1. 10
Creating
Brand Equity
Mr. Ajit Arya
Faculty-Marketing
Department of Business Studies
C. U. Shah College of Engg. & Tech.

2. Chapter Questions
• What is a brand and how does
branding work?
• What is brand equity?
• How is brand equity built, measured,
and managed?
• What are the important decisions in
developing a branding strategy?

3. BARISTA: A Strong Brand

4. Kerala Tourism has successfully branded the
destination with a brand name, logo, and the tagline
“God’s Own Country”

5. What is a Brand?
A brand is 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.

6. The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection

7. The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium

8. What is Branding?
Branding is endowing
products and services with the
power of the brand.

9. Advantages of Branding
• Consumer’s viewpoint
1. Product quality
2. Increased shopper efficiency
3. Calls attention to new products
4. Reduces psychological risk
• Seller’s viewpoint
1. Handling orders, accounting, tracking down problems
2. Trademark identification – legal protection
3. Brand loyalty
4. Reduces need for in-store contact
5. Facilitates segmentation, promotion, and pricing
(competitive advantage)

10. What is Brand Equity?
Brand equity is the added value
endowed on products and services,
which may be reflected in the way
consumers, think, feel, and act with
respect to the brand.

11. Brand Knowledge
Thoughts Feelings
Knowledge
Images
Beliefs
Experiences

12. Advantages of Strong Brands
• Improved perceptions
of product • Larger margins
performance • More inelastic
• Greater loyalty consumer response
• Less vulnerability to • Greater trade
competitive marketing cooperation
actions • Increased marketing
• Less vulnerability to communications
crises effectiveness
• Possible licensing
opportunities

13. Apple is a Strong Brand

14. What is a Brand Promise?
A brand promise is the marketer’s
vision of what the brand must be and
do for consumers.

15. Brand Equity Models
• Brand Asset Valuator
• Aaker Model
• BRANDZ
• Brand Resonance

16. BAV Key Components
Differentiation
Energy
Relevance
Esteem
Knowledge

17. Brand Dynamics Pyramid
Strong Relationship
Bonding
Advantage
Performance
Relevance
Presence
Weak Relationship

18. Aaker Model
Core Identity
Brand Identity
Elements
Extended Identity
Brand Essence
Elements

19. Brand Resonance Pyramid

20. Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference

21. Brand Elements
Brand
names URLs
Slogans
Elements
Logos
Characters
Symbols

22. Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible

23. Slogans
• Like a good neighbor, • We try harder
State Farm is there • We’ll pick you up
• Just do it • Nextel – Done
• Nothing runs like a • Zoom Zoom
Deere • I’m lovin’ it
• Save 15% or more in • Innovation at work
15 minutes or less
• This Bud’s for you
• Always low prices

24. Designing Holistic Marketing Activities
Personalization
Integration
Internalization

25. Internal Branding
• Choose the right moment
• Link internal and external marketing
• Bring the brand alive for employees

26. Secondary Sources of Brand Knowledge

27. Measuring Brand Equity
Brand Audits
Brand Tracking
Brand Valuation

28. The 10 Most Valuable Brands
Brand 2006 Brand Value (Billions)
Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13

29. Managing Brand Equity
Brand Reinforcement
Brand Revitalization
Brand Crises

30. Interbrand’s Steps in Calculating Brand Equity
• Market segmentation
• Financial analysis
• Role of branding
• Brand strength
• Brand value calculation

31. Devising a Branding Strategy
Develop new brand
elements
Apply existing brand
elements
Use a combination of
old and new

32. Branding Terms
• Brand line • Line extension
• Brand mix • Category
• Brand extension extension
• Sub-brand • Branded variants
• Parent brand • Licensed product
• Family brand • Brand dilution
• Brand portfolio

33. • Line extensions refers to new sizes,
styles, or related products
– Coca-Cola line extensions

34. • Brand licensing
licensing:
practice allowing
other companies to
use a brand name
in exchange for a
payment
– Nabisco
Licenses Its
Oreo Brand to
Post Cereal

35. • Brand extension
extension:
application of a
popular brand
name to a new
product in an
unrelated product
category
– Example: Utility
Lighter – A Bic
Brand
Extension

36. • Family brand
brand:
brand name that
identifies several
related products
– Heinz
A well known family
brand

37. Brand Naming
Individual names
Blanket family names
Separate family names
Corporate name-
individual name combo

38. Reasons for Brand Portfolios
• Increasing shelf 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

39. Brand Roles in a Brand Portfolio
Flankers Cash Cows
Low-end High-end
Entry-level Prestige

40. Thank You!!!