Brand Value Chain
Challenges to branding
Began in old times
Was adopted as a distinguisher
Was adopted as a quality mark
Was adopted by big bodies
Was adopted by even bigger firms
Today I’m the omnipotent in corporate world
I’m not a product
I’m not a label
I’m not a symbol
Nor a logo
Nor a tag line
I’m what all these make up
Emotion are not same as feelings
They may be good or bad
Emotions can be short or ever lasting
The latter, plus trust, build up a brand
Trust in the brand
‘Feel good’ aspects
Let’s watch a video now ;)
Basically, Brand equity is a phrase used in
the marketing industry which describes the value of
having a well-known brand name, based on the idea that
the owner of a well-known brand name can generate
more money from products with that brand name than
from products with a less well known name, as
consumers believe that a product with a well-known
name is better than products with less well known
It’s the added value endowed upon products and services
The positive differential effect that knowing brand name
has on customer response to the product or service.
It stresses the importance of the brand in
Is defined in terms of marketing effects uniquely
attributable to brand.
In time, a brand comes to embody a promise about
the goods it identifies—a promise about quality,
performance, or other dimensions of value,
which can influence consumers' choices among
competing products. When a brand's promise
extends beyond a particular product, its owner
may leverage it to enter new markets. For all
these reasons, a brand can hold tremendous
value, which is known as brand equity.
Brand equity arises from the differences in
Differences in response are a result of
customer’s brand knowledge, all thoughts,
feelings, images, experiences and beliefs
associated with the brand
Brand equity is reflected in perceptions,
preferences, and behaviour related to all
aspects of the marketing of a brand.
Lifebuoy made a conscious shift in its
segmentation and positioning from its previous
focus on men to a warmer and more versatile
benefit of health for the entire family.
Brand asset valuator Model ( Developed by Advertising
agency Young and Rubicam)
It defines 4 pillars of Brand Equity:
1 Energised differentiation-It’s the degree to
which the brand is seen differently from
2 Relevance measures the appropriateness
and breadth of a brand’s appeal.
3 Esteem measures perceptions of quality
4 Knowledge measures how aware and
consumers are with the brand.
Brandz mode is a model developed by Millward Brown
and WPP which is based on brand strength at the
heart which lies the Brand Dynamics Pyramid.
The Pyramid in next slide shows the number of consumers
who have reached what level.
Presence- Active familiarity based on past trail, saliency or
knowledge of brand promise.
Relevance- Relevance to consumer’s needs, in the right
price range or in the consideration set .
Performance- Belief that it delivers acceptable product
performance and is on the consumer’s short list.
Advantage- Belief that the brand has an emotional or
rational advantage over other brands in the category.
Bonding- Rational and emotional attachments to the brand
to the exclusion of most other brands.
Customer Based Brand Equity
Model(Brand Resonance Model)-
According to this model, enacting the four
steps means establishing a pyramid of six. This
model emphasizes on the duality od brands-
the rational route of building brands is on
the left side of the pyramid and emotional
route on the right side.
Creating significant brand equity requires reaching the top
of the brand pyramid, which occurs only if the right building
blocks are put into place:
1 Brand Salience is how often and how easily customers
think of the brand under various purchase or consumption
2 Brand Performer is how well the product or service
meets customers; functional needs.
3 Brand imagery describes the extrinsic properties of the
product or service,.
4 Brand judgements focus on consumers’ own personal
opinions and evaluations.
5 Brand feelings are customers’ emotional responses and
reactions with respect to the brand.
6 Brand resonance describes the relationship customers
have with the brand and the extent to which they feel
they’re “in sync” with it.
Marketers build brand equity by creating the right
brand knowledge structures with the right
1 Identifying initial choices for the brand elements
2 The product and service and all accompanying
marketing activities and supporting marketing
3 Other associations indirectly transferred to the
brand by linking it some other entity
Recently, Airtel changed its logo so that the “a” in the
brand name represents “air” and the deeper red has a
positive meaning, especially in Africa where the brand
is developing strong footprints.
Virgin mobile , one of the later entrants in the mobile
service space in India, uses edgy and humorous
advertisements that depict pranks and mischievous
acts by youngsters. They connect the young
consumers and help the brand in creating an edgy
attitude with a touch of irreverence.
Microsoft chose the big name Bing for its
new search engine because it felt it
unambiguously conveyed search and the
“aha” moment of finding what the a person is
Brand elements ( brand identities) :are those
devices,which can be trademarked,that identify
and differentiate the brand. Example:
Memorable : Easily recognized, Easily recalled.
Example : LG , Taj
Meaningful : Descriptive and Persuasive. Example
: Fair and lovely face cream
Likeable : Fun and interesting, Rich visual and
verbal imagery ,Aesthetically pleasing. Example :
Transferable : Within and across product
categories, Across geographic boundaries and
cultures. Example: Amazon
Adaptability : Flexible and Updateable. Example :
Protectable : Legally and competitively. Example :
Brand NAME : captures central theme.
Brand Awareness: SHORT names,example Coca-
Cola known as coke .
Meaning should be clear. Example: Vaner,Randal
Pronounciation – Faconnable clothing
Brand ASSOCIATION : Communication,
EXAMPLE: Apple’s powerbook
Nissan’s Xterra SUV
ESPN’s X Games
Logos indicate origin,ownership.
Example of Strong Word mark : KIT-KAT
Complex and elaborate
STUDY by Henderson and Cote
: Are short phrases that communicate
descriptive or persuasive information about
EXAMPLE : State Farm Insurance’s “ Like a Good
Neighbour, State Farm is There”
What does this represent?
Excellent protectability , more useful for brand
BUDDY LEE SELLS LEE DUNGAREES:
LEE faced perception problem amongst youth.
The word DUNGAREES appealed to youth again through
The BRAND VALUE CHAIN :
Is a structured approach to assessing the
sources and outcomes of brand equity
and the way marketing activities create
How is the BRAND valued by the financial
community and how is it influencing customers- is
BRAND VALUE CREATION.
MARKETING PROGRAM INVESTMENT: any
marketing program that potentially can be
attributed to BRAND VALUE DEVELOPMENT.
Can there be any Failure?
Failure of MILLER Brewing in 1990s
benefitted Anheuser-Busch,Heineken and
Corona in capture in BEER category.
Its the Quality Aspects of the marketing
pragram which creates the DIFFERENCE!
Quality of the marketing program depends on the
quality of that program investment. Four
It includes everything that exists in the minds of
the customers with respect to a BRAND.
Approaches to measure this :
Contextual factors external to the costumer
plays key role.
Three such factors :
Channel and other intermediary support
Customer size and profile
Reaction to Price premiums and price elasticities.
Change in demand with change in price.
Profitable sales value
Contextual factors external to the brand itself.
Financial analysts and investors consider these
Numerous dot com brands such as PRICELINE ,
It involves information collected from
consumers on a routine basis over time
It employs quantitative measures
It estimates how well a positioning has been
Brand equity charter
Formulizing the Co. View of brand equity into a
document – the brand equity charter – that
provides relevant guidelines to marketing
Eg. Ad agency personnel
Brand equity report
Assemble the results of the tracking survey for
the brand into a brand equity report to be
distributed to management on a regular basis.
A firm has three main choices
It can develop new brand elements for the new
It can apply some of its existing brand elements
It can use combination of new and existing brand
o Branding Decisions
Assuming a firm decides to brand its products
and services, it must choose which brand names
o Brand Portfolios
It is the set of all brands and brand lines a
particular firm offers for sale in a particular
category or market segment
o Brand Extension
Two main advantages of brand extensions are
that they can facilitate new product acceptance
and provide positive feedback to parent brand
Positioning is the act of designing the company’s
offers and image so that it occupies a distinct
and valuate place in the minds of the target
Approaches to Positioning:
1. Focussing on the consumers
2. Focussing on the competitors
Positioning is owing a piece of customer’s mind.
Positioning is not what you do to the product
but what you do to the mind of the prospect.
As said by Ries & Trout (THE MARKETING
It’s incorrect to call it Product Positioning.
The easy way to get into the person’s mind is to be
the first one to introduce a particular product.
Eg Kodak, Surf, Colgate
The basic approach is not create something new
but to manipulate what is already in mind
To find a unique position, we must ignore the
You wont find an uncola idea inside 7-up; you find
it inside the cola drinker’s head.
“It is difficult to change the behaviour but easy
to work with it.”
Understand the role of words and how do they
Be careful of change.
Need Vision- It should be long term and not on
technology or fad.
Courage-To slug it out when others wait and
Objectivity- You need a backboard.
Simplicity- Not to be complicated or convoluted.
Subtlety- Unique position and appeal that’s not
Willingness to sacrifice
Start by looking not on the product but at the position in the
market that you wish to occupy, in relation to competition.
Think about how the brand will answer the main consumer
1. What will it do for me which others would not do?
2. Why should I believe you?
Try to keep it short and make every word count and be as
specific as possible as vagueness opens the way to confused
Keep the positioning upto date.
Look for a Key Insight. Insight expresses all that we know from
seeing inside the customer.
My soap leaves the skin feeling dry and tight.
Fragrance of my current talc does not last
long and I miss the opportunity of enjoying life.
Be crystal clear.
Be customer based.
1. Be relevant and credible to the customer
2. Write in consumer language and from consumer’s
point of view.
1. Be distinctive
2. Focus on building brand elements
3. Be persuasive
4. Be sustainable
A brand bull’s eye provides content and context
to improve everyone’s understanding of the
positioning of a brand in the organization. Here
we describe the components of a brand bull’s
eye, illustrating with a hypothetical Starbucks
Desire for better
coffee and a
Local Cafes, fast-
gives me the
In the inner two circles is the heart of the bull’s eye-
key points of parity and points of difference as well as
the Brand Mantra.
Points of parity:
2. Locally involved
3. Fairly priced
Points of difference:
1. Relaxing, rewarding moments
2. Rich sensory consumption experience
3. Convenient friendly service
4. Fresh and high quality coffee
5. Varied, exotic coffee drinks
Rich rewarding coffee experience.
In the next outer circle are the substantiators or the
reasons to believe(attributes or benefits that provide
factual or demonstrable support):
1. 24-hour training of baristas
2. Totally integrated system
3. Stock options/health benefits for baristas
4. Triple filtrated water.
Finally, the outer most circle contains two
useful branding concepts:
1. Brand value/personality/character
2. Executional properties and visual
Television- Most powerful medium.
it has two important strengths
1. Demonstrating product attributes and
explaining consumer benefits.
2. For dramatically portraying non product
related user and usage imagery, brand
personality and so on.
General Principles concerning advertising and
T.V advertising weight alone is not enough
T.V advertising is more likely to work when there
are changes in copy or media strategy.
When successful advertising-impact lasts the
period of peak spending.
RADIO- Advantages- local coverage, low cost,
high frequency, flexible.
MAGAZINES- quality reproduction, high
information content, longevity.
DIRECT RESPONSE- high selectivity, high
information content, opportunities for repeat
PREREQUISITE OF FAME AND FORTUNE IS
Levels – brand unaware
Top-of-the mind awareness
Dominant brand awareness
Select an apt brand name
Adopt eye-catching brand symbols
Develop memorable ads
Leverage the brand extension
Repeated purchase made by the consumer out of
commitment to the brand
Levels - non-committed customer
Keep the brand relevant for its loyal customers
Allow customer participation
Create a truly differentiated brand
Provide ‘real’ value to the customer
Make it a verb
Building brands across national boundaries
Global branding & local branding
Utilization of global opportunities
Build up a prestigious brand
Make brand extension easier
1. Fragmentation of mass media
2. Proliferation of brands
3. Rise of consumerism
4. Rise in private retailers
5. Volatile markets and cutomers