brand equity kevin lane keller

7/29/2019 Brand Equity Kevin Lane Keller

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BRAND EQUITY, BRAND POSITIONING, BRAND ELEMENTS

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Two Case lets on Brand Management

Boost : GSK

Bacardi

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New Product Development

HMM ( Smithkline Beecham Consumer Healthcare), GSK ( Glaxo

SmithKline), Horlicks

Malted Milkfood Market ( 1972 )

Bournvita75 %

Ovaltine18%

Others - 7 %

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Product Brief

Product should have a distinctive taste to suit the Indian palate. It must not

be a me too product.

No sugar should be added.

The quantity of cocoa to be used should be minimal.

The product should be granular and look like any other brown Milkfood

powder.

The end price should be equal to the brand leader.

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Product Development

Technical department developed a brown Milkfood with two flavour variants

HC44( malt extracts) , HC3 ( Horlicks as the main ingredient)

IMRBBlind in-hall test

Preference for HC44, better than Ovaltine but lost out to Bournvita

The bitter/medicinal taste should be eliminated

Product purchase dimensions

Taste

Flavour ( particularly a chocolate flavour )

Sweetness levels2/12/2013


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Packaging

Glass Jarwould give a distinctive image, as all existing brown powders

were being marketed in tins.

In India, after-use of a container is a very strong selling points for a

housewife.

Costwise, glass jar would be cheaper than a tin.

It was stressed that the mouth of glass jar should be wide enough for a

housewife to put her hand inside the jar so that its afteruse value is

enhanced.

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Brand Name

Names Tested Overall Preference Suitability for brown Milkfood

Boost 1 2

Brownie 3 4Bruno 4 3

Revenaq 8 6

Solo 7 5

Tango 6 7

Tiger 5 8

Vita-Plus 2 1

Zip 9 92/12/2013


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Label & Logo Design

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From the Makers of Horlicks

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Advertising Campaign

Brief

Brown powder as milk additives, Children/Mothers as TG

Clutter in Milkfood marketenergy, strength, nourishment.

The campaign should project some unique features

Ensure brand cannibalization does not happen ( Horlicks)

Taking into account the fact that there could be any analogy between the

fuel needed by a steam engine and the energy giving food needed by a

growing child, I have tried to bring a link between the two types of energy so

as to make it visually attractive and memorable Creative Director, JWT

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Marketing Inputs - Kerala

Local excitement was created through processions of elephants announcing

the introduction of Boost.

Liquid sampling of boosts.

A trade deal, with every case of 18 bottles, one 450 gm boost bottle free.

Display contests were conducted at selected outlets.

Media Plan

Primary MediaPress, Cinema

Secondary Media - radio, hoarding

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Consumer Offtake

Bournvita49%

Ovaltine8%

Boost40%

Others3%

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Advertising Research ( 939 households)

Brand Awareness90 %

Major sources of advertising recall were : Newspapers ( 59%), radio ( 49%),

cinema (24%) and shop displays ( 21%).

Boost as a family drinkchildren, housewife, husband.

Usage patternbefore going to bed ( 49%), at breakfast time ( 38%), before

going to work/school23%

Boost better than ( Bournvita and Ovaltine users) slightly better than

Bournvita in taste, miscibility. Brand Switch49 % , 23 % Bournvita &

Horlicks

Packaging liked, Makers of Horlicks didnt seem to be a factor influencing

brand trial. 2/12/2013


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Challenge

Trying to develop a visual which would depict a railway engineand then

tie it up with a beverage. Somehow the two did not seem to aesthetically

blend.

Indian Arm : Energy Fuel, showed a train with a bottle of Boost with

passengers.

On a Sunday morning, while sitting in my room, I saw young children

playing games they had formed what could be called a human train.

They started jogging and began to make the typical chugging noise of a

train. Indian Creative Team

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Brand Equity

Brand equity can be thought of as the additional cash flowachieved by associating

a brand with the underlying product or service

(Biel 1992)

Brand equity is a set ofbrand assets and liabilities linked to a brand, its

name, and symbol, that adds value to or subtracts from the value provided by a

product or service to a firm and/or to that firms customers

(Aaker 1991)

The differential effect the brand knowledge has on consumer response to

marketing of that brand Keller, 2004

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Brand Equity

Equals summation of Brand Assets & Brand Liabilities*

Liability will take on the negative sign though.

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Need to build brand equity

It positively impacts consumers willingness to pay price premiums.

It leads to higher efficiency and effectiveness of their marketing

programs.

Apple didnt spend much on Marketing in India while launching

iPhone owing to its strong brand equity.

It positively impacts the companys Market share, Market Capitalization.

It results in improved future profits and long-term cash-flow.

It can build brand loyalty( Reduces Churn), which in turn reduces

marketing costs

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It can deliverEmotional, Safety, Prestige, or other benefits that are

important to consumers.

It reduces the anticipated risk, enhances anticipated confidence in the brand

purchase decision, and increases satisfaction with the brand.

It leads to sustainable competitive advantage.

Strong brand equity can help in achieving success for new products

launched as brand extensions.

Tata as a Brand, Wipro,

New Coke, Harley Davidson ( * Brand FailuresMatt Haig)

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Brand Knowledge

Brand knowledge consists of a brand node in memory with a variety of

associations linked to it.

Brand knowledge has two components: brand awareness and brand

image.

Brand Image of Yamaha

Performance

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Sources of Brand Equity

Brand awareness

Brand recognition

Brand recall

Brand image

Strong, favorable, and unique brand associations

Brand Awareness, Brand Loyalty, Perceived Quality, Brand Association

Customer Touchpoints, Word Of Mouth, Buzz Marketing, Impressions

generated through ATL, BTL, Social Media. ( Online Reputation

Management)

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TV (terrestrial, BS, and CS)

Mobile sites and Segbroadcasting

SNS and blogs

Free newspapersand magazines

Video websites

Internet

NewspapersOOH

Consumer

The media environment surroundingconsumers

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Daily Life of a person in a Tier 1 City

Home

Inside train carStation Ticket wicket Stairs/platform

Vending

machine

Inside train car Stairs/platform

Ticket wicket Station

Office

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http://images.google.co.jp/imgres?imgurl=http://www.inryo.co.jp/img/page1/IMAGE_JT.jpg&imgrefurl=http://www.inryo.co.jp/cgi-bin/inryo/sitemaker.cgi?mode=page&page=page1&category=2&h=420&w=300&sz=40&hl=ja&start=20&tbnid=5rbLEPjKw4kX5M:&tbnh=125&tbnw=89&prev=/images?q=%E8%87%AA%E5%8B%95%E8%B2%A9%E5%A3%B2%E6%A9%9F%E3%80%80%EF%BC%AA%EF%BC%B4&gbv=2&hl=jahttp://images.google.co.jp/imgres?imgurl=http://www.tmi.gr.jp/img/about/office3-l.jpg&imgrefurl=http://www.tmi.gr.jp/about/tour.html&h=365&w=550&sz=54&hl=ja&start=1&tbnid=zsTF7IAoT5nFmM:&tbnh=88&tbnw=133&prev=/images?q=%E3%82%AA%E3%83%95%E3%82%A3%E3%82%B9&gbv=2&hl=ja


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At Customer touchpoints

Service centersAfter Sales Service

ProductUsage

Employee

Experience with the BRAND

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Brand Awareness Advantages

Learning advantages

Register the brand in the minds of consumers

Consideration advantages

Likelihood that the brand will be a member of the consideration set

Search ( AIDSAS Model)

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David A. Aaker

Kevin Lane Keller

Brand Equity Models

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Customer-Based Brand Equity Pyramid

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you and me?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

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Sub-Dimensions of CBBE Pyramid

LOYALTY

ATTACHMENT

COMMUNITY

ENGAGEMENT

QUALITY CREDIBILITY

CONSIDERATION

SUPERIORITY

WARMTH

FUN

EXCITEMENTSECURITY

SOCIAL APPROVAL

SELF-RESPECT

CATEGORY IDENTIFICATION

NEEDS SATISFIED

PRIMARY CHARACTERISTICS &

SECONDARY FEATURES

PRODUCT RELIABILITY,

DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS,

EFFICIENCY & EMPATHY

STYLE AND DESIGN

PRICE

USER PROFILES

PURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUES

HISTORY, HERITAGE

& EXPERIENCES

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Salience Dimensions

Depth of brand awareness

Ease of recognition and recall

Strength and clarity of category membership

What is level of brand awareness when you think about the Brand Google

vis-a-vis IBM?

Breadth of brand awareness

Purchase consideration

Consumption consideration

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Depth and Breadth Importance

The product category hierarchy shows us not only the depth of awareness

matters but also the breadth.

The brand must not only be top-of-mindand have sufficient mind share, but

it must also do so at the right times and places.

Tropicana : We want consumers to recognize the Tropicana Brand when it is

presented to them. Beyond that they should think of Tropicana whenever they

think of orange juice, particularly when they are buying orange juice. They

should think of Tropicana whenever they are buying any beverage, especially

when seeking a tasty but healthy beverage.

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Beverages

Water Flavored

NonAlcoholic

Milk Juices HotBeverages

SoftDrinks

EnergyDrink

Alcoholic

Wine Beer DistilledSpirits

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Brand Salience

A highly salient brand is one that has both depth and breadth of brand

awareness.

Brand Meaning

Major categories of Brand Associations

Brand Performance & Brand Image

These associations can be formed directly, from a customers own

experiences and contact with the brand, or indirectly through source of

information, such as word of mouth.

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Performance Dimensions

Primary characteristics and supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

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Brand Performance

How well the product or service meets customers more functional needs.

Reliabilitymeasures consistency of performance over time and from

purchase to purchase.

Durabilityexpected economic life of the product

Serviceabilityease of repairing the product if needed

Service Efficacyspeed and responsiveness of service

Service effectivenesshow well the brand satisfies customers service

requirements

Service empathyextent to which service providers are seen as trusting,

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Brand Imagery

Extrinsic properties of the product or service

Measures ability to meet customers psychological or social needs.

Its the way people think about the brand abstractly

Nivea skin cream in Europe ( Rich Brand Imagery), few intangible

associations are

Family/shared, shared experiences/maternal, multipurpose,

classic/timeless, childhood memories

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Imagery Dimensions

User profiles

Demographic and psychographic characteristics

Group perceptionspopularity

Purchase and usage situations

Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage

Personality and values

Sincerity, excitement, competence, sophistication, and ruggedness

History, heritage, and experiences Nostalgia

Memories

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Brand Imagery

Microsoft as an aggressive company.

Apple Inc. cool and innovative

Dominos pizza channels of distribution : 30 min Delivery

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Judgment Dimensions

Brand quality

Value

Satisfaction

Brand credibility

Expertise

Trustworthiness

Likeability

Brand consideration

Relevance

Brand superiority

Differentiation

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Feelings Dimensions

Warmth Hallmark

Fun Disney

Excitement - MTV

Security LIC

Social Approval Mercedes

Self-respect Tide

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Resonance Dimensions

Behavioral loyalty

Frequency and amount of repeat purchases

Attitudinal attachment

Love brand (favorite possessions; a little pleasure)

Proud of brand Sense of community

Kinship

Affiliation

Active engagement

Seek information Join club

Visit website, chat rooms

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Building

Brand

Equity

Brand

knowledge

Brand

associations

Perceived

quality

Brandloyalty

Company

image

Brand

community

Brand

elements

Corporate

Societal

Marketing

PerceivedAdvertising

spending

JointBranding

programmes

Distribution

channels

Country-of-

origin

Endorsements

Events, third

party

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Brand Positioning

. . . the act of designing the companys offer and image so that it occupies a

distinct and valued place in the target customers minds.

Philip Kotler

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Bacardi: : Brand Positioning Concepts

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Bacardi

Brand Objective : As an icon of new age drinking

Conceptual target : Post liberalization young adults.

Core Desire : Unshackle themselves

Role of the product :

FunctionalRelaxant, Social Lubricant, Gives a high

SymbolicLet your hair down have fun

Reason to believeLess intense in looks, hence eminently adaptable to

broader drinking occasions.

Brand Essence : Vibrant Sensuality

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Positioning Concepts

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The Bacardi Bat

Brand Elements

Creative Strategy/ story behind this trademark Symbol

Colony of fruit bats living in the rafters of the first Bacardi distillery

Donna Amalia , who was cultured in the arts believed that Bat represented a

blessing of good health, fortune, and family unity.

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Determining a frame of reference

What are the ideal points-of-parity and points-of-difference brand

associations vis--vis the competition?

Marketers need to know:

Who the target consumer is

Who the main competitors are

How the brand is similar to these competitors

How the brand is different from them

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Target Market

A marketis the set of all actual and potential buyers who have sufficient

interest in, income for, and access to a product.

Market segmentation divides the market into distinct groups of

homogeneous consumers who have similar needs and consumer behavior,

and who thus require similar marketing mixes.

Market segmentation requires making tradeoffs between costs and benefits.

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Example of the toothpaste market

Four main segments:

Sensory: Seeking flavor and product appearance

Sociables: Seeking brightness of teeth

Worriers: Seeking decay prevention

Independent: Seeking low price

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C d A i i


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Core Brand Associations

Abstract associations ( attributes & benefits) that characterize the 5 to 10

most important aspects of dimensions of a brand, they can serve as the

basis of brand positioning in terms of how they create points of parity and

points of difference.

Ask consumers to create a detailed mental map of the brand. ( Ask for top-

of-mind brand associations)

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MTV C B d A i i


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MTV Core Brand Associations

Music: Whats hot and whats new

Credibility: Expert, trusting, reality

Personality : Hip, Cool , Irreverent

Accessibility : Relevant, for

everyone

Interactivity : Connected &

Participatory

Originality: Genuine, Creative

Modern : Hip & Cool

Community : Shared Experience

Fluidity - Always Changing &

evolving

Spontaneity: up-to-the minute,

Immediate

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MTV

Young

Hip & Cool

Irreverent &Rebellious

Music

PopularLifestyle

Connected

Original

Fun &Entertaining

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Brand Mantras/brand essence/core brand promise

Heart & soul of the brand

A short 3-5 word phrase that captures the irrefutable essence of spirit of the

brand positioning

E.g.. McDonalds Brand Philosophy : Food, Folks, and Fun

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B d M f Nik & Di


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Brand Mantra of Nike & Disney

Emotional Modifier Descriptive

Modifier

Functional

Modifier

Nike Authentic Athletic Performance

Disney Fun Family Entertainment

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B d M t


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Brand Mantras

Brand functions term describes the nature of the product or service or the

type of experiences or benefits the brand provides.

Descriptive modifier further clarifies the natureNikes performance is not

just any kind ( not artistic performance, for instance) but only athletic

performance , Disneys entertainment is not just any kind ( not adult

oriented) but only family entertainment

Emotional Modifier provides another qualifierhow exactly does the brand

provide benefits and in what ways?

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P i t f P it d P i t f Diff


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Points-of-Parity and Points-of-Difference

Points-of-difference (PODs) are attributes or benefits that consumers

strongly associate with a brand, positively evaluate, and believe that they

could not find to the same extent with a competitive brand.

Points-of-parity associations (POPs), on the other hand, are not necessarily

unique to the brand but may in fact be shared with other brands.

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Core Brand Values

Set of abstract concepts or phrases that characterize the five to ten most

important dimensions of the mental map of a brand

Relate to points-of-parity and points-of-difference

Mental map Core brand values Brand mantra

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B d M t


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Brand Mantras

An articulation of the heart and soul of the brand

similar to brand essence or core brand promise

Short three- to five-word phrases that capture the irrefutable essence or spirit of

the brand positioning and brand values

Considerations

Communicate

Simplify

Inspire

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D i i th B d M t


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Designing the Brand Mantra

The term brand functions describes the nature of the product or service or

the type of experiences or benefits the brand provides.

The descriptive modifierfurther clarifies its nature.

The emotional modifierprovides another qualifierhow exactly does the

brand provide benefits, and in what way?

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Emotional

Modifier

Descriptive

Modifier

Brand

Functions

NikeAuthentic Athletic Performance

Disney

Fun Family Entertainment

Fun Folks Food

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Internal Branding
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Internal Branding

Members of the organization are properly aligned with the brand and what it

represents.

Crucial for service companies

Example : Microsoft B Testing Dog Food

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Brand Audit


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Brand Audit

Externally, consumer-focused assessment

A comprehensive examination of a brand involving activities to assess the

health of the brand, uncover its sources of equity, and suggest ways to improve

and leverage that equity

It includes brand vision, mission, promise, values, position, personality, and

performance

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Brand Inventory


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Brand Inventory

A current comprehensiveprofile of how all the products and services sold by

a company are branded and marketed:

Brand elements

Supporting marketing programs

Profile of competitive brands

POPs and PODs

Brand mantra

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Brand Inventory (Cont.)

Suggests the bases for positioning the brand

Offers insights to how brand equity may be better managed

Assesses consistency in message among activities, brand extensions, and sub-

brands in order to avoid redundancies, overlaps, and consumer confusion

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Brand Exploratory


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Brand Exploratory

Provides detailed information as to how consumers perceive the brand:

Awareness

Favorability

Uniqueness of associations

Helps identify sources of customer-based brand equity

Uncovers knowledge structures for the core brand as well as its competitors

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Suggested Brand Audit Outline


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Suggested Brand Audit Outline

Brand audit objectives, scope, and approach

Background about the brand (self-analysis)

Background about the industries

Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior)

Brand inventory

Elements, current marketing programs, POPs, PODs

Branding strategies (extensions, sub-brands, etc.)

Brand portfolio analysis

Competitors brand inventory

Strengths and weaknesses

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Brand Audit Outline (Cont )


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Brand Audit Outline (Cont.)

Brand exploratory

Brand associations

Brand positioning analysis

Consumer perceptions analysis (vs. competition)

Summary of competitor analysis

SWOT analysis

Brand equity evaluation

Strategic brand management recommendations

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CHOOSING BRAND ELEMENTS TO BUILD

BRAND EQUITY

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Criteria for Choosing Brand Elements


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Criteria for Choosing Brand Elements

Memorability

Meaningfulness

Likability

Transferability

Adaptability

Protectability

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Memorability


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Memorability

Brand elements should inherently be memorable and attention-getting, and

therefore facilitate recall or recognition.

For example, a brand of propane gas cylinders named Blue Rhino featuring

a powder-blue animal mascot with a distinctive yellow flame is likely to

stick in the minds of consumers.

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Meaningfulness


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Meaningfulness

Brand elements may take on all kinds of meaning, with either descriptive or

persuasive content.

Two particularly important criteria

General information about the nature of the product category

Revital

Specific information about particular attributes and benefits of the brand

Move

The first dimension is an important determinant of brand awareness and

salience; the second, of brand image and positioning.

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Meaningfulness


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Meaningfulness

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Brand Names based on People, Animal, Birds, objects et al.

BirdKingfisher

RiverAmazon

AnimalRed Bull

Likability


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Likability

Do customers find the brand element aesthetically appealing?

Descriptive and persuasive elements reduce the burden on marketing

communications to build awareness.

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Transferability


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y

How useful is the brand element for line or category extensions?

To what extent does the brand element add to brand equity across

geographic boundaries and market segments?

Exxon Mobile

Amazon

Books R Us

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Adaptability


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p y

The more adaptable and flexible the brand element, the easier it is to

update it to changes in consumer values and opinions.

For example, logos and characters can be given a new look or a new

design to make them appear more modern and relevant.

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0

Protectability


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y

Marketers should:

1. Choose brand elements that can be legally protected internationally.

2. Formally register chosen brand elements with the appropriate legal

bodies.

3. Vigorously defend trademarks from unauthorized competitive

infringement.

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Brand Name Taxonomy


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Descriptive Describes functions literally; Singapore Airlines, KFC

Kentucky Fried Chicken, Pizza Hut

Suggestive Suggestive of a benefit or function; Agilent Technologies

Compounds Combination of two or more unexpected words ; Redhat

Classical Based on Latin, Greek or Sanskrit; Meritor

Arbitrary Real words with no obvious tie-in to company; Apple, Google

Fanciful Coined words with no Obvious meaning; Avanade

Criteria for choosing brand elements


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g

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Memorable Easily Recognized

Easily Recalled

Meaningful Descriptive

Persuasive

Likable Fun & Interesting

Rich Visual and Verbal Imagery

Aesthetically Pleasing

Transferable Within and across product categories

Across Geographic boundaries & Cultures

Adaptable FlexibleUpdatable

Protectable Legally

Competitively

Branding Mishaps


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g p

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CoorBeer Turn it loose

Spanish Suffer from Diarrhea

Frank Perdue : It takes a tough man to make a tender chicken.

Spanish: It takes an aroused man to make a tender chicken

Sample Suggestive Brand Names


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p gg

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ColorStay Lipsticks

Head & Shoulders Shampoo

Close up Toothpaste

SnackWell reduced fat snacks

DieHard Auto batteries

Mop & Glo Floor wax

Tactics for Brand Elements


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A variety of brand elements can be chosen that inherently enhance brand

awareness or facilitate the formation of strong, favorable, and unique brand

associations.

Brand names

URLs

Logos and symbols

Characters

Slogans

Packaging

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Brand Laddering Technique


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g

How to brand a Mineral water?

Brand Name

Tagline

Innovative Consume Touchpoints

Media Planning

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URLs


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URLs (uniform resource locators) specify locations of pages on the web and are

also commonly referred to as domain names.

A company can either sue the current owner of the URL for copyright

infringement, buy the name from the current owner, or register all conceivablevariations of its brand as domain names ahead of time.

www.aisapaisa.com

Snapdeal

www.writeuri10story.com

www.justdial.com

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http://www.aisapaisa.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.justdial.com/http://www.justdial.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.writeuri10story.com/http://www.aisapaisa.com/


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Website details


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www.cricbuzz.com

www.cricinfo.com

www.makemytrip.com

www.justdial.com

www.santabanta.com

www.naukri.com

www.makaan.com

www.magicbricks.com

www.indiancarrental.com/

www.savaari.com/

www.cardekho.com/usedCars

www.carwale.com/

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Logos and Symbols


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Play a critical role in building brand equity and especially brand awareness

Logos range from corporate names or trademarks (word marks with text

only) written in a distinctive form, to entirely abstract designs that may be

completely unrelated to the word mark, corporate name, or corporateactivities

IBM Corporation has a logo because the design is based on a letterform,

whereas Apple Corporation has a symbol because the design is based on a

pictorial image of an apple.

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Difference between a Logo & a Symbol


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Logo is the short version of logotype. It is the name of a business designed

specifically for that company.IBM, written in blue stripes, is a logo. A

symbol is just that. A symbol (but not the name of the company) that

represents that company. The apple with the piece out of it is a symbol of

Apple computers.

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Characters


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A special type of brand symbolone that takes on human or real-life

characteristics

Amul Girl

Parle G

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Slogans


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Slogans are short phrases that communicate descriptive or persuasive

information about the brand.

Slogans are powerful branding devices because, like brand names, they are

an extremely efficient, shorthand means to build brand equity

The Citi Never Sleeps

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Jingles


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Jingles are musical messages written around the brand. Typically

composed by professional songwriters, they often have enough catchy

hooks and choruses to become almost permanently registered in the minds

of listenerssometimes whether they want them to or not!

Jingles are perhaps most valuable in enhancing brand awareness.

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Packaging


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From the perspective of both the firm and consumers, packaging must

achieve a number of objectives:

Identify the brand

Convey descriptive and persuasive information

Facilitate product transportation and protection

Assist at-home storage

Aid product consumption

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To be continued

brand equity kevin lane keller

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