CREATING BRAND EQUITY

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CREATING BRAND EQUITYAna Alice Haddad – 15650

Caroline Braga – 15970Cynira Altenfelder – 15656

Lohayne Porto – 13760Manoela Gazze – 15666

Priscila Salomon – 14338Rafaela Reis - 14339

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WHAT SHOULD YOU BE

ABLE TO ANSWER AFTER OUR

PRESENTATION?

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YOU SHOULD KNOW...1) WHAT IS A BRAND AND HOW DOES BRANDING

WORK?

2) WHAT IS BRAND EQUITY?

3) HOW IS BRAND EQUITY BUILT, MEASURED, AND MANAGED?

4) WHAT ARE THE IMPORTANT DECISIONS IN DEVELOPING A BRANDING STRATEGY?

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DO YOU RECOGNIZE?

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QUER PAGAR QUANTO?

NÃO TEM PREÇO!

AMO MUITO TUDO ISSO!

DO YOU RECOGNIZE?

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DO YOU RECOGNIZE?

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WHAT IS BRAND

TO YOU?

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WHAT IS BRAND? BRAND: name, term, sign, symbol, or design, or a combination of them intended to distinghish one product or service from another

MAIN OBJECTIVE DIFERENTIATION

DIFERENCES: – Product performance: functional, rational or tangible– Brand Image: symbolic, emotional or intangible

EARLIEST SIGNS OF BRANDING: medieval guilds, artists signs in sculpture, painting

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THE ROLE OF BRANDS BRANDS: – Improve consumer’s lives and enhance final value of

firms;

CONSUMER’S CHOICE: – Satisfied buyers choose the product again;– Predictable and secutity demands;– Possibility of prime prices;

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THE ROLE OF BRANDS Example:

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WHAT IS BRAND EQUITY? BRAND EQUITY– Is the added value endowed on products or services – Associated with the ability of a professional marketer to create,

maintain, enhance and protect brands;

CONSUMER-BASED BRAND EQUITY– The power of a brand lies is what consumers have seen, read,

heard, thought and felt about the brand– The differential effect that brand knowledge has on consumer

response• Positive: consumer react favorably when brand is identified• Negative: consumer react less favorably or do not identify the brand

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THE SCOPE OF BRANDING Brand resides in the minds of consumers;

“Who” the product is and what it does;

Almost everything can become a brand:– Physical goods– Services– Store – Person– Place – Idea– Event

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THE SCOPE OF BRANDING PHYSICAL GOODS

SERVICES

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THE SCOPE OF BRANDINGSTORE

PERSON

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THE SCOPE OF BRANDING PLACE

IDEA– Bulling– Free trade– Abortion rights

EVENT– SWU– Woodstock

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BRAND EQUITY AS A BRIGDE INVESTMENTS $ X BRAND EQUITY– Quality is what matters, not quantity

WHY DOES COMPANIES MAKE MISTAKES?– Marketers failed to atract consumer´s attention;– Company’s product failed to meet consumers’

needs and wants

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BRAND EQUITY MODELS There are some different perspectives about it.

Kotler highlighted four of the more-established ones: – BRAND ASSET VALUATOR– BRANDZ– AAKER MODEL– BRAND RESSONANCE MODEL

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BRAND RESSONANCE MODEL

RESSONANCE

JUDGMENTS – FEELINGS

PERFORMANCE – IMAGERY

SALIENCE

4. Relationships = What about you and me?

3. Response = What about you?

2. Meaning = What are you?

1. Identity = Who are you?

Intense, active loyalty

Positive, accessible reactions

Points-of-party & difference

Deep, broad brand awareness

STAGES OF BRANDING DEVELOPMENT

BRANDING OBJETIVE AT EACH STAGEBRAND BRAND BUILDING

BLOCKS

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BRAND RESSONANCE MODEL

BRAND SALIENCE

BRAND PERFORMANCE

BRAND IMAGERY

BRAND JUDGEMENTS

BRAND FEELINGS

BRAND RESSONANCE

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BUILDING A BRAND EQUITY BRAND EQUITY DRIVERS

BRAND ELEMENTSCHOOSING BRAND ELEMENTS DEVELOPING BRAND ELEMENTS

DESIGNING HOLISTIC MARKETING ACTIVITIES PERSONALIZATION INTEGRATION INTERNALIZATION

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BRAND EQUITY DRIVERS The Initial choices for the brand elements

The wild and adventure man

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BRAND EQUITY DRIVERS The product and service

They offer a “pós-vendas” service

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BRAND EQUITY DRIVERS Associations indirectly transferred to the brand

XUXA

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BRAND ELEMENTS Trademarkable devices that identify and differentiate

the brand

Swoosh logo –

Empowering slogan –

Name based on the winged goddess of victory

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BRAND ELEMENTS Test of the brand building

Memorable – short names

Meaningful – credible, suggestive

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CHOOSING BRAND ELEMENTS

Likable – likable visually, verbally and other ways

Transferable – Introduce new products, geographic boundaries, market segments

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Adaptable – adaptable and updatable

Protectible - legally protectible

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Easy to regognize and recall

Inherently descriptive

Persuasive

Intangible characteristics

Slogan – useful hooks : “Gol, linhas aéreas” 29

DEVELOPING BRAND ELEMENTS

Brands are not built by advertising alone

NEW BRANDS CONTACTS: clubs and consumers communities, trade shows, event marketing, sponsorship, factory visits, public relations and press release, social media

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DESINING HOLISTIC MARKETING ACTIVITIES

EXPANSION OF INTERNET

Make sure the brand and its marketing are as relevant as possible to as many customers as possible

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PERSONALIZATION

Mixing and matching marketing activities to maximize their individual and collective effects

IDENTITY X IMAGE

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INTEGRATION

INTERNAL BRANDING

BRAND BONDING

B2E

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INTERNALIZATION

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LEAVERAGING SECONDARY ASSOCIATIONS

BRAND

OTHER BRANDS

PLACES

THINGS

PEOPLE

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MEASURING BRAND EQUITYBRAND VALUE CHAIN

Marketing Program

InvestmentCustomer Mind-Set Brand Performance Shareholder

Value

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MEASURING BRAND EQUITYBRAND VALUE CHAIN

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MEASURING BRAND EQUITY1) Measuring Brand Equity

2) Measuring the value of the brand as a financial asset

1 2 3 4 5 60

20

40

60

80

100

120

Brand Equity

Brand Equity

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MEASURING BRAND EQUITY1) MEASURING BRAND EQUITY

Qualitative and quantitative measures:• Statistics models• Perceived quality• Purchase intention• Willingness to recommend to a friend• Relevant Differentiation• Association• Awareness

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MEASURING BRAND EQUITY

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MEASURING BRAND EQUITY2) FINANCIAL VALUE OF A BRAND

Ability to generate future cash flow

“From 1000 marketing executives, 66% ranked the accountability of marketing as their number-one concern.”

Association of National Advertisers

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0 1 2 3 4 5 EVA

0 1 2 3 4 5 EVA

Terminal value

10% price

60% brand

30% attributes 0 future cash flow won’t occur

100 future cash flow will occur

Discount Rate

0 1 2 3 4 5 EVA

Terminal value * 0,6Discount

RateBrand Value in the present

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MANAGING BRAND EQUITY

long-term view of marketing actions

Brand Positioning

How do we want to be perceived and what’s

our cmpetitive advantages?

Requirement

BRAND REINFORCEMENT

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(1) What products the brand represents, what core benefits it supplies, and what needs it satisfies

(2) How the brand makes products superior, and which strong, favorable, and unique brand associations should exist in the minds of consumers

BRANDING IN XXI CENTURY (Scott Bedbury, A new band world)

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BRANDING IN XXI CENTURY (Scott Bedbury, A new band world) - Principles of branding

Brand Principle # 1Relying on brand awareness has become marketing fool’s gold

Relevance & Resonance

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Brand Principle # 2You have to know it before you can grow it

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Brand Principle # 3Always remember the rule of brand expansion

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Brand Principle # 4Excellent brands establish lasting relationships with customers

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Brand Principle # 5Everything Matters

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Brand Principle # 6All brands need good parents

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Brand Principle # 7Big is not excuse to be bad

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Brand Principle # 8Relevance, simplicity and humanity

NOT TECHNOLOGY

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Santa Claus has been

reinvented by Coca-Cola

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MANAGING BRAND EQUITY“Zynga, produtora de jogos sociais como FarmVille e Mafia Wars, passará a comercializar produtos da marca FarmVille em lojas de conveniência da rede 7-Eleven, em uma tentativa de conquistar o público jovem.”

Source: Terra

BRAND REVITALIZATION

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Are positive associations losing their strength or uniqueness?

Have negative associations become linked to the brand?

BRAND REVITALIZATION

Source: Central de Cases ESPM e EXAME 59

MANAGING BRAND EQUITYNatura - Changes

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MANAGING BRAND EQUITYMarket Segments

Brand Value

Competitive Benchmarking

Brand Strength

Brand Discount Rate

Demand Drives

Financial Analysis

Intangible Earnings

Brand Earnings

Role of Branding

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DEVISING BRAND STRATEGY

BRANDING STRATEGY: the number and nature

of distinctive and common elements of the

products it sells

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BRAND EXTENSION: When a firm uses an established brand to introduce a new product

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SUBBRAND: A combination of a new brand with an existing brand.

PARENT BRAND or FAMILY BRAND: The brand that gives birth to the extension.

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BRAND EXTENSIONS:– Line extension“The parent brand covers a new product within a

product category it already serves”

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BRAND EXTENSIONS:– Category extension

“The parent brand is used to enter a new product category it currently serves”

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CATEGORY EXTENSIONS:

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BRAND LINE – all products under a particular brand

BRAND MIX – all brand lines a particular seller makes available to public

BRAND VARIANTS – specific brand lines supplied to determined distribution channels

LICENSED PRODUCT – Brand name licensed to other manufacturers to use the name of certain product. 68


BRANDING DECISIONS INDIVIDUAL NAMES

Companies often use different brand names for different quality lines within the same product

class. (I.E. Delta Airlines) 69


BRANDING DECISIONS BLANKET FAMILY NAMESTo use the corporate name under the range of products

A corporate branding strategy can lead to greater intangible value for the firm 70


BRANDING DECISIONSSeparate family names for all productsOften used when companies produce quite different products.

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Corporate name combined with individual product names

The company name legitimize and the individual name individualizes the new product72


BRAND EXTENSIONS:ADVANTAGES X DISADVANTAGES

ADVANTAGESFacilitate new product acceptance and provide

positive feedback to the company and parent brandBy setting up new expectations, extensions reduce

riskEasier to convince retailers to stock and promote a

product73



ADVANTAGESMay reduce costs of introductory launch

campaignAvoids expenditures of creating a new name,

packaging and labeling.Customers who need a change can switch to a

different product type 74



DISADVANTAGESThe brand risks losing its identity for one specific

product – Brand dilutionRetailers reject many products for space matters.Worst scenario: The extension fails and harms

the image of the parent brand.Cannibal effect 75


Multiple brands multiple segments

Increasing shelf presence and retailer dependence in the store

Attracting consumers seeking variety who may otherwise have switched to another brand

Increasing internal competition within the firm

Yielding economies of scale in advertising, sales, merchandising, and physical distribution

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BRAND PORTFOLIO

The brand portfolio is the set of all brands and brand lines a particular firm offers for sale in a particular category or market segment.

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BRAND PORTFOLIO

FLANKERSFighter brands are positioned with

respect to competitor's brands so that more important brands can retain their desired position.

CASH COWSSome brands can still exist even if

they don’t sell too much because they have a certain tradition.

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BRAND PORTFOLIO

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BRAND PORTFOLIO LOW-END ENTRY LEVEL

Low priced brand in a portfolio - the role of this low priced produt is to attract customers to the brand franchise. HIGH-END PRESTIGE

High priced brand in a portfolio - its role is to add prestige and credibility to the entire portfolio

“The sum of lifetime values of all customers”

The aim of CRM is to produce high customer equity

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CUSTOMER EQUITY

Both emphasize the importance of customer loyalty and the notion that value is created by having as many customers as possible pay as high a price as possible.

But they emphasize different things... 81

CUSTOMER EQUITY X BRAND EQUITY

CUSTOMER EQUITY

– focuses on bottom line financial value– limited guidance for go-to-market strategies

– ignores some of the important advantages of creating a strong brand

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BRAND EQUITY– tends to emphasize strategic issues in managing

brands and creating and leveraging brand awareness and image with customers.

– With a focus on brands, however, managers don't always develop detailed customer analyses

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There are no brands without customers and no customers

without brands.

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CONCLUSION1) WHAT IS A BRAND AND HOW DOES WORK?

Brand is a sign, a term, a name, a symbol, a design or a combination of them, intended to differentiate a product or service from competitors.

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CONCLUSION2) WHAT IS BRAND EQUITY?

Brand equity is the added value endowed on products or services. It’s related to the

consumer’s reaction with respect to the brand and the ability of a professional

marketer to create, maintain and enhance a brand.

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CONCLUSION3) HOW IS BRAND EQUITY BUILT, MEASURED,

AND MANAGED? Brand Equity Built are crating the right brand knowledge

structures with the right consumers. Brand names arent’ the only important brand element. Slogan are useful hooks. Brands are nor built by advertising alone.

In order to manage the brand equity, companies need to measure it. Measuring brand equity means measuring how strong the brand is and how much the brand is worth.

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CONCLUSIONManaging brand equity is a process related to

the short-term and long-term view of marketing actions. Marketing actions, as a consequence, or essential to reinforce or

revitalize the brand, and keep expanding and looking forward.

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CONCLUSION4) WHAT ARE THE IMPORTANT DECISIONS IN

DEVELOPING A BRANDING STRATEGY?

Whether to create a new name for a product and choose which brand names to use and whether to introduce a brand extension or

not.

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REFERENCES 1. David A. Aaker. Measuring Brand Equity Across Products and Markets. California Management Review, 1996 2. Nitza Sasson and Idan Doron. Measuring Brand: The First Crucial Step Maximizing Value Equity 3. Brad VanAuken. The Blake Project. Disponível em: www.brandingstrategyinsider.comAcessado em: 16/10/10 4. Michaela Mora. Measuring Brand EquityDisponível em: www.relevantinsights.comAcessado em: 16/10/10 5. Jonathan Knowles, Wolff Olins. In Search of a Reliable Measure of Brand Equity. Disponível em: www.zibs.comAcessado em: 17/10/10

http://www.brandingstrategyinsider.com/

http://www.relevantinsights.com/

http://www.zibs.com/

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REFERENCES6. InterbrandDisponível em: www.interbrand.comAcessado em: 18/10/10

7. Marketing 3.0, Kotler, Editora Campus, São Paulo, 2010

8. http://www.cedet.com.br/index.php?/Tutoriais/Marketing/marcas-e-branding.html

9. http://www.hanover.com.br/press_release/press_cebit2010_19.htm

10. http://www.administradores.com.br/informe-se/artigos/se-a-marca-mappin-falida-desde-1999-vale-5-milhoes-quanto-vale-a-sua-marca/46484/

11. http://www.portaldebranding.com/v1/?p=658

12. VIEGAS, A. H., "Estratégia de Branding: gestão da unificação de marcas", São Paulo, 2009.

http://www.interbrand.com/

http://www.cedet.com.br/index.php?/Tutoriais/Marketing/marcas-e-branding.html



http://www.hanover.com.br/press_release/press_cebit2010_19.htm

http://www.administradores.com.br/informe-se/artigos/se-a-marca-mappin-falida-desde-1999-vale-5-milhoes-quanto-vale-a-sua-marca/46484/

http://www.administradores.com.br/informe-se/artigos/se-a-marca-mappin-falida-desde-1999-vale-5-milhoes-quanto-vale-a-sua-marca/46484/

http://www.portaldebranding.com/v1/?p=658

CREATING BRAND EQUITY

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