Customer Based Brand Equity Model

Brand equity and brand value are also two concepts related to segmentation and brand positioning. Brand equity has no relation with what marketer creates but what consumers perceive to have been created (Olshavski, 1985). Brand equity is also intangible. It has been found that 43 per cent of the companies measure brand equity, while 72 per cent of them were confident enough with their brand equity; however, over 66 per cent has claimed that their companies had no long term brand strategy (Davis & Douglas, 1995). “Brand value increases as the brand becomes better known and as the company supports the brand at the different contact points” (Moskowitz, Gabay, Beckley & Ashman, 2009). Companies such as Coca-Cola and McDonalds have invested time and money on creating and supporting their brand names. Consumers are more likely to switch to a big brand compared to a small brand.

TATA motors as an Indian automotive giant has a very large customer base and high level of awareness amongst Indian consumers as the brand positions itself as every first buyer’s choice. This is attributed to a factors which are strong, favorable and unique brand associations. Brand equity is the end product of brand awareness and brand image.

Kotler and Keller (2012, pp. 271-272) maintain that there are three main sets of brand equity drivers:

Keller notes (p 59) that brand association may be, but is not necessarily, situation or context dependent. He goes on to say that “An association may be valued in one situation and not another.” The evidence indicates that a change in strategy based on geographical or cultural context is counterproductive for Red Bull. This implies that the sources of brand equity are not geographically dependent.

In this study we will prove that there is positively association between Cosmopolitanism and Global Brand Loyalty.

Brand Equity is the added value endowed by the brand to the Product. Although the idea of using a name or a symbol to enhance a product’s value has been known to marketers for a long time, brand equity has gained renewed interest in recent years. Brand managers realize that after years of look-alike advertising and over copying with me-too brands, they now live in a world of product parity. The ensuing price competition through short term price promotions reduces the profitability of brands leading manufactures to examine ways to enhance loyalty toward their brands. In addition, facing with the increasing power of retailers, manufacturers of consumer products realize that having the

According to Kotler and Keller “brand equity” is defined as the additional worth enriched on items and administrations. It might be reflected in the way customers think, feel, and act as for the brand, and in addition in the costs, piece of the overall industry, and benefit the brand charges (Kotler & Keller, 2012, p. 243, para. 5). Essentially “brand equity” is the strength of a brand which evolves from its altruism and notoriety. Over time this equates to higher revenue from increased sales.

Brand definition Global, Regional, and Local Brands Brand Equity The pros and cons of global branding Global Branding Strategies

“A brand is a distinguishing name and/or symbol intended to identify the goods or services of either on seller or group of sellers, and to differentiate those goods or services from those of competitors” (Aaker 1991).A brand is the most valuable asset for an organization in the current competing world. Every organization is formulating strategies to make its brand popular and significant not only in markets but also in minds of the customers. Brand is the relation of customer with the brand. It is promise which a company makes to the customer about the goods and service they offer (Gregg 2002) Branding involves decisions that establish an identity for a product with the goal of distinguishing it from competitors offerings

Nowadays the global market is quite attractive for high competition environment. In order to be visible in global market, brands can be used to play an important role. From marketing point of view, brands are the means that consumers use to distinguish products and services based on essential and non-essential attributes and they are a source of business’s differential advantage.

With the growth of world economy markets became flooded with competition, organisations started to understand the importance of building strong brands (Norjaya, 2007). Aaker (1996) said that well-known brands brought loads of advantages and allowed companies to establish their identity in the market. Brand equity is built on brand identity and brand image therefore it is important to study those 2 topics (which in my eyes are inseparable) fully. Brand Identi-ty is something what company is promoting and wanted to be seen, whereas Brand Image how the company wants to be seen, where the second one is the actual portrait of the compa-ny on consumers’ minds (Yastrow 2013; Keller, 2003; Kotler et al, 2009). Keller (2003) said that organisations are spending huge amount of money in order to bridge the gap between brand identity and brand image, essentially smaller gap would mean that consumers are be-lieving in brands core

Establishing an international/global brand lies hugely on its capability to explore or venture into new fields and also maintain its competitive advantage in terms of production and econimies of scale. A brand can be truly global once it shadows same values world over. An international brand when markets for itself removes any kind or barriers that comes its way, for example linguistic, territorial, religious, etc. A natural demand or an emotional connect has to exist for a brand to excel. When business strategies are to cut across borders and offer a large number of products and services, corporate houses face a lot of difficulties related to maintainance cross-border acquisitions and enforcement of patents and trademarks.

According to Murphy (1998) In addition to a specific brand name, a brand is also composed of products, packaging, promotion, advertising, as well as its overall presentation. Branding thus is a means to distinguish one product from another and these differences may be functional, rational, or tangible – related to product performance of the brand’ (Keller and Kotler, 2006).

This essay aims to firstly outline and critically assess the concept of Customer-based Brand Equity in marketing, and secondly evaluate Cadbury’s success in applying this model, as well as highlighting areas where improvements are

Importance of brand equity demands need for more practical experience and comparative research to judge and validate the usefulness of brand evaluation methods (Farquhar 1990). The recent merger and acquisition trend has also increased the importance of measuring brand equity (Tauber 1988). The role of brands is now far beyond product differentiation or competing for market share. They are accumulated annuities which the firm can acquire from its balance sheet (Tauber 1998). Firms could have a strong competitive edge over competitors if they could create brand equity ‘through building awareness, image, and linking associations’ (Keller 1998). A stronger brand would always have a better understanding of needs, wants, and preferences of consumers than the brands that are not competitive. Thus stronger brands would help in creating effective marketing programs that could go beyond consumer expectations.