MKT 429 CHAPTER 7 LEVERAGING SECONDARY BRAND KNOWLEDGE
MKT 429: CHAPTER- 7 LEVERAGING SECONDARY BRAND KNOWLEDGE TO BUILD BRAND EQUITY 1. Companies (through branding strategies) 2. Countries or other geographic areas (through identification of product origin) 3. Channels of distribution (through channel strategy) 4. Other brands (through co-branding) 5. Characters (through licensing) 6. Spokespersons (through endorsements) 7. Events (through sponsorship) 8. Other third-party sources (through awards or reviews) CONCEPTUALIZING THE LEVERAGING PROCESS • Creation of New Brand Associations • Effects on Existing Brand Knowledge To describe the process more formally, here are three important factors in predicting the extent of leverage from linking the brand to another entity: 1. Awareness and knowledge of the entity 2. Meaningfulness of the knowledge of the entity 3. Transferability of the knowledge of the entity
COMPANY • Create a new brand • Adopt or modify an existing brand • Combine an existing and new brand COUNTRY OF ORIGIN OR OTHER GEOGRAPHIC AREAS CHANNELS OF DISTRIBUTION • Understanding Retailers Brand Image dimension CO-BRANDING Advantages § Borrow needed expertise § Leverage equity you don’t have § Reduce cost of production introduction § Expand brand meaning § 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 § Organizational distraction
Guidelines: • Both should have • Brand awareness • Sufficiently strong, favorable and unique brand associations • And positive consumer judgment and feelings. For Alliances, ask themselves – What capabilities do you have? – What resource constraints are you faced with people, time or money? – What growth goals revenue needs do you have? For Joint ventures, ask themselves – Is it a profitable business venture? – How does it help to maintain or strengthen brand equity? – Is there any possible risk of dilution of brand equity? – Does it offer any extrinsic advantages?
Ingredient branding Advantages § Greater sales can be generated at a higher margin § Enhance its own brand equity Disadvantages § The cost of supporting a marketing campaign can be high § There is a loss of control because marketing programs for the supplier § Manufacturer may have different objectives and thus may send different signals to customers Requirements § Perceive that the ingredient matters to the performance and success § Must then be convinced that not all the ingredient brands are the same and that the ingredient is superior. § A distinctive symbol or logo § A coordinated push and pull program must be put into place.
LICENSING Hello kitty A fictional character produced by the Japanese company Sanrio, first designed by Yuko Shimizu The character's first appearance on an item, a vinyl coin purse, was introduced in Japan in 1975 and brought to the United States in 1976. Bag notebooks and Wedding telegrams, boxer shirt. Daihatsu motor company, sold 1200, limited edition, & 7, 245 Hello Kitty Cars, Speedometer, 20 km/h, sleeping, 60 -smilings, 80 -sweating bullet. Themed restaurant named Hello Kitty Sweets in Taipei, Taiwan.
CELEBRITY ENDORSEMENT § Must be well enough known that the awareness, image and responses for the brand may be improved. § In terms of expertise, trustworthiness, and likeability or attractiveness, as well as having specific associations that carry potential product relevance. Potential Problems § Can be overused by endorsing § Unreasonable match between the celebrity and the product § Can get in trouble or lose popularity § Celebrities are only doing the endorsement for the money and do not necessarily believe in or even use the endorsed brand. § May have trouble remembering the advertised brand. Guidelines: § Well known and well defined celebrity § Relevant to the brand likely to be transferable. § Creative fashion that highlights the relevant associations and encourages their transfer. § Market research, Q score of favoritism
• Palmolive used Kapil Dev in the '80 s, his line 'Palmolive da jawaab nahin' became famous -- it is remembered even today. • Sachin Tendulkar means Pepsi in soft drinks, Boost in malted beverages, MRF in tyres, Fiat Palio in cars, TVS Victor in twowheelers, Colgate Total in toothpastes, Britannia in biscuits, Visa in credit cards, Airtel in mobile services and Band-aid. • Aamir Khan has signed a huge Rs 6 crore deal with Coca-Cola for the Thanda Matlab Coca-Cola campaign. Thanda means cold, and is a generic term for soft drinks in India. • Bachchan has many endorsement deals under his belt. He's struck a Rs 8 -crore deal with healthcare major Dabur, a Rs 10 crore deal to promote ICICI products, a Rs 5 crore deal with Parker pens. He is also endorsing Reid & Taylor suits
SPORTING CULTURE OR OTHER EVENTS • Events have their own set of associations that may become linked to a sponsoring brand under certain conditions. • Which event can transfer associations is on the basis of various dimensions of credibility. • A brand may seem more likable or even trustworthy or expert by the virtue of becoming linked to an event. Clear Men Confidence Cup 2010 • 44 colleges, 21 st May to 5 th June. Army stadium final, notre dame VS Govt barishall. College won in 4 -0. RCCI college Rangpur 3 rd beating BAF shaheen college Paper Studio (conqueror paper) • Conqueror Corporate Identity Design Contest. June & to July 1 2010. Dr. Muhammad Yunus as a judge VISA AND OLYMPIC • 1985, American Express was giant. 1988, OLYMPIC. 1992, NOT TOUGH LIKE GAME IF U DNT HAVE VISA CARD. Olympic Games Through 2012, Including The Beijing 2008 Olympic Games, The Vancouver 2010 Olympic Winter Games and The London 2012 Olympic Games. Visa Will Be The Only Card Accepted At All Olympic Games Venues For Any Official Olympic-Related Transactions
THIRD PARTY SOURCES • The Good Housekeeping seal has been seen as a mark of quality for decades. • Pc magazine, Colgate’s hills science diet, P& G Iams brand Targeted vet in research and funding
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