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Brand Management Chapter 7 LEVERAGING SECONDARY BRAND ASSOCIATIONS TO BUILD BRAND EQUITY Lecture 21 Date: November 7, 2018 Conceptualizing the Leveraging Process Secondary elements: companies have no direct control on these elements. Transferring brand awareness, image of secondary elements to new brands. Linking the brand to some other entity may:  

Create a new set of associations from the brand to the entity: AKS (Abul Khair Steel) and Shah Cements associated with BPL series to get the mass awareness and attention. Affect the existing brand associations: Kumarica hair oil brand is associated with Umme Ahmed Shishir to reduce the dull feeling and giving a posh feeling in that brand.

There are different means through which SBA can be leveraged:        

Companies (through branding strategies): Click is associated with RFL Company. Countries or geographic areas (through identification of product origin): the country from which the product has come. Bangladesh associations are golden jute, Jamdani etc. Channels of distribution (through channel strategy) Other brands (through co-branding): associating with other brands Characters (through licensing): associating with prominent characters Spokesperson (through endorsement) Events (through sponsorships): IPL, BPL etc. Other third party sources (through awards or reviews): the companies with which the companies have not different affiliation.

Creation of New Brand Associations Secondary brand associations are most likely to affect evaluations of a new product when: Consumers lack either the motivation or the ability to judge product-related concerns. For example, Cricket & Rocket, successful launch of Dan Cake by sponsoring Bangladesh and Pakistan cricket event. Effects on Existing Brand Knowledge Cognitive consistency: What is true for the new association must be true for the brand. For example, Novak Djokovic, a Serbian professional tennis player who is currently ranked world No. 1, has association of ‘Human’ and UNICLO, clothing retailer of Japan; Tiger Woods, an American professional golfer and Rolex Factors predicting the extent of leverage from linking the brand to another entity:  

Awareness and knowledge of the entity. Meaningfulness of the knowledge of the entity: popularity must be broken down into meaningful association. For what it stands for?

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

Transferability of the knowledge of the entity: what is the fit with the brands? Fair and lovely has no fit with Hero Alom.

1. Company Three main branding options exists for a new products   



Create a new brand: Rocket, sheba-banglalink. The equity of existing brand is not exploitable. So, new brand is launched such as Seba telecom Adopt or modify an existing brand: rong-bishho rong Combine an existing brand and a new brand: whooper from hungry jacks, Hungry Jack's Pty Ltd is an Australian fast food franchise of Burger King Corporation. Gel Kayano from Asics, ASICS is a Japanese multinational corporation which produces footwear and sports equipment designed for a wide range of sports, generally in the upper price range. Existing brands can be related to a corporate or family brand: Nike, Adidas, Square hospital, PRAN. It may not be beneficial al time. A corporate or family brand can be a source of brand equity. Leveraging a corporate brand may or may not be useful (e.g. Trump university)

2. County of origin or geographic location A number of brands are able to create a strong POD through COO:        

Levi’s jeans: means for only mine workers. Channel perfume- France Foster beer- Australia Gucci – Italy BMW- Germany Mont Blanc, brand of pen - Switzerland Cadbury- England Garments – Bangladesh

Research indicated: • Domestic brands are more strongly favored in collectivistic countries: like in Bangladesh, encourage to purchase Bangladeshi products. Feature of collective society is submission of personal interest in favor of common interest like in joint family. • In individualistic societies that are more guided by self-interest and personal goals, consumers demand stronger evidence of product superiority. One to one marketing is directed towards individualist society. 3. Channels of Distribution Endorsement of expensive stores like Saks Fifth Avenue, Harrods will uplift the image of brands. 4. Co-branding When two or more existing brands are combined into a joint product or are marketed together in some fashion. For example, City Bank launches Dhaka University Amex Card, burger with Apple. PHILADELPHIA launched chocolate flavor Cheese with Cadbury. Advantages of Co-Branding Borrow needed expertise: when some companies have not the expertise. 

Leverage equity you don’t have

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    

Reduce cost of product introduction Expand brand meaning into related categories Broaden meaning Increase access points Source of additional revenue

Disadvantages of Co-Branding     

Loss of control Risk of brand equity dilution Negative feedback effects Lack of brand focus and clarity Organizational distraction

Giving away your brand is a lot like giving away your child you want to make sure everything is perfect: It takes time to build a brand. That’s why proper evaluations must be done before co-branding. Guidelines: Profitability and extrinsic benefits that will be extracted from co-branding. Ingredient branding: It a special type of co-branding contributes to the performance of brands. For example, Toyota uses Michelin, a French tire manufacturer, and sound system of top brands. Four Seasons Private Jet charges around $3000 for their service as they uses ingredients of top branded products such as Bvlgari Perfume, finest Italian pillow cover. It should be convinced and communicated to the customers. 5. Licensing Creates contractual arrangements whereby firms can use: Names, logos, and characters of other brands to market their own brands for some fixed fee. For example, licensing with Ninja Turtles, Pokémon Go, Barbie doll. 6. Celebrity endorsement The positive equity of celebrities are transferred to the brand for customers’ attention. There are some risks in celebrity endorsement. For example, Sabbir Rahman endorsing TVS scooter is risky. There are some ups and downs in the life of Andre Kirk Agassi, an American retired professional tennis player, for which the brands endorsed by him were removed. Justin Drew Bieber is a Canadian singer-songwriter. It is required to assess the lifecycle of the celebrities. 7. Third Party Sources Toothpaste endorsed by Bangladesh Medical and Dental Council. Horlicks

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