1. Leveraging Secondary Brand Associations to Build Brand Equity
BRAND MANAGEMENT
#Week 11
November 3rd,2010

2. learning objectives
To understand the importance of secondary brand associations in building brand equity
To understand the concept of leveraging brand entities as secondary brand associations in building brand equity
To understand the implications of leveraging secondary brand associations in managing branding strategies

3. Preview Building brand equity : Marketing Program Activities (4Ps)
Brand Elements
Marketing Program Activities (4Ps)
Leverage of related or secondary brand association
To creating strong, favorable, and unique associations or positive responses if existing brand associations or responses are deficient in some way

4. Creating Secondary Brand Knowledge
We can create secondary brand knowledge by linking the brand to the following :
Companies (through branding strategies)
Countries or other geographic areas (through identification of product origin)
Channels of distributions ( through channel strategy)
Other brands (through co-branding)
Characters (through licensing)
Spokespersons (through endorsement)
Events (through sponsorship)
Other third-party sources (through award or reviews)

5. Secondary Sources of Brand Knowledge

6. Conceptualizing the Leveraging Process
Creation of New Brand Associations
Effects on Existing Brand Knowledge
Awareness and knowledge of the entity
Meaningfulness of the knowledge of the entity
Transferability of the knowledge of the entity
Guidelines
Commonality: consumers have associations to another entity that are congruent with desired brand associations
Complementary: how much value of the entity brand would add to the existing brand.

7. Understanding Transfer of Brand Knowledge

8. 1. Company
Branding strategies are an important determinant of the strength of association from the brand to the company and any other existing brands.
Three main branding options exist for a new product :
Create a new brand
Adopt or modify an existing brand
Combine an existing and a new brand

10. Unilever’s Icon

12. Virgin Core Values :
Value for money
Quality
Innovation
Fun
Sense of competitive challenge

13. 2. Country of Origin and Other Geographic Areas
The country or geographic location from which it originates may also become linked to the brand and generate secondary associations
Many countries have become known for expertise in certain product categories or for conveying a particular type of image
Consumer can pick and choose brands originating in different countries, based on their beliefs about the quality of certain types of products from certain countries or the image that these brands or products communicate

14. ITALY
USA
PARIS
IRISH
JAPAN

15. Which one is ORIGINAL???

16. 3. Channels of Distribution
Channels of distribution can directly affect the equity of the brand they sell because of consumers association linked to the retail stores.
Because associations to product assortment, pricing and credit policy, quality of service, retailers have their own brand images in consumers minds

18. HONDA MOTOR DISTRIBUTOR

19. Amanda Brownies Kukus

20. 4. Co-Branding
Existing brand leverage associations by linking itself to other brands from the same or different company
Co branding or brand bundling or brand alliances: when two or more existing brands are combined into a joint product or are marketed together in some fashion.
Guidelines :
Both brands should have adequate brand awareness, sufficiently strong, favorable , unique associations, positive consumer judgments and feelings
Logical fit between the two brands and combined to maximizes the advantages of the individual brands while minimizing the disadvantages
Marketers must ensure the right kind of fit in values, capabilities, and goals
Marketers need detailed plans to legalize contracts, make financial arrangement , and coordinates marketing program

23. Special case : Co-Branding
Ingredient Branding : creates brand equity for materials, components, or parts that are necessarily contained within other branded products.
Guidelines :
Consumers must first perceive that the ingredient matters to the performance and success of the end product. The intrinsic value is visible or easily experienced
Consumers must then be convinced that not all ingredient brand are the same and that the ingredient is superior. The ingredient would have an innovation or some other substantial advantage over existing alternatives
A distinctive symbol or logo must be designed to clearly signal to consumers that the host product contains the ingredient. The symbol or logo would function essentially as a “seal” and would be simple and versatile it could appear virtually anywhere and credibly communicate quality and confidence to consumers
A coordinated push and pull program must be put into place such that consumers understand the importance and advantages of the branded ingredients

25. 5. Licensing
Licensing creates contractual arrangements whereby firms can use the name, logos, characters, and so forth of other brands to market their own brands for some fixed fee.
Renting another brand to contribute to the brand equity of its own product.
Corporate trademark licensing :
Generating extra revenues and profits
Protecting their trademarks
Increasing brand exposure
Enhancing brand image
No inventory expenses, Account receivable, manufacturing expenses
Risk : product wont live up to the reputation established by the brand; inappropriate licensing will dilute brand meaning

26. Standar Nasional Indonesia (SNI)

27. 6. Celebrity Endorsement
Using well known and admired people to promote products is a widespread phenomenon with a long marketing history
Potential Problems :
Celebrity endorsers can endorse so many products that they lack any specific product meaning or are seen as opportunistic or insincere
Must be reasonable match between the celebrity and product
Celebrity endorsers can get in trouble or lose popularity diminishing their marketing value to the brand
Guidelines :
Marketer should strategically evaluate, select, and use celebrity spokespeople
Chose a well known celebrity
There must be logical fit between the brand and person
Ad and communication program should use the celebrity in a creative fashion that highlights the relevant associations and encourages their transfer

29. 7. Sporting, Cultural, or Other Events
Events have their own set of associations that may become linked to a sponsoring brand under certain conditions.
Sponsored events becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of existing associations.

31. 7. Third-Party Sources
Create secondary associations by linking the brand to various third-party sources.
Third party sources can improve perceptions of and attitudes toward brands.