Creating Brand EquityTop Ten Concepts

Jojo Canta

Ateneo Graduate School of BusinessMBA Standard Program

Outline: Definition, Scope and Theories

1. What is a Brand?2. Scope of Branding3. What is Brand Equity?4. Using Brand Equity Models as Guide

Brand Asset Valuator Aaker Model Brand Resonance Model

5. Brand Elements

CREATING BRAND EQUITY

Outline: Building a Strong Brand

5. Branding Strategies6. Improving on what can be measured7. Managing Brand Equity8. Brand Portfolio9. Roles of Brands in a Portfolio10. Customer Equity

CREATING BRAND EQUITY

What is a Brand?

name, term, sign, symbol, design, or combination

intended to identify the goods or services

differentiate them from those of competitors’

Scope of Branding

all about creating differences between products

differences often related to attributes or benefits of the product itself

applicable anywhere a consumer has a choice

What is Brand Equity?

Added value endowed on products or services

Reflected in how consumers think, feel and act

Set of assets linked to a brand adds to the value provided by a product

Set of liabilities linked to a brand subtracts from the value provided by a product

Brand Equity Models

Brand Asset Valuator Aaker Model Brand Resonance

differentiation loyalty resonanceenergy feelings

relevance brand association judgmentsesteem imagery

perceived quality performanceknowledge awareness salience

low brand equity

low brand equity

high brand equity

high brand equity

Brand Elements

Devices that identify and differentiate the brand

memorable – easily recalled meaningful – suggestive of corresponding

category likable – appeal to consumers transferable – different categories or market

segments adaptable – can be updated protectable – legally protectable

Branding Strategy

Develop new brand elements for a new product

Apply some of the existing elements Use a combination of new and existing

elements

General Strategies individual names blanket family names separate family names for all products corporate name combined with individual

product name

Measuring Brand Equity

Brand Audit consumer-focused series of procedures that

assess the health of the brand

Brand Tracking Studies collect quantitative data from consumers where the brand has been where the brand is now

Measuring Brand Equity

Sample brand study:

1. Sony2. Toyota3. HSBC4. Samsung5. Honda

Managing Brand Equity

Brand Reinforcement continuously improving products, services and

marketing requires innovation and relevance throughout

marketing programs

Brand Revitalization change in positioning re-inventing or overhauling the brand image

Brand Portfolio

Set of brands or family lines a company offers

Increase shelf presence and retailer dependence

Attracting customers seeking variety Increase internal competition with the firm Yielding economies of scale

Brand Roles in a Portfolio

Flankers positioned with respect to competitor’s brands

Cash Cows generates profit even with just minimal support

Low-End Entry Level low priced products

High-End Prestige relatively high priced

Customer Equity

Sum of lifetime values of all customers

Emphasizes the importance of loyalty

Customers serve as the tangible profit engine for brands to monetize their brand value

Conclusion

Building a strong brand requires careful planning in choosing the right brand elements and identities that will make up the brand.

A successful brand should have a great product or service that is supported by a creatively designed and well-executed marketing.

Summary: Creating a Strong Brand

Brands are used to differentiate a product or service.

Brand Equity is the value endowed to a product or service which is reflected inhow a customer think, feel and actabout the product.

Different elements can be used to identify and differentiate the brand.

Summary: Creating a Strong Brand

There are three major strategies in branding. Equity should be measured to determine

which element to improve on. In managing a brand, it could be continuously

reinforced or revitalized. Different brands with different roles could

be created in a portfolio. Customers serve as the profit engine for brands.

Creating Brand EquityTop Ten Concepts

Jojo Canta

Ateneo Graduate School of BusinessMBA Standard Program

Thank you..