1. LEVERAGING SECONDARY BRAND ASSOCIATIONS TO BUILD EQUITY
Chapter 7

3. LEVERAGING
“Borrowing” some brand knowledge and depending on the nature of associations or responses, some brand equity
Unlike brand elements and communication strategies, this is an indirect approach to build brand equity.

5. Creation of New Brand Associations
By making a connection between and other entities, consumers form a mental association
This secondary knowledge is most likely to affect the evaluations of a new product when consumers lack the motivation or the ability to judge product related attributes

7. Examples Events: create experiences People: create feelings
Media: knowledge about attributes
Cause-related marketing:
Enhance brand image
Evoke feelings of social approval/esteem
Brand attitudes such as trustworthy & Likeable

8. Associations
Commonality: when consumers have associations to another entity that are congruent with desired brand associations
Complementarity: when there is not the level of congruence required, how much can associations add to the brand

9. Extensions
Frito Lay™ foods and dips. An introduction of Frito Lay™ lemonade did not succeed because the fruity, sweet drink had little connection to other Frito Lay™ products.
Other examples that did not work in the consumer market include
Ben-Gay™ aspirin,
Fruit of the Loom™ laundry detergent.
However, M&M™ ice cream, Reese’s™ peanut butter, and Minute Maid™ orange soda experienced success because the brands held direct and logical connections to their new categories.

10. An Exception
Bic™ is a strong brand name with years of experience in marketing low-cost disposable plastic products such as the Bic™ pen. Thus, Bic™ is positioned well to introduce products that capitalize on these same basic strengths – products such as disposable razors and cigarette lighters.

11. Pros
More products mean greater shelf space for the brand and more opportunities to make a sale.
The cost of introducing a brand leveraged product is less than introducing an independently new product due to a much smaller investment in brand development and advertising designed to gain brand recognition.
A full line permits coordination of product offerings, such as bagels and cream cheese, potato chips and ranch dip, peanut butter and jelly, etc.
A greater number of products increase efficiency of manufacturing facilities and raw materials.

12. Cons Brand leveraging does present challenges. Brand dilution
Potential exists for damaging the reputation of the parent product if new products fail.
Manufacturing and inventory costs may be higher as a result of product diversification.

13. Corporate Marketing Umbrella (Philosophy)
Corporate Reputation
Corporate Identity
Corporate Image
Corporate Communications
Corporate Branding

14. Country of Origin
Is Land Rover British, German or American?

15. Country of Origin

16. Cultural Bazaar
Origins of the brand are more important than who the owner becomes latter in life.
Lamborghini is owned by German-VW, yet it keeps this Italian identity.
Rolls-Royce is now owned by German BMW, it still is associated with English luxury.
It is like a child, the first years are the most important for his identity.

17. Problems Strong associations may hinder migration
Favourability of the country of origin
Domestic Perspective
Foreign Perspective
Individualistic vs collectivist societies
Patriotic Appeal
Lack uniqueness
Overused

18. Channels of Distribution
Associations with
Product
Price
Credit Policy
Quality of Service
Results in associations of brands by retailers
“If its sold in Nordstrom, it must be of good quality”
In Bangladesh context?????

20. Intensive distribution
Exclusive
Vs.
Intensive distribution

22. Co-Branding
Occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion

23. Nike and Apple brought music and exercise together when they developed the Sports Kit, a wireless system that allows shoes to talk to an iPod.
By this strategy, Apple was able to target Nike consumers and vice versa. So both the participants benefit from this tie-up.

24. Advantages of Co-Branding
Borrow needed expertise
Leverage equity you don’t have
Reduce cost of product introduction
Expand brand meaning into related categories
Broaden meaning
Increase access points
Source of additional revenue

25. Disadvantages of Co-Branding
Loss of control
Risk of brand equity dilution
Negative feedback effects
Lack of brand focus and clarity
Organizational distractions

26. Ingredient Branding A special case of co-branding that involves
creating brand equity for materials, components,
or parts that are necessarily contained within
other branded products
Examples:
Betty Crocker baking mixes with Hershey’s
chocolate syrup
Intel inside

27. Licensing Involves contractual arrangements whereby
firms can use the names, logos, characters, and
so forth of other brands for some fixed fee
Examples:
Entertainment (Star Wars, Jurassic Park, etc.)
Television and cartoon characters (The Simpsons)
Designer apparel and accessories (Calvin Klein,
Pierre Cardin, etc.)

28. Celebrity Endorsement
Draws attention to the brand
Shapes the perceptions of the brand
Celebrity should have a high level of visibility and a rich set of useful associations, judgments, and feelings

29. Celebrity Endorsement: Potential Problems
Celebrity endorsers can be overused by endorsing many products that are too varied.
There must be a reasonable match between the celebrity and the product.
Celebrity endorsers can get in trouble or lose popularity.
Many consumers feel that celebrities are doing the endorsement for money and do not necessarily believe in the endorsed brand.
Celebrities may distract attention from the brand.

31. Employees: The Singapore Girl-a strong brand element for Singapore Airlines

32. Sporting, Cultural, or Other Events
Sponsored events can contribute to brand equity
by becoming associated to the brand and
improving brand awareness
The main means by which an event can transfer
associations is credibility.

35. Sponsoring Causes