Brand Equity Regd No 10B01E0027

According to American Marketing Association (AMA ) - A brand is a name , term, sign, symbol, or design or combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.

A brand is a product or services whose dimension differentiate it in some way from other products or services ( non-branded) designed to satisfy the same need.

 Brand equity is an intangible asset that depends

on associations made by the consumer.

The value a customer places on a branded

product or service.
It is the qualitative sum of everything that a

customer thinks, feels and knows about the product or service.

Definitions:
Brand Equity is the added value bestowed on the product

by the brand name.

(Chan Su Park and V. Srinivasan )
Brand Equity can be thought of as the additional cash

flow achieved by associating a brand with the underlying product or services.

 The value of brand equity can be determined by

comparing the expected future revenue of the branded product/service against the expected future revenue from an equivalent but non-branded product/service.
High Brand Equity gives a company the highly desired

competitive advantages.

There are three perspectives to view brand equity:

Financial Perspective

Brand Extension Perspective

Consumer based Perspective

 One way to measure brand equity is to determine the price

premium that a brand commands over a generic product.

For example, if consumers are willing to pay Rs.1000- 2000 more for a branded television over the same unbranded television, this premium provides important information about the value of the brand.

 Expenses such as promotional costs must be taken into

account when using this method to measure brand equity.

 A successful brand can be used as a platform to launch

related products.
The benefits of brand extensions are the leveraging of

existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer.

 Appropriate brand extensions can enhance the core brand. The value of brand extensions is more difficult to quantify

than are direct financial measures of brand equity.

 A strong brand increases the consumer's attitude strength

toward the product associated with the brand.

Attitude strength is built by experience with a product.

 Importance of actual experience by the customer implies

that trial samples are more effective than advertising in the early stages of building a strong brand.
The consumer's awareness and associations lead to

perceived quality, inferred attributes, and eventually, brand loyalty.

 In the early 2000s in

America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E".

An analyst who warned that changing the name of

the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign.

 The aging Taurus, which became one of the most

significant cars in American auto history would be abandoned in favor of three entirely new names, all starting with "F", the Five Hundred, Freestar and Fusion.
By 2007, the Freestar was discontinued without a

replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally. "Five Hundred" was recognized by less than half of most people, but an overwhelming majority was familiar with the "Ford Taurus".

1. Coca-Cola -$68.73 2. IBM -$60.21

6. McDonald's 7. Google

-$32.28 -$31.98

3. Microsoft
4. GE 5. Nokia

-$56.65
- $47.78 -$34.87

8. Toyota
9.

-$31.33
-$30.64 -$28.45

Intel

10. Disney

Thank you