Measuring outcomes of brand equity and designing & implementing branding strategies.

1. Measuring Outcomes of Brand Equity
&
Designing and Implementing Branding
Strategies
PRESENTATION BY:
Neetu Bhuyan
Priyanka Tiwari
Sourabh Shrivastava

2. Measuring Outcomes of Brand Equity

3.  Research studies or experiments that examine consumer attitudes &
behavior toward a brand.
 Estimate the benefits arising from having high level of awareness.
 3 types:-
- Brand-based comparative approaches.
- Marketing-based comparative approaches.
- Conjoint analysis.
Comparative Methods

4.  Consumer response is examined based on changes in brand
identification.
 Application example: Blind testing.
 Critique.
 Advantage- It isolates the value of the brand in a very real sense.
 Disadvantage: The totality of what is learned depends on how many
applications are examined.
Brand-Based Comparative Approaches-

5.  The brand is held fixed and consumer response is examined based on
changes in marketing programs.
 Applications: Explore price premiums’ effect on switching, consumer
evaluations of marketing activities, brand extensions, etc.
 Advantage: Ease of implementation
 Disadvantage: Difficult to determine whether consumer responses are
caused by brand knowledge or generic product knowledge
Marketing Based Comparative Approaches-

6.  A survey-based multivariate technique that enables marketers to profile the consumer
decision process with respect to products and brands.
 Applications: Assess advertising effectiveness and brand value; analyze brand/price
trade-off.
 Advantage: Allows for different brands or different aspects of the product to be
analyzed simultaneously.
 Disadvantage: May violate consumers’ expectations based on what they already
know about brands
Conjoint Analysis-

7.  Attempt to place an overall value on the brand in either abstract
utility terms or concrete financial terms.
 Net out various considerations to determine the unique contribution
of the brand
 Two methods:
-Residual approaches.
-Valuation approaches
Holistic Methods

8.  Examine the value of the brand by subtracting consumers’ preferences
based on physical product attributes alone from their overall brand
preferences.
 Advantage: Useful benchmark for interpreting brand equity, especially
from a financially oriented perspective.
 Disadvantage: Static view. Limited diagnostic value for strategic
decision making
Residual Approaches-

9.  Attempt to place a financial value on brand equity for accounting
purposes.
 Useful in cases of mergers and acquisitions, brand licensing, fund
raising, and brand management decisions.
 Valuation approaches:
-Accounting background.
-Historical perspectives.
-General approaches .
-Interbrand’s brand valuation methodology
Valuation Approaches-

10. Designing and Implementing
Branding Strategies

11. What is a BRAND ?
 A Brand is a name, term, sign, symbol or design which is intended to
identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors.
 PRODUCT + X = BRAND

12. Brand Architecture
 Brand architecture is the structure of brands within an organizational entity.
 It is the way in which the brands within a company’s portfolio are related to,
and differentiated from, one another.
 The architecture should define the different leagues of branding within the
organization:-
• How the corporate brand and sub-brands relate to and support each other
&
• How the sub-brands reflect the core purpose of the corporate brand to
which they belong.

13.  The role of brand architecture is to :-
• Clarify – Brand awareness : Improve customer understanding and
communicate similarity and difference between individual products.
• Motivate – Brand image : To maximize the transfer of equity.

14. Brand product matrix
 The Brand product matrix is a tool used for the graphical representation
of all the brands and the products sold by the firm.
 In this matrix the brands of a firm shown as in rows and the
corresponding products as columns.

16.  Brand Line (rows) :
• Various products within a brand (original + extensions )
 Product line (columns) :
• Set of products with similar function.
• Products across brand or brand extensions.
 Brand portfolio is a set of all brand lines that a particular firm offers
for sale to buyers in a particular category.

17. Breadth of a Branding Strategy
 The breath of a branding strategy describes the number and nature of different
products linked to the brands sold by the firm.
 Breath of the product mix: Category attractive matrix

19.  Depth of the product mix: once marketers have made their decision
concerning appropriate product categories and markets in which to
compete, they need to choose the optimal product line strategy.
 Product line analysis required a clear understanding of the market and the
cost interdependencies between products.

20. Depth of a Branding Strategy
 This is the number and nature of different brands marketed in the product
class sold by a firm.
 The reason is to pursue different market segments, different channels of
distribution or different geographic boundaries.
 Maximize market coverage and minimize brand overlap.

21. Brand Hierarchy
 It is a useful means of graphically portraying a firm’s branding strategy
by displaying the number & nature of common & distinctive brand elements
across the firm’s products, revealing the explicit ordering of brand elements.
 It’s based on the realization that we can brand a product in different ways
depending on how many new & existing brand elements we use & how we
combine them for any one product.
 Example: ESPN

22. Building Equity at Different Hierarchy Levels:
Corporate Brand Level
Family Brand Level
Individual Brand Level
Modifier Level

23. Corporate Brand Level
 Occurs when relevant constituents hold strong, favorable, and unique
associations about the corporate brand in memory
 Encompasses a much wider range of associations than a product brand

24. Family Brand Level
 Brands applied across a range of product categories
 An efficient means to link common associations to multiple but distinct
products.

25. Individual Brand Level
 Restricted to essentially one product category.
 There may be multiple product types offered on the basis of different
models, package sizes, flavors, etc.

26. Modifier Level
 Signals refinements or differences in the brand related to factors such as
quality levels, attributes, functions, etc.
 Plays an important organizing role in communicating how different
products within a category that share the same brand name.

27. Corporate Image Dimensions
 Corporate product attributes, benefits or attitudes
• Quality
• Customer orientation
 Values and programs
• Concern with the environment
• Social responsibility
 Corporate credibility
• Expertise
• Trustworthiness
• Likability

28. Designing a Branding Strategy
 A branding strategy helps establish a product within the market and to
build a brand that will grow and mature in a saturated marketplace.
There is no uniform agreement on the one type of branding strategy that all
firms should adopt for all products.
 Brand element of each level of hierarchy may contribute to build brand
equity through ability to create awareness as well as foster strong, favourable
& positive responses.

29. The challenges facing during Branding Strategy is to:
 Design the proper Brand hierarchy (Number & Nature ).
 Design the optimal supporting marketing program (Brand Awareness &
Brand Association).

30. Number of Level of Brand Hierarchy:
 Sub-Branding:
Combination of existing brand with new brand.
Example: IBM ThinkPad
Principle of Simplicity: provide the right amount of branding information
to the consumer- no more, no less
 Principles of Clarity: Logic & relationship of all brand elements employed
must be obvious & transparent.
for eg: sony has family brand name CyberShot for cameras, Wega for TV’s, Handycams for its
camcoders.

31. Desired Awareness & Image at each hierarchy Level:
 Principle of Relevance: Based on the advantages of efficiency & economy.
Create abstract association that are relevant across as many individual items as
possible.
Eg: Nike Slogan “Just Do It”, this is relevant to virtually all the product itself.
 Principle of differentiation: Is based on the disadvantages of redundancy.
Marketers should distinguish brand at the same level.
Eg.: Microsoft product : Media extender, Media connect, & Windows Connect.

32. Combining Brand Elements from Different Levels:
The prominence of a brand element is its relative visibility compared with other
brand elements.
Eg.: Assume Pepsico has addopted a sub-branding strategy to introduce new Cola
say “Vitacola”.
Prominence by Brand name element PEPSI vitacola OR VITACOLA By PEPSI
Principle of Prominence : Primary & Secondary.
Primary brand element should convey the main product positioning &
point of difference.
Secondary brand element convey a more restricted set of supporting
association such as point of parity.

33. Linking Brand Elements to Multiple Products:
It is a horizontal aspects of brand hierarchy that how to link any one brand
element with multiple products.
Principles of commonality: it states that the more common brand elements
product share, the stronger the linkage between the products.

34. Using Cause Marketing To Build Brand Equity
 It came in 1980s.
 It can be defined as the process of formulating & implementing
marketing activities that are characterized by an offer from the firm to
contribute a specified amount to a designated cause when customers
engage in revenue providing exchanges that satisfy organizational and
individual objectives.

35.  Its distinctive feature is the link between the firms contribution to a
designated cause and customers' engaging in revenue producing
transactions with the firm.
 Example- American Express was 1st to create awareness of the concept in
1983 by a campaign to “restore Statue of liberty” in which every credit
card transaction donate a penny and a dollar by new card issuing, like
this it contributed $1.7 million for the cause also its transaction
increased by 30 % and new card issuance by 15%.

36. Advantages Of Cause Marketing
 It evoke positive response from the consumers.
 It created positive image of the company that supported a cause.
 Many consumers switched from their brand to the another brand who
support a cause.
 It created a positive impact on the employees of the company who were in
the support of a cause and showed their loyalty towards the company.
 It is Humanizing the firm.

37.  It offers potential benefits by Cause or Corporate societal marketing(CSM) like-
i. Building brand awareness (by sponsorship etc)
ii. Enhancing brand image (kind, generous, valuable)
iii. Establishing brand credibility (doing the right things)
iv. Evoking brand feelings (social approval, self worth)
v. Creating a sense of brand community (online groups)
vi. Eliciting brand engagement (participation, ambassadors)

38. Designing Cause Marketing Programs
 It is designed in association with advertising and promotional
activities.
 It may also be a part of product development.
 Some designs it for uniquely positioning the product of a
brand.
 Creating a point of parity between the product and
consumer.
 Example- McDonald’s musket Ronald McDonald creates
link with children and supports house charities which
provide comfort and care to children.

39. Green Marketing
 It is a special case of cause marketing which concerns for the environment
and environment friendly products.
 The green marketing movement was born, and firm after firm tried to
capitalize on consumers’ perceived increased sensitivity to environmental
issues.
 But it faced many obstacles like overexposure and lack of credibility (only
gimmicks), consumer behavior (reality & perception of public doesn't match), poor
implementation (failure in connection), possible solutions (meet consumer wishes with the
environment benefit of product).

40. THANK YOU