Building strong brands

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BUILDING STRONG BRANDS-David A. Aaker

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Brand EquityBrand equity is a set of assets(and liabilities) linked to a brand’s name and a symbol that adds to (or subtracts from) the value provided by a product or a service to a firm and/or that firm’s customers.

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How Brand Equity Generates Value!!

Bra

nd

Eq

uit

y

Brand Loyalty

Brand Awareness

Perceived Quality

Brand Association

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Brand Identity

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Why Is Building Strong Brands So Hard?

Building

brands

Price

Competition

Fragmenting

ComplexBias-chang

e

Bias-innovation

Invest elsewher

e

S T Pressur

e

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Building A Strong Brand

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THE BRAND IDENTITY

• Provides direction, purpose and meaning for the brand

• Brand strategists aspire to create and maintain

• Helps establish a relationship between a brand and a customer by generating a value proposition involving Functional, Emotional or Self-Expressive benefits

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Brand Identity Traps

Brand identity

traps

Image trap

Position trap

Product-attribute

fixation trap

External perspective

trap

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Four Brand Identity Perspectives

Extended Core

As a product

As an organization As a person As a symbol

Core

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Brand-as-product

Product Scope

Attributes and country or religionQuality /Value

Use Associations

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Brand-as-organization

• Attributes of the organization• More enduring and more resistant to

competitive claims• Less imitable, applies to a product class,

difficult for competitors to demonstrate that they have overcome

the perceived gap

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Brand-as-person

• Like a person, a brand personality can be perceived as being upscale, competent, impressive, trustworthy, and others

• An Apple user can identify himself as casual, anti-corporate and creative

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Brand-as-symbol

• A strong symbol can provide cohesive and structure to an identity and make it much easier to gain recognition and recall

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Identity structure

Core identity

Extended identity

• What is the soul of the brand?• What are the fundamental beliefs and values that drive the

brand?• Competencies of organization behind the brand?• Organization stand for?

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IdentitiesA McDonald's brand identity

A Nike brand identity

• Core Identity: Value Offering, food Quality, service, cleanliness, serves wide clientele

• Extended Identity: convenience, fast food, hamburgers, family-oriented, genuine, wholesome, Ronald McDonald’s children’s charity

• Value Proposition: good tasting hamburgers, fries and drinks that provide value, fun and excitement through birthday parties, feeling special, etc

• Core Identity: sports related, for the top athletes, performance shoes, enhancing lives through athletics

• Extended Identity: ‘Just Do It’, one feels excited, provocative, spirited, cool, innovative and aggressive

• Value Proposition: high tech shoes. Exhilaration of athletic performance excellence, being associated with a strong personality

• Credibility: makes shoes and clothing that are stylish

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Providing a Value Proposition-functional-emotional

-self-expressive

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The Value Proposition

Functional Emotional Self-expressive Relative price

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Credibility

• Sometimes Brands play an endorser role

• For e.g., Nike plays endorser for Nike air Jordan, Chevrolet for Magnum, Kellogg's for corn flakes, Sony for Walkman

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Brand is building - to be continued