“RISE FROM ASH” REGAIN BRAND EQUITY AFTER BRAND CRISIS Submitted by – Sweta Leena Panda ID – FMS/MBA/2015-17/000308
“RISE FROM ASH” REGAIN BRAND EQUITY AFTER
BRAND CRISIS
Submitted by – Sweta Leena PandaID – FMS/MBA/2015-17/000308
PRESENTATION FLOW
Introduction
What is Brand crisis and Types ?
Brand Equity
Crisis effect on Brand Equity
Methodology
Research on Customer
loyalty , Brand awareness , Brand Image
Findings
Conclusion and future
prospective
OBJECTIVE OF THE STUDY
Primary objective:-◈ Find out the relationship between all 4 elements (Brand awareness, brand image, Brand
loyalty, Advertisement) in brand equity.◈ Role of these 4 elements in brand equity.
Secondary objective:-◈ Study on how brand crisis Impact on market as well as customer
INTRODUCTION
Performance
Value Competence
Moral
BRAND EQUITY
Brand Awareness
Advertising Awareness
Brand Image
RESEARCH METHODOLOGY (NOODLE INDUSTRY)
Maggie93%
Yippee7%
% OF BRAND CHOICE
What is the brand that comes to your mind when we say the word noodles? I have selected following three
noodle brands for survey: 1. Maggi from Nestlé 2. Yippee from Sunfeast 3. Patanjali Noodles
• 50 samples from Odisha
13%
13%
47%
13%
13%
BRAND FAMILIARITY LEVEL
Affordable Essential Easy to cook Celebration
Which of the following attributes do you associate with that Brand?
RESEARCH METHODOLOGY (NOODLE INDUSTRY)
BRAND PERCEIVED QUALITY LEVEL
Good for health Ready to eatJunk Food Tasty /Fun eating
How do you perceive your noodle brand ?
Quality Price Brand Name Promotional Offers Availbility 0
2
4
6
8
10
6
4
7
3
87
87 7
5
2 21
32
12
BRAND IMAGE LEVEL
High Good Average Low
Rank the factors that affects you to choose this Noodle brand ?
Rate the different aspect of your prefer Noodle brand based on their importance?
Flabor Price Taste Brand Image Cooking Time Nutrition level0
4
8
12
BRAND IMAGE LEVEL
Very Important Important Neither important nor unimportant somewhat important Not important at all
Overall, how would you rate the quality of your Noodle Brand ?
Where have you seen advertisements for your Noodle brand?
If you favourite Noodle brand ban within few days due to some product quality issue , will it affect you ?
Are you willing to consume any other noodle brand other than your Noodle brand?
13%
67%
13%7%
BRAND SAFETY LEVEL
Very High High Average Low Very low
7%7%
80%
7%
BRAND ADVERTISEMENT EFFECT
Billboards MagazinesNewspapers OnlinePublic transporta-tion
Radio
TV Other
43%57%
BRAND LOYALTY CHECK
YesNo
Yes No May be
13. Do you Trust your brand?
14. Will you prefer others to buy this brand?
57%43%
BRAND LOYALTY LEVEL
Yes No May be
25%
37%
37%
BRAND TRUST EFFECTS
YesNoMay be
How will you rate your Noodle brand on health safety?
Will you like to prefer your noodle brand, after relaunch?
BRAND TRUST EFFECTS
Very Safe Safe Affect a little UnsafeYes No May be
Rank the various outlets in terms of believability to get information about your Noodle Brand ?
Facebook Twitter Myspace Google + Linkedin Blog01234567
BRAND ADVERTISEMENT EFFECT
High Average Low
Which social media account do you use to get updates about your Noodle brand?
Company Website
Facebook Page
Twitter Feed
0 20 40 60 80 100 120
BRAND ADVERTISEMENT EFFECT
Column2 Column1 Series 1
Rank the various outlets in terms of believability to get information about your Noodle Brand ?
National newspapers Local news channels Local newspapers Online news sources Company website Company blog Company Facebook page
Company Twitter feed0
0.51
1.52
2.53
3.5
BRAND ADVERTISEMENT EFFECT
Not at all believable Not very believable No opinion Somewhat believable Very Believable Extremely Believable
As a concern consumer of this Noodle brand, where would you go first for information about recall and situation in general?
If you didn't find the information you were seeking, where would you go next ?
10%
18%
36%
18%
18%
BRAND ADVERTISEMENT EFFECT
National newspapersLocal news channelsLocal newspapersOnline news sourcesCompany websiteCompany blogCompany Facebook pageCompany Twitter feedOther
30%
35%
18%
18%
BRAND ADVERTISEMENT EFFECT
National newspapersLocal news channelsLocal newspapersOnline news sourcesCompany websiteCompany blogCompany Facebook pageCompany Twitter feedOther
Rank the order of credibility in providing information?
036
BRAND ADVERTISEMENT EFFECT
High Low
Reasons for being loyal to food brands ?
Positive
brand
exper
ience
High stable
produc
t qua
lity
Good ta
ste
Meets
my exp
ectat
ions
Availa
blility
Availa
bility
Quality
vs pr
ice ra
tion
Purch
asing
habits
Long
term
pres
ence
in m
arket
Positiv
e imag
e
Family
tradit
ion0
4
8
12
CONCLUDE RESULT
Column1 Column2 Column3
Product with poor or low quality?
0
4
8
12CONCLUDE RESULT
Column1
Brand Equity Index:
Advertising Awareness + Brand Awareness + Brand Image = Brand EquityAttribute ScoreClarity 9Commitment 10Protection 8Responsiveness 9Loyalty 9Differentiation 8Safety 7Presence 8Understanding 7Consistency 6TOTAL 81 Total Brand equity scored 81 /100 .
EFFECTS OF CRISIS ON BRAND EQUITY
Brand Crisis Brand Equity
Consumer characteristics
Weaken Double-edged sword
Brand trust Brand loyalty Brand reputation
Crisis severityCrisis correlation Crisis response Strategies
Purchasing behaviourPurchasing frequency
FINDINGS ASSUMPTIONS OBSERVED EFFECTS
Assumption 1: A brand crisis caused by problem harm leads to losses in volume and market share.
Immediate loss of approximately 60% of the sales volume and market share of the “brand”. Immediate reduction of 5% in the volume of the category.
Assumption 2: A brand crisis caused by product quality may generate negative brand association.
The brand health indicators of the tracking indicated drop in perception of value, recognition of the superiority of the value proposal, perceived quality, and emotional relationship with the brand.
Assumption 3: A crisis of medium extent of the brand of a high reputation company represents a threat to the business of competitors by having the potential to affect negatively the entire category.
Immediately after the recall, the category loses 5% of its volume and takes six months to return to pre-recall levels.
Assumption 4: Due to the crisis, the competitors may become more aggressive aiming to win over consumers of the product that triggered the crisis.
Regional competitors made price reductions after the announcement of the recall and “competitor 2” intensified investments in communication.
FINDINGS ASSUMPTIONS OBSERVED EFFECTS
Assumption 1: Existing brand Situation 1 : Product quality issues Even though brand has high brand Loyalty , brand awareness ,brand Association but there is huge chance of drop of volume and market share . Example : Toyota and Maggi
Assumption 2: Existing brand Situation 2 : Enter new market or market development strategy Brand crisis happens due to enter into new market (international market) and new product adaption (Product awareness , cultural difference , Inappropriate brand advertisement).Example – ebay and google in china ,
Assumption 3: Existing Brand Situation 3 : Brand Diversification (new product) Brand crisis happens due to New product adaption (Product awareness , Inappropriate brand advertisement) Example – Tata Nano
Assumption 4: New brand Situation 1 : Product quality / Brand image / Brand advertisement Low level Brand–Less Brand Loyalty , Brand awareness , Brand with no such perceived quality and no competitive advantages
High level Crisis
Medium Level Crisis
Low level crisis
Brand loyalty
Brand Association
Brand Awareness
Perceived
Quality
ProprietaryAssets
High level brand –Loyalty, awareness ,quality, Association
Medium level brand-Awareness , Pseudo loyalty , Mis-information (perceived quality)
Low level Brand–Loyalty , awareness , No such perceived quality , No such competitive advantages
Brand Equity effects Crisis Management
Problems
SolutionsSOLUTION
Competitive advantages
Come
Reasons to buy, brand position, Price ,Wide availability, Number of extensions
Reduce marketing cost , bring new customers , Time to response to competitors brand , Trade leverage
Familiarity, consumer consideration , substantiality
Retrieve information from customers mind, drive purchasing , attitude ,
Brand Equity effects Crisis Management
Problems
Solutions
Perceived Quality
Brand Awareness
Brand Associations
Brand Loyalty
Proprietary Assets
High level brand –Loyalty , awareness ,quality, Association
Medium level brand-Awareness , Pseudo loyalty , Mis-information (perceived quality)
Low level Brand–Loyalty , awareness , No such perceived quality No competitive advantages
Brand communication
Come clean Police the haloNot just meInoculation Verifying accuser Rebuttal
Brand Strategy
Brand and market Extension, Sales promotion , Price flexibility , Strong competitive advantages
SOLUTION
IMPLICATIONS AND SUGGESTIONS
• The use of at least one measurement of reputation in organisations can probably detect weak signals of a crisis. This may accelerate the generation of potential contingency plans.
• Allocate an appropriate budget to reputation restoring activities. It is important to countervail damages promptly.• One cannot be prepared. However, if a crisis hits the company, time and work force should be dedicated to set up an emergency plan of action with a focus on communication.• Inform employees frequently of the current state of affairs during the reputation restoration. They can only support the company when they are able to determine their roles and tasks in the challenge.• Media request need to be responded. It is not advisable to create ambiguity by not communicating externally. Therefore, consider: "'Why do we communicate?", "Which message do we need to get out?" and "How do we do that?"• If the reputation crisis takes place in a culturally different environment, ensure local help from business partners and associates.• After a crisis, attempts should be made to consider the opportunities obtained, especially opportunities to improve the network which is used in an emergency situation.
CONCLUSION
• After the occurrence of the crisis, the departmental boundaries became closer, with an increased interaction and informal collaboration between the Marketing, Sales, Operations, Finance , Human Resources and Legal areas.
• This strengthening of the corporation after the crisis is a topic little explored by scientific research in general management and human resources.
• The growing number of cases of recall is followed by technological advances to captures tore and analyse information from different sources, formats and input speeds; this phenomenon known as big data.