Brand Equity

Brand Equity Concept Sources Four steps of brand building

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Brand Equity • It is the willingness for someone to continue to purchase a particular brand or not. • The added value to the firm, the trade, or the customer with which a given brand endows a product. • Brand equity subsumes brand strength and brand value ( where brand strength = set of associations and behaviours by customers which permits it to enjoy advantages, and brand value = financial outcome of management’s ability to leverage brand strength via tactical & strategic actions) 2

Building brand equity Brand Elements Marketing Programs involving 4Ps Leverage of Secondary Associations

Brand Awareness

Brand Associations

Depth

Strong

- Recall

Relevance,Consistency

-Recognition

Favourable

Breadth

Desirable, Deliverable

-Purchase

Unique

-Consumption

Point of parity, Point of difference

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Four steps of brand building 1. Brand identification and association with customers/customer need 2. Establish the totality of brand meaning 3. Proper customer responses to this brand identification and meaning 4. Convert brand response to create an intense, active loyalty relationship between customers and the brand

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Fundamental questions/branding ladder Brand Relationships What about you and me?

Brand Responses What about you? What do I think or feel about you?

Brand Meaning What are you?

Brand Identity Who are you?

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Brand Equity Pyramid

Resonance

Judgements

Performance

Feelings

Imagery

Salience 6

Brand Equity Pyramid • Brand Salience • Awareness aspects of the brand • Linking the brand through brand name, logo, symbol etc to certain associations • The better the customer understands which need the brand satisfies, the better the salience • Breadth and depth of awareness • Eg: Tropicana at basic level, customers should recognize its logo, packaging - Whenever buying orange juice Tropicana should come to mind – a set of needs should be satisfied in the mind 7

Brand Equity Pyramid • Brand Performance • Product itself is at the heart of brand equity • Does the brand satisfy utilitarian, aesthetic, and economic needs and wants? • The strongest positioning involves performance advantages of some kind • Eg: BMW – Sheering driving pleasure • Five important factors: primary ingredients and secondary features, product reliability, service, style and design, price 8

Brand Equity Pyramid • Brand Imagery • More intangible aspects of the brand • Imagery can be formed directly (from a consumer’s own experiences) or indirectly (depiction of same considerations in ads) • Four categories: User profiles, Purchase and usage situations, Personality and values, History and heritage

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Brand Equity Pyramid • Brand Judgements • Customer’s personal opinions and evaluations – a result of brand performance and imagery • Four important criteria – Brand quality Eg: Taj Hotels stand for location convenience, comfort, appearance, service, facilities, security, prices – Brand credibility Eg: Aashirwaad Aata has to be good because it is an ITC brand – Brand consideration Eg: “I’m Loving It” – Brand superiority 10 Eg: India’s largest selling diesel car

Brand Equity Pyramid • Brand Feelings

• Customer’s emotional responses and reactions • Six important types of brand-building feelings:

Warmth Fun Excitement Security Social Approval Self-respect

Experiential and immediate

Private and enduring 11

Brand Equity Pyramid • Brand Resonance • The ultimate relationship and level of identification that the customer has with the brand • Eg: High resonance include Harley-Davidson, Levis,

• The depth of the psychological bond • Resonance can be broken into 4 categories: • Behavioural loyalty (loyalty value), Attitudinal attachment, Sense of community, Active engagement 12

Ways of building resonance

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Ways of building resonance

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