...LITERATURE REVIEW WHAT IS A BRAND? Branding is a discipline that has emerged from the consumer goods domain particularly fast moving consumer goods. Historically, brand has been inextricably linked to the product and branding is seen as the process of adding value to the product. A brand is a cluster of functional and emotional benefits that extend a unique and welcomed promise. This conceptualisation of a brand is universal and applies to various domains including FMCG, internet services and B2B. What changes in every context is the enactment of the brand. It is argued that the concept of a brand is universal, however some adjustments are required in line with the specific context applied; in this case the B2B context. Branding has myopically been viewed by business marketers as largely irrelevant to business markets. Associated mostly with emotional value, branding was believed to offer very little to what is traditionally considered a very rational process i.e. the organisational decision making process. More recent research acknowledges that despite the differences between B2C and B2B contexts both B2C and B2B brands need to engender trust and develop both cognitive and affective ties with stakeholders. THE BENEFITS OF BRANDING IN INDUSTRIAL MARKETS Branding in an industrial market must be perceived to convey benefits to various stakeholders for companies to financially invest in it. With regard to the company investing in branding a number of benefits have been identified...
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...middle of the market competition. Most firms in the business of making dessert coolers, is targeting a similar market segment; this makes the competition very strong. Especially, in India the competition within this industry segment is very fierce as there are many firms that are selling and marketing desert coolers. In addition, there are leading brands that are competing in the market as well and they are already following price leadership strategy. Bigger firms have bigger marketing budgets so they can demand a premium price and lead the market. They also enjoy the pricing advantage due to their brand image equity. However, firms like Regal who is not a non-pioneering firm, which needs to follow a pricing strategy that is in the middle range. The competitive advantage that Regal can gain will be through high quality product and offering moderate to lower prices in comparison to the competition. This will help them penetrate the larger target market segment on middle class consumers. The lower price will create a differentiator for them and they can gain a strong pricing advantage, along with a great follower advantage as well. This will result in the firm gaining a long-term competitive advantage and boost their market share, due the benefit of being late entrants. Regal can also gain from gauging uncertainty of demand and the market’s pricing trend. They can follow the pricing norms to better position the product and by building a better brand equity in the market, which will...
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...Introduction Kotler (1996:284) describes brand equity as the value of a brand based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, patents and trademarks and The Wall Street Journal (2010:1) ranked the top five brands as Coca cola, IBM, Microsoft, Google and General Electric. Coca cola Bilaras (2012:1) maintains that Coca cola built its brand equity by adapting a global marketing strategy, which considered the whole world as a single market. The reason behind this global focus was that they viewed their product as one that can be used by everyone irrespective of age and gender. To achieve this, Coca cola created an efficient and extensive distribution system throughout the world. According to the company’s 2010 review, it managed to build its brand equity by establishing a close relationship with its bottling partners who work closely with customers to execute localized strategies developed in partnership with them. Through effective collaboration, they are able to sell Coca cola products to consumers at a rate of 1.7 billion servings a day. Coca cola’s brand equity growth is also attributed to its expanded brand variety of products like diet coke, sprite, Fanta, Minute Maid and others to appeal to a wider demographic, asserts Bilaras (2012:1). This resulted in consumers viewing coke as a part of life, leading to a high degree of brand loyalty, and growth. Growth in brand equity was also realised through advertising...
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...biggest luxury brand for bags and accessories. It was established in France, Europe in year 1854. Louis Vuitton brand and company is an international well-established firm named after the founder and designer Louis Vuitton. Following the death of Louis Vuitton in 1892, his son, Georges Vuitton took over the leadership of the firm. He was ambitious about taking Louis Vuitton to the next step — building a global brand and setting up a multinational corporation. In year 1885, LV opened its first oversees store in London. In 1936, Gaston-Louis Vuitton took over the direction of the company when his father, Georges Vuitton, passed away. He guided the brand into its modern age. The company expanded its product line by applying the craftwork and design of its leather to small leather goods. In the mid 1970s, Louis Vuitton had become the world’s biggest luxury brand in terms of market share. Louis Vuitton entered Japanese market in year 1968, and it came the most popular luxury brand in Japan. In year 1970, LV opened its first stores in Japan, which had revenue of $1 Million on its first day. By 1977, the company owned two stores in Japan with annual profits of US$10 million Until Louis Vuitton, the strategy for business in Japan for multinational companies was to send their products through Japanese distributors. LV was the first company that took different approach and strategy of opening its own store in Japan. LV also hired Japan’s top designer for the Japanese Market products...
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...Varying Perspectives on Brand Equity By Jonathan Knowles 20 ❘ MM July/August 2008 Yo u s a y t o m a y t o a n d I s a y t o m a h t o . I started business life in finance (at the Bank of England in London), and in those early days I did not give brands a second thought. My life was dominated by financial facts and figures. And for the first 10 years of my career, I believed that these metrics were essentially all that were needed to manage and run a successful business. This view survived my transition into management consulting—at least initially. But the more I worked on developing value-based business strategies for companies, the more I came to appreciate the need to expand beyond a purely financial approach. If (as management consultant Peter Drucker famously observed) the purpose of business is to create and keep a customer, then strategy necessarily involved understanding and catering to the functional and emotional needs of customers. MM July/August 2008 ❘ 21 EXECUTIVE Brand equity is a widely accepted concept—but its definition is frustratingly elusive. Here we’ll explore the different perspectives that marketing, finance, and accounting have on the topic— and how these can be reconciled. Doing so is important because of the critical role that brand briefing equity plays in the demonstration of marketing accountability. This article puts forward four arguments that marketers can use to show how brand equity is a critical measure for...
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...As it stated in the case, there are many factors contribute to the brand equity of Russian Standard. At first, Tariko’s personal experiences in his early entrepreneurial time helped him accumulate many professional knowledges on wine industry in Russian, which contributes to the brand equity. For example, Tariko was a representative from Martini & Rossi before, and he actually seize the opportunity created by the supply/demand gap at that time, which made him became an exclusive imported in Russia at that time. Two years later, his company had established itself as Russia’s leading importer of upmarket alcoholic drinks, which it helped raise his brand awareness. Moreover, Tariko also developed strong and commanding merchandising skills and relationships with the trade to enhance its marketing strategy on brand equity. For instance, Tariko worked with international advertising experts and brand identity agencies to conduct a survey on the essence of the brand, so that the brand equity could be conveyed to the consumers at last. In result, several methods that meetings with notable Russian and literary personalities, extensive travel throughout Russia, customer focus groups and numerous brand essence and positioning briefs were born to enhance the brand equity in short. After that, Tariko’s brand was able to enjoy rapid success in Russia because the consistency of Tariko’s mission and his company’s marketing strategy. To produce world-class quality vodka while retaining the...
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...FACULTY ECONOMICS AND BUSINESS EBA 6113 ACCOUNTING FOR MANAGERS INDIVIDUAL ASSIGNMENT ASSIGNMENT 1 (BASED ON CASE STUDY) LECTURER: MR. MICHAEL TINGGI DUE DATE: 9TH MARCH 2013 Done by: Satnam Singh 13030035 CASE 1 1.0 An accountant prepared a balance sheet for a business. In the balance sheet, the equity of the owner was shown next to the liabilities. This confused the owner, who argued: My equity is my major asset and so should be shown as an asset on the balance sheet. How would you explain this misunderstanding to the owner? As an accountant, we must first establish what the definition of asset is and what the definition of equity is. An asset is defined as a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefits (Gilbertson et al, 2008). Whereas, equity is the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses) invested to purchase assets, therefore cannot be recognized as asset (Gilbertson et al, 2008). The difference can be further explained by the Accounting equation of Assets, which shows: ASSETS = LIABILITIES + OWNER’S EQUITY From the equation we can derive that assets are comprised by liabilities and owner’s equity. Therefore, equity cannot be shown as an asset on the balance sheet because equity is the balance of assets minus the liabilities of the owner. So when we look at the Accounting...
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...MANAGING THE BRAND EQUITY OF CARBONATED DRINKS AMONG GENERATION-Z Dr. Nishakant Ojha1 ABSTRACT Companies spend large amount of their money on building brand equity. This study explores the relationship between advertising and brand equity. The purpose of this study is to how advertisements of carbonated drinks acts as stimuli in influencing purchase decision of generation-Z. It also explores the role of electronic media in advertising. Data for the study has been collected by using the survey method using convenience sampling and Judgment Sampling among Generation-Z i.e. respondents born in 1989 - till 2000s respondents in Jalandhar and Phagwara city, Punjab. The reliability of data was established using Cronbach’s coefficient Alpha. The data reduction technique of factor analysis was used for introspection of data. KEYWORDS Advertising, Brand Equity, Effective Medium, Generation Z etc. INTRODUCTION The prime goal of every business organization is to build strong brand equity (Keller and Lehmann, 2006). The biggest thrust behind the buying habits of consumers is brand equity. Brand equity is defined as the value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. It provides an advantage of larger margins, greater intermediary cooperation and support, and brand extension opportunities (Delgado-Ballester and Munuera-Alemán, 2005). According to Aaker’s theory brand, equity has various dimensions as brand Loyalty brand awareness...
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...Understanding Business Research Terms and Concepts: Part 1 Business research is the key to understanding how to promote sales and increase company efficiency. It helps managers to be successful, and prepares them to make smart business decisions to help the business grow. Companies may choose from a variety of approaches to conduct their research. Both qualitative and quantitative research methods are reliable in aiding to achieve success. But, no matter the approach or method of research taken, there will always be key points to look out for when doing business research. Such as, the importance in learning what makes your product or service stand out against other competitors in the industry and how to market it in that manner to consumers. Brands and Consumer Behavior Marketing to the appropriate target is the goal in which to be achieved for almost every business. When a business puts its focus on the needs and wants of their proposed consumers, the chances of reaching that consumer is more likely. In this research, a questionnaire was developed to explore the correlation of brand image and brand equity with consumer purchase intention. Meenaghan (1995) defines brand image as product knowledge that enables consumers to identify a specific brand. Blackwell, Miniard, and Engel (2005) describe how brand image has both tangible and intangible associations for consumers. Bhat and Reddy (1998) define brand image as an information prompt. When it comes to brand equity; Keller...
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...Branding and Expansion into the US Market INTRODUCTION 1. Russian Standard Vodka is a major Russian premium vodka brand. Established in 1992, Roust Inc. is Russia’s largest importer and distributor of spirits and Champagnes. In 1998, Roust launched Russian Standard vodka, which quickly became the highest selling premium vodka in Russia, ahead of established international and local brands such as Stolichnaya, Smirnoff, Finlandia and Absolute. 2. Russian Standard’s success can be attributed to the high quality of the vodka itself, its Innovative and distinctive bottle, to its strong presence in bars, clubs and supermarkets, and to a brand identity that is proud to leverage its Russian heritage while promising world-class standards of quality (hence the name ‘Russian Standard’). Interestingly, and quite unusually, the Russian Standard brand was also used to launch a Commercial Bank focusing on consumer lending which also became a huge success in little time thanks to its financial solidity and aggressive marketing. 3. Encouraged by its rapid success at home, the company is considering whether it should Launch Russian Standard in the biggest premium vodka market in the world - the US – and whether it should adapt its marketing mix or stick with the strategy that has been so successful 4. In Russia, to help make these two decisions, the case provides detailed information on consumer habits and competition in Russia and America. HISTORY The brand was introduced as the "Russian...
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...Executive summary Red Bull GmbH is a popular energy drink that has sold up 5.387 billion cans as of 2015. Red Bull GmbH has the title of highest selling energy in the world in terms of market share. The iconic slogan “Red Bull GmbH gives you wings” is Red Bull GmbHs calling card, and all advertising is essentially connected through that slogan or graphic. A Forbes business article titled “the wind behind Red Bull GmbH’s wing” defines and explains Red Bull GmbH’s brand growth as “...A reflection of Red Bull GmbH’s freewheeling corporate culture that has enabled the company to build an enviable product performance... years fine-tuning its marketing and communications strategy.” This explanation in the article is true, to which modern global corporations aim to apply frameworks or models to help them succeed and better themselves from the competition. The background summary is a brief explanation and overall introduction of Red Bull GmbH. The Theoretical analysis identifies and describes the sources of Red Bull GmbH’s brand equity. The theoretical analysis II integrates and analyses’ the Red Bull GmbH’s marketing program in terms of how it contributes to the brand’s equity. It identifies any alternatives, or issues that might arise through the contribution of various factors. The theoretical analysis III, allows for the evaluation of Red Bull GmbH’s move into herbal teas, fast-food and magazines. It also, requires the critical evaluation of whether it makes sense for the company...
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...MKTG311 Brand Report 30% Manly Council credit: 70/100 Word Count: 2998 Executive Summary This report was commissioned to examine brand management theories and analyse them in regards to a particular case study: Manly Council. Specifically, the research draws attention to Keller’s Brand equity model and the brand-positioning concept that identifies the points of parity and points of difference of a brand in relation to its competitors. Manly council is located eight kilometers from Sydney’s Central Business District and has a population of approximately 40,000. The Council uses a wide variety of marketing strategies to create brand awareness, two of which will be discussed in this report: Brand Positioning through marketing to distinct demographics and Manly Council developing an online presence through social media. The report evaluates the brand theories along side Manly Councils Marketing Strategies and concludes that the brand marketing is consistent and relevant towards attracting people into its district. It is recommended that: * To gain a larger cliental, Manly Council must continue creating awareness of the upgrades and developments being made. * Advertisements should be addressing the needs of more subgroups/demographics. * Combining the social media Facebook forums of Manly council and Hello Manly will form a larger market to create brand awareness. * Updating and monitoring the pages weekly to enhance social activity * Finding...
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...Introduction Business management has experienced a number of changes after the significant effects of industrial development. Developments in technology made quality to be easily accessible compared to previous eras and hence, the standards of product purchase switched from the ‘quality’ to ‘design’ as customers, who buy products, increased their expectations from those products. Therefore, 21st century’s business management happened to face the challenges of ‘design’ and ‘brand’ by which they have to stand out their products amongst their peers. In other words, ‘design’ and ‘brand’ have become emotional satisfaction criterion and core components of companies in today’s competitive markets. That is why effective brand identification, which is expected to be established and preserved by the brand strategist, and it is a number of distinctive connections of ideas related to the brand, is essential for market triumph in the competitive retail markets (Kim & Lee, n.a). Part 1 Brand Identification and Design The role of branding for organizations has showed a significant change correspondingly. Branding used to be the symbol of ownership in the past, and then it started to be seen as the intellectual statement of customer benefits. But today, ‘brand’ actually symbolizes the company vision and its strategic positioning in the market. Therefore, the concept of brand is not only ‘the logo on the product’ anymore, but also is the symbol of the philosophy, understanding and vision...
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...com/0263-4503.htm Brand equity for online companies Rosa E. Rios Australian College of Kuwait, Safat, Kuwait, and Brand equity for online companies 719 Received 1 May 2008 Revised 1 July 2008 Accepted 1 July 2008 Hernan E. Riquelme Kuwait-Maastricht Business School, Salmiya, Kuwait Abstract Purpose – The purpose of this paper is to determine if the traditional approach to measuring brand equity applies to online companies. Design/methodology/approach – This objective is pursued by: developing a measurement model of brand equity for online businesses; and testing the nomological validity of the model using structural equation modelling. Findings – This study finds partial support for the application of the offline brand equity theoretical framework based on brand awareness, brand associations and loyalty for online companies. Brand loyalty and brand value associations directly create brand equity. Research limitations/implications – The study is cross-sectional, the indicators or observable variables used in this study may not be deemed comprehensive enough, no interaction effects have been incorporated, and finally, the research study was based on a few online business retailers. Practical/implications – The results support the view that a consumer’s perceived sense of value resulting from a transaction with an online business develops loyalty. Also, brand-trust association and brand awareness indirectly contribute to creating brand equity through their influence...
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...^^ rives . Customer Equity A company's current customers provide the most reliable source of future revenues and profits. t By Katherine N. Lemon, Roland T. Rust, and Valarie A. ZeithamI 20 I MM S p r i n g 2001 C o n s i d e r t h e i s s u e s facing a typical brand manager, product manager, or marketing-oriented CEO: How do I manage the brand? How will my customers react to changes in the product or service offering? Should 1 raise price? What is the best way to enhance the relationships with my current customers? Where should I focus my efforts? Business executives can answer such questions by focusing on customer equitythe total of the discounted lifetime values of all the firm's customers. A strategy based on customer equity allows firms to trade off between customer value, brand equity, and customer relationship management. We have developed a new strategic framework, the Customer Equity Diagnostic, that reveals the key drivers increasing the firm's customer equity. This new framework will enable managers to determine what is most important to the customer and to begin to identify the firm's criticai strengths and hidden vulnerabilities. Customer equity is a new approach to marketing and corporate strategy that finally puts the customer and, more important, strategies that grow the value of the customer, at the heart of the organization. For most firms, customer equity is certain to be the most important determinant of the long-term value of the firm....
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