Intoduction To Brand Equity | Holistic Brand Strategy

Introduction to brand equity Session 2 Holistic Brand Strategy Patrick Collings Sagacite Brand Agency Nairobi, Kenya 26th & 27th May 2008

“If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trademarks, and I would fare better than you” John Stuart, Chairman of Quaker

however, tangiblefor much of the 20th century assets ruled

management knew brands were there but value not recorded

then the 1980s arrived

the value of brands was recognized (more about brand valuation in session four)

so a business perspective on brands (not to be confused with our market deﬁnition )

“Brands are intangible assets, assets that produces added beneﬁts for the business. This is the domain of strategic brand management: how to create value with proper brand management ” Jean-Noël Kapferer, The New Strategic Brand Management

what is brand equity

many different viewpoints and deﬁnitions

my mashup version

brand equity is the measurable value derived from marketing and other strategic and management efforts attributable to a brand

lets explore this value add

1 enables buying decisions

2 builds customer loyalty

1+2=

3 builds market share

4 protects market share

5 helps command higher prices

+20%

6 creates a halo effect

apple itunes commercial

50% 17% vs

7 assists business expansion

8 more trade support

9 increases market value

but... there is a flip side

a neglected brand erodes value

the point we have arrived at

we have deﬁned brands

we have deﬁned brand equity

shown that a valuable brand adds overall value

now to build brand equity

kevin lane keller E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College

customer-based brand equity model

CBBE

approaches brand equity from the perspective of the consumer

customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand

colt 45 pabst coors guinness miller lite budweiser taste perception of six beers when aware of the brands

pabst budweiser colt 45 miller lite guinness coors taste perception of six beers when unaware of the brands

a brand has positive cbbe when consumer react more favourably to an offering and its marketing when the brand is identiﬁed than when it is not

a brand has negative cbbe when consumer react less favourably to an offering and its marketing when the brand is identiﬁed than when it is not

“The challenge for marketers in building a strong brand is ensuring that customers have the right type of experiences with products and services and their accompanying marketing programs so that the desired thoughts, feelings, images, beliefs, perceptions, opinions, and so on become linked to the brand.” Kevin Lane Keller

a point of difference

keller’s cbbe model is marketing focus whilst holistic brand strategy embraces other management disciplines

building brand equity

four sequential steps

brand relationship brand opinion brand understanding brand awareness

what about us? brand relationship who do i think of you? brand opinion what are you? brand understanding who are you? brand awareness

intense and active what about us? brand relationship loyalty positive accessible who do i think of you? brand opinion reactions points of parity & what are you? brand understanding points of difference deep and broad who are you? brand awareness brand awareness

customer-based brand equity pyramid

loyal client base brand resonance brand opinion brand understanding potential market brand awareness

takeaways

1 value of brands only measured and recorded in the last two decades 2 brand equity is the measurable value derived from activities unique to a brand 3 a valuable brand helps an entire organization 4 building brand equity with keller’s customer-based brand equity model

presentation by patrick collings sagacite brand agency patrick@sagacite.co.za +2781 616 0967 www.sagacite.co.za

Intoduction To Brand Equity | Holistic Brand Strategy

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