CREATING BRAND EQUITY

What is a Brand?
(According to AMA)
• A brand is a name, term, sign, symbol, or design or
a combination of them, which is intended to
identify the goods and services of one seller or
group of sellers and to differentiate them from
those of competitors.
• Key is to choose a name, logo, symbol, package,
design or any other characteristics that identifies a
product and distinguish it from others.
• These different components of a brand that
identify and differentiate it are called the Brand
Elements.
 What is a Brand?
(According to practicing managers)

• A brand is sometimes more than that… ie.

something that has actually created a certain
amount of awareness, reputation, prominence
etc. in the marketplace.
Examples of brands

SAMSUNG AMUL
PEPSI TIDE
GLAXO KISSAN
XEROX SURF
IBM LUX
PHILIPS PANTENE
COCA COLA NIRMA
SONY SNUGGY
Can anything be branded?

• Physical goods
• Services
• Retailers
• On-line product
• On-line services
• People
• Organization
• Sports, Arts, Entertainment
• Geographic location
• Events
Challenges to Brand Builders
• Savvy Customers
• Complex Product Portfolios
• Maturing Markets
• Increasing Competition
• Difficulty in Differentiating
• Decreasing Brand Loyalty
• Increasing Trade Powers
• Emerging Communication Channel
• Increasing Promotional Expenditure
• Increasing Cost of New Product Introduction
• Short-Term Performance Orientation
• Increasing Job Turnover
 Role of Brands
Consumer Benefits Marketer Benefits
Brands: Brands:
• Identify source/maker • Simplify product handling
• Simplifies decision making • Protect unique features
• Reduces risk • Create loyalty
• Signal of quality • Establish barriers to entry
• Promise or bond with • Source of competitive advantage
product • Source of financial returns
 Scope of Branding
Creating difference between products

Brand Equity
The added value endowed on products and
services because of the brand
 Brand Promise
What the brand must be
and do for consumers
Building Brand Equity

Brand
Elements

BRAND EQUITY

Secondary Holistic Marketing

Associations Activities
 Brand Elements
• Brand Names
• URLs
• Logos
• Symbols
• Characters
• Spokespeople
• Slogans
• Jingles
• Packages
 Brand Element Choice Criteria
Brand Builders
Memorable
Meaningful
Likable
Defensive
Transferable
Adaptable
Protectable
Brand Elements Choice Criteria:
General Considerations
 Memorable
 Easily Recognized
 Easily Recalled
 Meaningful
 Credible & Suggestive
 Rich Visual & Verbal
Imagery
 Likable
 Fun & Interesting
 Aesthetics
Brand Elements Choice Criteria:
General Considerations (continued)
 Adaptable
 Flexible & Updateable
 Protectable
 Legally
 Competitively
 Transferable
 Within & Across Product
Categories
 Across Geographical Boundaries
& Cultures
Developing Brand Elements
• Easy to recall
• Descriptive
• Persuasive
 Eg. of Brand Elements

Memorable Meaningful Appealing

Transferable Adaptable Protectable

Eg. of Brand Elements
 Eg. of Brand Elements

Brand
Brand Logo: Brand URL: Brand
Name: Tagline:
Ribbon, Same as Mascot:
Simple Har Ghar Kuch
Colours, Brand name Gattu earlier
Region-wise Kehta Hai
P in Paints SEO friendly No mascot
different

Likeable: Not
Adaptable:
Memorable: Meaningful: Royale, transferable:
Similar
Gattu, Brand name Royale Play ‘Paints’ in its
meaning
Waah Sunil has ‘Paints’ evoke brand name
across Asian
babu! in it elegance;
countries
Colors
 Eg. of Brand Elements

Memorable

• Brand Elements should inherently be memorable and attention-getting

and therefore facilitate recall or recognition
 Eg. of Brand Elements

Meaningful
• Brand elements may take all kind of meaning, with either descriptive or
persuasive content.
– General information about the nature of the product
– Specific information about particular attributes and benefits of the
brand
 Eg. of Brand Elements

Appealing
• How aesthetically appealing is the brand element?
• Brand elements can be rich in imagery and inherently fun and interesting
 Eg. of Brand Elements

Transferable
• Brand elements can be transferable within and across product categories to
support line and brand extensions, and across geographic and cultural
boundaries and market segments
 Eg. of Brand Elements

Adaptable
• Logos or characters are given a new look or design to match them with the
modern world
 Eg. of Brand Elements

Protectable
• How legally protectable is the brand?
 Holistic Marketing Activities
1. Observations
Brands are not built by advertising alone. Personal observation and use

2. Word of Mouth

3. Interactions with Company

Personnel, online or telephone experiences

4. Brand Contact

Therefore,
Integrated Marketing is about mixing and matching these marketing
activities to maximize their individual and collective effects in order to
consistently reinforce the brand promise.
 Eg. of Holistic Marketing

Online Integrated
Consultancy Marketing
Social Cause Clubs& Event
Do it yourself marketing Communities Marketing Focus on
People,
Let us help Homes &
you Conform to Asian Paints ColorNEXT Colors
VOC Privilege Club 2014
Get started Specifications Convention Homes
with painting India’s Most reflect the
Total Water Stars and Dependable people living
Experience Management badges in it
colour
Eg. of Holistic Marketing
Eg. of Holistic Marketing
 Secondary Associations

Geographic Regions

Other Brands

Brand Characters

Spokespeople

Sporting Events
Secondary Source of Brand Knowledge
 Eg. of Secondary Association

Lay’s World Cup Flavors campaign

Awards and Celebrity

Events contests Endorsements Country of origin
 Eg. of Secondary Association

Association Spokesperson
Festival
with Movies
Third party Events
and Radio Television Deepika
FM Series sources
Sharad Padukone
Sponsored Shamman
Karthik “Har Ghar Women play
star screen Award
calling Kuch Kehta active role as
Karthik, Hai” awards
Varna Maalai curator of
Radio City home decor
Pongal
91.5 FM
 Brand Knowledge

Thoughts Feelings

Knowledge

Beliefs Images

Experiences
 Strategic Brand Management Process
STEPS KEY CONCEPTS

Identify and Establish
Brand Positioning and Values
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand associations
Brand mantra

Mixing and matching of brand elements

Plan and Implement Integrating brand marketing activities
Brand Marketing Programs Leveraging of secondary associations

Brand Value Chain

Measure and Interpret Brand audits
Brand tracking
Brand Performance
Brand equity management system

Brand-product matrix
Grow and Sustain Brand portfolios and hierarchies
Brand Equity Brand expansion strategies
Brand reinforcement and revitalization
1. Identifying & Establishing Brand Positioning

SBM process starts with a clear

understanding of what the brand
is to represent and how it should
be positioned w.r.t competitors.
 1. Identifying & Establishing Brand Positioning

Positioning: “act of designing the company’s offer and

image so that it occupies a distinct and valued place in the
target customer’s mind.”

Creating brand superiority in the minds of customers

ie. Points of Difference (advantages) & Points of Parity
(sameness)

Positioning also specifies the Core Brand Associations and

Brand Mantra.
1. Identifying & Establishing Brand Positioning

Mental map: “is a visual depiction of the different

types of associations linked to the brand in the minds of
customers.”

Core brand associations: are that subset of associations

(attributes & benefits) that best characterize a brand.

Brand Mantra or Brand essence or Core brand promise:

Short 3-5 word expression of the most important aspects of
a brand and its core brand associations ie. the enduring
“Brand DNA” to the customers and to the company.
1. Identifying & Establishing Brand Positioning

Core Brand Associations,

Points of Parity,
Points of Difference, and
Brand Mantra
are thus the
HEART & SOUL of the
BRAND.
 2. Planning & Implementing Brand
Marketing Programmes
Brand Equity requires creating a brand that consumers
are sufficiently aware of and with which they have strong,
favourable, and unique brand associations.

This will depend on three factors;

1. The initial choices of the brand elements or identities

making up the brand and how they are mixed and matched.

2. The marketing activities and supporting marketing

programmes and the way the brand is integrated into them.

3. Other associations indirectly transferred to the brand as

a result of linking to some other entity.
 3. Measuring & Interpreting Brand
Performance
The task of determining a brand’s positioning benefits a lot
from a brand audit.

Brand Audit is a comprehensive examination of a brand to

assess its health, uncover its sources of equity, and
suggest ways to improve and leverage that equity.
B.A. is done from the perspective of both, the firm and the
customers.

Determine the brand positioning strategy, and then put into

place the marketing programme to create, strengthen and
maintain brand associations.
 3. Measuring & Interpreting Brand
Performance
To understand the effects of brand marketing programmes, marketers should
measure and interpret brand performance through market research.

In this regard, a useful tool is the brand value chain.

Brand Value Chain is a means to trace the value creation process for brands to
understand the financial impact of marketing expenditures and investments.

To manage brands profitably, design & implement a Brand Equity measurement

system (a set of research steps designed to provide timely, accurate and
actionable information to make the best possible tactical decisions in the short
run and the best possible strategic decisions in the long run.
 4. Growing & Sustaining Brand Equity
It means managing brands within the context of other brands, over multiple
categories, over time, across multiple segments and over geographical
boundaries.

Defining the branding strategy through;

1. Brand-Product Matrix: representation of all the brands and products sold by

the company.

2. Brand Hierarchy: represents the number and nature of common and

distinctive brand components across the company’s products.
(Maruti Zuzuki Swift, Swift Desire and its variants)

3. Brand Expansion: uses the same or similar brand name in a different

product category

4. Brand Reinforcement & Revitalization: Strengthening & Reviving

 Building Brand Equity Models

1. Customer Based Brand Equity Model

 Customer Based Brand Equity
Two questions often confront any marketer;

1. What makes a brand strong?

2. How do you build a strong brand?

CBBE Model will help answer both the above questions.

CBBE Model provides a view as to what brand equity is and how it should be
BUILT, MEASURED & MANAGED.

According to CBBE Model, the power of a brand lies in what customers have
learned, felt, seen and heard about the brand as a result of their experiences
over time. In other words, the power of a brand lies in what resides in the
minds of customers.

CBBE definition: CBBE is the differential effect that brand knowledge has on
customer response to marketing of that brand.
 Customer Based Brand Equity

1. Differential effect: Brand equity arises from differences in consumer response. If no

difference, then it becomes a commodity.

2. Brand knowledge: These differences in consumer response are due to customer’s

knowledge about the brand (ie. what they have learnt, felt, seen,
and heard about the brand as a result of their experience over time.)

3. Customer response to marketing: Which make up brand equity, are

reflected in perceptions, preferences and behaviour related to all aspects of
brand marketing (choice of a brand, recall of message from an advertisement,
response to sales promotion, evaluation of brand extensions etc.)
 Customer Based Brand Equity
Brand Building Blocks / Pyramid

Stages of Brand Development Branding Objectives at each stage

4. RELATIONSHIPS 4. Intense,
What about you & me? active loyalty
Resonance

3. RESPONSE 3. Positive,
What about you? Judgements Feelings accessible reactions

2. MEANING 2. Points of parity

What are you? Performance Imagery and difference

1. IDENTITY 1. Depth, breadth of

Salience
Who are you? brand awareness
 Customer Based Brand Equity
Sub dimensions of Brand Building Blocks

SALIENCE: Category identification, Needs satisfied

PERFORMANCE: Characteristics & features, Product reliability, Durability &

Serviceability, Service effectiveness, Efficiency, Empathy,
Style, Design & Price.

JUDGEMENTS: Quality, Credibility, Consideration & Superiority

FEELINGS: Warmth, Fun, Excitement, Security, Social Approval &

Self-respect

RESONANCE: Loyalty, Attachment, Community & Engagement

 Customer Based Brand Equity

Brand Salience

Measures awareness of the brand. (How often, how easily the brand is evoked
under various situations) To what extent is the brand top-of-the mind and
easily recalled or recognised?)

Building brand awareness helps customers understand the product or category

in which the brand competes. It also helps the customers know which of
their “needs” is satisfied or basic functions does the brand provide.

Depth of awareness: measures how likely it is for a brand element to come to

mind, and the ease with which it comes to mind.

Breadth of awareness: measures the range of purchase and usage situations in

which the brand elements comes to mind.
 Customer Based Brand Equity

Brand Performance

The product itself is at the heart of brand equity.

Because it is the primary influence on what customers experience, hear, and

what the company can tell about the product in their communication.

Therefore, delivering a product that fully satisfy consumer needs and wants
is a prerequisite for successful branding.

In other words, the product should meet and if possible surpass customer
expectations.

Brand Performance: describes how well the product and services meets
customer’s functional needs. ie. how well the brand rate on objective assessments
such as; quality, utility, aesthetics and economy?
 Customer Based Brand Equity

Brand Performance

1. Primary ingredients & supplementary features

2. Product reliability, durability and serviceability

(Consistency of performance, Economic life, Ease of repairing)

3. Service effectiveness, efficiency and empathy

(How well satisfies customer’s service requirements, Speed & responsiveness, Providers are
seen as Trusting, Caring & Interested)

4. Product style and design

5. Product price
 Customer Based Brand Equity

Brand Imagery

Brand imagery depends on the extrinsic properties of the product and service,
including the ways in which the brand attempts to meet customer’s social or
psychological needs.

It is the way people think about the brand abstractly, rather than what they think
the brand actually does.

1. User profiles
2. Purchase and usage situations
3. Personality and values
(Sincerity, Excitement, Competent, Sophistication & Ruggedness)
4. History, heritage and experiences
 Customer Based Brand Equity
Brand Judgements

Brand judgements are customers personal opinions about and evaluations of the
brand, which customers form by putting together all the different brand performance
and imagery associations. All types of judgements are made.

1. Brand Quality

2. Brand Credibility
(Describes the extent to which customers see the brand as credible in terms of;
Expertise, Trust worthiness & Likability)

3. Brand Consideration
How personally relevant customers find the brand to effect a possible purchase
or use.

4. Brand Superiority
Measures the extent to which customers view the brand as unique and better
than other brands.
 Customer Based Brand Equity
Brand Feelings

Customers emotional responses and reaction to the brand.

Warmth: sense of calm and peacefulness.

Fun: amused, playful, cheerful.

Excitement: energised, elated feelings, cool, sexy.

Security: safety, comfort.

Social approval: how other’s look favourably on them.

Self-respect: pride, feel better about themselves, accomplishment, fulfillment.

 Customer Based Brand Equity
Brand Resonance

Is the ultimate relationship and level of identification that the customer

has with the brand. It describes the nature of relationship and the extent to
which customers feel that they are “in sync” with the brand.

It involves two dimension;

1. Intensity or depth of the psychological bond that customers have with the brand.

2. Level of activity engaged by this loyalty.

These two dimension can be split into four categories.

 Customer Based Brand Equity
Brand Resonance

1. Behavioral Loyalty: can measure in terms of repeat purchases and the amount of
share of category volume. ie. How often and How much they purchase the brand?
(Activity)

2. Attitudinal Attachment: go beyond having a positive attitude to viewing the brand as

something special. ie. They love it or it is their favourite. (Intensity)

3. Sense of Community: should reflect an important social phenomenon in which

customers feel affiliation with other people associated with the brand. (Intensity)

4. Active Engagement: customers are willing to invest time, energy, money or

other resources in the brand beyond those expended during purchase. (Activity)
2. Brand Asset Valuator Model
 Brand Asset Valuator Model
A tool for Understanding and Managing Brands
Measurement of current strength & future potential

How Brands Develop?

(The thinking behind BAV)

Knowledge How well known the brand is?

Esteem How highly regarded the brand is?

Relevance How personally appropriate the brand is?

Differentiation How distinctive the brand is?

New Brands Start Here

 Brand Asset Valuator Model

The Pillar Relationships

(How Brands are Built)

Brand Asset
Valuator

Brand Strength Brand Stature

Differentiation Relevance Esteem Knowledge

Potential for Current

Growth Strength
 Brand Asset Valuator Model
DIFFERENTIATION: Helps the Product Standout

3 Components
Different: how the brand stand out from its competition
Unique: brand’s essence, beliefs, personality, originality and authenticity
Distinctive: brand’s prestige and ability to command a premium price

RELEVANCE: Drives Penetration, Drives franchise for the product

ESTEEM: Reflects Popularity & Quality

KNOWLEDGE: Captures Intimacy & Understanding

When;

D > R: Room to grow the brand

R > D: Commodity status

E > K: Consumers would like to know more about the brand

K > E: Consumers know the brands more than they like the brand
 Brand Asset Valuator Model

Differentiation Comes First

• Establishes a brand’s reasons for being

• The brands point of difference
100 • Is essential for attracting new users
90 • Relates to margins
80
70
60
50
40
30
20
10
0
D R E K
 Brand Asset Valuator Model

Then Comes Relevance

• Making the difference relevant

• How appropriate the brand is to you
100 • Relevance drives franchise size
90 • Relates to consideration and trial
80
70
60
50
40
30
20
10
0
D R E K
 Brand Asset Valuator Model

Esteem Follows On
• A function of quality & popularity
• How you regard the brand
• Measure of how well the brand is
100
performing its task
90 • Relates to perceptions of quality
80 and loyalty
70
60
50
40
30
20
10
0
D R E K
 Brand Asset Valuator Model

Knowledge is the Successful Outcome

• Reflection of how well established the brand has become
• Not a consequence of media weight or market share alone
• An intimate understanding of the brand
• Relates to awareness and consumer experiences
100
90
80
70
60
50
40
30
20
10
0
D R E K
 Brand Asset Valuator Model

How Brands Decline?

Differentiation is usually the First to go

100
90
80
70
60
50
40
30
20
10
0
D R E K
 Brand Asset Valuator Model

How New Brands Grow?

Growing Leadership

Brand D R E K D R E K
Strength
Rank New Declining

D R E K D R E K
Brand Stature
Rank
 Brand Asset Valuator Model

Brands with a future has the power to stay above the diagonal

Low High
Unrealised Potential Leadership

High

Brand Strength
(Relevance & Differentiation)

Low

Unfocused / New Eroding Potential

Brand Stature
(Knowledge & Esteem)
 Brand Asset Valuator Model

These brands have Customers find

relevance, but only these brand
to a small audience. irresistible. They
have high earnings
and margin power.

These brands can’t

overcome what is
These brands are already known
not well known. about them.
Many are new,
others are lost.
 Brand Asset Valuator Model

CBBE Model (Brand Resonance Model) and BAV Model

CBBE Model BAV Model

Brand Awareness & Familiarity Knowledge
Favourability of Brand Associations Esteem
Strength of Brand Associations Relevance
Uniqueness of Brand Associations Differentiation
3. BrandZ Model
The BRANDZ Model
(Sequential Steps)

BONDING
(Best)

ADVANTAGE
(Better)

PERFORMANCE
(Deliver)

RELEVANCE
(Value)

PRESENCE
(Awareness)
MERCI