Downloaded 6,085 times
More Related Content
Brand Equity Ppt
- 1. Raj Mohan andRanjith
- 2. Brand Equity/Raj MohanAnd Ranjith A brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” :-American Marketing Association
- 3. Brand Equity/Raj MohanAnd Ranjith A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated; a successful brand is timeless. A brand is something that resides in the minds of consumer.
- 4. Brand Equity/Raj MohanAnd Ranjith Name Term Symbol Design Combination Identifies product/service of seller and differentiates from competitors Sign A Brand Is……….
- 5. The Role OfBrand Brand Equity/Raj Mohan And Ranjith Consumers Identification of the source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with maker of product Symbolic device Signal of quality
- 6. Brand Equity/Raj MohanAnd Ranjith Manufacturers Means of identification to simplify handling or tracing Means of legally protecting unique features Signal of quality level to satisfied customers Means of endowing products with unique associations Source of competitive advantage Source of financial returns
- 7. Brand Equity/Raj MohanAnd Ranjith Brand equity is the added value that endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share and profitability that the brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm.
- 8. Brand Equity/Raj MohanAnd Ranjith Brand equity
- 9. Brand Equity/Raj MohanAnd Ranjith
- 10. Brand Equity/Raj MohanAnd Ranjith
- 11. Brand Equity/Raj MohanAnd Ranjith The brand is viewed from the perspective of the customer, an individual or an organization. The power of the brand lies in what customers have seen, read, heard, learned, thought and thought about the product over time. A brand is said to have positive customer brand equity when consumers react favorably to a product. A brand is said to have negative brand equity if consumers react less favorably to the product.
- 12. Brand Equity/Raj MohanAnd Ranjith Brand equity model s Brand Asset Valuator: Developed by Advertising agency Young and Rubicam(Y&R). According to BAV there are four pillars of brand equity:- Differentiation Relevance Esteem Knowledge Differentiation and relevance point to the brands future value and Esteem and acknowledge reflects the past performance of the firms.
- 13. Brand Equity/Raj MohanAnd Ranjith Aaker Model : Viewed by UC-Berkeley professor David Aaker. There are a set of five categories of brand assets and liabilities which add value to the product. They are: Brand loyalty Brand awareness Perceived quality Brand associations Other proprietary assets
- 14. Brand Equity/Raj MohanAnd Ranjith Brandz: Developed by marketing research consultants Millward and WPP. As per this model brand building involves series of steps: The objectives of each steps are the following: Presence Relevance Performance Advantage Bonding
- 15. Brand Equity/Raj MohanAnd Ranjith Brand resonance: It also views brand building as an ascending, sequential series of steps Ensuring identification of the brand with customers’ minds with a specific product class or customer need. Firmly establishing the brand into the mind of the consumer. Eliciting proper customer response to in terms of brand related judgment and feelings. Converting brand response to create to create an intense, active loyalty relationship between customers and the brand.
- 16. Brand Equity/Raj MohanAnd Ranjith Measuring Brand Equity: There are two approaches for measuring brand equity. Indirect approach and direct approach. Brand Audit: - is a consumer-focused exercise that involves a series of procedures to access the heath of the brand, uncover its sources of equity and suggest ways to improve and leverage its equity.
- 17. Brand Equity/Raj MohanAnd Ranjith Brand Audits consist of two steps: Brand inventory and brand explanatory The purpose of brand inventory is to provide a current, comprehensive profile of how all the products and services sold by a company are marketed and branded. The brand explanatory is research activity conducted to understand what consumers think and its corresponding product category to identify sources of brand equity.
- 18. Brand Equity/Raj MohanAnd Ranjith Brand tracking: Tracking studies collect information from the consumers on a routine basis over time. Tracking studies employ quantitative study methods. It provides a basis for decision making It provides insights to marketing activities
- 19. Brand Valuation BrandEquity/Raj Mohan And Ranjith It is concerned of estimating the total financial value of the brand.
- 20. Brand Equity/Raj MohanAnd Ranjith Brand Management needs a long term view of marketing decisions. Consumer responses to marketing activity depend on what they know and remember about a brand. Brand reinforcement: Brand equity is reinforced by marketing actions that consistently convey the meaning of the brands to consumers in terms of: The product and Superiority
- 21. Brand Equity/Raj MohanAnd Ranjith Reinforcing brand equity needs innovation and relevance through out the marketing program. Marketers must introduce new products to satisfy the target consumers Brand Revitalization A strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity. This may include product modification or brand repositioning.
- 22. Brand Equity/Raj MohanAnd Ranjith Doubts and Clarifications
- 23. Brand Equity/Raj MohanAnd Ranjith
Editor's Notes
- #2 Introduction: Principles of Management Accounting Understanding basics for determining unit cost of production. Start with big picture view and work towards more detail. 1 st Cost Structure & Behavior in determining UCOP & 2 nd Whole Farm Breakeven level of production. 3 rd Profit Center Concepts and methods of Cost allocations for UCOP. 4 th Incremental Analysis used in decision making.
- #3 How many of your clients know their costs? Do they know how these costs change or behave? For your clients this should be “walking-around-in-their-head” knowledge. It is important for them to know their cost structure. What is the level of their fixed costs? How are variable costs affected by changes in their operations? Farm business must determine how increases and decreases in revenue, cost, and volume affect their UCOP and net income.
- #4 Go over terms. Give further definitions. Total Variable costs change with volume. Ask for examples? Total Fixed remain constant over the relevant range. Ask for examples? Mixed Costs have characteristics of both. Examples. Land cost owned & rented. Labor--
- #5 Define Profit. (SP * SQ) – (PVC * QVC) – FC. Contribution Margin important to know by enterprise. Contribution Margin Ratio used in determining $ volume of sales to break-even. Examples and switch to next slide.
- #7 I will use a manufacturing example. This particular manufacturer was going to add a vending service to provide breaks for employees. This added an annual cost of $1,000. How much do sales have to increase to cover this additional cost? $1,000? $4,000? What additional information do we need to know? Assume 25% contribution margin ratio. Farm Example: Family member returns to farm adding additional fixed costs of ? Another example using a manufacture. Concrete company. I noticed a truck that had been wrecked. The owner she was very upset and I assumed it was because of the truck. In talking with her she said, “Look at these clamps in the garbage.” “I have 7 employees and they will each throw 7 per day away, forever. These are the costs I have a hard time controlling, the truck it is insured”. Watch the variable costs and watch the “escalators” costs that will continue to rise carrying cost higher and reducing the contribution margin. Now we will look at a break-even graph.
- #8 A break-even graph is helpful in evaluating long-term strategy. The horizontal axis represents the size of the business in terms of quantity or production or sales. The vertical axis is cost of production or sales revenue. ( Click) Total Revenue increases as volume increases. ( Click) Total Fixed costs remain constant. Fixed costs per unit declines as volume increases. (Click) Variable costs are added to fixed costs to arrive at total costs. (Click) The variable costs increase as production increases. The point where total costs and total revenue intersect is the break-even point. (Click) To the left of this point the ranch will lose money. (Click) The area between total costs and total revenue to the right of the break-even point is profit. What happens to the break-even point if variable costs are increased? (Click) i.e. drought. The total cost curve tilts upward and break-even point shifts to the right. Business that were just at break-even point before will have to adjust to remain viable. (Click) What are some alternatives to consider? Each business has to examine their own cost structure to determine the best alternatives. 1)Increase production. 2)Increased revenue. Adjustments to variable costs? Most efficient use of inputs. 3)Able to reduce fixed costs? Examine all assets and cull those that are non-productive.
- #9 A break-even graph is helpful in evaluating long-term strategy. The horizontal axis represents the size of the business in terms of quantity or production or sales. The vertical axis is cost of production or sales revenue. ( Click) Total Revenue increases as volume increases. ( Click) Total Fixed costs remain constant. Fixed costs per unit declines as volume increases. (Click) Variable costs are added to fixed costs to arrive at total costs. (Click) The variable costs increase as production increases. The point where total costs and total revenue intersect is the break-even point. (Click) To the left of this point the ranch will lose money. (Click) The area between total costs and total revenue to the right of the break-even point is profit. What happens to the break-even point if variable costs are increased? (Click) i.e. drought. The total cost curve tilts upward and break-even point shifts to the right. Business that were just at break-even point before will have to adjust to remain viable. (Click) What are some alternatives to consider? Each business has to examine their own cost structure to determine the best alternatives. 1)Increase production. 2)Increased revenue. Adjustments to variable costs? Most efficient use of inputs. 3)Able to reduce fixed costs? Examine all assets and cull those that are non-productive.
- #10 A break-even graph is helpful in evaluating long-term strategy. The horizontal axis represents the size of the business in terms of quantity or production or sales. The vertical axis is cost of production or sales revenue. ( Click) Total Revenue increases as volume increases. ( Click) Total Fixed costs remain constant. Fixed costs per unit declines as volume increases. (Click) Variable costs are added to fixed costs to arrive at total costs. (Click) The variable costs increase as production increases. The point where total costs and total revenue intersect is the break-even point. (Click) To the left of this point the ranch will lose money. (Click) The area between total costs and total revenue to the right of the break-even point is profit. What happens to the break-even point if variable costs are increased? (Click) i.e. drought. The total cost curve tilts upward and break-even point shifts to the right. Business that were just at break-even point before will have to adjust to remain viable. (Click) What are some alternatives to consider? Each business has to examine their own cost structure to determine the best alternatives. 1)Increase production. 2)Increased revenue. Adjustments to variable costs? Most efficient use of inputs. 3)Able to reduce fixed costs? Examine all assets and cull those that are non-productive.
- #11 1 st (Work thru increase in fixed costs.) The closer the firm is to break-even reducing variable costs can have a strong impact on bottom line. The further to the left the business is the more aggressive it must be in making adjustments. Combination of strategies including: revenue enhancing, asset sales (fixed & inventory), reduced variable costs and increased efficiency
- #12 Cow calf vs. Back grounding. Feed yard and crops.
- #13 1 st step Determine the Cost Objective– the product, (calf), service (maintenance), or department that is to receive the allocation. 2 nd Develop cost pools is a grouping of individual costs whose total is allocated using one allocation base. Example maintenance department. The pools are often formed along departmental lines or major activities. Major concern in forming a cost pool is to ensure that the costs are homogeneous or similar. (Test– Break the pool into smaller pools & using a variety of allocation bases and then compare allocations. If no difference than use large pool.) 3 rd Allocation base that relates the cost pool to the cost objective. These are cost drivers. The base should relate costs to cost objectives that caused the costs to be incurred. The allocation is based on a cause—and– effect relationship. For Indirect costs that are fixed cause and effect is not feasible. Use: relative benefits– ex. Time used. , ability to bear costs --- gross sales or net profit.
- #14 Summarize using points from slide.
- #16 Use slide. As business owners, producers are bombarded with a large amount of information and not all of it is relevant. One of the first tasks in problem solving is to sift through the information to determine what should be included and what can be excluded. This revolves around the identification of relevant costs. Relevant costs are costs that differ among competing alternatives. They include future, differential cash outflows and inflows and opportunity costs. Irrelevant costs include future, non-differential cash outflows and inflows, sunk costs, and allocated common or indirect costs.
- #17 Incremental or Differential Analysis is the analysis of the incremental revenue and the incremental costs incurred when one alternative is chosen over another. Incremental revenue is the additional revenue received from one alternative over another. Incremental costs are the additional costs incurred as a result of selecting one alternative over the other. Incremental costs and revenues are also known as relevant costs or differential costs.
- #18 Some decisions that can be evaluated include: Sell or additional processing, to make or buy an input (outsourcing), and special order. Examples in the farming business include retained ownership of calves, storing grain, custom work or wintering of cows. A workable method for incremental analysis is to use a three-column format. Use the first two columns to list revenue and costs of the alternatives and the third column for the incremental revenue and costs. It is important to remember that the approach to decision making is to compare alternatives in terms of revenues and costs that are incremental. Costs that can be avoided are always incremental and are relevant to the decision. Costs that are sunk are irrelevant costs because they do not differ among the alternatives.
- #19 Hay. Outsourcing or make or buy. Many companies have a chief resource officer whose job it is to identify & administer outsourcing opportunities. One example is Coors Brewing Company– The Chief Resource Officer at Coors was hired to help the company return to its core competencies after years of diversifying into such items as paper manufacturing and biotechnology. The officer examined 44 departments and outsourced noncore activities for 22 of them resulting in a $20 million savings in operating costs.
- #21 Go over slide. Summarize whole presentation. Principles of Management Accounting Understanding basics for determining unit cost of production. Start with big picture view and work towards more detail. 1 st Cost Structure & Behavior in determining UCOP & 2 nd Whole Farm Breakeven level of production. 3 rd Profit Center Concepts and methods of Cost allocations for UCOP. 4 th Incremental Analysis used in decision making.