10 Creating Brand EquityMr. Ajit AryaFaculty-MarketingDepartment of Business StudiesC. U. Shah College of Engg. & Tech.
Chapter Questions• What is a brand and how does branding work?• What is brand equity?• How is brand equity built, measured, and managed?• What are the important decisions in developing a branding strategy?
Kerala Tourism has successfully branded thedestination with a brand name, logo, and the tagline“God’s Own Country”
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.
The Role of BrandsIdentify the maker Simplify product handling Organize accounting Offer legal protection
The Role of Brands Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium
What is Branding? Branding is endowingproducts and services with the power of the brand.
Advantages of Branding• Consumer’s viewpoint 1. Product quality 2. Increased shopper efficiency 3. Calls attention to new products 4. Reduces psychological risk• Seller’s viewpoint 1. Handling orders, accounting, tracking down problems 2. Trademark identification – legal protection 3. Brand loyalty 4. Reduces need for in-store contact 5. Facilitates segmentation, promotion, and pricing (competitive advantage)
What is Brand Equity? Brand equity is the added valueendowed on products and services, which may be reflected in the wayconsumers, think, feel, and act with respect to the brand.
Slogans• Like a good neighbor, • We try harder State Farm is there • We’ll pick you up• Just do it • Nextel – Done• Nothing runs like a • Zoom Zoom Deere • I’m lovin’ it• Save 15% or more in • Innovation at work 15 minutes or less • This Bud’s for you • Always low prices
• Line extensions refers to new sizes, styles, or related products – Coca-Cola line extensions
• Brand licensing licensing: practice allowing other companies to use a brand name in exchange for a payment – Nabisco Licenses Its Oreo Brand to Post Cereal
• Brand extension extension: application of a popular brand name to a new product in an unrelated product category – Example: Utility Lighter – A Bic Brand Extension
• Family brand brand: brand name that identifies several related products – Heinz A well known family brand
Brand NamingIndividual names Blanket family names Separate family names Corporate name- individual name combo
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
Brand Roles in a Brand Portfolio Flankers Cash Cows Low-end High-end Entry-level Prestige