Introduction to brand equity
Session 2
Holistic Brand Strategy
Patrick Collings
Sagacite Brand Agency

Nairobi, Kenya
26th...
“If this business were split up, I would give
  you the land and bricks and mortar, and I
would take the brands and tradem...
however,

tangiblefor much of the 20th century
          assets ruled
management knew

brands were there
            but value not recorded
then the




1980s      arrived
the value of brands
  was recognized
   (more about brand valuation in session four)
so a business perspective on brands
    (not to be confused with our market definition )
“Brands are intangible assets, assets that
produces added benefits for the business. This is
the domain of strategic brand ...
what is brand
   equity
many different viewpoints and definitions
my mashup version
brand equity is the measurable value
 derived from marketing and other
 strategic and management efforts
       attributab...
brand equity is the measurable value
  derived from marketing and other
 strategic and management efforts
        attribut...
lets explore
this value add
1
enables buying
decisions
2   builds customer
    loyalty
1+2=
3
builds market
share
4   protects market
    share
5
helps command
higher prices
+20%
6
creates a halo
effect
apple itunes commercial
50% 17%
   vs
7   assists business
    expansion
8
more trade
support
9
increases market
value
but...
 there is a flip side
a neglected
brand erodes
    value
the point we have arrived at
we have defined brands
we have defined brand equity
shown that a valuable brand adds overall value
now to build
brand equity
kevin
lane
keller
E. B. Osborn Professor of Marketing at the
Tuck School of Business at Dartmouth College
customer-based
  brand equity
     model
CBBE
approaches brand equity from the
  perspective of the consumer
customer-based brand equity is the differential
effect that brand knowledge has on consumer
    response to the marketing ...
customer-based brand equity is the differential
effect that brand knowledge has on consumer
    response to the marketing ...
customer-based brand equity is the differential
effect that brand knowledge has on consumer
    response to the marketing ...
customer-based brand equity is the differential
effect that brand knowledge has on consumer
    response to the marketing ...
colt 45

                 pabst

      coors
                                                      guinness




miller lit...
pabst

budweiser              colt 45
 miller lite                                guinness
                   coors




ta...
a brand has positive cbbe when consumer
react more favourably to an offering and its
marketing when the brand is identified...
a brand has negative cbbe when consumer
 react less favourably to an offering and its
marketing when the brand is identifie...
“The challenge for marketers in building a
 strong brand is ensuring that customers have
the right type of experiences wit...
a point of difference
keller’s cbbe model is marketing focus
whilst holistic brand strategy embraces
     other management disciplines
building
brand equity
four sequential steps
brand relationship


   brand opinion


brand understanding


 brand awareness
what about us?         brand relationship


who do i think of you?      brand opinion


    what are you?        brand und...
intense and active
   what about us?         brand relationship         loyalty



                                       ...
customer-based
  brand equity
    pyramid
loyal client base


                          brand
                        resonance


                       brand opini...
takeaways
1   value of brands only measured and
    recorded in the last two decades


2
    brand equity is the measurable value
  ...
presentation by
patrick collings
sagacite brand agency
patrick@sagacite.co.za
+2781 616 0967




www.sagacite.co.za
Intoduction To Brand Equity | Holistic Brand Strategy 2008
Intoduction To Brand Equity | Holistic Brand Strategy 2008
Intoduction To Brand Equity | Holistic Brand Strategy 2008
Intoduction To Brand Equity | Holistic Brand Strategy 2008
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Intoduction To Brand Equity | Holistic Brand Strategy 2008

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This was the second in a series of nine lectures that I gave as part of a holistic brand workshop in May 2008.

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Intoduction To Brand Equity | Holistic Brand Strategy 2008

  1. 1. Introduction to brand equity Session 2 Holistic Brand Strategy Patrick Collings Sagacite Brand Agency Nairobi, Kenya 26th & 27th May 2008
  2. 2. “If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trademarks, and I would fare better than you” John Stuart, Chairman of Quaker
  3. 3. however, tangiblefor much of the 20th century assets ruled
  4. 4. management knew brands were there but value not recorded
  5. 5. then the 1980s arrived
  6. 6. the value of brands was recognized (more about brand valuation in session four)
  7. 7. so a business perspective on brands (not to be confused with our market definition )
  8. 8. “Brands are intangible assets, assets that produces added benefits for the business. This is the domain of strategic brand management: how to create value with proper brand management ” Jean-Noël Kapferer, The New Strategic Brand Management
  9. 9. what is brand equity
  10. 10. many different viewpoints and definitions
  11. 11. my mashup version
  12. 12. brand equity is the measurable value derived from marketing and other strategic and management efforts attributable to a brand
  13. 13. brand equity is the measurable value derived from marketing and other strategic and management efforts attributable to a brand
  14. 14. lets explore this value add
  15. 15. 1 enables buying decisions
  16. 16. 2 builds customer loyalty
  17. 17. 1+2=
  18. 18. 3 builds market share
  19. 19. 4 protects market share
  20. 20. 5 helps command higher prices
  21. 21. +20%
  22. 22. 6 creates a halo effect
  23. 23. apple itunes commercial
  24. 24. 50% 17% vs
  25. 25. 7 assists business expansion
  26. 26. 8 more trade support
  27. 27. 9 increases market value
  28. 28. but... there is a flip side
  29. 29. a neglected brand erodes value
  30. 30. the point we have arrived at
  31. 31. we have defined brands
  32. 32. we have defined brand equity
  33. 33. shown that a valuable brand adds overall value
  34. 34. now to build brand equity
  35. 35. kevin lane keller E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College
  36. 36. customer-based brand equity model
  37. 37. CBBE
  38. 38. approaches brand equity from the perspective of the consumer
  39. 39. customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
  40. 40. customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
  41. 41. customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
  42. 42. customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of the brand
  43. 43. colt 45 pabst coors guinness miller lite budweiser taste perception of six beers when aware of the brands
  44. 44. pabst budweiser colt 45 miller lite guinness coors taste perception of six beers when unaware of the brands
  45. 45. a brand has positive cbbe when consumer react more favourably to an offering and its marketing when the brand is identified than when it is not
  46. 46. a brand has negative cbbe when consumer react less favourably to an offering and its marketing when the brand is identified than when it is not
  47. 47. “The challenge for marketers in building a strong brand is ensuring that customers have the right type of experiences with products and services and their accompanying marketing programs so that the desired thoughts, feelings, images, beliefs, perceptions, opinions, and so on become linked to the brand.” Kevin Lane Keller
  48. 48. a point of difference
  49. 49. keller’s cbbe model is marketing focus whilst holistic brand strategy embraces other management disciplines
  50. 50. building brand equity
  51. 51. four sequential steps
  52. 52. brand relationship brand opinion brand understanding brand awareness
  53. 53. what about us? brand relationship who do i think of you? brand opinion what are you? brand understanding who are you? brand awareness
  54. 54. intense and active what about us? brand relationship loyalty positive accessible who do i think of you? brand opinion reactions points of parity & what are you? brand understanding points of difference deep and broad who are you? brand awareness brand awareness
  55. 55. customer-based brand equity pyramid
  56. 56. loyal client base brand resonance brand opinion brand understanding potential market brand awareness
  57. 57. takeaways
  58. 58. 1 value of brands only measured and recorded in the last two decades 2 brand equity is the measurable value derived from activities unique to a brand 3 a valuable brand helps an entire organization 4 building brand equity with keller’s customer-based brand equity model
  59. 59. presentation by patrick collings sagacite brand agency patrick@sagacite.co.za +2781 616 0967 www.sagacite.co.za

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