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Strategic Brand Management

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Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTSSTEPS
Grow and Sustain
Brand Equity
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance

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Concept of
Customer Based
Brand Equity

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Keller’s Definition of Brand Equity
Brand equity is defined as the differential effect that
knowledge about the brand has on consumer response
to the marketing of that brand
Professor Kevin Keller

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What Is Brand Equity?
Brand Equity is simply what consumers’ hold in their head about a
brand and how that affects their behaviour
What consumers doWhat consumers know

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Consumer Based Brand Equity
Positive customer-based brand equity results when
consumers respond more favorably to the marketing
activities when the brand is identified than when it is not
The Pepsi Challenge” where consumers prefer
Pepsi in a blind taste test but choose Coke
when the brand is exposed
Nestle Pure Life where consumers are willing
to pay price premium as compared to ordinary
tap water
Classic Examples:

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Benefits of Equity
• Loyal Customers
• Charge a price premium
• Trade co-operation
• Brand extensions
• Communication messages get through
etc etc ………
Building brand equity will improve brand profitability

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Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations

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Brand Loyalty
Brand loyalty is a measure of the
attachment that a customer has to a
brand.
It reflects how likely a customer will be to
switch to another brand, especially when that
brand makes a change, either in price or in
product features.

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Brand Loyalty Pyramid
Committed Buyer
Likes the Brand - Considers it a Friend
Satisfied Buyer With Switching Costs
Habitual Buyer - No Reason to Change
Indifferent – No Brand Loyalty
Switchers / Price Sensitive

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Measuring Brand Loyalty
• Purchase Behavior Patterns
• Switching Cost Analysis
• Satisfaction Measurement

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Strategic Value of Brand Loyalty
• Reduce marketing cost
• Trade (channel distribution) leverage
• Attracting new customers

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Enhancing
Brand Loyalty
• Treat the customer right
• Stay close to the customer
• Measure/manage customer
satisfaction
• Create switching cost
• Provide extras

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Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations

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Brand Awareness is
the ability of a potential
buyer to recognize or recall
that a brand is a member of
a certain product category

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Brand Awareness Hierarchy
Top of Mind
Brand Recall
Brand Recognition
Unaware of Brand

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Value of Brand Awareness
• Anchor to which other associations can be
attached
• Familiarity and liking
• Signal of substance/commitment
• Brand to be considered

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How to Achieve
Brand Awareness
Be different, memorable
Involve a slogan or jingle
Symbol exposure
Publicity
Event sponsorship

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Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations

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The customer's perception of the overall
quality or superiority of a product or service
with respect to its intended purpose, relative to
alternatives. Perceived quality is a perception
by customers.
Perceived Quality

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What
Influences
Perceived
Quality of
Product?
• Performance
• Features
• Conformance with
specifications
• Reliability
• Durability
• Serviceability
• Fit and finish

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What
Influences
Perceived
Quality of
Service?
Appearance
Reliability
Competence
Responsiveness
Empathy

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The Value of Perceived Quality
• Reason-to-Buy
• Differentiate/Position
• A Price Premium
• Channel Member Interest
• Brand Extensions

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Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations

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Brand Association
A brand association is anything
"linked" in memory to a brand.
Thus, McDonald's could be linked to a
character such as Ronald McDonald, a
consumer segment such as kids, a feeling
such as having fun, a product characteristic
such as service, or a symbol such as the
Golden Arches.

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Some Types of
Associations
• Product Attributes
• Customer Benefits
• Relative Price
• Lifestyle/Personality
• Celebrity/Person
• Use/Application

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The Value of Brand
Associations
• Help Process/Retrieve
Information
• Differentiate/Position
• Reason-to-Buy
• Create Positive
Attitudes/Feelings
• Basis for Extensions

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Maintaining
Associations
• Be consistent over time
• Be consistent over
elements of the marketing
program
• Manage disasters in order
to minimize their damage

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Criteria for
Brand Name Selection
• Be easy to learn and remember
• Suggest the product class
• Support a symbol or slogan
• Suggest desired association without
being boring or trivial
• Not suggest undesired associations
• Be distinctive
• Be available and protectable legally

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Measuring Equity

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Gauging Equity is about determining what is inside a consumer’s
head concerning a brand . . .

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. . . And it impacts on how consumers actually react to a
brand.

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This means that managing brand equity requires more than just
creating awareness and building favorable associations
1) SOURCES 2)
OUTCOMES
 Managing brands involves knowing your sources of brand
equity
 Brand equity must result in tangible outcomes

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The Outcome Must Be…….
• It is a favourite brand amongst consumers
• It is a brand consumers are happy to recommend to
someone else
• It is a brand for which consumers are more willing to pay
higher prices
Based on the above principle
Brand Equity Index for each
brand is calculated
This index is a single measure of
how strong a brand is

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So to Gauge Equity……
What does my consumer find important in this category
and how is my brand performing on those drivers?

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Category Drivers: Add up to 100%
 Are a result of all that has happened in the category in the past
 Change over time through marketing effort: mid to long term
 Show you how you or your competitor are changing the rules across
consumer segments
 Set the framework for evaluating our brand strength (Equity)
Category Drivers - Explained...

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Brand Equity Index - Explained...
Brand Equity Index: Range from 0 to 10
 Is a measure of a brands strength on current category drivers
 Changes over time through marketing effort:short to mid term
 Shows how you or your competitor are performing within a consumer
segment
 Can be tracked over time to evaluate effectiveness of mktg initiatives

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Category Drivers What consumers do or feel
Consumer
Loyalty
Price
Premium
Drivers of the Chocolate Category
Awareness (27 % )
Consideration (9 % )
Advertising (16 % )
Product benefit ( 22 % )
For everyone ( 18 % )
Special Benefits(8 % )
Brand
Equity Index

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For everyone
Product Benefit
Advertising
Special Benefits

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Brand Equity Indices
 Initially Galaxy had high equity followed by Nestle
 Snickers low on equity - low score on Product Benefit - key category
driver
Min = 0
Max = 10

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How do the main brands perform on key dimensions?
 Galaxy & Nestle are strong on product benefit which is the most
important Equity driver
Product Benefit For Everyone
Advertisi
ng
Special Benefits
Nestle High High High Low
Galaxy High Medium High Low
Cadburys Medium High Medium Low
Mars Medium Medium Low Low
Snickers Low Low Low High
Way
Forward

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Mirza Shakeel