Branding

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Branding

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Branding

  1. 1. Branding
  2. 2. What is Brand Equity? <ul><li>“ Brand equity is a set of assets (and liabilities) linked to a brand’s name that adds to (or subtracts from ) the value provided by a product or service to a firm and/or that firms customers.” </li></ul><ul><ul><li>Aaker, Building Strong Brands </li></ul></ul>
  3. 3. Asset Categories for Brand Equity <ul><li>Brand name awareness </li></ul><ul><li>Brand loyalty </li></ul><ul><li>Perceived quality </li></ul><ul><li>Brand associations </li></ul><ul><ul><li>strong, favorable, unique </li></ul></ul>
  4. 4. Brand Name Awareness <ul><li>Familiarity leads to liking </li></ul><ul><ul><li>Colas, peanut butter </li></ul></ul><ul><li>Dominant presence  “everybody is buying so must be good” </li></ul><ul><ul><li>Nutrasweet, Intel </li></ul></ul><ul><li>Recall at time of purchase </li></ul><ul><ul><li>Kleenex, Clorox, Band-Aid, Crayola </li></ul></ul><ul><li>Durable </li></ul><ul><ul><li>Datsun </li></ul></ul>
  5. 5. Brand Loyalty <ul><li>Results in Lower Marketing Cost </li></ul><ul><ul><li>Lexus  does not expend so much bc of loyalty </li></ul></ul><ul><li>Entry Barrier </li></ul><ul><ul><li>Dell, Intel, Tide </li></ul></ul><ul><li>Trade Leverage </li></ul><ul><ul><li>Cheerios, Kraft Cheese </li></ul></ul>
  6. 6. Perceived Quality <ul><li>Higher quality leads to Higher price, higher ROI </li></ul><ul><li>Signal quality </li></ul><ul><ul><li>Tomato Juice – thickness </li></ul></ul><ul><ul><li>Lemon scent – strong cleaner </li></ul></ul><ul><ul><li>Fit and finish – inference of quality on unobserved attributes  Lexus, tolerances are good, so overall quality should be good </li></ul></ul>
  7. 7. Brand Associations <ul><ul><li>Attribute associations </li></ul></ul><ul><ul><ul><li>Crest, Volvo =safety , BMW =performance , </li></ul></ul></ul><ul><ul><li>Emotional Benefit </li></ul></ul><ul><ul><ul><li>Hallmark =Warmth; Nike = Energetic; Evian= Healthy </li></ul></ul></ul><ul><ul><li>Self Expressive </li></ul></ul><ul><ul><ul><li>Gap=Hip; Mercedes= Successful; WalMart =Unpretentious, but smart </li></ul></ul></ul><ul><ul><li>NesCafe problem: positive blind taste, but no sales, perception of bad taste  personality research: assoc. w/ lazy buyers </li></ul></ul>
  8. 8. Brand Associations (Continued) <ul><ul><li>Easy Recall and Key Association </li></ul></ul><ul><ul><ul><li>Logos/Symbols </li></ul></ul></ul><ul><ul><ul><ul><li>Distinct writing - Coke, Dunhill, Kit-Kat </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Abstract Logos - Nike’s Swoosh, Mercedes Star </li></ul></ul></ul></ul><ul><ul><ul><li>Characters </li></ul></ul></ul><ul><ul><ul><ul><li>Joe Isuzu, Energizer Bunny, Marlboro Cowboy, Maytag Repairman </li></ul></ul></ul></ul><ul><ul><ul><li>Slogans </li></ul></ul></ul><ul><ul><ul><ul><li>My Doctor Said Mylanta </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Nothing Runs Like A Deere </li></ul></ul></ul></ul><ul><ul><ul><ul><li>A Diamond is Forever </li></ul></ul></ul></ul><ul><ul><ul><li>Jingles </li></ul></ul></ul><ul><ul><ul><ul><li>Be All That You Can Be </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Intel Inside </li></ul></ul></ul></ul>
  9. 9. Brand Essence or Mantra <ul><li>Heart and Soul of the Brand </li></ul><ul><li>Internal Branding </li></ul><ul><ul><li>Nike: “Authentic Athletic Performance” </li></ul></ul><ul><ul><li>Disney: “Fun Family Entertainment” </li></ul></ul><ul><li> two to three words </li></ul>
  10. 10. Branding Issues Legal (Keller, 2002) <ul><li>Trademark: </li></ul><ul><ul><li>Generics and no longer valid </li></ul></ul><ul><ul><ul><li>Vaseline, Cellophane, Escalator, Thermos, Aspirin </li></ul></ul></ul><ul><ul><li>Struggling to retain trademark </li></ul></ul><ul><ul><ul><li>Band Aids, Kleenex, Scotch Tape, Q-Tips, Xerox </li></ul></ul></ul>
  11. 11. Trademark Hierarchy (Keller, 2002) <ul><li>Fanciful (Kodak, Yahoo!, Lycos) </li></ul><ul><li>Arbitrary (Camel) </li></ul><ul><li>Suggestive (Eveready) </li></ul><ul><li>Descriptive (Ivory) </li></ul><ul><li>Generic (Aspirin) </li></ul><ul><ul><li>5 is more difficult to protect </li></ul></ul><ul><ul><li>Trademark – Adjective not a noun, verb or plural </li></ul></ul>
  12. 12. Rebranding <ul><li>Acura – Legend, Vigor, Integra bc were not viewed as premium, acura got lost </li></ul><ul><li>Sub-brands were less ‘luxurious’ </li></ul><ul><li>Switch to TL, RL, NSX, but less protective </li></ul><ul><li>Drive Acura not a Legend </li></ul><ul><li>Consistent with Category Leaders: Mercedes “5-series”=umbrella brand, BMW </li></ul>
  13. 13. Tylenol Response Exterior factors can damage your brand
  14. 14. Brand Extensions - Advantages <ul><li>Facilitate new product acceptance </li></ul><ul><ul><li>reduce perceived risk by customer </li></ul></ul><ul><ul><li>increase chances of gaining distribution </li></ul></ul><ul><ul><li>lower marketing cost </li></ul></ul><ul><li>Enhance parent brand </li></ul><ul><ul><li>improve / revitalize image </li></ul></ul><ul><ul><li>new customers, increased coverage </li></ul></ul>
  15. 15. Successful Brand Extensions <ul><li>Vaseline Intensive Care lotion </li></ul><ul><li>Jello Pudding Pops </li></ul><ul><li>Bic lighters </li></ul><ul><li>Aunt Jemima syrup </li></ul><ul><li>Colgate toothbrush </li></ul>
  16. 16. Unsuccessful Brand Extensions <ul><li>Country time Apple Cider </li></ul><ul><li>Kleenex diapers </li></ul><ul><li>Clorox detergent </li></ul><ul><li>Bic Perfume </li></ul>
  17. 17. Brand Valuation: Interbarand 2001 <ul><li>#1. Coke: $68.9 bn </li></ul><ul><li>#2. Microsoft: $65.1bn </li></ul><ul><li>#3. IBM: $52.7bn </li></ul><ul><li>#4. GE: $42.4bn </li></ul><ul><li>#5. Nokia: $40.2bn </li></ul><ul><li>#6. Intel: $34.7bn </li></ul>

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