the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2010 Strategic Brand Management Using secondary brand associations to build brand equity Dr. Klairoong Phairor

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Secondary Brand Association Secondary brand association is referred to indirect approach to building brand equity. That is, brands themselves may be linked to other entities that have their own knowledge structures in the minds of consumers. Because of these linkages, consumers assume or infer that some of the associations that characterise the other entities may also be true for the brand.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Secondary Brand Association Secondary brand knowledge can created by linking the brand to the following:  Companies  Countries of origin or other geographic areas;  Channels of distribution;  Co-branding;  Licensing;  Celebrity endorsements;  Sporting, cultural or other events (sponsorship); and  Third-party sources (e.g. Awards or reviews)

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Transfer of brand knowledge

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Companies Existing brands may be related to the corporate brand or specific product brand. Corporate or family brand can be a source of brand equity: Sony Ericsson W900i mobile phone Kelloggs Rice Krispies, Kelloggs Nutri- Grain

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Companies However, using a corporate brand may not always be useful, depending on the awareness and image involved.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Country of Original IKEA furniture: Sweden Chanel perfume: France Barilla pasta: Italy BMW: Germany Dewar’s whisky: Scotland Kikkoman soy sauce: Japan Bertolli olive oil: Italy Gucci shoes and handbags: Italy Rolex: Switzerland

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Channels of Distribution Because of associations with product assortment, pricing and credit policy, quality of service and so on, retailers have their own brand images in consumers’ minds.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Retailers’ Brand Image Dimension Access: The distance that consumers must travel to shop. Atmosphere: Elements of the shop, such as colour, music and crowding. Price and promotion: Average prices, variation of prices over time, frequency and depth of promotions. Cross-category assortment: Breadth of products and services offered. Within-category assortment: Depth of retailer’s assortment within a product category (e.g. Flavours, size, etc.)

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 ICA’s Hexagon Model of Food Retailing

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Co-branding Co-branding, also called brand bundling or brand alliances – occurs when two or more brands are combined into a joint product or are marketed together in some fashion.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Co-branding Advantages Borrow needed expertise Leverage equity you don’t have Reduce cost of product introduction Broaden meaning Increase access points Source of additional revenue Disadvantages Loss of control Risk of brand equity dilution Negative feedback effects Lack of brand focus and clarity Organisational distraction.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Licensing Licensing involves contractual arrangements whereby firms can use the names, logos characters and so forth of other brands to market their own brands for a fee. Licensors include Film titles and logos (e.g. Harry Potter, Star Wars and Spider Man) Comic strip characters (e.g. Garfield and Simpson)

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Licensing – Disney Merchandising licensing: Selectively authorising the use of Disney characters on high-quality merchandise. Publishing: Telling the Disney story in books, magazines, comics and art. Music and audio: Playing favourite Disney songs and stories. Educational production: Casting the characters in films for schools and libraries. Check The Disney Store: Bringing the Disney name to shopping centre.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Celebrity Endorsement A famous person can draw attention to a brand and shape the perception of the brand by virtue of the inferences that consumers make based on their knowledge of the person. High level of visibility Rich set of potentially useful associations Credible in terms of expertise, trustworthiness, likability and attractiveness.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Sporting Cultural and other Events Event marketing is a means of creating or reinforcing consumer perceptions of key associations. Events have their own associations that may become linked to a sponsoring brand under certain conditions. Sponsored events can contribute to brand equity by: Becoming associated with the brand and improving brand awareness Adding associations Improving the strengths, favourability and uniqueness of existing associations.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Sporting Cultural and other Events Personalities of nine different events

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Sporting Cultural and other Events Correlation between brand and events

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Sporting Cultural and other Events Good sponsorship fit between H&M and ‘Rock festival’

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Sporting Cultural and other Events Bad sponsorship fit between H&M and ‘Save the Children