Brand Equity

Brand Equity
• “set of brand assets and liabilities linked to a brand,
its name and symbol that add to or subtract from the
value provided by a product or a service to a firm
and/or to that firm’s customers” (David Aaker, 1991)

• “Brand equity is the added value endowed on

products and services. It may be reflected in the way
consumers think, feel, and act with respect to the
brand, as well as in the prices, market share, and
profitability the brand commands for the firm.” (Philip
Kotler)
Brands live in the Minds and Hearts
 The Capitalized Value
of truth between the
company and the
Customer

Brand Equity
Brand Equity Vs Brand Valuation
Building & Managing
Brand Equity
How to Measure and Manage Brand Equity
• Diagnostic Techniques
- Young and Rubicam’s Brand Asset Valuator
- Brand Report Card (Keller Lane)
• Brand Equity Model – for building brands
- David Aaker’s Model, CBBE Keller Model
• Brand Valuation techniques
 • There are four key components of brand equity, according to
BAV.
• Differentiation is a brand's ability to capture attention in the
cultural landscape. A powerful driver of curiosity, advocacy
Brand Asset and pricing power..
• Relevance measures the personal appropriateness of the
Valuator brand to the customers. Drives brand consideration and trial.

Model • Esteem measures how highly regarded a brand is and how well
it delivers on its promises. Leads to trial and commitment.

(Young and • Knowledge measures The depth of understanding people have

of a brand – both its positive and negative information.
Rubicam)
• Differentiation + Relevance = Brand Strength (Brand’s Future
Value)
• Esteem + Knowledge = Brand stature (Brand’s past
Performance)
Young and
Rubicam’s
BAV
 Based on
Young and
Rubicam
Model –
Power Grid
Kevin Keller Lane’s Brand Report Card – 10
Attributes
Most Trusted • https://brandequity.economictimes.indiatim
es.com/news/business-of-brands/the-
Brands – methodology-most-trusted-brands-2019-
Methodology 2020/74797510
 Brand Equity has Four dimensions (David Aaker)

BRAND LOYALTY BRAND BRAND PERCEIVED

AWARENESS ASSOCIATIONS QUALITY
Markers of Brand Equity

Brand Loyalty Brand Awareness Brand Associations (Including

Perceived Quality)
Reduced marketing costs Anchor to which other associations can be attached Help communicate
Trade leverage Familiarity which leads to liking information
Attracting new customers via Visibility that helps gain consideration Differentiate/Position
awareness and reassurance Signal of substance/commitment Reason-to-buy
Time to respond to Create positive
competitive threats attitude/feelings
Basis for extensions
David Aaker’s Brand Equity Model
Brand Equity Boosters
Opportunistic Equity? #AppleBendGate
Brand Equity Eroders
Stages in Building Brand Equity
Successful, Sustainable
& Profitable Brand

4. Brand Loyalty, Attachment & Engagement

3. Post-Purchase Experience Reinforcing Opinions and

Brand Equity
Beliefs About the Brand’s Functional & Emotional Benefits

2. Perceptions about the Brand and What It Stands For,

Leading to Trial and Purchase

1. Brand Awareness & Recognition, Category

Identification

Branded Product or
Service
Keller’s Brand Equity Model
Customer-Based Brand Equity Pyramid
4. RELATIONSHIPS
What about you & me?
Consumer- INTENSE, ACTIVE
LOYALTY
Brand
Resonance
3. RESPONSE
What about you? RATIONAL &
Consumer Consumer EMOTIONAL
Judgments Feelings REACTIONS

POINTS-OF-
2. MEANING PARITY &
Brand Brand POINTS-OF-
What are you?
Performance Imagery DIFFERENCE

1. IDENTITY DEEP, BROAD

Brand Salience BRAND
Who are you? AWARENESS
 Consumer-
Brand
Resonance

Consumer Consumer
Judgments Feelings

Brand
Imagery
Brand
Performance

Brand Salience
 Brand
Archetypes
https://www.kantar.com/expertise/brand-
growth/brand-performance-tracking-and-
equity/brand-equity

Brand Equity Tracking

https://www.brandz.com/
WPP group
 • Brand Communities - three defining factors of such
communities
Understanding Brand 1. Shared consciousness of kind,

Communities 2.
3.
Presence of shared rituals and traditions
Shared sense of moral responsibility.
 • Sephora Beauty Talk and Beauty Board
• Lego Ideas
Thriving Brand • Plant Power Journal.
Communities • My Starbucks Idea
• Xbox Ambassadors
 Thriving Brand Community Initiatives

https://www.traditionalmedicinals.com/articles/
https://ambassadors.microsoft.com/xbox
https://www.bebeautiful.in/
Applications of Brand Equity
• Brand equity can help a customer interpret, process, store, and retrieve a
huge quantity of information about products and brands.

• It can affect the customer’s confidence in the purchase decision; a

customer will usually be more comfortable with the brand that was last
used, is considered to have high quality, or is familiar.

• Finally, perceived quality and brand associations provide value to the

customer by enhancing the customer’s satisfaction
Brand Archetypes – Creating a Brand
Personality
Brand Archetype

Brand archetype is a universally familiar character or situation that

transcends time, place, culture, gender and age.

Plays a vital role in devising the messaging for a brand

 Brand
Archetypes
Brand Archetypes
 The Innocent
• Goal: To be happy
• Traits: Strives to be good, is pure, young, optimistic, simple, moral,
romantic, loyal
• Drawback: Could be naïve or boring
• Marketing niche: Companies with strong values, seen as trustworthy,
reliable and honest, associated with morality, good virtues, simplicity,
can be nostalgic.
 The Innocent
• Goal: To be happy
• Traits: Strives to be good, is pure, young, optimistic, simple, moral,
romantic, loyal
• Drawback: Could be naïve or boring
• Marketing niche: Companies with strong values, seen as trustworthy,
reliable and honest, associated with morality, good virtues, simplicity,
can be nostalgic
• Example: Dove soap, Coca-Cola
Everyman
Goal: To belong, or connect with others
Traits: Down to earth, supportive, faithful, folksy, person next door,
connects with others, empathy, Getting work done without attracting
too much attention
Drawback: Could lack a distinctive identity and blend in too much
Marketing niche: Common touch, solid virtues, gives a sense of
belonging
Everyman

Goal: To belong, or connect with others

Traits: Down to earth, supportive, faithful, folksy, person next door,
connects with others
Drawback: Could lack a distinctive identity and blend in too much
Marketing niche: Common touch, solid virtues, gives a sense of
belonging
Example: IKEA, Nescafe
The Hero
Goal: Help to improve the world
Traits: Courageous, bold, honorable, strong, confident, inspirational
Drawback: Could be arrogant or aloof
Marketing niche: Make a positive mark on the world, solve major
problems or enable/inspire others to do so
The Hero
Goal: Help to improve the world
Traits: Courageous, bold, honorable, strong, confident, inspirational
Drawback: Could be arrogant or aloof
Marketing niche: Make a positive mark on the world, solve major
problems or enable/inspire others to do so
Example: Nike, BMW, Duracell
Rebel/The Outlaw

Goal: Break the rules and fight authority

Traits: Rebellious, iconoclastic, wild, paving the way for change
Drawback: Could take it too far and be seen in a negative way
Marketing niche: Agent of change, advocate for the disenfranchised,
allow people to vent or break with conventions
The Outlaw

Goal: Break the rules and fight authority

Traits: Rebellious, iconoclastic, wild, paving the way for change
Drawback: Could take it too far and be seen in a negative way
Marketing niche: Agent of change, advocate for the disenfranchised,
allow people to vent or break with conventions
Example: Harley-Davidson, Virgin (Richard Branson)
The Explorer

Goal: Finds fulfillment through discovery and new

experiences
Traits: Restless, adventurous, ambitious,
individualistic, independent, pioneering
Drawback: Might not fit into the mainstream
Marketing niche: Exciting, risk-taking, authentic
The Explorer

Goal: Finds fulfillment through discovery and new

experiences
Traits: Restless, adventurous, ambitious,
individualistic, independent, pioneering
Drawback: Might not fit into the mainstream
Marketing niche: Exciting, risk-taking, authentic
Example: Indiana Jones, Jeep, Red Bull
The Creator
Goal: Create something with meaning and enduring value
Traits: Creative, imaginative, artistic, inventive, entrepreneur, non-
conformist
Drawback: Could be perfectionistic or impractical
Marketing niche: Visionary, help customers express or create, and
foster their imagination
The Creator
Goal: Create something with meaning and enduring value
Traits: Creative, imaginative, artistic, inventive, entrepreneur, non-
conformist
Drawback: Could be perfectionistic or impractical
Marketing niche: Visionary, help customers express or create, and
foster their imagination
Example: Lego, Crayola
The Ruler
Goal: Control, create order from chaos
Traits: Leader, responsible, organized, role model, administrator
Drawback: Could lack a common connection, or be too authoritative
or controlling
Marketing niche: Help people become more organized, restore order,
create more stability and security in a chaotic world
The Ruler
Goal: Control, create order from chaos
Traits: Leader, responsible, organized, role model, administrator
Drawback: Could lack a common connection, or be too authoritative
or controlling
Marketing niche: Help people become more organized, restore order,
create more stability and security in a chaotic world
Example: Microsoft, Barclays, Mercedes-Benz
The Magician
Goal: Make dreams come true, create something special
Traits: Visionary, charismatic, imaginative, idealistic, spiritual
Drawback: Could take risks that lead to bad outcomes
Marketing niche: Help people transform their world, inspire change,
expand consciousness
The Magician
Goal: Make dreams come true, create something special
Traits: Visionary, charismatic, imaginative, idealistic, spiritual
Drawback: Could take risks that lead to bad outcomes
Marketing niche: Help people transform their world, inspire change,
expand consciousness
Example: Disney, Wizard of Oz, Apple
The Lover

Goal: Create intimacy, inspire love

Traits: Passionate, sensual, intimate, romantic, warm,
committed, idealistic
Drawback: Could be too selfless or not grounded enough
Marketing niche: Help people feel appreciated, belong,
connect, enjoy intimacy, build relationships
The Lover
Goal: Create intimacy, inspire love
Traits: Passionate, sensual, intimate, romantic, warm, committed,
idealistic
Drawback: Could be too selfless or not grounded enough
Marketing niche: Help people feel appreciated, belong, connect,
enjoy intimacy, build relationships
Example: Victoria’s Secret, Godiva Chocolate, Marie Claire
The Caregiver

Goal: To care for and protect others

Traits: Caring, maternal, nurturing, selfless, generous,
compassionate
Drawback: Being taken advantage of, taken for granted, or
exploited
Marketing niche: Help people care for themselves, serve the
public through health care, education or aid programs
The Caregiver

Goal: To care for and protect others

Traits: Caring, maternal, nurturing, selfless, generous,
compassionate
Drawback: Being taken advantage of, taken for granted, or
exploited
Marketing niche: Help people care for themselves, serve the
public through health care, education or aid programs
Example: Mother Theresa, Campbell’s Soup, Johnson &
Johnson, Heinz, Horlicks
The Jester
Goal: To bring joy to the world
Traits: Fun, sense of humor, light-hearted, mischievous, irreverent
Drawback: Could be seen as frivolous or disrespectful
Marketing niche: Help people have a good time or enjoy what they
are doing, allow people to be more impulsive and spontaneous
The Jester
Goal: To bring joy to the world
Traits: Fun, sense of humor, light-hearted,
mischievous, irreverent
Drawback: Could be seen as frivolous or
disrespectful
Marketing niche: Help people have a good
time or enjoy what they are doing, allow
people to be more impulsive and spontaneous
Example:, Ben & Jerry’s, Dollar Shave Club,
Seagram's Imperial Blue,
The Sage

Goal: To help the world gain wisdom and insight

Traits: Knowledgeable, trusted source of information,
wisdom and intelligence, thoughtful, analytical, mentor,
guru, advisor
Drawback: Could be overly contemplative or too
opinionated
Marketing niche: Help people to better understand the
world, provide practical information and analysis
The Sage

Goal: To help the world gain wisdom and insight

Traits: Knowledgeable, trusted source of information,
wisdom and intelligence, thoughtful, analytical, mentor,
guru, advisor
Drawback: Could be overly contemplative or too
opinionated
Marketing niche: Help people to better understand the
world, provide practical information and analysis
Example: BBC, PBS, Google, Philips
 Find your Archetype
• https://www.thewholebraingroup.com/archetype-
quiz/?hsCtaTracking=dca9492a-10ed-4e83-876d-
b000317204dc%7Cd2c07b85-76d5-427e-b57f-4cde463133a7
Application
• Brand archetypes must guide communication decisions – Content,
Design and Media Choices