PowerPoint Presentation

Chapter 7

Leveraging Secondary Brand Associations to Build Brand Equity

8 ways to Leverage Secondary Associations

Process of leveraging brand associations

Issues to consider developing secondary associations

CH Heads

Leveraging

Borrowing some brand knowledge and depending on the nature of associations or responses, some brand equity

Unlike brand elements and communication strategies, this is an indirect approach to build brand equity.

These secondary approaches are mostly important when the primary approaches are deficient in some ways + to reinforce the existing associations ( awareness, meaningfulness , transferability)

Secondary Associations:

Company (through corporate branding strategies)

Country of Origin (through identification of product origin)

Channels of Distribution (through channels strategy)

Other Brands (through co-branding)

A Special case of co-branding is ingredient branding

Characters (through licensing)

Celebrity Spokesperson (through endorsement advertising)

Events (through sponsorship)

Other Third-Party Sources (through awards and reviews)

There are three main branding options exist for a new product

Create a new brand

Adopt/Modify an existing brand

Combine existing and new brand

Family Brand evokes associations of common product attributes/ Value Propositions

However, some new brands helps to convey a smaller / niche image

1. Company

LVMH : Louis Vuitton Moet Hennessey

LV

Fendi

Marc Jacob

Givenchy

Kenzo

Pucci

Sephora

Charles and Keith

2. Country/Region of Origin

3. Channel of Distribution

4. Co-Branding: reduce the cost of product intron+ an important means to create distinctive product

Occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion

The Bronco II: Ford and Eddie Bauer

Advantages

Borrow needed expertise

Leverage equity you dont have

Reduce cost of product introduction

Expand brand meaning into related categories

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 distractions

Guidelines

All brands should have separate Brand Equity

Logical Fit : max the advantages for partners , values, capabilities , goals, etc

Profitable for all partners involved

Ingredient Branding: A special case of co-branding that involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products

Ingredient Branding:

Assurance of Quality

Reduce Risk

Might become industry standard

Helps to differentiate (mature brands)

Please read the guidelines: pg 275

5. Licensing

Involves contractual arrangements whereby firms can use the names, logos, characters, and so forth of other brands for some fixed fee

Renting another companys band equity

shortcut means to gain BE

Shahrukh Amin for SadaKalo

6. Celebrity Endorsement

Draws attention to the brand

Shapes the perceptions of the brand

Celebrity should have a high level of visibility and a rich set of useful associations, judgments, and feelings

The celebrity must be credible in terms of expertise, trustworthiness, likability, product relevance

Potential Problems:

Celebrity endorsers can be overused by endorsing many products that are too varied.

There must be a reasonable match between the celebrity and the product.

Celebrity endorsers can get in trouble or lose popularity.

Many consumers feel that celebrities are doing the endorsement for money and do not necessarily believe in the endorsed brand.

Celebrities may distract attention from the brand.

Guidelines:

Strategically evaluate, select and use celebrity spokesperson

Choose well-known and well defined celebrities whose associations are relevant to the brand and likely to be transferable

Logical fit between that person and the brand

That person better be not over exposed

Communication must highlight the association but his stardom

7. Sporting, Culture and other Events

Sponsored events can contribute to brand equity by becoming associated to the brand and improving brand awareness, adding new associations, or improving the strength, favorability, and uniqueness of existing associations.

The main means by which an event can transfer associations is Credibility and Likability

8. Third Party Sources

Marketers can create secondary associations in a number of different ways by linking the brand to various third-party sources.

Third-party sources can be especially credible sources.

Marketers often feature them in advertising campaigns and selling efforts .

End Notes:

These secondary associations may lead to a transfer of:

Response-type Associations

Judgments (especially credibility)

Feelings

Meaning-type Associations

Performance

Imagery

These Associations must enhance Commonality and/or Complementary