LEVERAGING Secondary Brand Associations to Build Brand Equity

• Brand Equity can be built through many ways.• It can be built through the various brand

elements or by undertaking marketing activities regarding the 4 Ps of marketing mix.

• It can also be built by leveraging related or secondary brand associations.

• Brand associations are those abstract associations (attributes and benefits) that help to position a product.

• Just as individual brands have their own knowledge, other entities with which the brand is liked also have their own knowledge.

• Because of this linkage consumers may assume that the associations which characterize the entity may also be true for the brand.

• That is, the brand borrows some brand knowledge from the other entity .

• This indirect approach of brand building is known as leveraging secondary brand knowledge.

• Secondary brand knowledge can be created by linking the brand to the following:

• - Companies• - Countries or geographic areas• - Channels of distribution• - Other brands ( Co-branding)• - Characters (through licensing)• -Spokespersons• - Events• - Other third arty sources

• Linking the brand to some other entity may create a new set of associations and also affect existing brand associations.

• Consumers have some knowledge about the entity with which the brand is associated.

• The consumers may infer that what is true for the entity may also be true for the brand.

• This phenomenon is explained on the basis of “cognitive consistency” – what is true for the entity must also be true for the brand.

• How much leverage can be got by linking the brand with the entity will depend on 3 factors:

• - Awareness and knowledge of the entity.• - Meaningfulness of the knowledge of entity.• - Transferability of the knowledge of entity.

• There are two strategies for making associations or linkages with an entity :

• a) Commonality Strategy : when the associations of the entity are congruent with desired brand association.

• b) Complementary Strategy: this is adopted when there are few common associations for the brand as well as the entity.

• There may not be a fit or consistency between the brand and the entity.

• This strategy requires skillfully designed marketing programs.

• COMPANY (linking brand and company) : • When a company is launching a new product,

it has 3 options• - create a new brand• - Adopt or modify an existing brand• - combine an existing brand and a new brand.

• A corporate or a family brand may evoke associations of common product attributes, benefits or attitudes.

• Therefore a corporate or family brand can be a source of great brand equity.

• But leveraging a corporate brand may not always be useful .

• COUNTRY OF ORIGIN : • This is linking the brand with the country or

location from which it originates.

• CHANNELS OF DISTRIBUTION : • Members of channels of distribution like the

retailers have their own images in the minds of the consumers.

• Consumers may infer certain characteristics about a product on the basis of where it is sold.

• When a brand is associated with such retailers, the image transfer process takes place which may effect the equity of the brand.

• CO-BRANDING : • An existing brand can leverage associations by

linking itself to other brands from the same or different company.

• Co-branding or brand-alliance occurs when two or more existing brands are combined into a joined product or are marketed together in same fashion.

• To create a strong co-brand, both brands should have adequate brand awareness, sufficiently strong unique and favorable associations and positive judgment and feelings.

• There should be a logical fit between the two.• While executing a co-branding venture,

marketers must ensure the right kind of fit in values, capabilities and goals.

• Advantages of Co-branding : • - Borrow needed expertise• - leverage equity you do not have• - reduce cost of product introduction• Expand brand meaning into related categories• Source of additional revenue.

• Disadvantages of Co-branding : • - loss of control• Risk of brand equity dilution• Negative feedback effect• Lack of brand focus & clarity• Organizational distraction

• When attempting co-branding, companies need to ask themselves:

• - is it a profitable business venture?• - how does it help maintain or atrengthen brand

equity?• - is there any possible risk of dilution of brand

equity?• - does it offer any extrinsic advantages such as

learning opportunities?

• Ingredient Branding : • It is a special case of co-branding and creates

brand equity for material components or parts that are contained within other branded products.

• Ingredient Branding must accomplish 4 tasks:• 1. Consumers must perceive that the ingredient

matters to the performance of the product.

• 2. Consumers must then be convinced that not all ingredient brands are same and that the ingredient is superior.

• 3. A distinctive symbol or logo must be designed to signal to consumers that the host product contains the ingredient.

• 4. A marketing program must be put into place such that consumers understand the importance and advantages of the branded ingredient.

Celebrity Endorsements

• Using a well-known and admired person to promote products is known as celebrity endorsement.

• The logic behind this is that a famous person can draw attention to a brand and shape the perceptions of the brand.

• This happens because of the influences that consumers make based on the knowledge they have about famous persons.

• The celebrity must be well enough known to improve awareness, image and responses of the brand.

• Qualities of a Celebrity:• 1. He should have a high level of visibility.• 2. He should have a rich set of potentially useful

associations, judgment and feelings.• 3. He should be credible in terms of expertise.

Trustworthiness, and likability.• 4. He must have specific associations that carry

potential product relevance.

• Problems with Celebrity Endorsement :• 1. Celebrity endorsers may endorse so many

products that they may seem opportunistic or insincere

• 2. There must be reasonable match between the celebrity and the product.

• 3. Celebrity endorsers can get in trouble or lose popularity, diminishing their market value to brand, or just fail to live up to expectations.

• 4. Many consumers feel that celebrities are doing the advertisement for the money and do not necessarily believe in or use the brand.

• 5. Celebrities may distract attention from the brand in ads so that customers notice the stars but have trouble remembering the advertised brand.