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Importance of Brand Equity

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International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 1, pp: (366-369), Month: April 2015 - September 2015, Available at: www.researchpublish.com
Page | 366
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Importance of Brand Equity
1Nishi Malhotra, 2Priya Malhotra
1MDI Gurgaon, 2FMS Delhi
Abstract: This paper aims to explore the value of brand, brand equity, brand personality and brand image. In
today’s scenario it is extremely important for any company to build its brand value through proper Marketing,
Advertising and Sales Promotion. Today’s markets are governed by principles of Marketing, customer is the king
and selling as a concept has lost its value. The case in point is Maggi Noodles by Nestle. This paper aims to explore
the different concepts of making product tick for the customer. One of the major concepts driving the markets
today is Innovation and Innovention. Besides, this customer service has become all the more important. This
paper aims to study various case studies, to explore the importance of Marketing in today’s world. Its no longer
sufficient to just sell the product. It is extremely important to conduct Market Research and Focus Group
discussion to find out the need for the product. Branding in itself is not an end, there is need to ensure proper
quality of the product and educate the customer about the product. Proper Segmentation, Targeting and
Positioning was never as important as today.
Keywords: Branding, brand equity, brand personality, brand image, Advertising and Sales Promotion.
I. INTRODUCTION
In recent times, one of the major case studies is Maggi from Nestle India. It has been in News for failing Lead and MSG
test. The latest news emphasis, the massive amount of Marketing, that was undertaken by Maggi and Nestle India
Limited. This product is an absolute case of PR (Public Relations) crisis and Advertising disaster. Nestle Maggi is being
sued by the Government for misleading the customers. In today’s world it is extremely important to keep reinventing the
product. Maggi, Nestle India has probably failed to reinvent itself. In the year 1982, Nestle India introduced Maggi, as
daily snack. It was a great success and all age groups from kids to adult started taking Maggi. In but in no time, the card
of Dream Treat, came trembling down. This was an outcome of lackadaisical attitude of the company authorities to legal
regulations issued by the Ministry of Food and Consumer Affairs. This paper is aimed at analyzing the importance of
brand equity and branding.
II. OBJECTIVES
To study the recent changes in the Marketing Environment;
To study the recent changes in Marketing concept;
To analyse several brands and need for rebranding and reinventing the brand;
To analyse the various facets of branding through Brand Prism
III. RESEARCH METHODOLOGY
In this paper, I have followed the Secondary Research methodology, to analyze various publications and research journals
to study of various brands and Marketing concepts. In this paper I have followed a conceptual research based on existing
Research Journals and Marketing Publications.
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 1, pp: (366-369), Month: April 2015 - September 2015, Available at: www.researchpublish.com
Page | 367
Research Publish Journals
IV. MEANING OF BRAND
Brand is a combination of logos, symbols, images and tagline that conveys the big idea, or the essence of the product. It
reinforces the truth, through occupying a place of relevance or position in the minds of the customer. The Brand is the
DNA of the product, it is the strategic idea and vision of the company that is producing the products. It is the summation
of the brand personality, brand physique, culture, relationship,self - image and self perception of the brand.
V. MEANING OF BRAND IDENTITY AND THE BRAND IMAGE
Brand Identity is the set of associations and images that customer perceive of the product or the brand. It basically refers
to the set of the relationships that the product or the brand has with the product. For example in case of Lifebuoy soap - it
is health very well conveyed through the tagline, “Lifebuoy he jahan Tandarosti hai wahan” or Ujala - Char bundon vala,
its stands for cleanliness and health.
Every brand through its public communication, logos, images and tag lines tries to carve a niche for itself in the minds of
the customers. Brand identity is an external concept, as it is visible to the consumer, but brand image is an internal
concept, as customer acquires or decipher it on his own. Brand image is the hidden code of the product.
VI. EFFICIENCY OF THE BRAND
Branding is the process of creating an identity or vision for the product and communicating the big idea. How well the
brand is able to deliver the promise is the efficiency of the brand. Longevity of the brand depends upon the efficiency of
the product. There is an increased need to nurture and develop the brand over the period of time. For Example: If we look
at Raymonds advertisement, from 1950-60s advertisement based on “Chess Motifs”, to “The Ordinary Man” of 1970s to
“The Complete Man” of today, Raymond has come full circle. It has been one of the most favoured brand in suitings and
shirtings for India.
The Efficiency of the brands, refer to the ability of the brand to convert its inputs into outputs. The inputs refer to the
content, script, actors, imagery, taglines and copy of the Marketing communications. It refers to the number of times,
brand is able to connect with the customer.
VII. BRAND STRATEGY
The brand should directly flow from the Brand Mission and company strategy. The company should have a roadmap in
place to put in place a proper strategy to clarify what does the company wants to achieve, vision and the mission. Each
and every element of the brand should draw from the brand strategy and brand mission.
VIII. RELEVANCE OF A TRUE STORY AND A TRUE RESEARCH BRIEF
In today’s dynamic environment, when customer expectations have changed drastically ove r the time. The customer today
is looking something more than the brand promise. It is very important for the brand to have a true and original story and
sound Research brief in place. Every brand should be an outcome of a great research brief, an answer to the consumer's
problem. The research agencies, should do their bit to find out what is the need of the consumer of the user of the product.
For example - In case of Dove soap - the advertisement clearly states the result of the Research, that what a consumer is
expecting from the brand and then goes on to reinforce its brand promise through the copy and the advertisement. Another
case in point is Harpic cleaner, which is based on findings of the Primary Research.
As far as the tangibles of the product is concerned, it is very important to take into consideration the findings of the
research. It should be such that it should be able to speak loudly and interact with the customer.
IX. IMPORTANCE OF PACKAGING AND LABELLING
For successful branding, it is very important to have proper packaging and labelling on the product. The packaging is very
important to store the product, market the product and educate the customer. The products should be properly packaged
and labelled and should not be misleading. The Packaging material should be safe for the customer and should be able to
clearly demonstrate the inner strength of the product.
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 1, pp: (366-369), Month: April 2015 - September 2015, Available at: www.researchpublish.com
Page | 368
Research Publish Journals
X. COMPETITIVE AUDIT
Every company has should have sound business policy to conduct Competitive audit. The companies should be able to do
a comparative and competitive audit of the brand vis a vis another brand. The competitive audit, should be held
mandatory for a proper branding exercise. A sound brand should be based on branding ideals, mission and vision of the
company and a comprehensive competitive audit of the brand.
XI. INTERNAL AUDIT
Brand should undertake the Internal Audit and its findings for the continuous improvement and upgradation of the brand.
XII. KAFERERER’S BRAND PRISM
Brand Architecture, refers to the sum total of the sign, symbol, logos and taglines that are used to create the brand impact.
The Brand prism refers to the model that is used to explain various facets of the brand, from the recipient to the sender.
From the sender perspective, the Brand Equity comprises of Physique and the Personality. We can discuss both the
aspects of the brand equity in detail:
Picture of the Receiver : How the consumer perceives the brand?
Physique: Physique refers to the outer wardly appearance of the brand. For example of Lifebuoy, has a very very macho
image. Its physique is athletic and macho
Personality: Personality refers to the associations and brand image. In case of Lifebuoy the brand has the personality of
the Sportsman/Sportswoman and mature person.
Picture of the Sender : What are the codes of the brand?
Refelection: It refers to how the brand reflects himself in the eyes of the consumer. For example in case of Lifebuoy, the
brand reflection is that of a health brand for a low price.
Self Image: The self image of the brand is the perception of the brand. Lifebuoy hai jahan tandarosti hai wahan. A
champion and true sports person.
International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 3, Issue 1, pp: (366-369), Month: April 2015 - September 2015, Available at: www.researchpublish.com
Page | 369
Research Publish Journals
Externalization - What is the external association of the brand?
Relationship : It refers to the relationship that a brand has with the consumer. In case of Lifebuoy, the brand has the
relationship of health and trust.
Culture: It refers to the values that flow through the brand. For example in case of brand lifebuoy, it has Indian values
and scientific outlook.
XIII. CONCLUSION
Brand is the ultimate reason for the existence of the brand. Brand Equity built over the time help to increase the time
utility, place utility, cost utility of the brand. It is ultimate motivation for purchasing the brand. It is an outcome of
customer expectancy - what the consumer expects of the brand, instrumentality - what are the functionalities of the brand?
and valency of the product - what the product should be able to deliver ? Brand should be the Integrated Voice of the
Customer. It should convey the inherent values of the brand and should be built after due thought and research. Maslow
had long time ago emphasized the various needs that motivate the consumer to purchase the brand. The brand building
and Marketing should be able to communicate well the inherent values of the brand.
REFERENCES
[1]. Designing brand equity : By Alina Wheeler
[2]. Brand Expertise : By Joel Noel Kapferer
[3]. Marketing Management : By Philip Kotler
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... It is the ultimate motivation for purchasing a brand. However, the brand building process should be able to communicate well the inherent values of the brand (Malhotra and Malhotra, 2015). Maradufu et al. (2017) found that experiential marketing is the best way to market a product, and senses are heightened when they experience the product/brand first hand. ...
... It is the ultimate motivation for purchasing a brand. However, the brand building process should be able to communicate well the inherent values of the brand (Malhotra and Malhotra, 2015). Maradufu et al. (2017) found that experiential marketing is the best way to market a product, and senses are heightened when they experience the product/brand first hand. ...
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