Brand Equity: An asset

Some of the most important assets of any

business are intangible:
Quality of Managers, Skill of Workers
Company name, Brands
Symbols, slogans, logos associations,
Goodwill.perceived quality,
name awareness,
customer base, loyalty..and
proprietary resources such as patents,
trademarks, and channel relationships.

Brand Equity : Purpose

Value to consumers:
Reduces Perceived Risk of Buying a Product.. Increases
Product Confidence.. Guarantee eg: Anoop Hair Oil from Godrej
Holds Product InformationIdentify, Optimise,.. Eg: Pentium-4;
Characterise.. Eg: Arrow Shirts vs Colour Plus Shirts
Enhances Product Experience/ UsageFamiliarity-Continuity,
Pleasure- Hedonistic, ..Eg: Hermes Tie; ResponsibleEthical..Eg: Johnsons Baby Products

Value to firm:
Effective Mktg Program, Competitive Advantage, Extensions
Brand Loyalty
Price/ Margin, Trade Leverage

Brand Equity: Components

Awareness +
Loyal Customers+
Perceived quality+
Associations, linked to the Brand +
Other Proprietary assets ; that add value
to the product/ service

Brand Loyalty Pyramid

Committed Buyer: Proud Of Brand
More than Satisfied Buyer:
Prefer the Brand
Satisfied Buyer: Familiar with
the Brand
Habitual Buyer: No problems with
Brand
Switcher-Fence sitter:
Indifferent to Brand

Building Brand Loyalty

Serving the Customer-Product Innovation,
Brand Revitalization
Listening & Responding to the CustomerCustomer Feedback/ Complaints/
Satisfaction
Rewarding the Customer- Frequent Buyer
Programs/ Promotions.. Consumer Clubs

Generating Brand Awareness

Communication
Media
PR
Brand Activities
Brand Extensions

Perceived Quality
Consumers PERCEPTION of the overall
quality/ superiority of a product/ service .
Relative to its intended purpose & the
alternatives available
Perceived Quality vs Actual Quality
Perceived Quality vs User Satisfaction

Value of Perceived Quality

Reason to Buy
Differentiate/ Position
Price Premium
Trade Leverage
Brand Extensions

Brand Associations
Brand Linkages ( Perceptions) which are
memorable
Set of Associations create a Brand Image
Brand Positioning creates Associations
Brand Name/ logo/ Symbol/ Mnemonic/
Mascot/ Ambassador Vs
Brand Endorsement Vs
Brand Association

Easy Recognition: Nike- Swoosh..authentic

Information Processing: Colgate- Protection
Ring. protects teeth
Differentiates: Bertolli Italian.. genuine
Reason-to Buy:
Positive Feelings: Pepsi- Generation Next.
young
Basis for Extensions

Types of Brand Associations

Product attributes: Huggies & superior absorbency,
Dettol & Dettol Perfume
Intangibles: Jet Airways & Caring
Customer Benefits: Close Up & Confidence
Relative Price: Peter England & Affordable
Use/ Application: Kellogs & Breakfast
User/ Customer: Elle 18 & Teenagers
Celebrity / Person: S
Product class: Cadburys & Chocolates
Competitors: Hertz.
Country/ Geographic area: Fosters & Australia