Developing Brand Equity

Date: 16th March, 2011

Building brand equity

• Build loyalty • Attract new customers

Shift in the demand curve leading to increase in revenues

Commodity P2 Strong Brand

Product/service experience Customer satisfaction Awareness Image Consideration

Perceived brand/product benefits

Brand Equity Drivers

Perceived quality/value Brand associations Interaction with channel/distribution system Technology

Price P1

Price Premium

Impact Of Building Brand Equity

• Product definition • Brand strategy • Market segment needs and wants

Volume Premium

V1

V2

Volume

Brand equity is the value generated by the future cash flows driven by a buyer response to the branded offering that EXCEEDS the response that would be achieved by that same offering without the brand identity

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Step 2: Identify target consumer segments

Consumers’ response to the Brand’s input is key to building a strong Brand Personality BRAND VIEW OF THE CONSUMER

CONSUMER VIEW OF THE BRAND

A successful brand has a personality and a conversation with consumers

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Emotional Levers

Coke Marlboro

Nike McDonald’s Apple iMac Mercedes “Hamara” Bajaj

• Brands built on a “love” relationship with the consumer • Most profitable strategic thrust area due to loyal customers • Brands built on a “respect ” relationship with the consumer through superior performance • Difficult/costly to sustain competitive advantage

Weak Brands

Gillette Procter & Gamble Levers

Rational Levers • The consumer today is not interested if you cannot make him “love” your offer • Plethora of choices with similar “rational” benefits • Extensive information available regarding these choices • Limited time available to attract a consumer’s attention

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Brand name Apple iMac

Description Love Brand

Rational levers • Compact • Latest technology

Emotional levers • “I want to touch and feel the iMac” sensuality • “ It’s a mystery, I can give it my own...