Submitted by: Submitted by suescarff
Views: 567
Words: 1114
Pages: 5
Category: Business and Industry
Date Submitted: 12/05/2011 06:05 PM
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...