“Brand equity is described in terms of awareness association (image), attitude (overall quality), attachment (loyalty) and activity (word of mouth).” -Lehman and Weiner

1. Anil Kumar ,
Lecturer (Textile Design)
Pandit Lakhmichand State University of Performing
& Visual Arts , Rohtak
E-mail- anilkumar@plcsupva.ac.in
Mobile no. +919729138649

2. BRAND IDENTITY
❖ Building the brand identity requires additional decisions on the brand’s
❖ Name
❖ Logo
❖ Colors
❖ Tagline and
❖ Symbol
❖ Brand is much more than what is mentioned above and is essentially
company’s promise to deliver specific set of features, benefits and services
consistently to their buyers.
❖ Brand Bonding occurs when customers experience the company as
delivering on its benefit promise.
Brands are not built by advertising but by brand experience.
Brand Study

3. BRAND IDENTITY
❖ Brand equity is an asset and results in customers showing a preference for one
product over another when these are basically identical.
❖ According to Lehman and Weiner, “brand equity is described in terms of
awareness association (image), attitude (overall quality), attachment (loyalty)
and activity (word of mouth).”
❖ Brand vary in the amount of power & value in the market place. E.g. at one
extreme brands are not known by most buyers.
❖ Brand equity is different from brand valuation, which is the total financial value
of the brand.
❖ In 2001, the world’s most valuable brands were: Coca-Cola, Microsoft, IBM,
General Electric, Nokia, Intel, Disney, Ford, McDonalds and AT&T.
❖ Coca-Cola brand value was $69 billion, Microsoft was $65 billion and IBM $53
billion.
Brand Study

4. BRAND EQUITY
❖ Brand equity is highly related to how many customers are in classes 1,2,3, 4,
or 5.
❖ It is also related to the degree of brand name recognition, perceived brand
quality, strong mental and emotional associations and other assets such as
trademarks.
❖ The world’s 8 must valuable brands in 1997 were in rank order
1. Coca Cola
2. Marlboro
3. IBM
4. Mc DONALDS
5. Disney
6. Sony
7. Kodak
8. Gillette
Brand Study

5. BRAND EQUITY
❖ There are brands for which buyers have a fairly high degree of brand
awareness.
❖ There are brands with high degree of brand acceptability.
❖ There are brands that enjoy a high degree of brand loyalty.
❖ 5 levels of customer attitude towards his or her brand, from lowest to the
highest
1. Customer will change brands, especially for price reason.
2. Customer is satisfied. No reason to change
3. Customer is satisfied and would incur costs by changing brand
4. Customer values the brand and sees it as a friend.
5. Customer is devoted to the brand.
Brand Study

6. BRAND EQUITY
❖Brand loyalty:
•Customers go repeatedly for the
product and are attached to the product.
This insulates a brand from competitive
pressures, such as advertising and price
promotion and leads to higher profits.
❖Brand awareness:
The simplest form of brand equity is
familiarity. Customers prefer brands
with which they are familiar.
❖Perceived quality:
A known brand conveys an aura of
quality.
❖Brand associations:
Anything linked to the memory of a
brand. They include subjective and
emotional associations.
❖Brand assets:
Such as patents, trademarks are clearly
valuable.

7. BRAND EQUITY
❖ Brand equity is created through aggressive mass marketing campaigns.
❖ Taking Advantage of the well known brand name the company some time charges
premium prices from the consumer.
❖ Consumers' knowledge about a brand make manufacturers/advertisers respond
differently or adopt appropriately adept measures for the marketing of the brand.
❖ Brand equity is one of the factors which can increase the financial value of a brand
to the brand owner, although not the only one.
❖ Elements that can be included in the benefits and valuation of brand equity include
changing market share, profit margins, consumer recognition of logos, consumers'
perceptions of quality, etc
Brand Study

8. BRAND EQUITY
❖Brand equity creates value for both, customers and the firm. High brand equity
provides a number of competitive advantages, such as:
• The company will have more trade leverage in bargaining with distributors and
retailers because customers expect them to carry the brand.
• The company can charge a higher price than its competitors because the brand
has higher perceived quality.
• The company can more easily launch extensions because the brand name carries
high credibility.
• The brand offers the company some defense against price competition.
Brand Study

9. BRAND EQUITY
❖The study of brand equity is increasingly popular as some marketing researchers
have concluded that brands are one of the most valuable assets that a company has.
❖Examples: Firms with strong brand equity are Nike and Coca-Cola, whose
corporate logos are recognized worldwide.
❖There are many ways to measure a brand equity.
❖Some measurements approaches are at the bellow:-
1-Firm level-Firm level approaches measure the brand as a financial asset. A
calculation is made regarding how much the brand is worth as an intangible asset.
For example, if you were to take the value of the firm, as derived by its market
capitalization - and then subtract tangible assets and "measurable" intangible assets- the
residual would be the brand equity.
Brand Study

10. BRAND EQUITY
2- Product Level: The classic product level brand measurement example is to compare
the price of a no-name or private label product to an "equivalent" branded product.
The difference in price, assuming all things equal, is due to the brand. More recently a
revenue premium approach has been advocated practiced worldwide.
3- Consumer Level: This approach seeks to map the mind of the consumer to find out
what associations with the brand the consumer has.
 This approach seeks to measure the awareness (recall and recognition) and brand
image (the overall associations that the brand has.
 Brands with high levels of awareness and strong, favorable and unique
associations are considered as high equity brands.
Brand Study

11. BRAND EQUITY
IS BRAND EQUITY ALWAYS POSITIVE ???
 There are two schools of thought regarding the existence of negative brand equity.
 One perspective states brand equity cannot be negative, hypothesizing only positive
brand equity is created by marketing activities such as advertising, PR, and promotion.
 A second perspective is that negative equity can exist, due to catastrophic events to the
brand, such as a wide product recall or continued negative press attention.
EXAMPLES OF NEGATIVE BRAND EQUITY???
1. COKE – Pesticide content
2. TATA INDICA/ NANO – Middle class or Defects in manufacturing
3. MARKS & SPENCER – Poor Innovation in Fashion Trends.
Brand Study

12. BRAND EQUITY
Brand Study
EXAMPLES OF POSITIVE BRAND EQUITY:
1. SONY – Most Powerful Brand for electronic Goods
2. MUL – Cars with variety of features & unmatchable Service
3. VODAFONE – Uninterrupted service – value for money
4. GOOGLE – Most user friendly Internet Search Engine
5. MICROSOFT – Best Software Package acceptable globally
6. 3 M – Outstanding Innovative product Features
7. GE – Biggest and reliable producer of Jet engines, and Leasing Co
8. NOKIA – Afforable and user friendly mobile handsets