1. Brand Equity Concept & Its Importance

2. The Challenge More Products More Competitors More Media Same Consumers Same Needs GROWTH MANTRA?

3. MANTRA #1 Price Sales Promotions Price Wars Short-Term

4. Mantra #2 Brand Building Distinctive Sustainable Long-Term

5. What is Brand Equity? “BE is a set of brand assets / liabilities linked to a brand, its name or symbol that add to or subtract from the value provided by a product or service to a customer”

6. Components of Brand Equity Awareness: Name & Symbols Brand Associations Perceived Quality Brand Loyalty Other Proprietary Brand Assets

7. Awareness: Name & Symbols Recognised vs. Unknown Brand Familiarity drives perception Familiar = Reliable + Good Quality Unknown only a push option

8. Brand Associations People, situations, moods, needs that consumers relate a brand to/with Helps the brand occupy a distinct mindspace Drives purchase

9. Perceived Quality Consumers are not engineers! Quality is based on perception and not specifications Brands drive perception of quality Perception drives purchase, premium justification and ease of extension

10. Brand Loyalty Cost of acquiring new customers is 10 times the cost of retaining old ones! Products are non-living but brands aren’t Customers associate themselves with brands (preservance/enhancement) Difficult to break-away to competition

11. Other Proprietary Assets Trademarks Patents Channel Relationships

12. Brand Value

13. Price Premium Ability to charge a higher price Brand vs. Blind Willingness to pay a price Strength of the brand as the product is common

14. Brand Name & ITP Correlation between Brand Name and Preference Incremental sales because of the brand name becomes its value

15. Challenges in Managing Equity Bases of Equity Creation of Equity Forecasting of Erosion Extension Decisions Portfolio Management

16. Group Assignment #1 Choose any one product & 2 brands Create a sample of 20 respondents Use both the discussed techniques of measuring Brand Value on a panel of 10 each Highlight the change in perceived value Deadline: Next Class Weightage: 2.5%

17. Group Assignment #2 Case Study Analysis Case will be uploaded on www.gibm.in by tomo.www.gibm.in 5 Slide presentation Printout at the outset of the class Deadline: Next Class Weightage: 2.5%

18. Brand Loyalty

19. Definition Measure of attachment a consumer has to the brand Determines his tendency to shift to another brand (High / Low) Very strong indicator of Brand Equity as it directly impacts profits

20. Levels of Loyalty SWITCHER Indifferent to the brand All brands are substitutes Decision driven by schemes / convenience Very price sensitive

21. Levels of Loyalty HABITUAL BUYER Not dissatisfied Buy out of habit more than any other consideration Vulnerable to Competition Difficult to reach as they are not actively seeking options

22. Levels of Loyalty SATISFIED BUYER Satisfied with the product Have switching costs of time, energy, money, performance and associated risks Also termed as ‘Switching Cost Loyal’ Can be induced by competition but only with a tangible differential

23. Levels of Loyalty FRIENDLY BUYER Have a strong liking for the brand Can be based on attribute, symbol, associations or even a general feeling Sometimes the length of the relationship drives the liking Difficult to move as they have an emotional attachment with the brand Feeling of liking, respect, friendship or trust

24. Levels of Loyalty COMMITTED BUYER Sense of ownership and pride with the brand Brand plays a significant role in their life They act as brand ambassadors for the brand Frequently talk about the brand

25. How Loyalty Helps? Lowers marketing costs Stronger push by trade Attracting new customers Defense against competitive movements

26. Key to Note Brand Loyalty is an outcome of brand experience Unlike other measures which can exist pre-trial of the product Considered to be the strongest measure of all Same consumer can straddle all levels for different products / brands

27. Measuring Brand Loyalty Behaviour Repurchase Rate Percent of Total Purchase Consumers Brand Portfolio

28. Measuring Brand Loyalty Switching Costs Investment in Product Risk of Change Lack of Awareness

29. Measuring Brand Loyalty Degree of Satisfaction Level of Satisfaction Drivers of Satisfaction Must be current

30. Driving Loyalty Create the right consumer experience Interact with the customer Measure / Manage Satisfaction Create Switching Costs Provide EXTRA

31. Group Assignment #3 Take any Brand and do the following: Measure the Level of Loyalty Recommend atleast 3 actions to maintain / improve the level of loyalty Weightage: 5% Deadline: Next Class