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11.

BRAND & PACKAGING


MANAGEMENT
9
Creating
Brand Equity

Dr. Waseso Segoro, Ir. MM.


IT TELKOM, MAY 11, 2009

Kotler

Keller

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Chapter Questions

What is a brand and how does branding work?

What is brand equity?

How is brand equity built, measured, and


managed?

What are the important decisions in developing a


branding strategy?
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Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.

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Attributes of Strong Brands

Excels at delivering desired


benefits

Well-designed brand hierarchy

Uses multiple marketing


activities

Stays relevant

Priced to meet perceptions of


value

Understands consumer-brand
relationship

Positioned properly

Supported by organization

Communicates consistent
brand messages

Monitors sources of brand


equity

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The Role of Brands

Identify the maker (punya


indosat)
Simplify product handling
(matrix/mentari/im3/starone)

Signify quality

Create barriers to entry


(GSM/CDMA)

Serve as a competitive
advantage (family/young)

Secure price premium

Organize accounting

Offer legal protection


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Branding

Endowing products and services


with the power of a brand.

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Brand Equity

The differential effect that brand


knowledge has on consumer
response to the
marketing of that brand.

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Brand Associations

Strong
Unique
Favorable

city ?

Thoughts
Feeling
Perceptions
Images
Experiences
Beliefs
Attitudes

gift ?

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Marketing Advantages of Strong Brands

Improved perceptions of
product performance
Greater loyalty
Less vulnerable to
competition
Less vulnerable to crises
Larger margins
Inelastic consumer
response to price
increases

Elastic consumer
response to price
decreases
Greater trade cooperation
Increase in effectiveness
of IMC
Licensing opportunities
Brand extension
opportunities

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Brand Promise
The marketers vision of what
the brand must be and do for
consumers.

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Brand Equity Models

BrandAssetValuator,
differentiation/Relevance/Esteem/Knowledge

AakerModel,loyalty/awareness/perceivequality/brand
association/patent/trademark

BRANDZ,presence/relevance/performance/advantage/bondi
ng

BrandResonance,
salience/performance/imagery/judgment/feelings/resonance
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Drivers of Brand Equity

Brand elements, identities the brand, red?

Marketing activities, support mktg


program, strong retail support K mart.

Meaning transference, linking it to some


one / Paul Hogan - Subaru, XL -Luna
Maya
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Brand Elements

Brand names

Logos

Slogans

Symbols

Characters

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Brand Element Choice Criteria

Memorable,easily
recall

Meaningful,credible

Transferable,
introduce new
product : VW Touareg

Adaptable, 75 or 35
years

Protectible, legally
protected

Likeability,
visualy/verbally

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Slogans

Like a good neighbor, State Farm


is there

We try harder

Well pick you up

Nextel Done

Zoom Zoom

Im lovin it

Innovation at work

This Buds for you

Always low prices

Just do it
Nothing runs like a Deere
Help is just around the corner
Save 15% or more in 15 minutes
or less

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Measuring Brand Equity

Brand audits, brand inventory/brand


exploratory

Brand tracking, collect information from


customers on a routine basis

Brand valuation, total financial value of the


brand.
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Interbrands Brand Equity


Formula (Brand Worth)

Brand strength

Leadership (25%)

Stability (15%)

Market (10%)

Geographic spread (25%)

Trend (10%)

Support (10%)

Protection (5%)

Brand earnings
Brand sales
Costs of sales
Marketing costs
Overhead expenses
Remuneration of capital charge
Taxation
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Managing Brand Equity

Brand reinforcement, since 70 years ago


are still todays brand leaders

Brand revitalization, successfully turned


arround to varying degree :
competition/technology/consumer taste
changes

Brand crises, in the crisis situation

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Devising a Branding Strategy

Develop new brand elements for new product

Apply existing brand elements

Use a combination of old and new

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Branding Terms

Brand line

Line extension

Brand mix

Category extension

Brand extension

Branded variants

Sub-brand

Licensed product

Parent brand

Brand dilution

Family brand

Brand portfolio

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Brand Naming

Individual names : Yoplait

Blanket family names : GE

Separate family names : Kenmore

Corporate name/individual name : Honda


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Brand Roles in a Brand Portfolio

Flankers / portfolio : P&G

Cash cows : Gillette

Low-end entry-level : BMW-3

High-end prestige : BMW - 7


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SUMMARY

Brand Definition

Brand offer a number of benefits

Brand = uniquely attributable to a brand

Brand equity needs to be measured

Brand strategy : new/existing/combination

Brand portfolio : each brand name product must have a


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well defined positioning