Do you know…?
Brand equity
What is Brand?
Six Levels of Brand
Attributes Benefits Values Culture Personality User
Definitions of Brand Equity
“Brand equity is the set of brand assets and liabilities linked to the brand, its name, and symbol, that adds or subtracts value to a product or service for a firm/ or its customers” (David Aaker).
“Brand equity is the set of associations that permits the brand to earn greater volume than it would without the brand name” (Marketing Science Institute). “Brand equity is everything the customer walks into the store with” (Peter Farquhar). “A set of associations which are most strongly linked to a brand name” (Andrea Dunham).
The concept of brand equity
Mental Brand response Market response
Brand Equity
Mental Brand Equity
Behavioural Brand Equity
Financial/Economical Brand Equity
Brand behavioural response
Secure users
Open non-users
Types of Consumers
Entrenched users users who are not available for conversion, remain loyal Available consumers non-users who prefer the brand in question to their current choice
Average users secure users who are not available for conversion, committed to the brand
Ambivalent consumers non-users equally attracted to the brand in question and current choice
Unavailable non-users
Shallow users beginning to show sign of wavering, loyalty below average, starting to consider other brands Weakly unavailable consumers non-users whose preference lies with their current brand, but not strongly
Convertible users on the threshold for leaving the brand
Strongly unavailable consumers non-users who have strong preference for their current brand
Vulnerable users
Why Manage Brand Equity?
Presence of a brand in consumers mind Influence on their buying behaviour Effects on brands market position and financial result Financial value of the brand as a immaterial assets of the company
Brand Equity Management Image Consistency Customer Equity R & D Investment
Brand
Practical Examples
Virgin
Snapple Beverage Corporation
V/S
What do you prefer?
42% 58%
Sprite 7up
What motivates you to buy Sprite?
0% 0% 3%
97%
Taste Specail offers Packaging Price
Will you pay more for Sprite?
37 Yes No 63
What motivates you to buy 7up?
0% 1% 0% Taste Price Packaging Special Offers 99%
Will you pay more for 7up?
40% 60% Yes No
Sprite Ice
Awareness Did like/ Didn’t like?
7up Ice
Awareness Did like/ Didn’t like?
Is Sprite available everywhere and every time you want it?
9% Yes No 91%
Is 7up available everywhere and every time you want it?
Yes No
Conclusions
If Competition is a race then Brand Equity is Driving Skills!!!!!!!!!!