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Growing and sustaining brand equity
Effect of branding on consumer perception
Growing and sustaining brand equity
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Brand; - brand is known as uniqueness in term of what products or service the company provides. Brand is also set of insight or image that represents seller. Brand defines symbol, name, term or feature of company’s service or goods. Example of popular brand is apple, Amazon and Samsung.
Looking to the case study chosen, the Holland and Barrett brand is the name and design identifies their quality products and service as distinct from those other sellers. Holland and Barrett store have natural and healthy appearance that provides easily to recognise them. H&B promise is to deliver healthy food and best value price. (Holland and barret.2012)
Branding; - branding is the process of creating name, image or logo for the product in consumers mind through advertising theme. In H&B branding gives the ability customer to recognise them through their business name, design and healthy products. The benefit of branding in H&B is customers are likely to remember their products and their strong images and their colourful colour of the store to recognise them. Other benefit of branding for H&B is it serves convenient container for reputation and good will. Loyalty when customers have experience with brand and customers are likely to buy their products again.
Brand Equity
1.1.1. Definition; - “brand equity is the added value endowed on products and services. It may be reflected in the way consumer think, feel, and act with respect to the brand, as well as in the price, market share and profitability the brand commands.”(Kolter and Keller.2012, p265) according to the case study of Holland and Barrett, brand equity refers to high brand value, brand with high value equity means, H&B has the ability to create some sort of positiv...
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... might need exposure cost. Holland and Barrett is currently using corporate branding because it presents every product with same brand name and to have same level of quality products.
Co-Branding;- co-branding is when two companies together, another word two brand becoming partnership of goods and services.(Investopedia.come.2013) the advantages of co-branding companies is to increase sales and cash flow, expanding customers and joined advertising. The potential disadvantages are disagreement on decision making, might fall if the two products have different market and customer trust issues. Co-branding would not work for Holland and Barrette because it might create confusing as they have huge customers and are familiar with brand. The risk going to co-branding is loss of control; lose customers because single advertising might not cover the entire category.
-Store brand name enables product to be accepted and adopted more easily by consumers because of brand recognition
By following the corporate branding strategy, Rosewood’s customer lifetime value would decrease, and retention will increase. Even if Rosewood decided to buy new proprieties, corporate branded proprieties will see a higher volume of reservations. With this strategy, Rosewood may lose some of its current customers, increase its marketing expenses, and decrease employee’s morale. However, corporate branding will increase retention rate, build a stronger brand equity and name, and increase cross-property usage rate by
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
advantages, economies of scale, and possibly through the development of superior reputation, influence and enjoy protection from local governments. b) Rivalry: Monitor the competitive structure of the consolidated industry, which could. affect market share, and even start price wars, which could be costly. Monitor demand trends, which could call for market expansion or retraction, and finally monitor exit. barriers, which are a deterrent for potential entrants.
Although the company differentiates itself from its competitors via its own-labelled products, the concept of `Market Street', etc, the core of its competitive advantage lies in its ability to provide c...
Branding is important to a company. To brand your company well, you must name your company something creative that people will associate with your products. (Bovee, 2012)The name that I have given my lemonade stand is When Life Gives You Lemons. Customers can use this name to recommend my lemonade stand to their friends and other people. This increases your customer base, thus increasing your profit and revenue.
Building and enhancing a strong brand has been found to have profitable rewards in business, it has therefore become a prime priority for many firms. Customer-base brand equity (CBBE) is a model that is being adopted by many organizations in order to build strong brands that can compete with the other ones in the market. The model outlines the four steps that should be followed in building a strong brand. The first step involves the establishment of appropriate brand identity, which includes enhancing customer awareness of the brand.
...of brand equity in an organizational-buying context. Journal of Product & Brand Management, Vol. 6(6), pp. 428-437.
Mission Statement: H&M’s purpose is to offer their customers fashion and quality at their best price. H&M believes that quality is more important than meeting or exceeding customer’s expectations. It is continuously working to better their products by manufacturing under good working conditions, and with limited impact on the environment.
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
A brand is utilized by a company to differentiate its products from others in the market. Some techniques for accomplishing this are through the use of distinguishing logos, names, color schemes, and slogans. An effective branding strategy is one of the most important components for gaining a significant advantage in a progressive market. Basically, a company brand is its promise to its customers about what can be expected from its product and how it differentiates from the competitors. The branding strategy is the part of the marketing plan that explains how and to whom the company proposes on conveying its brand messages. It will also explain where the company plans to advertise and what it will publicize both visually and verbally (Williams, 2013). Home Depot’s marketing plan will contain domestic and global branding strategies and will be a collaboration of brand messages from both Home Depot and Reach the Top®.
Brand equity is crucial as it implies that the brand itself is an important (financial) asset and can be calculated in financial terms (Barwise, 1993). This is particularly important in the luxury sector as from a behavioural viewpoint, brand equity can differentiate a company or product from other competitors, adding to their competitive advantages based on non-profit competition (Aaker, 2004). The model created by Aaker (1992) states that there are four categories of brand equity; Loyalty, Awareness, Perceived Quality and Associations. Luxury branding relies on a high level of perceived quality, loyalty and associations, although potentially less so for awareness, as it is thought that consumers choose luxury brands based on their exclusivity and as such the more the awareness that surrounds the brand, there is potential for it to become less valuable (Phau and Prendergast,
A company’s brand is one of its most valuable assets (Green and Smith 2002). Brands owners invest millions of dollars every year in advertising and promotion to raise awareness and create demand for their brands.
Simon, C.J., & Sullivan, M. W. (1993). “The measurement and determinants of brand equity: A financial approach”. Marketing Science, 12(1), 28-52.
A brand identifies a seller’s product from a competitor’s product. There are three main purposes for branding product identification, which is the most important purpose, repeat sales, and new-product sales. Branding has a lot of terms that marketers use there is brand equity, global brand, and brand loyalty. Marketers also have different brand strategies that they use for different products or customers. It all depends on the consumer for them to decide which strategy they will use. The different strategies are generic products, manufacturer’s brands, private brands, individual brands, family brands, and co-branding. The branding purposes and the branding strategy make up the importance of branding.