1. 1
9 Creating Brand Equity

2. A Brand-new World

3. Chapter Questions What is a brand and how does branding work?
What is brand equity?
How is brand equity built, measured, and managed?
What are the important decisions in developing a branding strategy?

4. Brand A name, term, sign, symbol or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
Brand

5. Financial Values of Strong Brands
Akuisisi Rowntree oleh Nestle (Juni 1988; The New York Times, 24 Juni 1988)
Akuisisi Kraft oleh Philip Morris (Oktober 1988; Coll, 1988)
Philip Morris dan Nestle bersedia membayar lebih dari 6 kali lipat dan 5 kali lipat dari nilai buku perusahaan (book value) dari masing-masing perusahaan yang dibelinya karena brand Kraft dan Rowntree dianggap mempunyai nilai ekonomis yang sangat besar.
Building and Sustaining Brand Equity © Ike Janita Dewi

6. The World’s Most Valuable Brands (2008)No
Name of Brands
Valuation
Country of Origin 1.
COCA-COLA
65,324
U.S 2.
MICROSOFT
58,709 3.
IBM
57,091 4. GE
51,569 5.
NOKIA
33,696
Finland 6.
TOYOTA
32,070
Japan 7.
INTEL
30,954 8.
McDONALD’S
29,398 9.
DISNEY
29,210
10.
MERCEDES-BENZ
23,568
Germany

7. 1. Global Branding Strategies: World’s Most Valuable Brands (@Interbrand 2010)
Chapter 12

8. Figure 9.7 Interbrand Brand Valuation Method
Top brand-management firm Interbrand has developed a model to formally estimate the dollar value of a brand. It defines brand value as the net present value of the future earnings that can be attributed to the brand alone. The firm believes marketing and financial analyses are equally important in determining the value of a brand. Its process follows five steps as shown in Figure 9.7.
1. Market Segmentation—The first step is to divide the market(s) in which the brand is sold into mutually exclusive segments that help determine variances in the brand’s economic value.
2. Financial Analysis—Interbrand assesses purchase price, volume, and frequency to help calculate accurate forecasts of future brand sales and revenues.
3. Branding—Interbrand next attributes a proportion of Intangible Earnings to the brand in each market segment, by first identifying the various drivers of demand, then determining the degree to which the brand directly influences each.
4. Brand Strength—Interbrand then assesses the brand’s strength profile to determine the likelihood that the brand will realize forecasted Brand Earnings.
Lastly we have the Brand Value Calculation—Brand Value is the net present value (NPV) of the forecasted Brand Earnings, discounted by the Brand Discount Rate.

9. Asian Brands
The brutal truth is that branding is misunderstood by decision-makers in Asia (excluding Japan)
There exists widespread misconceptions and, in many cases, a certain degree of ignorance over the value and role of brands as well as the process required to build them.
Surveys confirm that Asians from across the region prefer Western brands to homegrown ones.
The continued absence of genuinely great Asian brands will slow the Asian prospect.

10. A Brand is not made in the factory but in the mind of the consumers

11. Attributes of Strong Brands
Excels at delivering desired benefits
Stays relevant
Priced to meet perceptions of value
Positioned properly
Communicates consistent brand messages
Well-designed brand hierarchy
Uses multiple marketing activities
Understands consumer-brand relationship
Supported by organization
Monitors sources of brand equity

12. The Role of Brands Identify the maker Simplify product handling
Organize accounting
Offer legal protection
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium

13. Branding
Endowing products and services
with the power of a brand.

14. Brand Equity The differential effect that brand
knowledge has on consumer
response to the
marketing of that brand.

15. Brand Associations
Strong
Unique
Favorable

16. Marketing Advantages of Strong Brands
Improved perceptions of product performance
Greater loyalty
Less vulnerable to competition
Less vulnerable to crises
Larger margins
Inelastic consumer response to price increases
Elastic consumer response to price decreases
Greater trade cooperation
Increase in effectiveness of IMC
Licensing opportunities
Brand extension opportunities

17. Brand Promise The marketer’s vision of what
the brand must be and do for
Consumers.

18. Brand Equity Models Brand Asset Valuator Aaker Model BRANDZ
Brand Resonance

19. Brand Resonance Pyramid (Keller, 2002)

20. Rational & Emotional Routes to Brand Building

21. Drivers of Brand Equity
Brand elements
Marketing activities
Meaning transference

22. Brand Element Choice Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible

23. Brand Elements
Brand names
Slogans
Characters
URLs
Logos
Symbols

25. Slogans Like a good neighbor, State Farm is there Just do it
Nothing runs like a Deere
Help is just around the corner
Save 15% or more in 15 minutes or less
We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices

26. Innovative slogan

27. Strong slogan to support a brand

28. Designing Holistic Marketing Activities
Brands are not built by advertising alone.
Brand building marketing programs:
Personalization
Integration
Internalization

29. The Importance of After-Sales Support in Consumer Decision Journey
Welcome to Apple Genius Bar. The Genius Bar is a tech support station located inside every Apple Retail Store, the purpose of which is to offer help and support for Apple products. Ron Johnson, the Senior Vice President for Retail, has often referred to the Genius Bar as the "heart and soul of our stores". Employees are specially trained and certified at the Genius Bar. Their role is to help customers with Apple hardware and software. All in-store repairs of Apple products are carried out by "Geniuses", formerly known as Mac Geniuses.

30. Managing Brand Experience: Nike+ Experience

31. Measuring Brand Equity
Brand audits
Brand tracking
Brand valuation

32. Interbrand’s Brand Equity Formula
Brand earnings
Brand sales
Costs of sales
Marketing costs
Overhead expenses
Remuneration of capital charge
Taxation
Brand strength
Leadership (25%)
Stability (15%)
Market (10%)
Geographic spread (25%)
Trend (10%)
Support (10%)
Protection (5%)

33. Managing Brand Equity Brand reinforcement Brand revitalization
Brand crises

34. Devising a Branding Strategy
Develop new brand elements
Apply existing brand elements
Use a combination of old and new

35. Branding Terms Brand line Brand mix Brand extension Sub-brand
Parent brand
Family brand
Line extension
Category extension
Branded variants
Licensed product
Brand dilution
Brand portfolio

36. Brand Extensions Advantages - New-Product Success
- Positive Feedback Effects
Disadvantages
- Brand Dilution
- Cannibalization

37. Brand Naming Individual names Blanket family names
Separate family names
Corporate name/individual name combo

38. Brand Roles in a Brand Portfolio
Flankers
Cash cows
Low-end entry-level
High-end prestige

39. Everything can be branded!
Building and Sustaining Brand Equity © Ike Janita Dewi

40. Building a Strong Service Brand: Lessons from Mayo Clinic
Mayo Clinic has developed one of the most powerful service brands in the world.
Three branding lessons:
1. attend to organizational values.
2. play defense, not just offence
3. turn customers into marketers
Berry and Seltman (2007), Building a Strong Service Brand: Lessons from Mayo Clinic, Kelley School of Business, www. elsevier.com/locate/bushor

41. A Service Branding Model
Organization’s Presented Brand
Brand Awareness
Brand Equity
External Brand Communications
Customer Experience with Organization
Brand Meaning
Berry and Seltman (2007), Building a Strong Service Brand: Lessons from Mayo Clinic, Kelley School of Business, www. elsevier.com/locate/bushor

42. Service Branding Model vs Goods Branding Model
Customers’ actual experiences are salient in both models.
But, for labor-intensive services those experiences are primarily with people rather than manufactured goods.
In services, it is the organization that’s typically branded (because the experience comes from the organization).
For physical goods, the product is the brand.