Ch 09 Creating Brand Equity

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Be Greedy When Everyone Is Fearful
Chapter 9 – Marketing Management
By Philip Kotler & Kevin Lane Keller
May 2013
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Prepared By:
Kerwin Wesley Chu

c1: What is a Brand and its Role
c2: What is Brand Equity
c2: Brand Asset Valuator
c4: Brand Element Choice Criteria
c5: Managing Brand Equity
Chapter Outline
Concept 1

c6: Creating Brand Portfolios
c7: Summary
Chapter Outline
Concept 1

A name, term, sign, symbol or design,
or a combination of them, intended to
identify the goods or services of one
seller or group of sellers and to differentiate
them from those of competitors.
What is a Brand
Concept 1

What is a Brand
Concept 1
Name
Symbol/
Sign
Design
Services
Offered
Similar to
individuals a
brand provides the
IDENTITY to a
product.

 Identify the maker
 Simplify product handling
 Organize accounting
 Offer legal protection
Roles of Brand
Concept 1

 Signify quality
 Create barriers to entry
 Serve as a competitive advantage
 Secure price premium
Roles of Brand
Concept 1

Example of Brands
Concept 1-Example
 Toothpastes being referred
to as Colgate, a brand.
 Sodas are equated to Coke.
 Laundry detergents
associated always with Tide.

What is Brand Equity
Concept 2
Think Feel
Consumers
Consumers
Added Value consumers see, think and feel
of the brand with respect to other brands.
See

What is Brand Equity
Concept 2- Example
Identical 100% cotton White Shirt
HANES – Php 500 NIKE– Php 1,250
Sporty
Cool
Trendy
VS
Plain
Simple
Soft

Concept 3
Brand Asset Valuator
BRAND VALUE
A metric applied for the measurement
of brand value of an entity.

Concept 3
Components of Brand Asset Valuator
 Differentiation - ability of a brand to
stand apart from its competitors.
 Relevance - how closely can the
consumers relate to the brand’s offering
 Energy – brings the brand alive.

Concept 3
 Esteem -refers to consumer’s perception
about the brand
 Knowledge - refers to the degree of
awareness about a brand.
Components of Brand Asset Valuator

Concept 3 - Example
Esteem –
UNIQUE
dance style
Relevance –
APPEAL easy
to dance
Energy –
MOMENTUM
viewed more
than 1.6
Billion views
High BAV

Concept 3 - Example
Relevance –
RESPECT as
hip and
trendy
Knowledge –
FAMILIARITY
as almost
everyone can
dance the
Gangnam

Concept 4
Brand Element Choice Criteria
•Memorable
•Meaningful
•Likeability
• Transferable
• Adaptable
• Protectible

Concept 4 Example
Slogans
Means
“Just make
it happen”
Symbol/
Logo
“Swoosh”
Brand
Name
“NIKE”

Concept 4 Example
Now worth $15,000,000,000
Trademark ™
is protected by
law

Concept 4 Example
• Memorable? Yes, 4 letter word “Nike”
• Meaningful?
• Likeability?
• Adaptable?
• Protectible?
•Transferable?

Concept 4 Example
• Meaningful? Yes, slogan easy to relate with
• Likeability?
• Adaptable?
• Protectible?
•Transferable?

Concept 4 Example
• Likeability? Yes, simple
• Adaptable?
• Protectible?
•Transferable?

Concept 4 Example
• Adaptable? Yes, slogan applicable in all
aspects of life not only sport
• Protectible?
•Transferable?

Concept 4 Example
• Protectible? Yes, registered trademark
•Transferable?

Concept 4 Example
• Protectible? Yes, registered trademark
•Transferable? Yes, it can be sold as trademark

Concept 5
Managing Brand Equity
 Brand reinforcement- getting consumers
who have tried a particular brand to become
repeat purchasers and with attracting new
users.
 Brand revitalization -A strategy to
recapture lost sources of brand equity and
identify and establish new sources of brand
equity.

Concept 5
Managing Brand Equity
 Brand crises -A special form of a product-
harm crisis where the negative event centers
on one particular brand or a set of brands
belonging to the same company.

Concept 5- Example
Brand Reinforcement
Smart Communications
- Smart is the Philippines' leading wireless services provider
- Engages in daily TV commercials and print ads
- Sponsors the Smart Gilas and Philippine Azkals
- Has a basketball team in the PBA
- Leased the name of a coliseum
Source: http://www1.smart.com.ph/about/meet/corporate-profile

Concept 5- Example
Brand Revitalization
Arce Dairy
- Established in 1935 as a popular ice cream brand
- Sold in the 1990s to RFM then was immobilized
- Re-launched in early 2000
- Only ice cream made of fresh carabao’s milk
- Positioned product as tastier and richer
(more flavorful)
Source: http://www.arcedairy.com/

Concept 5- Example
Brand Crisis
Ludy’s Peanut Butter found
contaminated with Salmonella (2009)
- Resulted to a drop in sales
- Recall of products in the
stores
- People avoided buying Ludy’s
- Required mass media
management
http://www.philstar.com/breaking-news/450918/ludys-
peanut-butter-tests-positive-salmonella

Concept 6
 Result of specifying the roles and
relationships of a company's brands to one
another to ensure they are clearly positioned
and clearly marketed to the company's target
audiences.
Brand Portfolio

Concept 6
Reasons for Brand Portfolios
 Increasing presence and retailer
dependence in the store
 Attracting consumers seeking variety
 Increasing internal competition within
the firm
 Yielding economies of scale in
advertising, sales, merchandising, and
distribution

Concept 6
Brand Roles in a Brand Portfolio
 Flankers - Fighter brands that are positioned w/
respect to competitors’ brands so that more important
(profitable) brands are able to retain their desired
position.
 Cash cows – A brand able to hold on to enough
customers & maintain profitability w/ virtually no
marketing support

Concept 6
 Low-end, entry-level – Known as “traffic builders”
and they are able to “trade up” customers
to the higher-priced brands.
 High-end prestige - Brands that add prestige and
credibility to the entire portfolio

Concept 6 - Example
Company: Ayala Land Corporation
 Flankers – Targets high end market as well
 Cash cows – For middle class market
 Low-end– Provides low cost housing
 High-end prestige – Ultra-rich segment

Summary
Brand
IDENTITY

Summary
Brand
IDENTITY
Think
Feel
See
Equity
Consumers
Consumers

Summary
BRAND VALUE

Summary
Portfolio

Summary
Portfolio
Management

Ch 09 Creating Brand Equity

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