POM: Session 16B Brand Equity Models

Creating a combination of logo, colour, design, name and tagline is not a big task. The actual tasks starts after that. The job of making the brand come alive in the minds of consumers is the branding strategy. Making consumers believe in the brand is more of a psychological process. The belief that the brand commands in the minds of consumers is the brand's Brand Equity. The marketers must take consumers through the stages of brand recognition (awareness), selection (perception), liking and purchasing (attitudes and beliefs) and finally the very rare phenomenon these days  - loyalty. 

There are number of models that explains the same with different perspective. The perspective differs as the objectives behind developing these models were different.

1. BRANDASSET VALUATOR BAV

This model was developed by advertising agency Young and Rubicam. This model work on four pillars of brand equity namely, energized differentiation, relevance, esteem and knowledge.

Let us understand this model with the example of one of advertisement created by Y&R of Emirates.

Energized Differentiation:

It is the ability of the brand that clearly differentiates it from its competitor. The point of differentiation is made clear to the audience when the the famous actor Jennifer Aniston asks for a shower and bar onboard an airline. The airline staff told her in a very unsympathetic way that they only offer fresh towel and peanuts. The actor was heard saying emirates planes have showers and bar.

Relevance:

The brand should be worth trying and appropriate for the target audience. The comfortable sleeping and lounge facilities and the need for the target markets. The need for shower is explained in the sentence, "How will I go to the bar like this (without having shower)?"

Both these pillars contribute towards brand strength. The power and competitive edge the brand commands in the minds of consumers.

Knowledge:

Brand knowledge is the key to strong brand equity. More information leads to thoughts, feelings, beliefs and ultimately results in experience. In the given ad the features of an airbus 380 and the facilities providing are subtlety indicated.

Esteem:

It relates to the respect and regards towards the brand, like, the tagline of the ad says, "wake up to flying as it should be". Ms. Aniston quoting her dream of flying with some other airliner as a nightmare also reflect the mindset of the consumer who has a lot of respect towards the brand.

Knowledge and esteem are termed as Brand Stature as it is an indicator of brands present and past performance,

However, in application, not all brands show equal levels of these pillars. New brand shows higher energized differentiation than relevance and still lower levels of esteem and knowledge. Market leaders show high levels of all pillars, slightly more towards esteem and knowledge.  Niche and revolutionary brands are typically more for differentiation and relevance. More levels of knowledge may also result in failure if the customer experiences are negative.

2. BRANDZ

the second model of brand equity is developed by market research agency Millward Brown and WPP. They developed a model specifically for brand strength and its relationship with customers. BrandDynamics pyramid shows the series of step of consumer involvement and move towards bonding. At each step the number of customers decreases.

Levels of BrandDynamics Pyramid

Presence: 

This is the level where the consumer made to feel familiar about the product. New brand try to increase awareness through promotions, trials, point of purchase and advertising. Old and established brands keep reminding the consumers about their presence through advertisement and sales promotions. New brands base their advertisement on functional argument whereas establish brands take the emotional route. The consumer who are not aware about the brand presence will not enter BrandDynamics pyramid at all.

Relevance:

A brand may not be relevant to all consumer needs but more suitable to few of them. The reasons may be availability or price. Marketers try to make the brand communication relevant to a large fraction of people those who are aware about it. For example, iphone communicates different price ranges suiting to the needs to different market sections.

Also, if people find it relevant they may find an opportunity to buy the brand's product at a reduced price after a new version is launched. those who do not find the brand promise relevant to their need will terminate at this stage.

Performance: 

This is the next stage where consumer believe that the product will perform in the desired or promised way. Marketers can induce such belief by adding reviews or testimonials to the brand contact. At this stage the brand is in the bucket list of it's customers.

Advantage: 

Brandz model places POD at this stage. Consider this. We install so many  food, travel, shopping, entertainment and convenience apps on our smartphones.  But how many we use? We eventually go back to the app that is most useful according to our needs. In other words, we only find some brands more advantages than others.

Bonding:

This is that stage when the consumer can't do without the brand. The relationship is so strong that other brands are almost non-existing for the customer. This is the stage of ultimate brand loyalty.

3. Brand Resonance Model

This model right from the beginning focuses on the functional and emotional aspect of human thinking. This model also talk about series of steps from bottom to top that talk about the building blocks of customer based brand equity. The unique feature of this model is the building block analogy, which indicates that if the brands fails in an of the block, the brand pyramid will never be accomplished.

Four stages of brand development results in six building block of development of brand equity.

1. Identity

Brand Salience: 

Here the brand establish the need family. So the brand communication is focussed on deep and broad awareness about the identity of the brand. For example, Coke, Pepsi and Thums up wants to create an identity as a refreshing drink.

2. Meaning

Brand Performance: 

Here the brand communicates about it's functional superiority. It includes the description of primary and secondary benefits, including its reliability, style, design and any other feature. Basically, it is answer to the question that what a brand is expected to do? The communication objective is to inform the brand positioning. Here is how Pepsi introduces 1893 to it's customers:

Brand Imagery: This is the emotional side of brand positioning. the brand communicates about the user profiles, usage and purchase situations, personality, history and associations,  Coke establishes itself as a drink for togetherness, and hence occasions,  Pepsi is sporty and thus strongly associated with sports personalities and Thums up is adventurous and more for outdoors!

3. Response

Brand Judgements: 

Here the focus is on consumers' own judgements about the brand. These judgements relates to the quality, superiority and credibility of the brand that reflects on consumers' opinions and evaluation. Coca-cola open happiness campaign was to spread the message of happiness and thus generates positive judgement about the brand.

Brand Feelings: 

The judgements results in generating feelings towards the brands. These are the emotional responses to the judgements. Pepsi's commercial after India's win over Australia in World T20 is evoking positive and accessible reactions.

4. Relationships

Brand Resonance: 

This is the stage when the consumer goes beyond the functionality of the brand. They just love the brand and become brand loyals. The attachment is so strong that the association continues even after the use,

Cheers!