Leveraging Secondary Brand Associations To build Brand Equity

1. Leveraging
Secondary Brand
Associations
To build Brand
Equity

2. We will consider the following eight different means by which
secondary associations can be created by linking the brand to:
1.Companies (e.g., through branding strategies)
2.Countries or other geographical areas (e.g., through
identification of product origin)
3.Channels of distribution (e.g., through channels strategy)
4.Other brands (e.g., through co-branding)
5.Characters (e.g., through licensing)
6.Spokespeople (e.g., through endorsements)
7.Events (e.g., through sponsorship)
Other third-party sources (e.g., through awards or reviews)

3. Company
Three main branding options exist for a new product:
1. Create a new brand
2. Adopt or modify an existing brand
3. Combine an existing and new brand
Existing brands may be related to a company (e.g., Procter &
Gamble) or family brand (e.g., Ivore) and may involve names,
logos, symbols, and so on.

4. Country-of-Origin and Other Geographical Areas
A number of brands are able to create a strong point of difference in part
because of consumers’ identification of and beliefs about the country of
origin. For example, consider the following strongly-linked brands and
countries:
Levi’s jeans – United States
Nike athletic shoes – United States
Coke soft drink – United States Bertolli olive – Italy
Marlboro cigarettes – United States Gucci shoes & purses – Italy
Chanel perfume – France Mont Blanc pens – Switzerland
Foster’s beer – Australia BMW – Germany

5. Channels of Distribution
We consider how retail stores can indirectly affect brand equity
through this “image transfer” process.
Retailers create these associations through the products and brands
they stock, the means by which they sell them, and so on. To more
directly shape their image.
Co-Branding
Co-branding – also called brand building or brand alliances – occurs
when two or more existing brands are combined into a joint product
and/or marketed together in some fashion. A special case of this
strategy is ingredient branding, which will be discussed in the next
section.

6. Example of Co-branding
 Nike and Apple
 Red Bull and GoPro.
 Uber and Spotify.
 https://www.youtube.com/watch?v=dYw4meRWGd4

7. Ingredient Branding
A special case of co-branding is ingredient branding, which
involves creating brand equity for materials, components, and parts
that are necessarily contained within other branded products. Some
well-known ingredient brands include Dolby noise reduction,
Goretex water-resistant fibers, Teflon nonstick coatings,
Stainmaster stainresistant fibers, and Scotchgard fabrics.

8. Licensing
Licensing involves contractual arrangements whereby firms can
use the names, logos, characters, and other facets of other brands
to market their own brands for some fixed fee.
Entertainment licensing has also become big business in recent
years. Successful licensers include movie titles and logos (e.g.,
“Star Wars” “Jurassic Park,” and “The Lion King”), comic strip
characters (e.g., Garfield and Peanuts characters), television.
Licensing can be quite lucrative for the licensor, Licensing has
long been an important business strategy with designer apparel and
accessories. Designers such as Donna Karan, Calvin Klein, Pierre
Cardin, and others command large royalties for the rights to use
their names on a variety of merchandise such as clothing, belts,
ties, luggage, and so on. Teenage Mutant Ninja Turtles products,
first introduced in 1988, were licensed for better or worse to more
than a hundred businesses and generated.

9. Celebrity Endorser
Using well-known and admired people to promote products has a
long marketing history. Even former U.S. president Ronal Reagan
has been a celebrity endorser in the past, pitching several different
products-including cigarettes-during his acting days.