imperial college disseration

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1. IMPERIAL COLLEGE OF SCIENCE, TECHNOLOGY AND MEDICINE Imperial College Business School How to Build Brand Equity through Social Advertising and Gamification by Pornchanun Suphayak Word Count: 5000 A report submitted in partial fulfillment of the requirements for MSc Strategic Marketing degree September 2014 2. Table of Contents Executive Summary................................................................................................... 1 Acknowledgement...................................................................................................... 2 Introduction................................................................................................................ 3 Literature Review ...................................................................................................... 4 Brand Equity............................................................................................................4 Gamification.............................................................................................................6 o How Gamification Builds Brand Equity ..................................................6 Social Advertising....................................................................................................7 o How Social Advertising Builds Brand Equity..........................................8 The Luxury Sector...................................................................................................9 The Wellness Sector...............................................................................................10 Research Approach.................................................................................................. 11 Results ....................................................................................................................... 11 The Wellness Sector...............................................................................................12 The Luxury Sector.................................................................................................14 Conclusion................................................................................................................. 17 Recommendations.................................................................................................... 18 Identity....................................................................................................................18 Meaning ..................................................................................................................19 Response .................................................................................................................20 Resonance...............................................................................................................20 o Behavioural loyalty...................................................................................20 o Attitudinal Attachment............................................................................21 o Sense of Community.................................................................................21 o Active Engagement...................................................................................22 References................................................................................................................. 23 3. 1 Executive Summary It is a fact that brand equity holds a great promise as a vehicle for driving success for brands, and there are many marketing strategies to build brand equity; with gamification and social advertising being two of the more effective ones. This report explores the effectiveness in building brand equity through gamification and social advertising. As part of the literature review, secondary research, including facts and figures, is predominantly based on academic journals and other related reputable sources. They are critically analysed as to how gamification and social advertising contribute towards building brand equity. The discussion is analysed based on practical brand equity building case studies for two different sectors, including wellness and luxury, as well as examples of real life experiences for each brand, which are used to better demonstrate the creation of brand equity, namely Nike and Swarovski. Recommendations are drawn using Kellers customer-based brand equity model and encompassing gamification and social advertising in each of the four steps in the pyramid, namely identity, meaning, response and relationships, along with suggested examples to better explain how brands could enhance brand equity through future actions. The research and case study results demonstrate that gamification and social advertising are more than just a fun undertaking, but that they have instead been proven to effectively promote strong and sustainable brand equity. 4. 2 Acknowledgement I would like to express my deepest gratitude to my family for their everlasting love and endless support and to thank them for being the warmest family I could ever ask for. Also, I would like to extend a sincere thank you to all my friends for a year full of experiences, happiness and laughter. Thanks for staying by each others side and helping each other along the way. My life here would not be complete without you guys. In addition, I would like to say a special thank you to my supervisor, Angela Dalrymple for being an extraordinary course director and for providing vast knowledge and guidance throughout. And many thanks to all my professors Omar Merlo, Mirjam Tuk, Mike Berry, Daniel Rowles, Andreas Eisingerich and Magnum guest speaker, Alper Eroglu whom have made my accomplishments possible. It has been an honor and a pleasure to be a part of the Strategic Marketing course at Imperial College Business School. I truly have appreciated every moment and all of the memories here will surely be missed very much. With warm regards, Pornchanun Suphayak 5. 3 Introduction In this globalised world, it is not enough to have a good product or to offer a good service. Having high brand equity is the key differentiator that establishes long- lasting relationship and drives success (Osak, 2013). Through advanced technology and the rise of big data, innovations of gamification and social advertising have become the next big thing. It enables brands to market themselves with fun, as well as incorporate personalised advertising through social media that could increase engagement and interaction, which, therefore, enhances the creation of strong brand equity and strengthens the ability to remain competitive in the market. The main purpose of this report is to emphasise on building brand equity through gamification and social advertising. It contains firstly a literature review on brand equity, gamification and social advertising to provide a better understanding of these important terminologies, along with two real-life case studies in regards to the wellness and luxury sector. This is then followed by further analysis of both cases, which will be critically discussed to provide an in-depth insight into different theoretical and practical perspectives. Finally, an overall conclusion and recommendations will be given on how to effectively create higher brand equity by using gamification and social advertising, and other relevant strategies on future implementations for both sectors. 6. 4 Literature Review The literature review consists of an overview on brand equity and an analysis of its importance. Two strategies in particular, gamification and social advertising, are highlighted in terms of concepts, trends and challenges, as well as an overview on two relevant sectors - health and wellness, and luxury in order to support brand equity creation in practice. Brand Equity According to the Marketing Research Association, brand equity reflects the true value that a brand name holds for its products and services (2010). Moreover, the Imperial College Business School Strategic Marketings branding lecture content stresses the concept of brand equity, as the different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same products or service did not have that name (Merlo, 2013). In short, brand equity is, when a brand imprints a favourable image and feeling that will stay in a consumers mind and that they will perceive as an added value to the functional features of a product or service (Aaker and Biel, 1993). The power of brand equity is further built by associating with a symbol, a slogan or a name (Keller, 1993) and it also can be classified as the companys most valuable asset, which has an ability to determine, whether people will choose the brand over others or pay more for it (Alagon and Samuel, 2011). Having strong brand equity not only enables a company to obtain larger margins, more favourable reactions to price changes and an increase in marketing communication effectiveness, but also greater customer loyalty and longer-lasting customer and brand relationships (Keller, 2001). Additionally, it gives the brand a sustainable competitive advantage, which cannot 7. 5 be easily retaliated compared with a brand that only has products or services without distinctive identities (Kim, et al., 2011). The challenges presented when effectively building brand equity are mainly, to create a familiar brand name and a positive brand image together with strong, favourable and unique brand associations (Keller, 1993). Even though it is necessary for brands to communicate, brands are being shaped and influenced greatly by consumer opinions in this era of multi-channel communications and social media, resulting in a lessened ability to control conversations and more exposure to the risk of negative publicity (Eiilm University, n.d.). Nonetheless, great challenges also present greater opportunities. Instead, marketers can foster more meanin

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