1. Value creation through brand building
Presented by-
Nupur agrawal
According to Kapfefer (2001), “a product gives a certain efficacy
while a brand gives more trust.”
2. CONTENT-
Terms;
Process of value creation-
business model;
brand equity;
How the brand creates Value for shareholders;
How the brand creates value for customers;
Top ten brands of the world because of their high
brand value;
Conclusion.
3. Meaning of terms
Value- what the buyers are willing to pay for?
Brand-A brand is the identity of a specific product, service, or business
A brand is a promise of the seller to deliver a specific sets of benefits or
attributes or services to the buyer.
brand building-
“efforts to gain consumer confidence in brand “
The establishment and improvement of a brand's identity, including
giving the brand a set of values that the consumer wants, recognizes,
identifies with, and trusts.
4. The Two Determinants of Value
Creation
Business
model
VALUATION
MULTIPLE
Brand
equity
Brand equity-
The value inherent in a well-known brand name.
EX-WILLS FILTER CIGARATTES
LUX
7. What needs to be true for a
100% global brand?
Homogeneous needs world wide
Common usage
Common, unique features and benefits
Same value equation
Common heritage and roots
Common brand value
Common visual identity
8. Benefits of global brand
strategy
R & D efficiency –product and engineering
Capital utilization
Input costs
Crisis management supply
Management over head
Agency and design cost
Brand assets
Experience-interdependence
Market level operational focus on excellence of
execution
9. Values developed in the process
of brand building include
psychological, physical, and
functional properties that
consumers desire and should
always identify a property that is
unique to that brand.
10. Value creation for Shareholders
Price premium-High prices can be there with well
known brands.
Brand loyalty
11. 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 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
If this business were split up, I would give you the land and bricks
and mortar, and I would take the brands and trade marks, and I
would fare better than you."
— John Stuart, Chairman of Quaker (ca. 1900)
12. Customer recognition-
Brands provide multiple sensory stimuli to enhance customer
recognition.
The Volkswagen bus ad,
talked only about ‘plenty of
room’
The Volkswagen bus ad,
talked only about ‘plenty of
room’
Value creation for Customer
13. Perception of the customer
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.
This “benefit = brand” association provides a
significant advantage for the brand that the customer
associates with the benefit sought
17. “If Coca Cola lost everything except for
‘the formula’ and its brand name , it
could walk into any bank in the world
and get $100 billion loan to start from
the scratch”
Fortune Magazine
Brands add value to the product, which
helps it differentiate itself from
competition
