Brand Equity
Brand Equity
Brand Equity
Managing brand equity concerns those activities that take a broader and more diverse perspective of a brands equity
Understanding how branding strategies should reflect corporate concerns and be adjusted, if at all, over time or over geographical boundaries or market segments
The choice of branding strategy depends upon a number of different factors, including corporate objectives and capabilities, consumer behavior, and competitive approaches. Consequently, strategies differ significantly between firms and even across products within firms. In addition to designating the optimal hierarchy, a company must also design marketing support programs that create the desired awareness and associations at each level. In general, associations for a higher-level brand should be relevant to as many brands below it as possible, while brands at the same level should be as differentiated as possible.
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Chevrolet initially used its "bowtie" logo in the year 1913. It is asserted to have been intended from wallpaper Durant once saw in the French hotel. One more theory is that it is the stylized version of the shape of Switzerland or cross on flag of Switzerland, Louis Chevrolet's origin. In the year 1915, Durant was in process of creating Chevrolet manufacture facilities in Canada. Later that year, in a luncheon gathering in New York along with "Colonel Sam" McLaughlin, whose McLaughlin Car Company produced McLaughlin-Buick cars, it was decided that Chevrolets with McLaughlin-designed bodies will be added to Canadian company's manufactured line. 3 years later, the 2 Canadian operations were purchased by GM to turn out to be GMs of Canada Limited.
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Branding Strategies
The branding strategy for a firm reflects the number and nature of common or distinctive brand elements applied to the different products sold by the firm
Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products
Decide on the levels of awareness and types of associations to be created at each level
Principle of relevance: Create global associations that are relevant across as many individual items as possible Principle of differentiation: Differentiate individual items and brands
Brand-Product Matrix
1 A Brands B C Products 2 3 4
Must define . . .
Brand-Product Relationships (ROWS)
Line & Category Extensions
Breadth: the number and nature of products that bear the same brand name. Dove-soap,shampoo-different types,deo-spray etc. Depth: the number and nature of brands in the same product category. Dove, Sun silk,Halo,Head & Shoulders,
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A portfolio is too big if profits can be increased by dropping brands. A portfolio is not big enough if profits can be increased by adding brands
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CIA3
select a brand with a multiple-level brand hierarchy and analyze the supporting marketing communications program to determine how the upper- and lower-level names are linked and differentiated. Conduct a review of ---------brand portfiolio. How successful have they been at reducing/increasing the number of brands? What lessons are to be learned from their strategies?
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