L9: Branding strategy

Question 1

Brand equity

Answer 1

a set of assets (and liabilities) connected to the brand’s name and symbol that add value.

Question 2

5 types of brand equity

Answer 2

Brand Awareness, Brand Loyalty, Perceived Quality (profitability), Brand Associations, Intellectual Rights

Question 3

Three main benefits of brand to customers

Answer 3

• Product identification, which reduces search cost.
• Signal quality, which reduces perceived risk.
• Provide social status, which reduces social and psychological risk.

Question 4

Benefits of brand

Answer 4

• Facilitate customer identification and purchase => profitability.
• Breed customer familiarity => Introduce new products.
• Able to identify distinctive product clearly => Premium pricing use; Identify target segments, hence supporting and tailoring communications/promotions.
• Enhance brand loyalty => Repeat purchases.

Question 5

Brand leveraging

Answer 5

Use the power of an existing brand name to support a company’s entry into a new product.

Question 6

Co-branding

Answer 6

The strategic alliance of multiple brand names jointly used on a product/service.

Question 7

House of brands

Answer 7

1. Independent companies in terms of brand identity.
2. Less loyalty in this product spectrum.
3. Stock-out products are more dangerous than excess capacity.

Question 8

House of brands cons

Answer 8

• Risk of cannibalization: not increase sales but spread them among a broader range of brands.
• High marketing cost due to no consumer awareness or understanding.

Question 9

House of brands pros

Answer 9

Greater chance for consumers to buy other products of the firm (Ex: PG 26 laundry detergents)

Question 10

Types of house of brands

Answer 10

+ Not connected: Persil (Unilever)

+ Shadow endorser: Lexus (Toyota)

Question 11

Endorsed brands

Answer 11

to build connection to a known brand, hence increasing new brand’s credibility.

Question 12

Types of endorsed brand

Answer 12

+ Token endorsement: Universal A. Sony company
+ Linked name: Nestea (Nestle)
+ Strong endorsement: Obsession (Calvin Klein)

Question 13

Sub-brand

Answer 13

Stronger connection to the parent brand than the endorsed brand.

Question 14

Types of sub-brand

Answer 14

+ Co-driver: Gillette Mach 3

+ Master brand as driver: Dell Dimension

Question 15

Branded house

Answer 15

All brands have the same identity with the corporation

Question 16

Pros of Branded house

Answer 16

• Lower marketing cost

- Build relationship between customers and brands.

Question 17

Cons of Branded house

Answer 17

• Quality, features, options, and performance will set the expectation level under the same company name.
• Confusing consumers if products are inconsistent with their flagship products => Harm reputation of the parental companies.

Question 18

Pros of private brand

Answer 18

• Using product equipment more efficiently.
• Increase profit.
• Other firms take the responsibility to mkt the products.
• Gain brand followings.
• Create a long-term relationship with target consumers

Question 19

Co-branding benefits

Answer 19

• Make efficient transactions through sharing of retail sites (Starbucks use bookstore space in Barnes and Noble).
• Suitable for global brands: receiving high local brand equity, hence lowering risk and creating an impression of greater value.

Question 20

Co-branding limitation

Answer 20

Risk of lacking congruence in image or fit involved.

=> Require a careful assessment of potential partnering candidates.

Question 21

Brand levels in the Brand wheel

Answer 21

Key reward > Personality > Values > Benefits > Feature

Question 22

Core of the claim in the Brand wheel

Answer 22

Key reward: the central reason that people buy or use the brand based upon the four earlier levels of the brand wheel.

Question 23

Relationship and loyalty in the Brand wheel

Answer 23

• Values: social values = community citizenship or social responsibility
• Personality: particular personality traits of brand

Question 24

Preferences in the Brand wheel

Answer 24

• Features: tangible and intangible assets used to deliver bran promise.
• Benefits: translation of feature into benefits for its TA.

Question 25

Context of branding in the new digital age

Answer 25

Consumers are being affected by information and influences at new “touch points”, forcing companies to learn how consumers get their information and reach them when they are open to influence.

Question 26

Consumer’s perception of brand

Answer 26

• Consumer involvement: amount of time an individual consumer spend on involving a brand
• Consumer engagement: qualitative amount people engage to a brand in all aspects of life.

Question 27

Lovemarks (Kevin Roberts, 2004)

Answer 27

The emotional bond with consumers when it creates brand loyalty beyond reasons/logic.
Types: Products > Fads > Brands > Lovemark (high love and respect)

Question 28

Brand touch point

Answer 28

Design the touchpoints in all stages of purchase process that can capture the brand essence.