilities for local implementation
7. Key considerations in implementation
- market development and competitive environment at similar stages
in both countries
- consumer target markets should be alike

Supporting Marketing Programs -
Product
Only certain products
marketed similarly. Ex.
Pampers disposable diapers
Conduct research in local
markets
Product differences
sometimes not justified. Ex.
Palmolive soap
Sell both global and local
brands. Ex. Coke sells
Thums-Up in India
Price
Consumer perceptions of
value, willingness to pay,
elasticity to price change
Pressures for international
price alignment: Gray
imports
Price Corridor takes in
account differences in
countries and alignment
pressures

7. Local & Global Control
Decisions on
Centralization or
Decentralization
Nature of products and
its linkage to local
culture
Strategically easier to
define but difficult to
implement


8. Operable Guidelines
BRAND
MANAGEMENT
GUIDELINES
9. Global BEMS
Brand Asset Valuator


Interbrand Method
10. Brand Elements
Geographical
Transferability: Verbal
(name translation) vs.
Non-Verbal (logo,
color translation)
Ex.: Mars changed the
name of its third largest
UK brand Marathon to
Snickers which was
used in the rest of
Europe

Brand Equity Across Other Market
Segments
Regional Market
Segments
Ex. Campbell soups- Factors:
splintering of mass markets,
pockets of sales strengths,
focused targeting.
Other Demographic
And Cultural Segments
(Differences in attitudes
and behavior)
THANK YOU
COURSE RECAP
3 QUIZZES: 20
7 CASES: 20
1 MIDTERM: 30
1 END TERM: 30
INTRODUCTION
BRAND, BRANDING, BRAND
MANAGEMENT
TYPES OF BRANDS NAMES
HISTORICAL ORIGIN OF BRANDING
BRAND EQUITY
CUSTOMER BASED BRAND EQUITY

BUILDING BRAND EQUITY
CASES: LEVIS DOCKERS
INTEL
STARBUCKS

CUSTOMER BASED BRAND
EQUITY
BRAND KNOWLEDGE
DIFFERENTIAL EFFECT
CUSTOMER RESPONSE TO
MARKETING
BRAND KNOWLEDGE
BRAND AWARENESS
BRAND RECALL
BRAND RECOGNITION
BRAND IMAGE
STRENGTH
RELEVANCE
CONSISTENCY
FAVOURABILITY
DESIRABLE
DELIVERABLE
UNIQUENESS
POD
POP
DIFFERENTIAL EFFECT
PRIMARY BRAND ELEMENTS
BRAND ELEMENT CHOICE CRITERIA
MEMORABILITY
MEANINGFULNESS
TRANSFERABILITY
ADAPTABILITY
PROTECTABILITY
SECONDARY BRAND ASSOCIATION
MARKETING PROGRAM TO SUPPORT
ASSOCIATIONS
MEASURING BRAND
EQUITY
CASES: CMPB
B&J

BRAND VALUE CHAIN &
BEMS
MARKETING PROGRAM INVESTMENT
PROGRAM QUALITY (MULTIPLIER)
CUSTOMER MINDSET
MARKET PLACE CONDITION (MULTIPLIER)
MARKETING ENVIRONMENT
INVESTOR SENTIMENT (MULTIPLIER)
STAKEHOLDERS

METHODS TO MEASURE
PRICE
PRICE PREMIUM
PRICE PREMIUM AT EQUALISATION
PRICE PREMIUM AT INDIFFERENCE
COST
HISTORICAL COST
REPLACEMENT COST
DCF METHOD
BRAND CONTRIBUTION
INTERBRAND METHOD
MARKET VALUE METHOD
CUSTOMER
BRAND KNOWLEDGE
BLIND TEST
ATTRIBUTE BASED

MANAGING BRAND
EQUITY
CASES: NIVEA
NIKE
BRAND PRODUCT MATRIX
BRAND BREADTH STRATEGY
BRAND DEPTH STRATEGY
BRAND HIERARCHY
CORPORATE
FAMILY
INDIVIDUAL
MODIFIER

BRANDING STRATEGY
BRAND HIERARCHY
SUB-BRANDING & BRAND EXTENSIONS
DECISIONS
GRAY & SMELTZER BRAND PRODUCT
RELATIONSHIP
PRINCIPLES OF BRANDING
SIMPLICITY
RELEVANCE
PROMINENCE
DIFFERENTIATION
COMMONALITY

MANAGING BRANDS OVER
TIME
REINFORCING BRANDS
Maintaining brand consistency
Protecting sources of brand equity
Fortifying or Leveraging
Fine-tuning the marketing support program.
REVITALISING BRANDS
Expanding Brand Awareness
Improving Brand Image
Entering New Markets
ADJUSTING BRAND PORTFOLIO
Migration Strategy
Acquiring new customers
Retiring Brands

THANK YOU
BACK Slide 6
BACK Slide 6
BACK Slide 6
BACK Slide 6
Surf Clinic Modern
Rin Sunsilk Knorr
Wheel Nihar Kwality Walls
Vim Fair & Lovely Brooke Bond
Lux Ponds Taj Mahal
Pears Lakme A1
Breeze Pepsodent 3 Roses
Lifebuoy Closeup Lipton Taaza
Liril Kissan Bru
Rexona Annapurna Dalda
HLL POWER BRANDS
BACK Retiring Brands