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Customer Based Brand Equity ? A Pragmatic Approach

Customer Based Brand Equity – A Pragmatic Approach

Dr.K.Krishnakumar, Lecturer in Commerce, Periyar University, Salem – 636 011

Introduction

In the new era of a globalized market place, brands are key drivers of economic values of a corporation. In the new emerging business scenario, brands offer the capacity to add value which is perhaps unmatched by any of the assets which once enjoyed honour. Brands are the basis of consumer relationship and brands are becoming the most valuable assets that a business can possess. Markets, which were earlier protected, are now being liberalized. Product commonality is a major headache for marketers. Thus, marketers are left with a challenge: how to achieve differentiation which is valued by the customers. Brands in this context are new business warriors. They connect corporations with customers. Brands are wealth generators of the twenty-first century. As a result, brand management has long since grown into a vital ingredient for success in corporate strategy.

            From the marketer’s point of view the brand is a value, the brand name of the product marketed by them should be leads to attain brand equity. From the consumers point of view a brand which comprises of benefits. It means benefits in the sense of utility and service. A brand said to have equity when the consumers are prefer to buy a branded one instead of unbranded commodity. When a consumer who is able to recall the brand name and its attributes for the long period where the brand is having a equity. From that point of view of brand equity, it is the extension of brand loyalty and brand knowledge. So in this critical situation the marketers are supposed to create a value for their brand. But here some questions are raised, What is that value? How can create a value and what are the parameters for creating value to a particular brand? In recent years customer-based brand equity (CBBE) has garnered considerable attention in both academic and non-academic researches. Developing further insights into the measurement of consumer based brand equity is important in the face of prominence of branding. Hence the aim of this paper is to identify various elements and parameters for identifying the value, that is customer based brand equity.

Brand Equity

The concept brand equity has emerged as the central concept in marketing over the past 20 years. Much attention has been devoted recently to the concept of brand equity. The concept of “brand equity” is generally considered to refer to that part of the value of a product that is attributable to the brand name. From a managerial point of view, Farquhar (1989) defines brand equity as the “added value” with which a brand name endows a product.  Aaker (1991) defines brand equity is a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers. For assets or liabilities to underlie brand equity they must be linked to the name and/or symbol of the brand. More generally, it has suggested that brand equity be considered from the perspective of three separate entities: firm, trade and consumer. From the firm perspective, brand equity is incremental cash flow arising from use of the brand name. From the trade perspective, brand equity is leverage (in terms of acceptance and distribution) arising from using the brand name. From the consumer perspective, brand equity is generally considered to be something to do with “value”.

Customer Based Brand Equity

                Customer-Based Brand Equity is formally defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand. A brand is said to have positive customer-based brand equity when consumers react more favourably to a product and the way it is marketed when the brand is identified than when it is not (e.g., when the product is attributed to a fictitious name or is unnamed). (Kevin Lane Keller 2004).Thus, a brand with positive CBBE equity might result in the consumers’ acceptance of a new brand extension, less sensitiveness to price increases and withdrawal of advertising support, or willingness to seek the brand in a new distribution channel. On the other hand, a brand is said to have negative customer-based brand equity if consumers react less favourably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product. The main ingredients of consumer based brand equity are differential effect, brand knowledge, consumer response in marketing.

The followings are the some of the important building blocks identified as the crucial elements of customer based brand equity.

Brand Loyalty

This is major component of brand equity. Brand loyalty, a long a central construct in marketing, is a measure of the attachment that a customer has to brand. If the customer continue to purchase one particular brand even in the face of competitors with superior features, price and convenience where we can find the brand loyalty. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features. It is one indicator of brand equity which is demonstrably linked to future profits. Brand loyalty is qualitatively different from the other major dimensions of brand equity in that it is tied more closely to the use of experience. Brand loyalty cannot exist without prior purchase and use experience. It is a basis of brand equity that is created by many factors, chief among them being the use experience. (Aaker 1991) defines loyalty as “the attachment that a customer has to a brand” and consider it to be a primary dimension of brand equity. In contrast, Keller (1993) views loyalty as a consequence of brand equity, i.e. when favourable attributes results in repeated purchase. (Yoo and Donthfu 2001) defines brand loyalty from the attitudinal perspective that “the tendency to be loyal to a focal brand, which is demonstrated by the intention to buy the brand as a primary choice” 

Brand Knowledge

            From the perspective of the CBBE model, brand knowledge is the key to creating brand equity, because it creates the differential effect that drives brand equity. What marketers need, then, is an insightful way to represent how brand knowledge exists in consumer memory. In particular brand knowledge can be characterized in terms of two components: brand awareness and brand image. Brand awareness is related to the strength of the brand node or trace in memory, as reflected by consumers’ ability to identify the brand under different conditions (Rossiter, J.R, and Piercy.L (1987). Brand image can be defined as perceptions about a brand as reflected by the brand association held in consumer memory. A positive brand image is created by marketing programmes that link strong, favourable, and unique associations to the brand in memory. The brand knowledge effects through brand awareness and brand association, the benefits of brand are underlined as outcomes. Therefore brand knowledge entails significant activities leading to brand loyalty and equity. In brief brand knowledge encompasses the consumer’s ability relating to the awareness of the product, product features, where the product is available, company that makes the product, how the product is used and for what purpose and the specific and distinctive features of the product.

Brand Awareness

            Brand awareness refers to the strength of the brand presence in the consumer’s mind. It is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category. This refers to the strength of a brand’s presence in consumers’ mind. Brand awareness is an important component of brand equity (Aaker, 1991; Keller, 1993). It is believed that brand awareness is improved to the extent to which brand names are chosen that are simple and easy to pronounce or spell; familiar and meaningful; and different, distinctive and unusual. Brand awareness consists of brand recall and brand recognition. A brand can increase the demand for a product in several ways. Brand awareness makes it easier for consumers to identify products with the well-known brand names (Mary W.Sullivan 1998). Therefore, brands provide information by increasing awareness and serving as a proxy for quality. Brands can also appeal to a consumer’s sense of individuality or make consumers feel as if they belong to a particular social group.  Brand awareness can be characterized according the depth and breath. The depth of brand awareness concerns the likelihood that a brand element will come to mind and the ease with which it does so. The breath of brand awareness concerns the range of purchase and usage situations in which the brand element comes to mind. The breath of brand awareness depends to a large extent on the organization of brand and product knowledge in memory.

Perceived Quality

        Perceived quality can be defined as the customer’s perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to

Tags: Approach, Based, brand, Customer, Equity, Pragmatic

Brand Licensing 101

Brand Licensing 101

A General Overview of Brand Licensing

Have you ever wondered how Coca-Cola, a company so focused on meeting your beverage needs, sells Coca-Cola branded tee shirts or caps? Or how does Newell Rubbermaid provide you such a range of products under a single brand name? While companies sometimes manufacture these items themselves, at other times they may choose to allow a manufacturer to produce and market these products under their brand names. In return for the use of their brand, these companies charge the manufacturer a fee. Such an arrangement is called brand licensing and can be defined as an agreement that authorizes a company that markets a product or service (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor) in return for a portion of the sales revenue (royalty).

This module will help you understand brand licensing better, as well as address why companies license brands.  We will also take you through the process of how to determine the license-ability of a brand, expectations of licensors and licensees, the brand licensing process and the royalty payment flow.

To understand brand licensing better, one must understand the two component parts separately – brand and licensing. Let’s begin with understanding the meaning of the term ‘brand.’

What is a Brand?

According to Philip Kotler and Gary Armstrong, a brand is defined as “a name, term, sign, symbol or combination of these, that identifies the maker or seller of the product (or service).”

The brand or its legal term, trademark, affixed to the product helps the consumer understand where it was manufactured or produced. From the brand owner’s perspective, it distinguishes the products or services from those of its competitors. Consumers, in turn, can be assured the product they are purchasing is exactly what they want.  Based on its reputation, a brand will convey a level of quality, reliability and durability.

The primary reason companies choose to brand their products is to differentiate them from their competitors’ products. For example, most consumers have no problem differentiating a Coke from a Pepsi.  By giving their products a brand, a company or brand owner can begin to communicate with their consumers regarding the attributes of their products.  Over time, consumers can begin to rely on the brand to connote not only a product’s value but also its reputation.  If consumers like what a brand represents and they have purchased it before, there is a higher likelihood they will choose the brand of their preference over a competitor.  In fact, consumers will often purchase a brand for the first time if it has a strong reputation or if it is used by friends or celebrities.

Brands also lead consumers to develop certain expectations of products. The longer they experience predictable, consistent quality and performance, the more they expect any new products sold under the same brand to have the same. The brand, therefore, adds value to these products. For example, customers expect new products sold under the BMW brand to be of the same quality as the existing BMWs. Consumers will associate a brand with a certain price level and standard of performance. If we look at two distinct watch brands, Rolex and Timex, one is associated with a high price and high performance and the other with value and durability.  These same attributes can also be of benefit to businesses.  Many consumers look to UPS for their shipping needs, and they prefer doing business with companies that ship via Brown.  UPS adds value to its client companies, with a reputation for making shipping simple, easy, reliable and effective.

Why do companies license out their brands?

Companies license their brands for a variety of reasons. Licensing enables companies with brands that have high preference to unlock their brands’ latent value and satisfy pent-up demand.  Through licensing, brand owners have the ability to enter new categories practically overnight, gaining them immediate brand presence on store shelves and often in the media.  Let’s take a deeper look at the benefits that make licensing so attractive to brand owners.

By licensing their brands, companies are able to satisfy consumer needs in categories that are not core to their business.  When Apple launched the iPod a number of years ago they revolutionized the way in which people listen to their music. The iPod was so successful that its quick acceptance created an immediate need for accessories such as armbands, adapters and auto chargers.  Apple could have chosen to manufacture and distribute these accessories themselves.  Instead, Apple decided that these accessories were not core to their business expertise and therefore chose to satisfy the need through licensing.  By licensing the iPod brand, Apple enabled a tremendous number of companies to produce all kinds of terrific products to make the iPod more user-friendly and to enhance the listening experience.  Examples of licensed products for the iPod include the Bose Sound System with iPod docking station, the Nike+ running shoe, auto adaptor kits, armbands and many other products.  All these accessories are sold by licensees.

Some licensors see licensing as an opportunity to “test” the viability of a new category without having to make a major investment in new manufacturing processes, machinery or facilities. In a well-run licensing program, the brand owner maintains control over the brand image and how it’s portrayed (via the approvals process and other contractual structures), positioning itself to reap the benefit of additional revenue (royalties) and brand exposure through product displayed through new channels and incremental shelf space.  For example, Rubbermaid gained additional revenue and brand presence by licensing kitty litter containers that are sold in the mass channel core to Rubbermaid, and in specialty pet shops core to United Pet Group, the licensee.

In return for the use of their brand, companies charge manufacturers a fee in the form of royalty payments and guarantees that constitute a source of revenue for the company. Royalty payments are typically calculated as a percentage of wholesale revenue while guarantees are usually determined on an annual basis and calculated as a percentage of the anticipated per annum royalty.

The retailer earns revenue on licensed merchandise sold at the market price. The licensee earns wholesale revenue, which includes the cost of making the goods plus a markup. The licensor in turn receives a percentage (predetermined in the licensing contract) of the wholesale revenue as a royalty.

A well-managed licensing program can generate a substantial and growing stream of incremental royalty revenue that will complement a company’s core business.

Brand licensing also provides marketing support to the core business. In many instances, the licensee will be required to provide marketing dollars to support the licensed category.  This marketing expenditure, in turn, provides additional overall brand presence.  For example, if a licensee promotes its product in a weekly circular and gains an end aisle display, the advertising and retail display not only generate product sales, but they also promote the overall brand.  An array of toys or apparel tied to a movie, sitting on a store shelf, serves to promote the movie itself. A sports fan wearing a sweatshirt with the logo of his favorite team expresses his enthusiasm about the team, while subtly promoting the sport, the league and the team to anyone who passes by him. The same goes for a beer brand. Seeing a store display of glassware carrying a well-known beer logo, or walking into a neighbor’s home and seeing the glasses on his bar, reinforces the brand image, supporting the brand’s overall marketing efforts.

For brand owners who are confident that their brand has permission to enter a category that is controlled by their competitor, licensing can be a smart and effective way to combat a rival where it matters most.  By taking the offensive, the brand owner-turned-licensor will force the competitor to take its eye off of its core business.  This can have a significant impact.  For example, what if adidas chose to license a shoe manufacturer to compete directly against Nike’s Cole Haan brand?

Many licensees are experts in their own right; they offer the licensor access to their intellectual property, product design and marketing expertise.  Moreover, licensors can tap into their licensee’s supply chain management knowledge, retailer relationships and strategic alliances. Over time, licensors and licensees can hold knowledge management workshops and forums where they can exchange techniques, processes and ideas that not only grow the licensed category, but also other areas of their businesses.

Finally, for brand owners (particularly those doing business in the global marketplace), licensing their registered trademarks in multiple markets is a way to protect the brand from being used by others without authorization. When Coca-Cola first started licensing, the legal department managed the program specifically to protect the company’s trademarks in countries throughout the world.

How does the process of brand licensing work?

Brand licensing can be very beneficial for both brands and licensees if done in a step-by-step manner. We have divided the brand licensing process into eight steps. This module will provide you with an overview of each of the steps.

The brand licensing process starts several months prior to the commercialization or launch of the licensed product. The figure below tells us the different steps involved in the brand licensing process. Licensees and

Tags: brand, Licensing

EXPLORING SENSIBLE BRAND ? A PRECISE METHOD OF ACQUIRING BRAND LOYALTY

Introduction

A brand is the identity of a specific product, service, or business. A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word brand began simply as a way to tell one person’s cattle from another by means of a hot iron stamp.

Branding is perhaps the most important facet of any business–beyond product, distribution, pricing, or location. A company’s brand is its definition in the world, the name that identifies it to itself and the marketplace. A model may be beautiful, but without a name, she’s just “that girl in that picture.” Where would Norma Jean be without Marilyn Monroe, or who would imagine Coca-Cola as just a soft-drink manufacturer? A brand provides a concrete descriptor to customers and competitors alike, a name for a product or service to distinguish it from anything else. Bob may run a hobby shop, but trying to advertise as “The hobby shop a guy named Bob runs down the street a ways” is financial suicide. Each customer will have to describe the shop, who Bob is, and what the shop does every time someone asks about it.

This makes the process of recommending a good hobby shop too much work for the average customer, and far too much work for a user looking for hobby shops on the Internet. A customer looking up Bob’s hobby shop will have an easier time of it if he or she knows to refer to it as “Bob’s House of Hobbies,” and the customer can then refer others to Bob’s hobby shop by name, increasing the potential advertising exponentially.

Developing a brand involves more than just picking a catchy name and placing an ad in the newspaper–a brand is more than a unique string of letters denoting a particular product; a successful brand is a mnemonic trigger that makes a consumer feel a certain way when the brand is thought of. For those who drink cola-flavored soft drinks, which is more appealing on a hot day: a cold cola soda, or an ice-cold Coke? Coca-Cola has spent 100 years developing their particular brand of cola-flavored soda as a refreshing beverage and a seminal representation of a market segment. Coca-Cola has used a combination of direct marketing, give-away techniques, and multi-product cross-branding to achieve maximum brand recognition and visibility in not only its immediately competitive market, but in markets as diverse as Coca-Cola branded race cars and housewares.

Brand loyalty is an integral part of building a brand, as consumers usually have a choice of products in the same market segment, and so a successful company will come up with a way to keep consumers re-buying their product or coming back to their location rather than going to a competitor. These brand loyalty-building efforts may come in the form of coupons, incentives such as many grocery chains’ technique of “grocery discount cards” or “loss leaders,” meant to draw consumers into the store, where they will hopefully buy products along with the discounted fare at a higher profit ratio.

In exchange for these discounts and grocery cards, many companies collect information about buying habits and average spending amounts, the better to tailor advertisements and better-focus future promotional efforts. Once a consumer is hooked, brand loyalty tends to result in higher sales volume, as well as loyal customers being less sensitive to price changes of their favorite brands (within reason, of course), as well as less sensitive to competitors’ incentives. Studies have shown that it takes 5 times as much money to gain a customer as it does to retain one. That’s 5 times as much money as could have been spent on other things.

A brand is who your company is, and what it is selling–it is as important as naming a baby, and should require the same amount of effort to develop it, but if done well, can mature into a successful and profitable adult.

Advantages of sensible Brands

A strong sensible brand offers many advantages for marketers including:

Brands provide multiple sensory stimuli to enhance customer recognition. For example, a brand can be visually recognizable from its packaging, logo, shape, etc. It can also be recognizable via sound, such as hearing the name on a radio advertisement or talking with someone who mentions the product.
Customers who are frequent and enthusiastic purchasers of a particular brand are likely to become Brand Loyal. Cultivating brand loyalty among customers is the ultimate reward for successful marketers since these customers are far less likely to be enticed to switch to other brands compared to non-loyal customers.
Well-developed and promoted brands make product positioning efforts more effective. The result is that upon exposure to a brand (e.g., hearing it, seeing it) customers conjure up mental images or feelings of the benefits they receive from using that brand. The reverse is even better. When customers associate benefits with a particular brand, the brand may have attained a significant competitive advantage. In these situations the customer who recognizes he needs a solution to a problem (e.g., needs to bleach clothes) may automatically think of one brand that offers the solution to the problem (e.g., Clorox). This “benefit = brand” association provides a significant advantage for the brand that the customer associates with the benefit sought.
Firms that establish a successful brand can extend the brand by adding new products under the same “family” brand. Such branding may allow companies to introduce new products more easily since the brand is already recognized within the market.
Strong sensible brands can lead to financial advantages through the concept of Brand Equity in which the brand itself becomes valuable. Such gains can be realized through the out-right sale of a brand or through licensing arrangements. For example, Company A may have a well-recognized brand (Brand X) within a market but for some reason they are looking to concentrate their efforts in other markets. Company B is looking to enter the same market as Brand X. If circumstances are right Company A could sell to Company B the rights to use the Brand X name without selling any other part of the company. That is, Company A simply sells the legal rights to the Brand X name but retains all other parts of Brand X, such as the production facilities and employees. In cases of well developed brands such a transaction may carry a very large price tag. Thus, through strong branding efforts Company A achieves a large financial gain by simply signing over the rights to the name. But why would Company B seek to purchase a brand for such a high price tag? Because by buying the brand Company B has already achieved an important marketing goal – building awareness within the target market. The fact the market is already be familiar with the brand allows the Company B to concentrate on other marketing decisions.
Our business needs to develop a positive image in the minds of consumers. Contrary to what most people believe, branding isn’t just a logo. Your businesses purpose, focus, and image all combine to create your brand. Why should you make this effort? Below are a few benefits:
You are remembered. It’s hard to remember a company with a generic name. You may not be able to distinguish their purpose and business focus. And why would you call a company if you couldn’t tell what they did? Branding your business ensures consumers will know what you’re about.
You get customer loyalty. The fact is, people build close bonds with brand identities. Consumers want quality products they can trust. So, your business should have an identity that your customers can cling to. If your company delivers great products and services and has a great brand identity, people will remember you. In addition, they will often refer you to friends and family.
You become recognized. You want the people who have not done business with you to still know who you are and what you do. If they see your ads on billboards, hear them on radio, see them on television, or any other media, they will know your brand identity. And when the time comes that they need your product or service, your company will be the first to come to mind.
Here are another five great benefits of creating a strong personal brand: 
One of the greatest benefits to you of having a strong brand is that it creates a sense of individuality and “separateness” in the marketplace so that your clients are able to easily differentiate your company from your competitors.
The goal of personal branding is to be known for who you are as a person and what you stand for. Your brand is a reflection of who you are, your opinions, values, and beliefs that are visibly expressed by what you say and do, and how you do it.
The branding process allows you to take control of your identity and influence the perception others will have about you and the services you offer.
A strong personal brand will enable you to effortlessly attract clients and opportunities. You will position yourself in the mind of your marketplace as THE service provider of choice to dominate your market and command higher fees – work less and make more!
Establish yourself as an expert and become a celebrity in your area of specialty. Gain name recognition in your area of expertise where it counts the most – in your customer’s mind. Make a lasting impression and be super-rewarded for your individuality.
Trust, respect, and admiration will follow when your name and message are embedded repeatedly into the consciousness of your target market. You will be perceived as an expert the more you are visible to your target audience. Your brand will propel you to the top in your marketplace.
Customers pay for image. We are a very brand aware society. People commonly associate brand names with quality and may only buy certain brands for that reason. If people only want

Tags: ACQUIRING, brand, EXPLORING, LOYALTY, METHOD, PRECISE, SENSIBLE

Casual Wear Brand Marketing Analysis

Casual domestic brand companies need to develop reasonable and effective brand marketing strategy and implementation through continuous self update to upgrade the brand.Brand building is the foundation started the brand, but another important factor is marketing. As we all know, is almost non existent for the “core technology” of the casual wear industry, its greatest value is the brand. Faced with increasingly sophisticated and increasingly competitive domestic casual wear market, establishing genuine market appeal of the brand of clothing enterprises, particularly urgent and important.However, there are many casual wear company also sold products only to the brand exists as an appendage, so too simple blind to Distribution Issues, promotion and expansion, neglecting the cultivation of the brand effectively. Faced with this situation, the domestic need for business casual wear brand building their own status and problems for the brand to develop reasonable and effective brand marketing strategies to achieve the establishment and promotion of the brand.

Brand Positioning

Brand positioning is the relationship between brand establishment and development of major strategic decision, but also the implementation of the specific premise of the brand marketing strategy.Marketing guru Philip Kotler in his “Ten Commandments of Marketing”, a book, take the clothing chain’s example to illustrate the market is not concerned about the marketing of the largest ring. He writes, “We want to ask a question: ‘Are you ready to products whom?’ Please do not answer ‘for everyone.’ That is unacceptable.” In China, many of the leisure brands in answering the question also is “unacceptable.” To get as many target consumers as the targeting criteria at the expense of the necessary sub brand and differentiate between market segments such issues as priorities.

For example, many domestic casual wear brand, target consumer group between the ages of 15 to 35 years of age in young people, this orientation ignores Besides age, the clothing selection is equally important occupation, income, education level and other factors, 15 35 years old age range itself need to be further broken down.Brand positioning is not clear, does not necessarily lead to distinct brand personality, different brands of consumer groups, the results overlap. Especially for those casual wear market in the country work hard for many years and established a reputation and extensive sales channels in terms of leisure brand, if you do not solve their own brand positioning that may exist problems in today’s consumer tends to personalize this era, will be will gradually lose its customer satisfaction and brand loyalty, and ultimately lose out.

Branding

With the competition in the domestic leisure apparel market intensified, the original shop window is not enough publicity has been the domestic brands have realized the need for branding and important, have thrown heavily requested the celebrity endorsement, commercials, to promote their own brands . Through advertising and celebrity endorsements in the form of brand promotion, can make the brand awareness of consumers or potential consumers, and thus create and enhance brand image. However, the same celebrity endorsements and costly, some brands upon the introduction of prompt access to great popularity on the market’s new favorite, while others promote the brand does not have the desired effect, causing an important reason for this difference is the brand ambassador choice.

Choose the right brand ambassador, to be taken into account well known spokesmen, public image, market appeal, and whether the voice matches the image and brand image, target consumer group spokesperson image and the image of matches and other factors. Metersbonwe choose Jay, Will Pan, and Angela Chang endorsement, not only the value of their huge popularity, more stress is placed on the line of young fashion people Metersbonwe lock the ideal self image and brand positioning its own personality, so choose they do brand ambassador is appropriate. Also proved that the endorsement by three idol, Metersbonwe popularity and influence among young consumers have been greatly enhanced.Balance principle from a consumer behavior perspective, the spokesman for adoption by the high degree of recognition, so that consumers and the emotional connection between the strength of voice to maximize this is only the first step. If it is to really establish the brand and the emotional connection between consumers and also to voice their endorsement of the brand closely linked.

Overall, the majority of casual domestic brands is still limited to brand advertising model plus celebrity endorsement, while the lack of cultural promotion, public relations, promotion, promotion experience, try the other way. The face of the rise of domestic brands warlords, foreign brands eager to enter the Chinese sportswear market, domestic brands, especially those in the domestic market has started a well known and have “international brand” brand vision of casual wear, in order to enhance the brand reputation and loyalty, is bound to promote a single model out of a fixed three dimensional extension to the flexible mode.

Brand Extension

Brand Establishment is just the beginning, to take effective measures to enable the brand to the brand value added long term foothold in the market. Brand extension is to achieve value added core brand value; through brand extension to “brand products” into the concept of “brand assets” concept to realize the value added brand value. In the field of casual wear, brand primarily through brand extension, the main sub brand, multi brand to achieve the form of brand extension.Brand extension is the use of a successful brand name in a new product category in the production of new products, the so called “brand umbrella” effect. It can help companies more successfully into new product categories, and can lead to the immediate consumer recognition for new products and faster acceptance of; also saving for consumers familiar with a new brand for the high advertising costs are usually .

But at the same time, the brand extension also includes risk: an extension of the brand may also undermine the consumer after the failure of other same brand impression. At present, many domestic casual brand has been extended to casual shoes, leisure packages and popular accessories and other fields. Some of the brand is preparing to, or start trying on cosmetics, household items and even the media arts field an extension of the brand these ambitious expansion plans need to assess brand strength based on the correct and full understanding of the brand extension based on the advantages and disadvantages.

The brand extension to avoid a single to give the “implicated risk”, the main brand in the premise of constant increase for the new sub brand brand. Main sub brand strategy is the most common use of foreign brand casual wear brand expansion strategy. Such as the French brand Etam (Etam) in the Chinese market on the use of main and brand strategy. It is the main brand Etam Etam established based on the weekend, Vice brand Etam sports. While sub brand can enjoy the influence of the main brand, make full use of the original main brand brand resources, on the other hand to extend the use of sub brand products deliver a new image to promote the concept and personality. With the increase brand awareness and increase enterprise scale forces, more and more casual domestic brands also achieved through the main sub brand strategy brand extension, such as positioning in the China Men’s Mark Fairwhale senior leisure (MarkFairwhale) in addition to establishing the main brand Mark Fairwhale, but also build a business for men, jeans for men and women and other sub brand.

Multi brand products that consumers in the same class to create two or more brand strategy. It was established to meet different product characteristics and different motivations to provide a way to buy. Strong apparel business, you can launch a number of brands, covering multiple market segments, increase their market share. If the three major U.S. clothing giant GAP brand, OldNavy, Gap and BananaRepublic on the cover from the popular low cost models, the basic models to sophisticated high end models and then to fashion and other market segments. Metersbonwe also just launched not long ago the high end casual wear brand ME & CITY.

But more than a major drawback is the brand for each brand might only be a small part of the market share, but profits are not high for each. Baleno launch of many new brands on the face of such awkward questions. In view of the risk of multi brand strategy as well as domestic and foreign multi brand strategy failed precedent, China’s casual brand in the implementation of this strategy to be careful, must not be anxious for blind expansion.The development of the domestic casual wear brand, need to establish their own brand marketing in the improvement and innovation. Casual wear brand in China and domestic market decide that the brand positioning, brand promotion and brand extension is to determine the survival and development of the brand’s three main factors.

However, the prevailing domestic sportswear brand positioning, brand confusion, generalized form of the single and the lack of brand extension for scientific long term planning and other issues. To address these problems and speed up the pace of development of domestic brands, domestic sportswear brand marketing companies need to conduct a comprehensive scientific parts of the improvement and perfection, and to ensure an

Tags: Analysis, brand, Casual, Marketing, WEAR

EXPLORING SENSIBLE BRAND ? A PRECISE METHOD OF ACQUIRING BRAND LOYALTY

Introduction

A brand is the identity of a specific product, service, or business. A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word brand began simply as a way to tell one person’s cattle from another by means of a hot iron stamp.

Branding is perhaps the most important facet of any business–beyond product, distribution, pricing, or location. A company’s brand is its definition in the world, the name that identifies it to itself and the marketplace. A model may be beautiful, but without a name, she’s just “that girl in that picture.” Where would Norma Jean be without Marilyn Monroe, or who would imagine Coca-Cola as just a soft-drink manufacturer? A brand provides a concrete descriptor to customers and competitors alike, a name for a product or service to distinguish it from anything else. Bob may run a hobby shop, but trying to advertise as “The hobby shop a guy named Bob runs down the street a ways” is financial suicide. Each customer will have to describe the shop, who Bob is, and what the shop does every time someone asks about it.

This makes the process of recommending a good hobby shop too much work for the average customer, and far too much work for a user looking for hobby shops on the Internet. A customer looking up Bob’s hobby shop will have an easier time of it if he or she knows to refer to it as “Bob’s House of Hobbies,” and the customer can then refer others to Bob’s hobby shop by name, increasing the potential advertising exponentially.

Developing a brand involves more than just picking a catchy name and placing an ad in the newspaper–a brand is more than a unique string of letters denoting a particular product; a successful brand is a mnemonic trigger that makes a consumer feel a certain way when the brand is thought of. For those who drink cola-flavored soft drinks, which is more appealing on a hot day: a cold cola soda, or an ice-cold Coke? Coca-Cola has spent 100 years developing their particular brand of cola-flavored soda as a refreshing beverage and a seminal representation of a market segment. Coca-Cola has used a combination of direct marketing, give-away techniques, and multi-product cross-branding to achieve maximum brand recognition and visibility in not only its immediately competitive market, but in markets as diverse as Coca-Cola branded race cars and housewares.

Brand loyalty is an integral part of building a brand, as consumers usually have a choice of products in the same market segment, and so a successful company will come up with a way to keep consumers re-buying their product or coming back to their location rather than going to a competitor. These brand loyalty-building efforts may come in the form of coupons, incentives such as many grocery chains’ technique of “grocery discount cards” or “loss leaders,” meant to draw consumers into the store, where they will hopefully buy products along with the discounted fare at a higher profit ratio.

In exchange for these discounts and grocery cards, many companies collect information about buying habits and average spending amounts, the better to tailor advertisements and better-focus future promotional efforts. Once a consumer is hooked, brand loyalty tends to result in higher sales volume, as well as loyal customers being less sensitive to price changes of their favorite brands (within reason, of course), as well as less sensitive to competitors’ incentives. Studies have shown that it takes 5 times as much money to gain a customer as it does to retain one. That’s 5 times as much money as could have been spent on other things.

A brand is who your company is, and what it is selling–it is as important as naming a baby, and should require the same amount of effort to develop it, but if done well, can mature into a successful and profitable adult.

Advantages of sensible Brands

A strong sensible brand offers many advantages for marketers including:

Brands provide multiple sensory stimuli to enhance customer recognition. For example, a brand can be visually recognizable from its packaging, logo, shape, etc. It can also be recognizable via sound, such as hearing the name on a radio advertisement or talking with someone who mentions the product.
Customers who are frequent and enthusiastic purchasers of a particular brand are likely to become Brand Loyal. Cultivating brand loyalty among customers is the ultimate reward for successful marketers since these customers are far less likely to be enticed to switch to other brands compared to non-loyal customers.
Well-developed and promoted brands make product positioning efforts more effective. The result is that upon exposure to a brand (e.g., hearing it, seeing it) customers conjure up mental images or feelings of the benefits they receive from using that brand. The reverse is even better. When customers associate benefits with a particular brand, the brand may have attained a significant competitive advantage. In these situations the customer who recognizes he needs a solution to a problem (e.g., needs to bleach clothes) may automatically think of one brand that offers the solution to the problem (e.g., Clorox). This “benefit = brand” association provides a significant advantage for the brand that the customer associates with the benefit sought.
Firms that establish a successful brand can extend the brand by adding new products under the same “family” brand. Such branding may allow companies to introduce new products more easily since the brand is already recognized within the market.
Strong sensible brands can lead to financial advantages through the concept of Brand Equity in which the brand itself becomes valuable. Such gains can be realized through the out-right sale of a brand or through licensing arrangements. For example, Company A may have a well-recognized brand (Brand X) within a market but for some reason they are looking to concentrate their efforts in other markets. Company B is looking to enter the same market as Brand X. If circumstances are right Company A could sell to Company B the rights to use the Brand X name without selling any other part of the company. That is, Company A simply sells the legal rights to the Brand X name but retains all other parts of Brand X, such as the production facilities and employees. In cases of well developed brands such a transaction may carry a very large price tag. Thus, through strong branding efforts Company A achieves a large financial gain by simply signing over the rights to the name. But why would Company B seek to purchase a brand for such a high price tag? Because by buying the brand Company B has already achieved an important marketing goal – building awareness within the target market. The fact the market is already be familiar with the brand allows the Company B to concentrate on other marketing decisions.
Our business needs to develop a positive image in the minds of consumers. Contrary to what most people believe, branding isn’t just a logo. Your businesses purpose, focus, and image all combine to create your brand. Why should you make this effort? Below are a few benefits:
You are remembered. It’s hard to remember a company with a generic name. You may not be able to distinguish their purpose and business focus. And why would you call a company if you couldn’t tell what they did? Branding your business ensures consumers will know what you’re about.
You get customer loyalty. The fact is, people build close bonds with brand identities. Consumers want quality products they can trust. So, your business should have an identity that your customers can cling to. If your company delivers great products and services and has a great brand identity, people will remember you. In addition, they will often refer you to friends and family.
You become recognized. You want the people who have not done business with you to still know who you are and what you do. If they see your ads on billboards, hear them on radio, see them on television, or any other media, they will know your brand identity. And when the time comes that they need your product or service, your company will be the first to come to mind.
Here are another five great benefits of creating a strong personal brand: 
One of the greatest benefits to you of having a strong brand is that it creates a sense of individuality and “separateness” in the marketplace so that your clients are able to easily differentiate your company from your competitors.
The goal of personal branding is to be known for who you are as a person and what you stand for. Your brand is a reflection of who you are, your opinions, values, and beliefs that are visibly expressed by what you say and do, and how you do it.
The branding process allows you to take control of your identity and influence the perception others will have about you and the services you offer.
A strong personal brand will enable you to effortlessly attract clients and opportunities. You will position yourself in the mind of your marketplace as THE service provider of choice to dominate your market and command higher fees – work less and make more!
Establish yourself as an expert and become a celebrity in your area of specialty. Gain name recognition in your area of expertise where it counts the most – in your customer’s mind. Make a lasting impression and be super-rewarded for your individuality.
Trust, respect, and admiration will follow when your name and message are embedded repeatedly into the consciousness of your target market. You will be perceived as an expert the more you are visible to your target audience. Your brand will propel you to the top in your marketplace.
Customers pay for image. We are a very brand aware society. People commonly associate brand names with quality and may only buy certain brands for that reason. If people only want

Tags: ACQUIRING, brand, EXPLORING, LOYALTY, METHOD, PRECISE, SENSIBLE