Chapter # 9

Creating Brand Equity

Omair Abbas
PAF-KIET

h
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9

Creating Brand

Steps in Strategic Brand

Management
Identifying

and establishing brand

positioning
Planning and implementing brand
marketing
Measuring and interpreting brand
performance
Growing and sustaining brand
value
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What is a Brand?
A brand is 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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The Role of Brands

Identify
Identify the
the maker
maker
Simplify
Simplify product
product
handling
handling
Organize
Organize accounting
accounting
Offer
Offer legal
legal
protection
protection
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The Role of Brands

Signify
Signify quality
quality
Create
Create barriers
barriers to
to
entry
entry
Serve
Serve as
as a
a competitive
competitive
advantage
advantage
Secure
Secure price
price
premium
premium
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What is Branding?
Branding is endowing
products and services with
the power of the brand.

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What is Brand Equity?

Brand equity is the added value
endowed on products and services,
which may be reflected in the way
consumers, think, feel, and act with
respect to the brand.

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Brand Knowledge
Thoughts

Feelings
Knowledge
Images

Beliefs
Experiences

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Advantages of Strong
Brands
Improved
perceptions of
product
performance
Greater loyalty
Less
vulnerability to
competitive
marketing
actions
Less
vulnerability to

Larger margins
More inelastic
consumer
response
Greater trade
cooperation
Increased
marketing
communications
effectiveness
Possible licensing
opportunities

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What is a Brand
Promise?
A brand promise is the marketers
vision of what the brand must be and
do for consumers.

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Customer-based Brand
Equity
Differences in
consumer
response

Consumers
brand
knowledge

Perceptions,
preferences, and
behaviors
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Brand Equity Models

BrandAsset Valuator
(BAV)
BrandZ
Brand Resonance
Model
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BrandAsset Valuator Model

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Universe of Brand Performance

These brands
have relevance,
but only to a
small audience.

These brands
are not well
known. Many
are new,
others are lost.

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Customers find
these brand
irresistible.
They have high
earnings and
margin power.

These brands
cant
overcome what
is already
known about
them.

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Brand Dynamics
Pyramid

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Brand Resonance
Pyramid

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Building Brand Equity

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Brand Elements

Brand Names
URLs
Logos
Symbols
Characters
Spokespeople
Slogans
Jingles
Packages
Signage

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Brand Element Choice

Criteria
Brand
Builders
Memorable
Meaningful
Likable

Defensi
ve
Transferabl

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e
Adaptable
Protectabl
e

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Developing Brand
Elements
What was the
name of that
cookie I like?

Easy to recall
Descriptive
Persuasive
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Holistic Marketing
Activities

Word of
Mouth

Observation

Interactions
w/company

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Secondary Associations
Geographic
Regions
Other Brands
Brand

Characters
Spokespeople
Sporting Events

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Secondary Source of Brand Knowledge

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Internal Branding
Employe
es

Brand
Promise
Partners

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Brand Communities
Members have:
Brand Connection
Shared rituals/stories
Responsibility to
community

H.O.G.
Harley Owners
Group

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Measuring Brand Equity

Brand Audit

Brand-tracking
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Brand Value Chain

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Worlds 10 Most
Valuable
Brands
Ra
2009 Brand Value
nk
1
2
3
4
5
6
7
8
9
10

Brand

(Billions)

Coca-Cola
IBM
Microsoft
GE
Nokia
McDonalds
Google
Toyota
Intel

$68.7
$60.2
$56.6
$47.8
$34.9
$32.3
$32.0
$31.3
$30.6

Disney

$28.4

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Interbrand Brand
Valuation

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Managing Brand Equity

Brand
Revitalization

Brand
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Branding Strategy
Develop new brand elements
Apply existing brand
elements
Combine new and existing
elements

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Branding Strategy

Parent Brand
(Master or
Family Brand)

Line
Tide
Extension
-

Fruit on the
Bottom
Fruit Blends

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Category
Honda
Extension
-

Automobiles
Lawn Mowers

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Branding Decisions
Individual Brand
Names
Bisquick

Gold Medal
Wheaties
Yoplait

Company
GE, Heinz, Campbell
Brand
Soup
Sub-brand
Kelloggs Rice Krispies, Frosted
name
Flakes

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fi
e
D

d
e
n

Brand Portfolio

A brand portfolio is the set of all

brands and brand lines a
particular firm offers for sale in
a particular category or market
segment.

Brand Portfolio - Sony

Comput
er
VAIO
-notebook
-desktop
Digital
Home
Disc
Burner
Location
Free

Televisio Portable
Cameras
ns
Electroni
Theatre
cs
Cyber-shot

Televisions

Alpha SLR

Home
theatre
systems

HandyCam
Printers
Digital
picture
frames
Photo
services

Walkman
Video MP3
Rolly

Blu-ray
Disc

Reader
Digital
Book

DVD
players

Sony Cell
Phone

Home
GPS
mylo
audio
component
Software
s Hall
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Sony
Pictures
Movies
-Theatre
-DVD
-Blue-ray
Television
-Comedy
-Drama
-Daytime
-Cartoons

Games
PlayStat
ion
-PS3
-PS2
-Portable

Music
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Brand Roles
High-end
Prestige
Cash
Cows

Low-end Entry Level

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Flankers
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Brand Extensions
Improve the odds of new-product
success

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Managing Brand Equity

Brand
Brand Reinforcement
Reinforcement
Brand
Brand Revitalization
Revitalization
Brand
Brand Crises
Crises

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Interbrands Steps in Calculating

Brand Equity
Market

segmentation
Financial analysis
Role of branding
Brand strength
Brand value calculation

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Devising a Branding
Strategy
Develop
Develop new
new brand
brand
elements
elements
Apply
Apply existing
existing brand
brand
elements
elements
Use
Use a
a combination
combination of
of
old
old and
and new
new

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Branding Terms
Brand line
Brand mix
Brand extension
Sub-brand
Parent brand
Family brand

Line extension
Category
extension
Branded variants
Licensed product
Brand dilution
Brand portfolio

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Brand Naming
Individual
Individual names
names
Blanket
Blanket family
family names
names
Separate
Separate family
family
names
names
Corporate
Corporate namenameindividual
individual name
name
combo
combo
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Reasons for Brand

Portfolios
Increasing

shelf presence and

retailer dependence in the store
Attracting consumers seeking variety
Increasing internal competition
within the firm
Yielding economies of scale in
advertising, sales, merchandising,
and distribution
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Brand Roles in a Brand

Portfolio
Flankers

Cash Cows

Low-end
Entry-level

High-end
Prestige

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Marketing Debate
Are brand extensions good or bad?
Take a position:
1. Brand extensions can endanger brands.
or
2. Brand extensions are an important
brand-growth strategy.

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Marketing Discussion

How can you relate the different models

brand equity presented in this chapter?
How are they similar? Different?
Can you reconstruct a brand-equity
Model that incorporates the best of each?

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