DefinitionBrand Equity is a set of assets (andliabilities) linked to a brand’s name andsymbol that adds to (or substracts from) thevalue provided by a product or service to afirm and/or that firm’s customers.
Categories of Assets• Brand name awareness• Brand loyalty• Perceived Quality• Brand Associations• Other Proprietary Brand Assets (e.g., channel relationships, patents,…)
Brand Equity Increases Value Brand Loyalty Brand Awareness Value to Customer Perceived QualityBrand Value to FirmEquity Brand Associations Other Brand Assets
Brand Name Awareness• Anchor to which other associations can be attached• Familiarity-liking• Signal of substance/commitment• Brands to be considered• Examples: – Coke: seal – DuPont: strategic
Brand Loyalty• Reduced marketing costs• Trade leverage• Attracting new customers – Create awareness – Reassurance• Time to respond to competitive threats• Examples: – Delta ad
Perceived Quality• Reason-to-buy• Differentiate/Position• Price• Channel member interest• Extensions• Examples: – Jack in the box: COPS – American Express
Brand Equity and Brand Value• Brand Equity provides value to customers: – Interpretation/processing of information – Confidence in the purchase decision – Use satisfaction
Brand Equity and Brand Value• Brand Equity provides value to firm: – Efficiency and effectiveness of marketing programs – Brand loyalty – Prices/margins – Brand extensions – Trade leverage – Competitive advantage
Discussion• How has Levi’s built (or failed to build) each of the dimensions/assets of brand equity?• How does Levi’s create value? – To customers – To their firms• Can you suggest ways to increase Levi’s brand equity?
Levi’s Ads•Dockers’ Ads •Dance •Fair •Dance•Levi’s Ads •Invisibility •Dressing Room •Crazy legs•Levi’s web site
Brand Building Inhibitors• Pressure to compete on price• Proliferation of competitors• Fragmenting markets and media• Complex brand strategies and relationships• Bias toward changing strategies• Bias against innovation• Pressure to invest elsewhere• Short-term pressures
Brand Equity and Brand IdentityBrand Brand BrandIdentity Associations Equity