Categories
Brand

Building Brands

The following paper provides detail insight into the different concepts regarding branding. It starts off by defining the brand and the importance of brands I the market. It then continues on to elaborate on the brand building process, the conceptual framework and the customer relationship building process for a brand. The paper also highlights the characteristics of leading and successful brands in the market. The problems and risks associated with branding are discussed and solutions for overcoming the specific problems related to brand imitation and been devised.

The paper also follows the work of brand theorists and researchers in order to establish the barding concept and discuss the new branding strategies comparative to the traditional brand building strategies. An in-depth analysis of three major brands of today is conducted using the case study method. The case studies for Ebay, Emirates Airlines and Ferrari are performed in order to identify their unique brand proposition and their brand building strategies in the different sectors and industries of the economy. 1. Overview

The following paper provides in depth information and commentary about the importance of brands and the characteristics of the brands. The process of building a brand has been discussed and the case studies have been analyzed in correlation of their brand building efforts. The paper also depicts how brands can be successful in building convincing and long term profitable brands. 1. 1. Objective The objectives of this paper are listed down as: • Define the nature of the brand • Discuss the importance of the brands in an industry and how they effect consumer purchase decision
• Proving a comprehensive resource on the strategies for brand building and long term profitability • Discuss the risks associated with branding • To discuss the prominent brands in the market of diverse natures, and to explain the brand building efforts taken up by these brands 1. 2. Methodology The nature of this paper is that of a research paper. No practical or experimental research has been carried out. Instead the research is supported by literature review and key trends in the market.
The brand building operations discussed in the paper have been supported by real life examples of brand building operation and their effects on the industry and the market. the literature review is also supported by the works of brand building theorists like David Aaker and the Ries’. The paper takes into account there case studies where the history, business operations and the brand building strategy of three diverse and well known brands and been depicted. The brands which have been discusses, analyzed and compared in the case studies are the following
• A web/ internet brand, Ebay. • An international brand, Emirates. • A popular international sports automobile brand, Ferrari. All three brands taken into account for the purpose of case study analysis are brand leaders and the pioneers in their industry of operation. 1. 3. Structure The paper has been structured in such a manner that the components of the research have been divided among 4 categories. The first category discusses the nature and basics of the brands. It depicts what the brand actually is and what are the different layers of the brand.
The different types of brands are discussed here and the importance of brands according to customers is also depicted here. The value based bands are also discussed in this section and the specific values the brands have for the company as well as the customers are explored. The second category covers the brand building strategy. In this the brand building process and the development and frame work of a brand have been discussed in detail. The supporting action of relationship building for brand building operations is also discussed here.
This section is closed by discussing the different characteristics of successful brands and the risks that are attached with branding The third section covers the three case studies of the prominent brand leaders in the market. rtheir value proposition id s depicted in this section and their brand building strategy is identified here. The research is supported by the SWOT analysis of these brands and the comparative analysis of these brands relative to other in the same market. The reasons for their leadership in their specific industries have also been realized here.
The last section comments on the nature of the research, and the conclusion gained from the research. Further opportunities of research on the topic have also been identified. 2. Basics of a Brand: 2. 1. What is a brand? A brand is essentially an entity which has certain visual, rational, emotional, as well as a cultural image which is associated with the brand. The brand does not exist solely to sell the product to the people. It creates a bond and an associative relationship between the customer and the company.
The brand can be a product or a service or even simply the name of the company which manufactures or provides the product of service. Branding gears to evict a response from the users via the advertising tools of targeting the audience through positive reinforcement based on cumulative impressions of the brand. Through branding the target audience is forced to remember the brand and have positive associations because its helps the consumers in making decision at the point of purchase about the selection of brands they want to buy and consume.
The value and the satisfaction that the consumer derives from the product or service is also enhanced by existence of the brand Simply put a brand is a promise made by the company to its customers regarding the quality of the products. The quality of the product/ service is central to the brand and helps in differentiating it from others in the market whereby reducing competition. As said before the brand can be an image, a logo, a slogan and even the brand name. “If you want to build a successful brand, you have to understand divergence.
You have to look for opportunities to create new categories by divergence of existing categories. And then you have to become the first brand in this emerging new category. In the great tree of brands, a successful brand is one that dominates an emerging branch ad then becomes increasingly successful as the band expands to block the sunlight from nearby branches. ”(Ries & Ries, 2004) Branding however is the process by which the company communicates its mission and objectives to its target audience.
“Branding is a rather new concept: a single, seemingly innocuous idea conceived by the strategists Al Ries and his wife, Laura Al Ries in the mid-1980s. They believed that successful companies produced brands instead of products, that is, brands were intangible and existed only in the minds of the consumers” (2007, Brand Wagon). The branding process is initiated as well as structured and proposed by the founders of the brands, or the key people in the company who have come up with the concept of the brand. Branding can also be defined as the process by which the business builds its activities around the promotion of its products.
It deals with creating a unique idea, or mindset in the minds of the consumer relative to the brand which helps the target market differentiate it from, the competition in the market. People often make mistakes while branding their products. These mistakes mostly relate to not thinking rationally or logically when building the brand, not maintaining the brand or keeping up with the environmental, technological and cultural changes in the market and trying to appease everyone. Problems can also arise if the company itself is unaware of what the brand actually stands for and who they actually are targeting.
When the company employees are not fully committed to branding then this can also lead to a failed brand. Similarly not having a dedicated marketing plan set out or using too much technical jargon in the communication process leads to creating inconsistency in the resultant brand. The biggest pitfall in branding however is trying to hard to be different and differentiating the product or service from the competition. This can lead to a loss of visions for the brand. The following diagram depicts the Brand Hexagon which shows the integration of brand equity and brand identity which forms the brand

Categories
Brand

Brand Hierarchy

Smart Principles for Designing a Brand Hierarchy We all know the recession has drastically impacted consumer behaviors, but we may often overlook its direct impact on brands themselves. The recession has changed the way marketers manage their brand portfolios as they try to do more with less. As such, marketers are taking a closer look at how then can stretch existing brand equity across a greater number of products, often taking a parent brand/sub-brand approach. We generally see four different sub-brand approaches, each with their own benefits and risks: 1.
Driver Sub-Brands—A driver sub-brand encourages purchase decisions by representing the value proposition central to the user experience. The parent brand endorses the sub-brand—but it’s the sub-brand that defines the consumer’s perceptions of the product or service experience and proves the primary driver motivating consumer purchase. Take the Gillette Fusion razor. Customers primarily buy the technology and performance represented by the Fusion name. Fusion is the driver brand while Gillette creates a strong identity and clear visibility for the Fusion name on the package, retail rack, and in consumers’ minds.
As you might guess, if a company is going to take a driver sub-branding approach, then the sub-brand must generate real response to its entrance in the marketplace to succeed. 2. Co-Driver Sub-Brands—In this case both the parent brand and the sub-brand play major—and often equal—roles in driving the consumer toward purchase. Cadillac’s Escalade sub-brand serves as a co-driver, as both the Cadillac and Escalade brand names influence consumers’ purchase decisions.

While consumers associate the Cadillac name with top of the line performance, quality, and style, the Escalade brand compounds that image with the slightly rugged, more versatile associations of a sports utility vehicle. Cadillac marketers leverage the associations of both driver brands to command market share in the luxury sports utility vehicle category, as well as generating significant demand for the car among Hollywood celebrities attracted to the brand’s image of luxury, spaciousness, and high performance versatility.
In co-driver situations, both the parent brand’s image and the sub-brand’s image together influence the consumer’s decision to purchase the product. 3. Descriptor Sub-Brands—As implied by the name, descriptor brands communicate a distinct facet of the parent brand—e. g. , class, feature, target segment, or function. For example, Purina Dog Food maintains the following descriptive brands: Dog Chow, Beneful, Hi-Pro, Fit & Trim, Puppy Chow, Moist & Meaty.
Purina Brand Dog Food uses these descriptor sub-brands to more accurately meet the needs of individual dog breeds and the specific demands of dog owners. While all dogs could potentially thrive off of the standard Puppy and Dog Chow offerings, developing specialized offerings for overweight, high-energy, and performance dogs defined by a unique descriptor sub-brand enables owners to better address their dog’s perceived needs. This is the riskiest category of sub-brands, as the sub-brand may cannibalize the parent brand if insufficient differentiation among the varieties exists. . Endorsed Sub-Brands—In an endorsed sub-brand relationship, the parent brand often provides support and credibility to the sub-brand’s claims in a more explicit fashion than co-drivers (for example, Rugby by Ralph Lauren). Endorsed sub-brands provide consumers with assurance that the sub-brand will deliver on the same value propositions as the parent offering, enabling the parent brand to expand into new markets while retaining its established brand position.

Categories
Brand

Consumers’ Perceived Value and Brand Image Towards Luxury Vehicle Brand Stretching

CONSUMERS’ PERCEIVED VALUE AND BRAND IMAGE TOWARDS LUXURY VEHICLE BRAND STRETCHING By Teerapong Tammasuwan January 2013 The work contained within this document has been submitted by the student in partial fulfilment of the requirement of their course and award Table of Contents List of Figures List of Tables Acknowledgements Abstract Chapter 1: Introduction 1. 1 Overview 1. 2 Luxury Vehicle Market Overview 1. 3 The Significant of Study 1. 4 Aims and Objectives 1. 5 Research Questions 1. 6 Dissertation Outline Chapter 2: Literature Review 2. 1 Introduction 2. 2 Branding 2. 2. 1 Branding Definition 2. 2. 2 Brand Image and Equity 2. . 3 Brand Loyalty 2. 3 Brand Stretching and Extension 2. 4 Defining Luxury Brand 2. 4. 1 Financial Value 2. 4. 2 Functional Value 2. 4. 3 Individual Value 2. 4. 4 Social Value 2. 4 Chapter Summary 6 6 6 7 8 10 12 13 14 15 16 18 1 2 3 4 4 5 i ii iii iv Chapter 3: Methodology 3. 1 Research Philosophy 3. 1. 1 Positivism 3. 1. 2 Interpretivism 3. 2 Research Perspective 3. 2. 1 Deductive Research 3. 2. 2 Inductive Research 3. 3 Research Approach 3. 3. 1 Qualitative Research 3. 3. 2 Quantitative Research 3. 4 Research Design and Research Methods 3. 4. 1 Research Design 3. 4. 2 Research Methods 3. 5 Ethical Considerations 3. . 1 Ethical Principles 3. 5. 2 Plagiarism 3. 6 Limitations of Research Chapter 4: Findings and Analysis 4. 1 Introduction 4. 2 Findings and Analysis 4. 2. 1 Section 1: General information brands stretching product 4. 2. 3 Section 3: Perceived brand image of luxury vehicle brand stretching products towards original brand name 42 29 29 29 36 19 19 20 21 21 22 23 23 23 24 24 24 26 26 27 27 4. 2. 2 Section 2: Factors encouraging respondent to purchase luxury vehicle Chapter 5: Discussion 5. 1 Introduction 5. 2 Key Drivers Influencing Consumers’ Perceived Value 5. 2. 1 Financial Value 5. 2. 2 Functional Value 5. 2. Individual Value 5. 2. 4 Social Value 45 45 45 45 46 47 5. 3 Consumer Intention Towards Image of Luxury Vehicle Stretching Brand 47 Chapter 6: Conclusions and Recommendations 6. 1 Research Conclusions 6. 1. 1 Objective 1 6. 1. 2 Objective 2 6. 1. 3 Objective 3 6. 2 Recommendations 6. 3 Limitation and Recommendations for Further Study Appendices Appendix 1: Questionnaire Appendix 2: Participant Information Sheet Appendix 3: Ethics Compliance Form   63 68 71 49 49 51 51 51 53 List of Figures Figure 2. 1: Attitudinal and behavioural loyalty model Figure 2. 2: The conceptual model Figure 3. 1: The process of deduction Figure 4. : Respondent’s demographic profile Figure 4. 2: Key luxury product buyers Figure 4. 3: Favourite luxury vehicle brands Figure 4. 4: Selling notifications on luxury vehicle brand Figure 4. 5: Frequency in purchasing stretching product Figure 4. 6: Luxury stretching brand-selling notification Figure 4. 7: How likely to likely would you buy stretching products in the future 35 9 13 21 30 31 32 33 33 34 i List of Tables Table 3. 1: Research paradigms classification Table 3. 2: The differences between deductive and inductive approaches Ranking of important factors in purchasing stretching products Table 4. : Brand image Table 4. 2: Price Table 4. 3: Product function Table 4. 4: Product quality Table 4. 5: Social acceptance Table 4. 6: Emotional desire Table 4. 7: Word Of Mouth Table 4. 8 Encouragement factors in purchasing luxury vehicle stretching product Table 4. 9 Purchasing intention factors towards luxury vehicle stretching products 36 37 37 38 38 39 39 40 43 19 22 ii Acknowledgements This dissertation could not be accomplished without my supervisor, Geoff Alcock, lecturer in Advertising & Marketing at Coventry University.
I would like to express my gratitude and appreciation to my helpful supervisor for his valuable advices and time. He did not only supervise me but also provided encouragement, excellent guideline as well as essential review in every part of this dissertation. I would like to thank all professors and lecturers, who taught me in MA Advertising & Marketing course, the staff, the facilities of Lanchester library, Coventry University and all respondents who participated in my survey for their useful information and time.
Special thanks to all of my friends in Thailand and in the United Kingdom, especially the Thai Coventry Society’11 who encourage me and gave me a special time during my stay in the United Kingdom, without them I would not be able to complete this project. Finally, I would like to extend my sincerest gratitude to my family (Tammasuwan and Ruchirawat), who gave me an opportunity to study aboard, thanks for support and your faith in me. iii Abstract The luxury market is growing against recession crisis in the world market.

Despite their success, luxury brands need a fine balancing act to satisfy an increasing demand of the market and safeguards the brands’ cachet and exclusivity. Extending or stretching strategy is presented as a possible alternative for luxury brand, even though it may affect the image of original brand. This study concerns consumers’ perceived value and brand image towards luxury vehicle brand stretching. The research reveals that there are 4 factors that influence consumers’ perceived value of luxury brand which are financial, function, individual and social. They are the most influential factor for luxury vehicle brand stretching.
Furthermore, the research also presents the image of luxury vehicle brand after stretching in terms of how has the image of original brand actually been transferred to stretching product. The study used online-based questionnaire to investigate the factors that drive purchase behaviour. The questionnaire was conducted with 110 respondents aged between 20-35 years old and the result was analysed in this study. The finding shows that functional value is the most important factor encouraging consumer, and is followed personal desire fulfilment, symbolic sign of group membership come, price value came in respective order.
The finding also presents that brand equity and loyalty play an important role in driving perceived image of stretching brand. At the same time, the image of vehicle luxury brand has actually been transferred to stretching product and consumers still perceived luxury value from it. Consumers’ perceived value and luxury brand image found from this research could be used as a guideline for brand stretching strategies, especially for luxury brand. iv Chapter 1: Introduction 1. 1 Overview The market of luxury products continues to grow globally even in the recession crisis.
Luxury brands have thrived over the past two decades in this market and become more important as a part of people’s life (Tynan 2009). Recession may affect middle and lower income groups. This leads to widen gap between rich and poor people. However, overall market of luxury brands continues positive and can resist current crisis because it is linked with a specific model of society, which is divided into classes and has different possibilities and needs (Morelli 2012). Supported by Cohen (2012), t is stated that “premium brands have higher exposure to global growth markets, relative pricing power and strong brands, with ability to create a benefit”. Value of the luxury brand is a key success in the market because consumers perceive value of luxury brands, which, in turn, influences their purchase intention towards luxury goods (Shukla and Purani 2011). Despite their success in global market place during recession, luxury brands need a fine balancing act to satisfy an increasing demand of the market and safeguards the brands’ cachet and exclusivity (Bian and Veloutsou 2007).
In order to effectively respond to global markets expanding the original brand to other product categories utilises the power of the original brand. Extending or stretching strategy is a way to make product more affordable to attract middleincome consumers (Meyers, 2004). It presents key advantages over launching new product or new brand as it requires less investment in putting product to the market. For example, design and research cost can be reduced, consumer awareness is maintained from parent brand’s halo effect, consumer’s perceived risk is minimised which, in turn, enables consumers’ willingness to try (Cressey 2012).
Nonetheless, brand extension and stretching may damage the image of luxury brand (Vigneron and Johnson 1999). Therefore, it is important for the brand to carefully evaluate its extension or stretching strategy. 1 1. 2 Luxury Vehicle Market Overview The estimated value of the luxury market in 2007 was €200 billion, presenting a 31 percent increase from the past five years (Verdict 2007). In Britain, consumers’ spending on luxury goods has increased 50 percent between 1994 and 2004, while a mere 7 percent increase in non-luxury good spending in the same period (Keane and McMillan 2004).
Even global market is in a difficult economic situation recently, luxury sector is growing against the downturn. Bain & Company asserts 10th annual Worldwide Luxury Goods Market Study reveals that by the end of 2012, the luxury sales will increase 6. 7 percent and expect a further increase in global sales until 2015 (Morelli 2012). Similarly, in luxury vehicles market for last five years, the overall market of car sales in European Union has dropped. From the sales has dropped from €17 million a year to about €13 million in 2012 (Economist 2012).
However, sport and prestige car market still grows as car finance agreements rose by 11 percent in 2010, which is the main purchasing trend in the ? 25,000-plus category according to research. For example, Range Rover did especially well, gaining about 18 percent of financed vehicles. This figure is followed by Audi with 14 percent, BMW with 12 percent, Porsche and Aston Martin with 9 percent (Williams 2011). Even market is challenged by economic climate but it has continued to see a high demand for prestige vehicles.
Recent information reveals that Europe may be in trouble, but luxury car still has brisk record sales in May 2012 (Campbell 2012). Strong sales growth for luxury car around the world requires more production capacity. For example BMW further productions to the United Kingdom and the Netherlands, whilst still enjoying similar success as before (Madslien 2012). Value of luxury brands has been presented strongly and is working properly even in crisis situation. This can be seen from the value of well-known brand such as BMW, Mercedes-Benz and Volkswagen. They are all perceived to be high value.
From the world’s top brand year 2012 by Brandirectory (2012), the value of BMW, Mercedes-Benz and Volkswagen is presented at ? 13,150 2 millions, ? 12,222 millions and ? 10,983 millions, which are in the position of 22, 26, and 35 respectively. Many luxury vehicle brands are selling different products under their brand names in order to satisfy increasing demand of the market, safeguard the brands’ cachet and exclusivity as mentioned previously. Court et al. (1999), support that those firms who leveraging their brands by extending brand identities into new market can enerate about 5 percent or more in return to stockholders, compared with firms that do not extend their brands. The example can be found from Harley Davidson, which sells apparel and accessories under same brand name as its motorcycles and launches complimentary campaigns. Harley Davidson publishes the document called “The Harley-Davidson Roadtrip”, and inserted it in Complex magazine to present fashion editorial style, model names and Harley Davidson clothes (Newman 2007). Lynn Bonner, Harley’s director stated that “this document helps us show that we want to bring them on board and shows them they can look good while riding”.
Harley Davidson’s motorcycle generated $2. 99 billion revenue in the first nine months of 2012, while general merchandise including apparel and accessories generated $225. 4 million revenue for the brand (Harley-davidson 2012). 1. 3 The Significant of Study When brand expand and enters into different markets, this is appear to be an effective strategy. Extension or stretching may satisfy increasing demand of global market, maintain brand awareness and brands’ cachet; however, consumers perceive the value of luxury brand and react differently. The perceived quality of extended luxury brands is related to the fit with original brand.
In addition, perceived brand equity represents the main predictors, which lead to transferability (Stegemann 2006). Nevertheless, this concept is argued by Ruiz et al. (2007) who believe that perceived value is focused on quality and pricing issues. 3 As can be seen in an argument from the previous paragraph, researchers are unlikely to have a clear understanding of strong involvement and value recognition from others. Therefore, this study would like to investigate perceived value of brand stretching and to find out the factors influencing consumers’ perceived value of luxury vehicle brands stretching.
Moreover, this study includes how people perceived brand image and value of stretching luxury brand in relation to original brand. Researcher uses luxury vehicle brands as a model in this study because of the distance between original brand and extent of brand stretching can be clearly seen in general. 1. 4 Aims and Objectives • To identify the key factors that influence consumers’ perceived value of luxury vehicle brand stretching in 4 aspects: perceived financial value, perceived functional value, perceived individual value and perceived social value. To discover which perceived value is the most important factor affecting purchasing decision-making process. • To critically analyse how brand’s image of luxury vehicle brand has actually been transferred to new product after stretching. 1. 5 Research Questions • • What would convince consumer to purchase stretching product? Which perceived value is the most important factor in stretching products purchasing decision-making process? • Do consumers still perceived image and value of stretching product the same as their perception of original brand name? 1. 6 Dissertation Outline This research can be divided into five sections as follows: Chapter 1: Introduction This chapter covers background research including an overview of luxury market and luxury vehicle market, significance of the study, research aims and objective and research question. Chapter 2: Literature Review The literature review chapter contains a range of previous research studies and theoretical analysis linked to research objectives, which will be conducted to support the study. Chapter 3: Methodology and Research Plan
This chapter covers major elements of research including research philosophy, research approach, research design, research method research strategies and ethical considerations of the research. Chapter 4: Findings and analysis This chapter will provide the findings result and analysis of the study, and the result will be illustrated by using statistical tools. Chapter 5: Discussion Result evaluation and discussion will be provided in this chapter. Chapter 6: Conclusion and recommendation This chapter will cover research summary and the final conclusion including recommendations for further study. 5
Chapter 2: Literature Review 2. 1 Introduction This chapter will demonstrate relevant theories and previous research from reliable resources. Initially, the literatures of branding including definition, brand equity and brand loyalty will be defined so as to examine differences in meaning and significances. Moreover, brand extension and stretching definition, luxury and luxury value will be clarified so as to have a clear understanding and create logical connection to this dissertation topic. Finally, summarise of theories and previous research will help researcher formulate this dissertation framework. 2. Branding 2. 2. 1 Branding Definition Murphy (1998) defines brand as a differentiation in the goods or service of one producer from another. It is also described as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” (Kotler2000: 404). It has been argued by de Chernatony and McDonald (2003) that additional attributes or ‘added values’ which might be intangible can be considered by consumers more than its physical components in distinguishing a brand from product.
Many consumers purchase something because of emotional reason as well as functional reason; this is an example when added value plays an important role (Doyle 2002). Brand value is referred to functional, emotional, and self-expressive benefits delivered by the brand that provides value to customers (Aaker 1996). Jones and Slater (2003) provide more detail about range of added value that normally comes from brands’ experience such as familiarity, consistency and reduction of risks. These attributes derived from those people who use the brand   and how they are associated with characteristic of brand. Consumers’ beliefs in brands can create an impact and brand appearance’s emanate. This is how added value concept is integrated in brand’s definition. The value of the brand plays an important role to influence consumers’ purchase intention (Shukla and Purani 2011). Even in the crisis, many luxury products, which perceived as high value, continue to grow in the market (Cohen 2012). 2. 2. 2 Brand Image and Equity Brand image can be described as consumers’ connection of the brand with cluster of attributes and associations.
Suggested by Keller (2009), luxury brand image is the key competitive advantage, which builds enormous value and wealth for organisations. Using brand image in marketing campaign, luxury brands would gain premium value added (Ait-Sahalia et al. 2004). This is also reflected in consumer response to brand image. For brand equity is often used in economic terms to describe the value of brand over the physical assets associated with its manufacture or provision which be developed by financial department, this is usually called brand value (Aaker and Biel 1993).
Supported by Davis (1995), he emphasises that brand value, resulting from brand equity, can present strategic potential and benefits for company. However, according to previous study, the value of the brand is not only physical assets that generate value. Feldwick (1996) supports that brand equity as brand description or brand strength, is referred to consumers brand equity to differentiate them from the meaning of asset valuation. For consumer-based study, brand strength signifies a condition in familiarity and recalls of some desirable, strong and unique quality that consumers associate with brands (Keller 1993).
The brand image does not directly influence intention of consumer but it significantly control the relationship between normative interpersonal influences and luxury purchase intentions, the personal connection with brand is higher when the brand image is consistent with the image of the social group that consumers wish to associate with (Shukla 2010). Supported by recently study of Keller (2008) focusing on customer mind-set equity, customer-based brand equity is referred to “power of a brand lies in what customers have learned, felt, seen, and heard about 7 the brand”.
There are 2 key elements used to identify and measure in equity, which are awareness/familiarity and brand associations. Marketing literature has further presented 2 additional elements of brand equity, which are consumer perceptions and consumer behaviour (Myers 2003). Consumer perceptions include consumers’ brand awareness and values of brand that consumers associate with and consumers’ perceived quality of brand, whereas consumer behaviour concerns how much consumers is loyal to the brand and consumers’ readiness to spend a price margin for a brand (Myers 2003).
Supported by Aaker (1991), brand equity is defined as “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”. Brand equity can be grouped into five categories: brand loyalty, brand awareness, perceived quality, brand associations in addition to perceived quality and other proprietary brand assets (Aaker 1996).
Considering the 5 categories of brand equity, brand loyalty presents a key measurement for the value of brand equity, which includes attitudinal loyalty and satisfaction (relationship equity constructs), this is a key in driving brand preference and re-purchase intention among brand’s consumers in luxury market (Tolba and Hassan 2009). 2. 2. 3 Brand Loyalty The brand loyalty concept implies the degree of attachment that customers have for a brand and their connection with brand’s experience (Liu et al. 012). According to Oliver (1997), loyalty is when customers retain themselves to product/service and re-purchase firmly in the same set of brand or particular brand. Moreover, Taylor et al. (2004) describe brand loyalty as a re-purchase or re-stimulating purchasing for the outcomes in consumer repetitively repurchase in the future for the same set of brands. Some studies find positive links between ‘attitude and loyalty towards brand’, and ‘brand’s image and loyalty towards brand’ (Liu et al. 2012).
For instance, providing knowledge relating to brand image and creating consumer attitude 8 towards the brand would result in brand loyalty (Keller 1993). Hence, loyalty towards the brand is contributed by both buyers’ attitude and brand image (Faircloth et al. 2001). Argued by Baldinger and Rubinson (1996), loyalty is regarded as a combination of attitude and behaviour, and this would facilitate ability to predict the concept of loyalty in behavioural base. This is supported by Neal and Strauss (2008) who propose that attitudinal and behavioural are dimensions of brand loyalty.
Attitudinal dimension can be used to explain consumer’s satisfaction in overall whereas behavioural dimension can be used to predict consumers’ purchasing tendency towards particular brand repetitively over time. Taylor et al. (2004) demonstrate the model combining both attitudinal loyalty and behavioural loyalty, which shows different factors that might develop attitudinal and behavioural loyalty as below (see figure 2. 1). Figure 2. 1: Attitudinal and Behavioural Loyalty Model (Taylor et al. 2004) 9 From this model, only brand equity and trust play important role in contributing to loyalty.
Affect, resistance to change and value present a smaller loyalty effect while satisfaction does not show significant relationship with behavioural loyalty. In terms of attitudinal loyalty, brand equity and trust also play important role in contributing to loyalty similar to behavioural loyalty, while affect and satisfaction present a smaller effect. Value and resistance to change do not demonstrate any relationship with attitudinal loyalty. Moreover, using both attitudinal and behavioural measures in testing, the results again reveal that brand equity and trust are the major influences in customer loyalty.
Loyalty is linked to how consumer perceived brand’s experience, where equity and trust have an impact in both behavioural and attitude of loyalty. In order to achieve research objective of how brand image has actually been transferred to new product after stretching study, testing in brand equity and trust will help provide the answer. Generally, brand equity literature and analysis show that brand equity includes attitudinal loyalty and satisfaction and they are key drivers for brand preference and re-purchase intention.
However, according to loyalty literature, brand equity and trust are key drivers for attitudinal and behavioural loyalty, the major influences in customer loyalty. These arguments present a strong link between brand equity and brand loyalty. 2. 3 Brand Stretching and Extension Brand extension means using successful or well-known brand name to introduce a new product to the market in broader context (Volckner 2007). For example, Google has extended its core brand by launching other information technology services such as Google Maps, Google Calendar and Google Answer (David 2004).
Brand extension is recognised as brand stretching when an established brand name is used for brands in unrelated markets or product categories (David 2004). This definition is supported by Lynne and Daniel (2002) who stated that “brand stretching refers to extension of an established brand name identified with a product in one market to a new product in another market, the list of brand stretching is a long one”. 10 Brand stretching and extension seem to be very similar, only the distance that makes different. Brand extension presents advantages such as consumers’ knowledge and trust.
In terms of consumers’ knowledge, using a strong existing brand to introduce a new product or service means less effort is needed to build consumer awareness (David 2004). Consumers’ trust refers to a condition which brands have already been known and trusted; thus consumers would be more likely to try new product from the brand that they know rather than a new brand (David 2004). However, when trying to stretch product or service into new category, fit to the original brand and distance need to be carefully considered.
There is a link between brand equity and luxury brand, which create a strongly significant relationship and attitude (Kim et al. 2011). Considering distance between original and stretching brand, the notion has been supported that consumers will perceive degrees of fit relating to the strength of brand (Park et al. 1991). Risks, in relation with original core product area, might occur when companies attempt to stretch their brand name, the original brand image in the current brand sector and the value in the destination brand sector should fit (Bastin 2011).
Brand stretching distance strongly correlates to the reduction in original core brand image in a prestige-oriented brand, when compared with a function-oriented brand (Kim Lavack 1996). Image of luxury and status are associated in prestige-oriented brand concept (Park et al. 1991) and this can create impact on how consumers would evaluate the brand (Liu et al. 2012). Stegemann (2006) provides the strategy for this situation, where the brand should maintain the brand fit by increasing brand equity, which will create a strong brand image; this will help to maintain brand fit and strongly link between brands.
Brand with very strong equity is more likely to be able to keep existing customers and defend themselves from competitors (Fill 2009). The value of brand equity for luxury should be understood in order to keep stretching brand fit and minimise the effect of distance. 11 2. 4 Defining Luxury Brand Definition of luxury presented by Grossman and Shapiro (1988) is goods that create prestige to the holder along with functional benefits. Luxury brands are perceived recalled for exclusiveness and well-know brand identity, great brand awareness and better (Prendergast 2003).
Argued by other research, luxury brand is expensive, high quality and unessential products that consumers perceive as prestigious, exclusive and trustworthy and offer emotional value and high symbolical value (Tynan et al. 2009). Prestige is gained from purchasing luxury goods and this concept is referred to “conspicuous consumption” (O’Cass and McEwen, 2004). The value of luxury brand is challenged by consumers’ perception towards value of luxury brand.
If consumers do not have a feeling of luxury from the product, this will not pass the standard (Smith 2003). However, people might not have the same standard in perceived value of luxury, luxury for one person may be normal to another (Reddy et al. 2009). Vigneron and Johnson (1999) suggest the theoretical of luxury-seeking in consumers’ decisionmaking process to understand consumer behaviour towards perceived degree of luxury brand. This consists of 5 unique values: conspicuous value, unique value, social value, hedonic value and quality value.
All of them are categorised into non-personal-oriented perceptions (conspicuousness, uniqueness, and quality) and personal-oriented-perceptions (hedonism and extended self) (Vigneron and Johnson 1999). Recent research developed by Vigneron and Johnson (2004), presents a stronger description of luxury, with develop conceptual outline and measurement scale for testing the perceived degree of luxury brand. Luxury’s level alters from very little to a great deal of luxury. In other words, consumers perceive degree of luxury by value of psychology they have een in a brand (Vigneron and Johnson 2004). Later stage in Vigneron and Johnson’s study, luxury is applied into larger concept which includes motives of personal and non-personal to enhance an understanding of consumers’ motive and value perception related to luxury consumption, Vigneron and Johnson (2004) 12 extend the framework by integrating the concept of luxury-seeking consumer‘s decision-making process with different perspective for monitor luxury brand in global context as presented below: Figure 2. 2: The Conceptual Model (Vigneron and Johnson 2004) The figure 2. presents additional variable of luxury value in defining perception of consumers. There are 4 dimensions: Financial value, Functional value, Individual value and Social value. 2. 4. 1 Financial Value Luxury value perception in financial dimension addresses direct monetary aspects such as price, resale price, discount, investment and so on, it refers to the value of what is given up or sacrificed to obtain a product (Wiedmann et al. 2007). 13 Price Value – for luxury products many authors determine that there is a positive relationship between price of a product and the perception of high quality (Wiedmann et al. 007). Consumers usually use price to estimate quality, and status-conscious consumers tend to use price as cue to indicate prestige (Wiedmann et al. 2007). Hence, prestige pricing is setting relatively high to imply high quality and/or high status (McCarthy and Perreault 1987) and might even be conceived for products or services to be more desired (Groth and McDaniel 1993). The brand that has the longevity of usage and superior quality is supported; the cost becomes acceptable associate with comfort, well being and security feeling (Till et al. 011). 2. 4. 2 Functional Value Functional value mainly concerns the extent in products, which include desire characteristics, useful or a desire function performance (Tynan et al. 2010). In luxury value perception towards functional dimension, the main advantage and basic efficiencies that drive luxury value consumer base can be considered as quality, uniqueness, usability, reliability, and durability of the product (Sheth et al. 1991). The excellent quality guarantees reliability and durability (Till et al. 2011).
These advantages focus on rational purpose, and consumers expect good enough performance in functional value in order to satisfy their needs (Wiedmann et al. 2009). Usability Value – generally, design of product or service is for performing a particular function. The core benefit of product usability is to achieve a goal, which is to satisfy consumer needs (Wiedmann et al. 2007). The idea of usability can be understood in terms of ease of use and can be defined by the physical-chemical-technical, concrete or abstract product/service dimensions (Park et al. 1986).
Quality Value – one of the reasons why consumers purchase luxury brands is the superior quality mirrored by the brand name (Gentry et al. 2001). Luxury consumption regularly highlights an importance of quality to reassure consumers’ perception and value of luxury (Roux 1995). 14 Uniqueness Value – refers to the degree of how consumers can identify the differences between one brand from its competitors (Wiedman et al. 2007) and how exclusivity and scarcity are perceived in terms of the product, this enhances the consumer’s desire or satisfaction for a brand (Pantzalis 1995).
The value of product is less if more consumers own it (Amaldoss and Jain 2005). Luxury brand is used to distinguish or classify consumers themselves from others (Vigneron and Johnson 2004). 2. 4. 3 Individual Value Individual’s luxury value perception presents customer‘s personal orientation towards luxury consumption and addresses personal matters such as materialism (Richins and Dawson 1992), hedonistic and self-identity value (Vigneron and Johnson 2004). Self Identity Value – self-identity refers to facet of self-individual in the way one perceived his own self (Jamal and Goode 2003).
In consumer’s selfconcept study, it is found that self-image or product-image congruity model has an impact on consumer purchasing behaviour (Sirgy 1982). Supported by Puntoni (2001) who study and present significant impact of self-congruity on luxury-brand purchase, luxury items are consumed in order to integrate their symbolic meaning into consumers own identity or use for develop consumers’ identity. Hedonic Value – emotional value is carried in products and service. It provides additional inherent enjoyment to functional utility (Westbrook and Oliver 1991).
Luxury consumption study shows that luxury products seem to offer subjective intangible benefits (Dubois and Laurent 1994). Moreover, the luxury concept is recognised as an association between emotional response and luxury consumption, for instance, sensory pleasure and gratification, aesthetic beauty, or excitement (Vigneron and Johnson 2004). Thus, hedonism presents subjective effectiveness and attractive properties obtained from consuming or purchasing luxury brands to stimulate feeling and affective states which received from personal rewards and fulfilment (Westbrook and Oliver 1991).
Luxury consumers may be motivated by desire for selfrewarding experiences (Tsai 2005). However, many consumers may not   15 necessarily be affluent; they just like to spend their increasing disposable income on hedonic goods (Silverstein and Fiske 2003, 2005). Materialistic Value – can be explained as an individual’s principal degree to which owning possessions play an important role in one’s life, if consumers are materialistic, they are more likely to acquire possessions (Belk 1985).
In addition to materialistic oriented, it is found that consumers strongly trust in external cues and seasoning those possessions that are consumed in public places (O’Cass and Muller 1999). This can be related to individualmaterialistic understanding that present signal or communication source of possessions can portray individual status and social position and impress others (Belk 1985). These characteristics can be used to classify materialistic people who enjoy their lifestyle with full of possessions (Schiffman and Kanuk 2006). . 4. 4 Social Value Luxury value perception in social dimension refers to people’s desire in possession luxury brand that may be regarded as group membership symbolic (Vigneron and Johnson 2004). Moreover, luxury brands may be used to demonstrate social status or to maintain professional appearance (Arghavan and Zaichkowsky 2000). This presents strong social function in luxury consumption, which is relevant to perceived advantage of individuals acquired by consuming products or services recognised within their own social groups.
For example, conspicuousness and prestige value might be developed when purchasing and consuming luxury brands (Vigneron and Johnson 1999, 2004). Conspicuousness Value – can be described as how reference groups influence luxury brands consumption (Mason 1981). These studies explore that reference group has a positive effect to susceptibility in conspicuousness of a product. For example, in public where people consume luxury goods, they are more likely to consume conspicuous goods publicly rather than consume luxury goods privately.
Conspicuous consumption still plays an important part in shaping preference in many product consumptions in public contexts (Vigneron and Johnson 2004). Luxury products are a good example   16 of branded products that are most likely to be purchased publicly to intentionally provoke reactions from relevant others (Schiffman and Kanuk 2006). Prestige Value – prestige is used to explain the term referring to the extreme end of the luxury brand category, which relates to interpersonal motives since consumers make purchase in order to adorn theirs’ ego (Liu et al. 012). A research demonstrates that in forming attitudes, people tend to conform to the majority opinion from their member groups (Festinger 1954). Hence, prestige brands may be used during weekday to present professional position while modest brand is used during weekend to fit with social standards of neighbourhood (Wiedmann et al. 2009). Frequently, as luxury products and brands contain prestigious value and social referencing, the symbolic sign of group membership comes from desire of people in possession luxury brands (Wiedmann et al. 009). Affluent lifestyle images influence an individual by the bandwagon effect, which conforms from non-affluent lifestyles (Dittmar 1994). Defining the meaning of luxury helps us to understand how luxury value is created and what the conditions to create luxury value are. The aforementioned academic studies present a combination of motives between non-personal-oriented perceptions and personal-oriented-perceptions. These factors will help analyse and give a clear framework to test perceived degree of luxury brand.
In order to reach our objectives of study in luxury vehicle brand stretching, factors will be tested to determine the most important factor that leads consumers to purchase luxury vehicle stretching products. Study findings can allow relevant brands to adjust to their stretching product strategy for maximum market efficiency. 17 2. 4 Chapter Summary This research uses luxury vehicle brand as a pilot study in brand stretching because the examples can be clearly seen in product stretching. For example, Ferrari is selling many stretching products such as clothes, watch, headphone, earphone and speaker docks (Ferrari 2012).
Many luxury vehicles brand such as Harley-Davidson and Porsche also launch their brand stretching products. The literature review in this chapter can be divided into 2 parts in relation to research objectives. The first part is branding study and the second part involves brand extension, brand stretching and luxury brand study. Branding study includes several factors such as ‘brand image and equity’ and ‘brand loyalty’. The literature in this part demonstrates brand value, which relates to equity in order to influence consumer purchase intention.
Moreover, brand loyalty also plays an important role to measure the value of brand equity and trust as a key driver for brand preference and re-purchase intention. This can be connected to brand equity and trust as a key contribution to both attitudinal and behavioural loyalty. In addition, the objective of discovering how brand image of original luxury vehicle brand has been transferred to new product after stretching can be achieved based on those aforementioned concepts. Another part of the literature review aims to reach the research objectives of ‘brand extension and stretching’ and ‘luxury brand’.
Theory of brand extension and stretching show critical concern in keep the brand fit and minimise the affect of distance between original brand and extended brand in intended market because the distance of stretching strongly correlates to reduction in original core brand image in prestige-oriented brands. Additionally, theoretical of luxury which provides the perceived value framework to understand how consumer perceived value of luxury will be used to link luxury vehicle brand stretching to find out the most important factor that influence consumer to purchase those stretching products as presented in the objectives. 8 Chapter 3: Methodology 3. 1 Research Philosophy Epistemology refers to the expression of opinions about knowledge and its interpretation. It is classified as being areal and tangible communication form rather than direct personal experience, known as softer form (Eldabi et al. 2002). Epistemology centres on the topic either knowledge is something learnable or something from individual experienced being appeared (Burrell and Morgan 1979). Research paradigm can be categorised into positivism and interpretivism and both of them are associated with qualitative and quantitative method (Saunders et al. 009 and Robson 2011). Both positivism and interpretivism are based on an assumption of a difference in natural knowledge and research methods (Eldabi et al. 2002). Positivist epistemology categorises a phenomenon of individual components in order to understand social setting whereas interpretivist epistemology attempts to understand individual’s opinion towards phenomenon (Cavaye 1996). Nevertheless, positivist research is chosen for this study. Table 3. 1: Research Paradigms Classification (Silverman 1998) 3. 1. Positivism Positivism approach enables a researcher to observe and measure the objectives, and it also concerns abstract concept, for instance, values or satisfaction (Cameron and Price 2009). Bryman and Bell (2011) provide that 19 positivism, as an epistemological position, supports the approaches to natural science application in the authenticity study. Cameron and Price (2009) agree that positivism helps researcher measure objectives, structure conceptual idea of people and predetermine the research outline.
Positivism is implicated in quantitative methods which data have been rectified and presented as statistics, figures and numbers by researcher. Also, positivism standpoint includes questionnaire and structured interviews. However, most positivism researchers are likely to simplify to allow implementation of methodological structures (Gill and Johnson 2002). Consistent with Blumberg et al. (2011), two assumptions are followed by a researcher: (1) The gathered objective facts and the social world can be quantified (2) The social world contains basic components that can be minimised.
The reason for following those two assumptions is that they are external and value free to conduct research. Different researchers may be involved in observing the same social phenomenon (Blumberg et al. 2011: 17). As a result, quantitative measurement can occur. 3. 1. 2 Interpretivism Accordingly to Saunders (2007), interpretivism is essential in helping researchers to apprehend differences in people, acting as social actors. Social actor means staging of human life, which they play a certain role, sometimes with or without direction. Social roles are explained in consent with giving meaning to the role that hey play and also explaining other roles using a set of meanings that relate to their own. The interpretive paradigm is linked to research in qualitative method, which attempts to decode, express and interpret to give explanation in terms of meaning (Maanen 1989). 20 3. 2 Research Perspective 3. 2. 1 Deductive Research Deductive theory has significant association with positivism (Lee 1991). The deductive theoretical indicates the greatest basic nature view with connection between research and theory (Bryman and Bell 2011). When deductive research has been conducted, the quantitative method is likely to be amassed (Saunders et al. 007). Deductive research is essential because researcher is able to operate the research design for testing the hypotheses with cautious measurement and complex statistics (Cameron and Price 2009: 75). This approach will assure researcher that the variables are executed precisely without interruption from any causes (Saunders et al. 2007). Figure 3. 1: The Process of Deduction (Bryman and Bell 2011: 11) 21 3. 2. 2 Inductive Research On the other hand, Bryman and Bell (2011) explain that deductive approach involves selecting exact observations to wider generalisations and theories.
Inductive research might be adopted when particular factor in the research is unlikely to be predicted with general theory or related theory does not exist, (Cameron and Price 2009). Inductive research involves using data collected from respondents to compare with a relevean literature review (Saunders et al. 2007). It should be mentioned that the specific concern is the context or a place that events happened when conducting inductive approach. Therefore, this research may be suitable for testing objective with small sample rather than large number of sample (Saunders et al. 2007). Table 3. : The differences between deductive and inductive approaches (Saunders et al. 2007) 22 3. 3 Research Approach Qualitative and quantitative are research techniques that help researcher collect data (Bradley 2010). Quantitative research involves statistical analysis, which presents numeric and statistic evident to test hypotheses or draw final analysis (Ticehurst and Veal 2000, Saunders et al. 2009). Questionnaire survey is a tool to collect data in qualitative research (Ticehurst and Veal 2000). The collected data is analysed and illustrated in graphs and statistics (Bradley 2010, Cameron and Price 2009).
On the other hand, data in qualitative research is collected by using focus group or in-depth interview and is analysed in non-numerical method (Bradley 2010, Cameron and Price 2009) 3. 3. 1 Qualitative Research Qualitative research is presented in non-numerical data structure (Cameron and Price 2009). This type of research requires small sample sizes; however, number of interviews, focus group and workshops depend on study objective together with budget, time, topic complexity and sample requirement (McGivern 2009). Due to time limitation, quantitative research will be conducted in this research. 3. 3. Quantitative Research Quantitative research will be used to collect data in this study. This research uses a huge population or sample in a well-managed way (McGivern 2009). Researcher chooses this research method because it provides many advantages in data collecting and analysis. For example, data is a representative of a large sample size, which allows researcher to cover a wider population when drawing conclusions (Cameron and Price 2009). Also, it should be mention that result from quantitative research is more convincible and more scientific from audience perspectives (Cameron and Price 2009).
Quantitative research data collection methods include survey and participant observation using questionnaire and diaries. The objectives of study, the topic and ability of researcher in approach the participants together with cost and   23 time calculating will determine data collection method (McGivern 2009). As questionnaire and data collected from quantitative methods can be analysed by using computer programs, it presents advantage in enhancing quality and saving time (McGivern 2009). 3. 4 Research Design and Research Methods 3. 4. Research Design Research design is a plan or structure for piloting a study. This is the crucial process for data collection in terms of research problem solving and structure term (Malhotra and Birks 2006). An appropriate research design and data collection tool will conduct this study, and it will be assessed in the most operative method. 3. 4. 2 Research Methods Primary Data Primary data is data collected from the primary experience or original information root (Collis and Hussy 2009). According to Saunders et al. (2007), primary data is new data collected precisely for particular purpose.
There are many methods in collecting primary data such as face-to-face communication, post, telephone, observation and the Internet (McGivern 2009). Nevertheless, online questionnaire survey will be applied in primary data collecting for this research. Questionnaires There are two types of the questionnaire administration: Self-administered and Interviewer-administered (Saunders et al. 2009). Interviewer-administered questionnaire involves recording answers from respondents and can be categorised into two types: telephone interview and face-to-face interview (Saunders et al. 2009).
Self-administered questionnaire can generally be completed by respondents and can be categorised into three types: firstly, postal questionnaire which is 24 sent and returned by post, secondly, hand-delivered questionnaire to each respondent directly, and lastly, internet and intranet-mediated questionnaire, which is electronic conducted via internet or intranet (Saunders et al. 2009). For this study, the researcher uses internet-mediated questionnaire. Also this study is considered to be a small-scale research, sample size from 30 to 250 is normally accepted (Denscombs 2007).
Thus, the questionnaire will be distributed to 110 respondents aged 20-35 mainly from the Coventry University students. The selected age group is classified into Generation Y who would normally have a free in spending mind (Horovitz 2002). In addition, Trendwatching (2009) notes that generation Y is a key driver in a luxury fashion business, presenting an increase in purchasing power. This is in line with Gardyn (2002) who states that Generation Y consumers have strong purchasing power and can make a decision in purchasing by themselves. These are main reasons that why such age group is chosen to participate in the survey.
It is also worth mentioned that researcher simplifies this questionnaire by avoiding technical terms and jargon. Secondary Data Secondary data or desk research is data that can be collected without leaving the desk (McGivern 2009). Consistent with Malhotra and Birks (2006), the secondary data assists the researcher to define research problem and an appropriate approach. This means the secondary data can be collected and analysed before collecting the primary data. Several secondary data sources have been collected and applied by researcher so as to reach the objectives.
The followings are secondary sources have been used in this research: Journals: Online databases provided by the Coventry University have been accessed for searching relevant journal and current study, for instance, Science Direct, SAGE Journals online, Business Source Complete (EBSCO) and Emerald Journals. 25 Textbooks: Textbooks are used to research for particular definitions, theories and so on so as to apply into current study. Websites: Credible and reliable websites have been used to obtain recent information about the trend and situation of luxury vehicle brands in the market.
Data Analysis This study applies quantitative research via online-based questionnaire through www. surveymonkey. com. A web link is sent to our possible respondents via social media such as Facebook and e-mail. The target respondents are 110 participants from the Coventry University student aged 20-35 who are familiar with luxury car brands. The data analysis and result will be presented in bar charts, tables and other appropriate formats. 3. 5 Ethical Considerations 3. 5. 1 Ethical Principles MgGivern (2006) defines ethics as moral principles, which are used for behaviour guideline.
This is in line with McDaniel and Gates (2007), whom explain that researcher should place an emphasis on ethical considerations in order to understand and respect the participants’ right. There are 4 main areas that researcher ought to consider presented as below (Diener and Crandall 1978): • Harm to participants: this includes harm to participants’ self esteem, stress, career harm, physical harm and so on. • Lack of information consent: for a good research, participants should be given information about study and then they can decide whether to participant or reject to do so. Invasion of privacy: participants should be treated delicately and they should be given an opportunity to reject to answer the questions if they do not feel comfortable to participate. 26 • Deception: researchers should not mislead their participants. Deception should be minimised, and its effects must be mitigate. In order to guarantee the ethical awareness of the researcher, this research is submitted to the Coventry University’s regulations for research ethical’s approval. Participants will be provided the participant information sheet and consent form for asking permission before conducting research. . 5. 2 Plagiarism Collis and Hussy (2009) define plagiarism as an action that one person copies other people’s work and identifies it as own original work. To avoid plagiarism, all sentences should be paraphrased and reference credits using Harvard Reference Style should be cited as required by the Coventry University. Moreover, according to the rules governing plagiarism, the researcher will upload a research proposal draft via the University’s plagiarism check programme before submitting the final research paper. 3. 6 Limitations of Research
To evaluate research’s accuracy and consistency, three most common criterion including reliability, validity and generalise ability should be considered in the study (Hair et al. 2007: 240). 3. 6. 1 Reliability Reliability is defined as a consistency level among multiple measurements of a variable evaluation (Hair et al. 2010). The research method is considered to be reliable if results of a study can be repeated with similar method (Golafshani 2003). Before start collecting data, researcher’s supervisor needs to approve and recheck the project to assure that all questions in the questionnaire are reliable. 27 3. . 2 Validity Validity is the range of measures or scale, which is presented by respondents in a concept (Hair et al. 2010). It links to the situation of whether a concept really measures that concept (Bryman and Bell 2011). Before distributing the actual study to particular group, data should be conducted as pilot test through interview and online questionnaire in order to increase the result validity (Hair et al. 2007). 3. 6. 3 Generalisability Researchers must assure that their findings can be generalised beyond the confines of the specific context in which the research was conducted (Bryman and Bell 2011).
Research quality leads the degree of generalisability. This means the higher research quality, the higher degree of generalisability. 28 Chapter 4: Findings and Analysis 4. 1 Introduction The result from the questionnaire survey will be discussed in this chapter. The most important perceived value factors and study of consumers’ perception towards brand image of luxury vehicle brand stretching product will be presented. The study uses quantitative research to examine 110 participants. Research is conducted in a specific group of the Coventry University student aged 20 to 35 year olds.
The data was collected and analysed through internet-mediated questionnaire (www. surveymonkey. com), and then illustrated by pie charts, tables and other appropriate charts. The questionnaire is allocated into three parts as follows: Section 1: General information Section 2: Factors encouraging respondent to purchase luxury vehicle brands stretching product Section 3: Perceived brand image of luxury vehicle brands stretching product towards original brand name 4. 2 Findings and Analysis 4. 2. 1 Section 1: General information This general information is collected from 110 respondents aged 20 to 35 years old.
Data illustrated in this part include demographic profile, key luxury product buyers, favourite luxury vehicle brands, selling notifications on luxury vehicle brand, frequencies in purchasing stretching product, luxury stretching brand-selling notification and how likely to purchase stretching products in the future. 29 Figure 4. 1: Respondent’s Demographic Profile This figure 4. 1 presents crossing data between gender and education level of the total of 44 male respondents and 66 female respondents. 6 male respondents and 24 female respondents completed bachelor’s degree. At the same time, 63 respondents, representing the largest group, completed master’s degree, with 24 male respondents and 39 female respondents. Lastly, 1 male participant and 3 female participants complete doctoral degree education level, presenting the smallest number. 30 Figure 4. 2: Key Luxury Product Buyers Family Spouse Yourself 3% 2% Colleague/ Friends Other 40% 53% 2% Figure 4. 2 demonstrated luxury product buyer for 110 respondents.
The most important purchasing factor (53 percent) is the respondents purchase the luxury product themselves, and followed by 40 percent of respondents who receive luxury product from their families. However, other groups who purchase luxury product for respondents include colleague, spouse and others share a small portion of 3, 2 and 2 percent respectively. 31 Figure 4. 3: Favourite Luxury Vehicle Brands The favourite luxury vehicle brand is reported on the Figure 4. 3. The most favourite brand is Porsche, which scores highest and is chosen by the total 53 respondents, and 34 of them are males.
Second most favourite brand is Ferrari, which follows Porsche by 10 respondents in total preference. Lamborghini scores in third place with 18 respondents behind Ferrari and is chosen by the same amount of male and female. About 23 respondents prefer other vehicle brands, including Mercedes and BMW. For the last three; Range Rover, Harley Davidson and Lotus are not significantly chosen by respondents, with 15, 9 and 4 respondents respectively. 32 Figure 4. 4: Selling Notifications on Luxury Vehicle Brand Yes No 19% 81% Figure 4. 5: Frequency in Purchasing Stretching Product
Always Usually Sometimes 0% 9% 23% Rarely Never 34% 34% 33 Figure 4. 6: Luxury Stretching Brand-selling Notification As presented in figure 4. 4, approximately 4 out of 5 respondents notice that luxury vehicle brands sell its stretching products. From figure 4. 5, it can be seen that 34 percent of respondents are ‘sometimes’ and ‘rarely’ purchase stretching product. 23 percent of respondents never purchase stretching products and just only 9 percent of respondents usually purchase stretching product. However, none of the respondents always purchases stretching products.
The figure 4. 6 presents crossing factors between figure 4. 4 and 4. 5. The pie chart shows different frequency in purchasing stretching products among groups of respondents who do and do not notice that luxury vehicle brands sell stretching products. From total 105 respondents who completed this question, 66 respondents notice about luxury vehicle brand stretching products and purchase stretching products in different frequencies. To explain, 8, 31 and 27 respondents who usually, sometimes and rarely purchase stretching products in respective order. 4 Regarding those 20 respondents who are not aware of luxury vehicle products stretching, they purchase the stretching product in different frequencies. To illustrate, 1, 5 and 9 respondents usually, sometimes and always purchase the stretching product respectively. As for 24 remaining respondents who have nerver bought stretching product will be further investigated in Figure 4. 7. Figure 4. 7: How likely to likely would you purchase stretching products in the future Very likely Quite likely Quite unlikely 3% 5% Not at all likely 36% 56%
For 24 respondents who never purchase luxury vehicle brand stretching products were asked how likely they would purchase brand stretching products. The result is shown in figure 4. 7 that only 3 percent of nonstretching product consumers are very likely to purchase stretching products in the future. On the contrary, the majority of respondents, about 56 percent, are quite likely to purchase and another 36 percent are not likely to become luxury vehicle stretching product’s consumer. 3 percent of respondents are unlikely to become a customer in the future. 35 4. 2. Section 2: Factors encouraging respondent to purchase luxury vehicle brands stretching product As table below present ranking of factors, encouraging consumer to purchase stretching products. Such factors include brand image, price, product function, product quality, social acceptance, emotional desire and word of mouth. Respondents were ranking number from 1-7, which starting from the most important factor to the least important factors. Table 4. 1: Ranking of important factors in purchasing stretching products: Brand image Ranking of Brand image First order Second order Third rder Fourth order Fifth order Sixth order Seventh order Rating average 3. 20 Number 31 17 13 14 14 6 10 % 29. 5 16. 2 12. 4 13. 3 13. 3 5. 7 9. 5 Based on observation of table 4. 1, brand image is presented the highest percentage, at 29. 5. As a result, it can be stated that brand image plays an important role encouraging respondents in stretching products purchasing decision. 36 Table 4. 2: Ranking of important factors in purchasing stretching products: Price Ranking of Price First order Second order Third order Fourth order Fifth order Sixth order Seventh order Rating average 3. 4 Number 10 14 27 12 18 11 13 % 9. 5 13. 3 25. 7 11. 4 17. 1 10. 5 12. 4 Based on observation of Table 4. 2, 25. 7 percent of respondents rank price as the third factor. It can be assumed that this factor is less important than brand image and product quality factors in encouraging individuals to purchase stretching products. Table 4. 3: Ranking of important factors in purchasing stretching products: Product function Ranking of Product fuction First order Second order Third order Fourth order Fifth order Sixth order Seventh order Rating average 3. 2 Number 14 21 16 13 22 8 11 % 13. 3 20. 0 15. 2 12. 4 21. 0 7. 6 10. 5 Based on observation of Table 4. 3, 21 percent of respondents consider stretching product’s functional before purchase. This is ranked fifth of all factors. 37 Table 4. 4: Ranking of important factors in purchasing stretching products: Product quality Ranking of Product quality First order Second order Third order Fourth order Fifth order Sixth order Seventh order Rating average 3. 06 Number 25 25 19 11 9 12 4 % 23. 8 23. 8 18. 1 10. 5 8. 6 11. 4 3. 8 Based on observation of Table 4. , the majority of respondents, with 23. 8 percent equally rank product quality factor both in first and second order. Thus, this shows that product quality is one of the most important factors, comparable to brand image in encouraging respondent’ purchasing decision. Table 4. 5: Ranking of important factor

Categories
Brand

Brand Repositioning

WHAT IS RE-POSITIONING? A company or product is new and people already formed judgments about it. In other word, the company or product already has an image either good or bad or in between. Many companies are not aware of their exact image but it is important if that image can be identified. If a company does not know where it is now, then that product or company unlikely to get to where it wants to go. RE-POSITIONING BRANDS As markets and customer needs evolve; brands can lose customers to new competitors.
In addition, brands can become diluted as product or service offerings become commodities. When a brand loses meaning and relevance to target customer, a new brand promise should be defined so the brand can be repositioned. TYPES OF BRAND RE-POSITIONING Brand Re-positioning Brand re-positioning is changing the positioning of a brand. A particular positioning statement may not work with a brand. Brand re-positioning is undertaken in order to increase a brand competitive position and therefore increase sales volume by seizing market share from rival products.
When re-positioning companies can change aspects of the product, change the brand’s target market or both. There are four types of re-positioning options for develop a new product in market. I. Image Re-positioning This option takes when both the product and the target market remain unchanged. The aim is to change the image of the product in its current target market. For example product Adidas were seen as reliable but dull in early 1990s. The company created an image of ‘street credibility’ in an attempt to reposition the brand to appeal to the customer in the sports shoe market.

During the 1990s, Tango the Britvic soft drink has been transformed from a minor UK brand into a brand showing dynamic growth. This has been achieved by creating an anarchic image for the products through a major promotional re launch that was aimed to appeal to consumers in the critical 16-24 age of group. II. Market Re-positioning The product remains unchanged but the product repositioned to appeal to a new market segment. For example, Lucozade is a brand of carbonated glucose drink was originally targeted as a product for individuals suffering from illness, particularly children.
Now it has been repositioned as an isotonic drink aimed at young adults undertaking sporting activities. III. Product Re-positioning Product re-positioning is materially changed but is still aimed to appeal to the existing target market. Product positioning is closely related to market segment focus. Product positioning involves creating a unique, consistent, and recognized customer perception about a firm’s offering and image. A product or service may be positioned on the basis of an attitude or benefit, use or application, user, class, price, or level of quality.
It targets a product for specific market segments and product needs at specific prices. The same product can be positioned in many different ways. IV. Total Re-positioning This option involves both a change of target market and accompanying product modifications. For example, Skoda has managed under Volkswagen’s ownership to reposition itself totally. The product quality and design has changed significantly and the brand now has credibility with new, more affluent consumers. This has also allowed the brand to expand its sales outside its Eastern European heartland.
REASONS TO CONSIDER BRAND RE-POSITIONING 1. The brand has a negative image This can easily happen and often is not the company’s fault. Damage can be done by maverick individuals as in the notorious cases of poisoning of the products such as Tylenol and Perrier. It can also be an effect of government policy. For example, if a company builds a highway and forecasts year ahead the toll charges for the government, the public may know nothing about any intended road price increases until the government announces them at a much later date.
This announcement may be handled badly by the government, perhaps being made during recessionary times when disposable income is reduced. Although it is not within the control of the company collecting the toll, it still reflects badly on the company. Public relation is usually the fire-fighting answer, but forward looking companies use advertising and public relation strategically to think ahead about potential problems. This is sometimes scenario planning or issues management. The company looks ahead for a certain length of time.
It can be months with fast moving consumer goods or a couple of decades with conglomerates. An example of how a company thought about its brand image in this way is seen in Telekom Malaysia’s sponsorship of the 1998 Malaysian Everest climb. Many things could have happened including the injury and death of the climbers. But a comprehensive set of guidelines was prepared for staff covering responses to possible questions the company would be asked in both positive and negative scenarios. On the other hand Coca-Cola did not seem to react quickly enough when the European scare surfaced in mid-1999.
They suggesting that it might not have planned what to say in such unlikely circumstances and now it has a major re-positioning job to do. 2. The brand has a blurred or fuzzy image When this happen, people do not feel strongly about image one way or the other way or have mixed perceptions about it. This is quite likely to happen when a brand has not been positioned properly. Perceptual mapping would probably reveal that the brand is very close to other brands in terms of customer preferences and has little to differentiate it.
A re-positioning exercise would need to be carried out to get the brand into a space away from the other brands. This may involve changes to product or packaging. 3. Competition has moved close or taken over brand position This is constant threat facing any successful brand because everyone wants to emulate success. It sometimes takes companies by surprise as Japan brand Lexus did to BMW in the U. Ss this is a constant hazard in the consumer goods category. Companies have to be prepared to constantly innovate with existing products and bring out new products to surround the category space.
FedEx, one of the world’s leading courier companies upon finding out that all other Asian courier companies had positioned themselves around the benefit of speed as it had done moved away with a very large advertising campaign and suggesting that whatever the adverse circumstances, FedEx would deliver. It has not lost the speed benefit because this product related. It has instead added a dimension of corporate personality to strengthen overall company image hence differentiating it from the rest of the crowd. 4. The company embarks on new strategic direction
When a company embarks on a new strategic direction move into a new industry or introduces a brand that is remote from the core business, brands with an already powerful image faces less of a problem this might bring. However, weak brands will find it essential to reposition it to convince the target audience of its credibility. For example, Coca-Cola feels confident enough to bring out its own brand of clothing. There are limits to brand extensions. If the brand name is not too elastic, a totally new brand name may be necessary. 5. The company introduces new brand personality
When a company introduces new brand values or personality characteristics it needs to undertake re-positioning. Privatization and deregulation have forced many government institutions to change their practices, values and their cultures. This is a significant challenge as consumer perceptions are deeply entrenched and re-positioning requires considerable persistence repetition backed up by a totally different brand culture and customer experience. Similarly, re-packaging a brand requires re-positioning. 6. The company addresses a new target audience
Moving to a new market segment in addition to the existing ones is always tempting for the brand development. The danger lies in alienating the brand’s existing customer base. Example presented by Toyota, which said it is considering joining the Formula One racing by 2003. It is trying to revitalize its image to appeal more to the youth, a segment that tends to buy more innovative products such as those produced by Honda. By joining Formula One it hopes to send a message to young people about the fun of driving and position Toyota as technically up to date. 7. The sales are declining.
This is the basic reason why Marlboro considered re-positioning in the 1950’s. If the absolute sales start to drop, you need to take a step back and figure out the cause. If you think that you are offering your service or goods at its best, but it still does not continue to attract customers, it could be that your brand needs to be refreshed, if not represented differently. 8. New competitors have a better value proposition. In that case, rest assured that your initial position will be destabilized. If customers see that other brands offer better than yours, they tend to shift.
Hence, company option is to either step up or get left behind. 9. Customers think that your brand is outdated and not established. Being an older brand does not necessarily put you at a higher position. Customers may see your brand as outdated or irrelevant. What you need to work on is how you can really ‘establish’ your brand. You know your brand is established when customers trust and go back to it again and again. In other words, established brand produces loyal customers. 10. Your products and services have evolved drastically. Over time, companies change and expand.
You may have added new products, refined old ones, or expanded the line. This would help you stay relevant and fresh. However, if you have changed your products or offerings over a long stretch of time, chances are, the branding strategy that you started with does not reflect the brand anymore. It might be out of sync already. You may need to change it to mirror what the brand stand for now. HOW TO REPOSITION BRAND FOR HIGHER MEANING? To be successful at re-positioning your brand, you have to create higher meaning and aim higher. Aiming higher requires outward thinking and learning from the marketplace.
Some companies have been engaged with a variety of consumer products brands whose managers are seeking new opportunities to grow their brand’s value. In all these engagements, I have noticed a common thread among all of them which was consumers no longer care about them because they have lost their compelling meaning in the consumer’s mind. Once a consumer’s mind is made up about a brand, it’s next to impossible to change it. The decisions facing brand managers and marketing executives regarding how they deal with our ever-evolving market landscape usually comes down to three options: i. ontinue to invest in the existing brand meaning ii. create a sub-brand iii. invent a completely new brand All of these options have advantages and disadvantages, more so if the brand is also facing dramatic challenges in distribution. The driver underpinning all these options is change. Brands are dynamic. They have their cycles and they run their course. What is hard for managers to grasp is when to move on. This is particularly true if the brand was once a leader. Market success always creates size, power and a false sense of security.
Over time, this creates an unrealistic view of the external reality, and a lack of urgency to correct course in maintaining relevancy among consumers. Brand managers naturally become inwardly focused and they tend to miss seeing new opportunities or competitive threats. Complacency becomes the norm and the brand’s compelling meaning in the minds of consumers gets blurred and sales drop. If the companies are faced with reinventing brand, the problem that they faced most likely is obvious. Somehow many people believe a good idea has to be clever, mysterious or layered in complexity. The best ideas for re-positioning brands are simple.
If the core idea behind the brand’s meaning is not simple and obvious, it would not stand a chance in the over-crowded slush pile of a marketplace in which the brand must reside. Simple ideas are self-evident, which is why they work so well. Positioning is the art of sacrifice. A brand can only stand for one compelling, radical differentiating selling idea. The trouble with simple ideas is they have no appeal to the imagination and are easily over-looked. We are naturally drawn to the more clever and ingenious ideas. Resist this temptation. The company needs to aim higher thinking toward the simple, obvious differentiating idea hat elevates the brand to a new meaning people really care about. RE-POSITIONING STRATEGIES TO ACHIEVE COMPETITIVE ADVANTAGE It is high time we re-examine the way re-positioning of brand is done in this ever changing market place. Uncertainty and trends have placed companies in a race against time. Gone are the days when work for every segment of consumers like a charm. The life and soul of the market place today is focusing and engaging specific target market. Major paradigm of strategic re-positioning is now introduction of small scale change with budget.
Value based system is the money spinner that competitors have been using to bring companies down. Strategic re-positioning and exploitation of brand advantage is the only cash cow that can be used to counter them. The re-positioning strategy below will keep the company aware from the failure. 1. Reposition brand internally. Internal brand building is an emerging trend in marketing that is used to solidify the position of a brand in an organization. Brand based internal communication will communicate new strategic position of a brand to employees of an organization.
Major home improvement companies like Home Depot, and Lowes are example of companies with strong internal communication. Engagement will foster strategic intent of re-positioning in to the training experience and job activities of employee. Organization alliance with brand re-positioning activities will enable company to achieve increased customer referral expanded sale portfolio, and customer service efficiency. 2. Carry out consumer analysis The essence of carrying out consumer analysis is to identify prospects, customers and target group in order to position brand correctly.
Success will go an extra mile if new product development can focus consumer’s need and wants. New brand profile should correlate with consumer behavior and value. New product development manager have to make sure that they meet and exceed consumer expectation in order to make them loyal to brand. And lastly company should engage brand in the mind of consumers consistently in order to create a lasting emotional affinity. 3. Competitive analysis Competitive analysis is the assessment of the strength and weakness of your rival. Company does not underestimate the power of their competitors.
Emergence of technologies has made it easy for them to gain insight in to the future before anyone does. New product development should create an uncontested market space by making sure their marketing mix is innovative in nature. They can differentiate the position of their brand by instilling a distinct feature in price, promotion, distribution and the product itself. 4. Fine tune to advertising strategy Companies like Verizon, gap, apple, Microsoft and MacDonald have fine-tuned their advertising strategy to “consumer needs” tactics. Appealing message will create brand awareness and increased sales to them.
By using a medium that will clearly communicate new brand position and features to existing customers and prospects. They have to employ message that has specific objective in order to add value, success, quality, excitement, substance, and equity to the positioning of their brand. Besides that, advertising objectives should be derived assessment of market situation, price position, competition, and channel of distribution. 5. Create good relationship with trade partner and channel members Trade partner and channel members are people that ensures product or brand gets to the hands of final consumers.
Intermediaries have very strong ties to brands. Good strategic partnership and relationship with channel members are very important in ensuring that new brand position is communicated to consumers. They can also supply sales force and marketing communications necessary persuade consumers to go beyond buying a product. Companies like Dell Computer, FedEx, and Charles Schwab have a very great system that have enabled them achieve a very powerful competitive advantage. 6. Reassess It is always good to carry out assessment of brand position continuously to ensure relevance in the market.
This strategy will eliminate risk and problem from piling up. It is done by carrying out internal and external analysis of brand rating within employees, customers and prospect. The result of the analysis will enable them to know the strength and weakness of brand position. Furthermore, data collected will enable you map out informed strategy to reposition their brand all over again. PROFITABLE WAYS TO REPOSITION A BRAND The reason is because brand re-positioning strategy is applicable to wide range of real business problems and marketing issues.
Brand re-positioning is the only effective strategy that can generate feasible solution to problems based on current needs of the market. Therefore, it is imperative organizations understand specific ways to reposition a brand. Below are illustrations of ways to reposition a product or services. i. To make brand relevant One way to reposition a product or service in the mind of target market is to make it relevance. Brand relevance can be defined as the alignment of brand’s identity, attribute and personality with the needs of target group.
The reason behind making brand relevant constantly is because of changing needs of the society and profusion of alternatives. Brand relevance entails keeping brand current and significant in the mind of target group. It also encompass ensuring that brand resonate and connect to consumers emotionally. ii. To enhance brand identity Another way to reposition a brand is to enhance its identity in the market place. Brand identity is the visible element of a brand such as colors, logo, design, symbol and name that distinguishes a product or services in the mind of consumer.
Identity enhancement is done especially if there is no consistency between brand interfaces and consumers. Redefinition of identity is also done when two or more company is merging together. Brand identity is strategic or substance oriented in nature. Brand identity begins with analysis of marketing environment and ends with using research data to create relevant brand portfolio. iii. To enhance brand personality Organizations reposition brand personality especially when they need to solidify customer loyalty and engagement.
According to David Aaker, author of the book “Building strong brand” “brand personality can also be defined as the set of human characteristics associated with a given brand”. It is also the personification of intangible and tangible traits of a brand. Brand personality projects beliefs and core value of product or services. It is a framework that creates passion and affinity for consumers. Types of brand personalities include trustworthiness, sincerity, strong, reliable, consistency, sophistication, and emotional. iv. To enhance brand experience
Another way to reposition a brand is to enhance consumers experience in order to gain long term competitive advantage. Brand experience encompasses aligning product or services to end-user mood, needs, desires, and behavior. It also involves using stimuli to invoke feelings, sensation and responses. A memorable and unforgettable experience is created by being insightful, remarkable, valuable, dynamic, relevance and accessible enough to unravel gaps and deliver satisfaction incessantly. Customer’s physical & emotional expectations are enhanced by creating great experience at all faucet of interaction. . To enhance brand essence Periodically, organizations enhance the essence of their brand by associating brand with meaningful and relevant substance. Brand essence is a pathway for adding value and equity to a product or services continuously. The concept of brand essences is also defined as a phrase or statement that contains emotional connection or impression about product or services experience. It is the DNA or core characteristic that distinguishes a brand from other alternatives. Illustrations of traits associated with brand essence include unique, relevance, scalable, and sustainable. i. To enhance brand image/reputation Another Way to reposition the image of a brand is through its appeal, fame, and value. Business dictionary defines brand image as the “impression in the consumer’s mind of a brand total personality”. Brand image can be also defined as what a brand stand for or set of specific belief about brand in the mind of consumers. It deals with readjusting the perception of consumers on brand. It is tactical or appearance oriented in nature. Various ways to enhance brand image is through advertising, promotion, word of mouth, customer service and other touch points. ii. To adjust brand association Re-positioning of brand association is done by organizations to increase product or service appeal to core target group. Business dictionary defined brand association as the “extent to which a particular brand calls to mind the attribute of a general product category”. It can also be defined as the meaning, attributes, image associated with a brand in the mind of consumers. Associating brand with enchanting features can solidify loyalty and turn consumers to evangelist or advocates.
Various brand association include customers contact, advertisements, character, word of mouth, celebrity, category, geography, end-users, slogan, intangibles, products, extensions, and displays. viii. To emphasize on brand attribute Sporadically, factors like unstable market, short product life cycle, technological advancement, and alternative can make the attribute of a product or services irrelevant. Re-positioning of brand attribute is done by emphasizing on attribute that matter most to consumers or target group. Brand Attributes is defined as the properties or characteristics of a product or services.
It can also be defined as the emotional as well as functional association consumers confer to a brand. Types of attribute include cost, friendly, authentic, innovative, prestige, and reliability. ix. Brand differentiation Organization indulges in differentiation strategy when they need to establish a strong identity in the mind of consumers. Business dictionary defined brand differentiation as the “result of effort to make a product or service stand out as a provider of unique value to customers in comparisons with its competitors”.
Chosen point of differentiation need to be significant to target market, not used by competitors and supported by organizational resources. Types of differentiation include components, performance, experience, market leader, convenient, innovation, pioneer, essential, expertise, and responsiveness. WHY BRAND RE-POSITIONING COULD BE THE BEST SOLUTION THROUGH WEBSITE? When you have been working on a brand for a long time, it can be depressing to find out that it is not having the positive effect that you hoped.
Examining the brand equity for the website can sometimes reveal that there is virtually no difference between marketing your company with the brand, and promoting it without. This usually means that your current brand is missing the mark, and you are just not connecting with your customers. In order to create a better equity, and retain more customers while bringing in new traffic, you should seriously consider brand re-positioning for your website. Re-positioning a brand means changing the angle or design of your current brand marketing campaign, or even simply discarding your brand and starting again.
On a website, which needs to be constantly changing in order to keep up with modern trends, it can actually be a good idea to reposition your brand every so often. This keeps the website fresh for your clients, and can also attract and retain customers who would not be otherwise connected, while also allowing you to fine-tweak the Brand Promise or other elements which affect the levels of brand equity. There are a number of reasons why you should consider brand re-positioning for your website. If you are just not attracting the sales that you had at the beginning, then changing the brand can bring back former customers.
You would also need to focus upon promoting different elements of your products or services to keep the interest, but this can be a positive side effect of brand re-positioning. Another reason may be that brand you have chosen does not really match your website, and you are therefore losing customers. For example if you are promoting a brand of shoes with puppies and kittens on, then you would not want a brand image that more resembles a heavy metal poster. Your customers base their opinions of your values upon your branding, so the item and the brand need to be a close, if not completely perfect, match.
A brand which clashes with your website or the item or service offered for sale simply has to go, and changing the logo, colors and appearance of your brand can be the incentive that some websites need to completely overhaul the way that they operate which was by leading to new initiatives that generate more income for the owners. Brand re-positioning can also be a step designed to help the owner of the website with brand management, keeping the brand to a set design, and making it clearly different from other types of brand which are very similar to your own.
If a rival company has put out a product with a virtually identical brand to your own, then you can cut down their stealing of your clients by changing the appearance of your brand. This type of brand re-positioning can also ensure that you keep up-to-date with your opposition, and don’t become the traditional website, as this can put off some buyers. There are also several different types of effects which can result from brand re-positioning. For example, you may find that changing the look and feel of your brand can make your company more relevant to the customer.
If you offer a service, then you may find that your regular customers increase their levels of use, because re-positioning the brand has opened up potential uses that the customer had not previously thought of. It may also serve to make the customer take your product more seriously. Sometimes when a website has been used for a long while, clients can feel a bit bored about your site, and re-positioning can make them think again about your products. Re-positioning can also ensure that your brand keeps up with changing market conditions that would otherwise have resulted in a drop in sales.
By constantly re-positioning the brand in the market, websites can keep themselves one step ahead of the competition, and keep up with current trends. Making sure that you don’t fall behind ensures that you retain customers and keep bringing in new ones. In the more modern era of the social network site, companies also rebrand in response to changing customer demands. Some websites may need re-positioning in order to keep the interest of ‘followers’, because it gives them something to notify their fans about, and so keep the company in the user’s memory.
Others may hear direct complaints about their current brand, and this can lead them to reposition their brand in the market, hoping to ease customer dissatisfaction with a particular part of the brand’s products. Although you may not have experienced any opposition as yet, re-positioning is a good idea even for a very small company with social networking contacts, and in order to ensure that effective branding is installed, working with a company such as www. expertsbranding. com can ensure that you keep your brand contemporary and consistent even after it has been repositioned.
SUCCESSFUL BRAND RE-POSITIONING There are three key factors in successfully planning for and delivering on brand positioning. There are of course many examples of this not going to plan and in fact companies having to back-track on their new promise to a more pragmatic place. The three components to success or consideration on this topic to be: i. Planning new positioning so that it fits within the existing reference points of the target market. Some company much like the creation of social media personas and communities and not trying to create a new identity or personality or place for the brand.
That is too far away from the existing perception of that brand in its category and market position. ii. Ensuring that the audience will grant you permission to re-position. This stage essentially encourages the brand to again consider current customer sentiment. The question is they looking for the brand to evolve and change, or are they comfortable with where it is or not even aware of the current positioning. Essentially efforts are wasted if the audience are not likely or be receptive. iii.
Finally, and I think critically, the last component is ensuring the organization delivers on the new brand promise. This seems logical, but the best examples of brand re-positioning are where brands start transforming internally and fundamentally – brand of course needs to behave like it wants to be seen. No one likes a big talker with no follow through. EXAMPLES OF RE-POSITIONING BRAND SUNKIST In this digital age where music and the virtual world dominate most of the younger generation’s daily lives, marketers have to change and adapt their strategies to reach their target market.
Recently, the American soda brand Sunkist has initiated a brand re-positioning. They are now aimed at trend savvy teens and young adults. Sunkist’s brand manager said that they just can’t rely on traditional marketing. The brand’s mother company, the Dr Pepper Snapple Group, is now utilizing YouTube, MySpace and Facebook platforms to promote their products. The company has also partnered with MySpace to promote its project. Sunkist has also created four new videos featuring young break dancers out at night.
Many brands and companies are now using digital communication mediums and social media tools for a more relevant communication strategy that is in line with their target markets’ interests and ways of life such as LG, Unilever, and Nutella. In an era when people are switching from television to computers and mobile phones, companies cannot only use traditional advertisement channels and must find new ways to reach their customers. Today, the proliferation of online platforms seems to be a great opportunity for marketers to enter this new age of communication.
There is no doubt that Sunkist’s new strategy will help the brand increase its global awareness and successfully reach their consumers. Today, the young generation is more health conscious and probably less willing to buy drinks containing huge amounts of sugar. Sunkist did their market research before launching the new campaign to ensure their brand re-positioning is a success. JOHNSON AND JOHNSON Liquid petroleum is low-value, mass-produced and has a wide variety of uses; there is huge potential for mass marketing.
The market name for this substance has been long known as Mineral Oil, used primarily for health and medical uses. But US pharmaceutical and fast-moving-consumer-goods manufacturer Johnson and Johnson bridged the gap between the initial R&D and the market-ready innovation by defining a baby-care niche: Johnson’s Baby Oil was born. This extended their ‘baby’ product range, which later also included ‘No more tears shampoo’. These products demonstrate the benefits and drawbacks of a ‘Focus’ strategy as the consequential brand re-positioning shows, operating in a niche has its limitations.
The branding of their baby oil and shampoo has highly effective in defining their niche: happy babies in above-the-line advertising, pink packaging and a trusted producer sends out all the right connotations; mothers know that these products will never harm their babies. As a result of this, Johnson and Johnson can differentiate themselves from the competition by which is the essence of what a brand should aim to do that seduces a female-orientated target market to ignore generic competitors. This may have been key to uccess as Micheal Porter’s Five Forces demonstrates, Johnson and Johnson has less power than their customers, the supermarkets, who are also trying to sell their own-brand alternatives. Hence, branding to create a niche is a competition-driven objective. However, while it was a competitive strategy, nowadays the products are marketed to a wider, mass market and the ‘baby’ niche, which limited sales, has been ditched to pursue a new sales growth aim. This is essentially re-positioning a brand.
The baby oil and shampoo, it is argued, if soft and gentle enough even for babies, then surely new consumers can be attracted to use the product, which mirrors a form of market development. Predictably, more customers equates to more sales and therefore greater revenue; also, by increasing demand Johnson and Johnson can benefit from internal economies of scale to reduce average unit costs, which boosts profit margins. But this is easier said than done: very good marketing was needed to successful reposition their products.
Ironically, therefore, the secret behind successful brand re-positioning is not to change the branding to match the new consumer, but change the consumer’s perceived ‘needs’ to match the brand. REFFERENCES Brandsource. (2009, June 8). Retrieved 4 3, 2012, from Sunkist Brand Re-positioning: http://www. labbrand. com/brand-source/sunkist-brand-re-positioning Johnson and Johnson – Brand Re-positioning. (2010, August 4). Retrieved April 3, 2012, from Johnson and Johnson – Brand Re-positioning: http://manifestedmarketing. com/tag/johnson-and-johnson/ Derrick, E. (2011, September 9). The Blake Project.
Retrieved April 3, 2012, from Branding Strategy: http://www. brandingstrategyinsider. com/2011/09/how-to-reposition-your-brand-for-higher-meaning. html Levey, C. (n. d. ). Re-positioning:Marketing Strategies. I. T . Partners. Lyle, S. (2011, June 13). The Academy of Business Strategy. Retrieved April 3, 2012, from http://theacademyofbusinessstrategy-brandre-positioning. com/ McKinsey & Company. (2001). Successful Brand Re-positioning. Marketing Practice. Norlander, T. , & Unander-Scharin, M. (2007). Re-positioning- A Brand Personality. Bachelor Thesis, 139. Ryken, C. (2011,

Categories
Brand

Consumer psychology and brand management

Single Abstract In a world where the consumer is confronted with a variety of alternatives to choose from, a strong brand can have a dramatic impact on his/her purchase decision. While it is often possible to imitate manufacturing processes, the beliefs, attitudes and associations established In the consumer’s mind cannot simply be Imitated. Thus more and more firms and organizations of all types have realized that the brand name associated with their products or services is one of the most valuable assets hey own.
Branding Is an obligatory master course that builds upon the lessons learned in marketing core courses and provides deeper insights on two interrelated issues, consumer psychology and brand management. The concepts of branding taught In this class are relevant for any type of organization (public or private, large or small, etc. There is no denying the importance of branding, especially for the small business. Consumers are always willing to buy products they know and trust. A strong, well defined brand, gives you a competitive advantage In the market.
It allows o to charge more for your product, knowing that consumers will remain loyal, and buy it at the higher cost. That is the result of consistent reinforcing of the brand, which enables positive responses from the consumer. Introduction: Branding The origination of branding can be traced to ancient times, when specialists often put individual trademarks on hand-crafted goods. The branding of farm animals in Egypt in 2700 BC to avoid theft may be considered a form of trade marking.

In 1266, English bakers were required by law to put a specific symbol on each product they sold. Branding became more widely used in the 19th century, through the industrial revolution and the development of new professional fields like marketing, manufacturing and business management Brand management begins with having a thorough knowledge of the term “brand”. It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand.
Brand management Is nothing but an art of creating and sustaining the brand. Branding makes customers committed tryout business. The aim of branding is to convey brand message vividly, create customer loyalty, erasure the buyer for the product, and establish an emotional connectivity with the customers. Branding forms customer perceptions about the product. It should raise customer expectations about the product. The primary aim of branding is to create business. Strong brands reduce customers’ perceived monetary, social and safety risks in buying goods and services.
The customers can better imagine the intangible goods with the help of brand name. Strong brand organizations have a high market share. The brand should be given good support so that it can sustain itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here comes importance and usefulness of brand management. Brand management helps in building a corporate image. A brand manager has to oversee overall brand performance. A successful brand can only be created if the brand management system is competent.
Evolution of Branding in India More and more firms have come to realize that one of the most valuable assets they own are not the bricks and mortar that are shown on the balance sheet but an off- balance-sheet item, ‘brands’. For decades the value of a company was measured in arms of its buildings, land, and tangible assets (plant and machinery). It is only recently that it has been realized that its real value lies outside the business itself, in the minds of potential buyers.
Brand awareness, image, trust and reputation, all painstakingly built up over the years, are the best guarantee of future earnings. Asker (1991) defines a brand as a distinguishing name and [or symbol (such as a logo, trademark, or package design) intended to identity the goods or services of a seller and to differentiate those goods or services from those competitors. With the world coming a single market where consumers can pick and choose brands originating in different countries, managing brands has become a challenge.
This is all the more true for Indian economy as almost all the global brands are found here after liberalizing. Current Scenario of Branding in India Liberalizing, prevarication and globalization among other things have affected Indian brands. Indian brands which had thrived under protected imports environment, are suddenly finding even their survival threatened from the imports from China. As of today, it can safely be said that the Indian brands have successfully pulsed the attack of Chinese brands.
On the flip side, all this has taught Indian brand managers a few lessons also; Indian brands can survive in the long-term only if they achieve a value advantage over the new brands entering the country. Most of the multinationals learnt the hard way how value conscious the Indian consumer is as when the first wave of big name multinational brands came into the country, post-1991, they were value arrogant, They did not developed, starved for international quality market place, They were proved wrong (leading to the debate about whether the middle class actually exists or not) .
The ” starved for goodies’ Indian consumer has been less than enthusiastic about international brands of Scotch, Luxury cars, breakfast cereals, American colas, Jeans, cosmetics and sunglasses. Top of the line Japanese television brands did not get the same response as did the Korean. The Korean refrigerators, Televisions and cars are winning against Indian brands. Why? Better quality products and comparable prices. The benefit-cost equation gives them a value advantage.
Why didn’t the breakfast cereals take the Indian market by storm, even thought they were launched by an international blue – health benefits along with added convenience. Because the Indian consumer did not perceive it providing the necessary value to them. The Indian brands that are successful are the winners because of better understanding of what drives consumer v value, Naira is the epitome of this, and the pioneer of what is now acknowledged as the best way to win in the 10 times larger than that of the marketing as’. N. Y multinational in India Hindustan Lever limited. It provided adequate quality at affordable prices.
Naira is clearly the pioneer of the high volume, low margin, low cost business system which is perfect for unlocking the potential of the Indian market arbitrary- a formula most Macs Just don’t’ get'(Bujumbura, 2001) However, there are certain successful ‘ premium’ Indian brands in product categories like Jewelry and readmes garments, Tannins is one such example, The story of Tannins began when Titan entered the Jewelry business in 1995, Primarily as a manufacturer with retailing as a distribution channel But the company soon realized that selling jewelry was actually a more retail-intensive business, and that the real v value addition and competitive challenge was to establish itself at the front end. Though he company designs, manufactures and markets Jewelry but the primary focus is to define themselves as retailers and create a unique proposition that consumers can relate to. The challenges have been many. The Jewelry industry in India has 3. 5 lake players and is estimated to be worth about RSI 40,000 core. The share of the organized sector in this is Just RSI. 1,000 core. Tannins has managed to carve a niche for itself within this segment by becoming Indian’s first branded Jewelry manufacturer and retailer, and by bringing professionalism to the market.
Tannins’ arrival has helped change customer attitudes, while altering the traditional way jeweler did business, The change in the way Jewelry is perceived in India is reflected in the move away from traditional heavy designs to finely crafted, aesthetic pieces that use different metals and stones in a variety of colors, Tannins has responded to this by developing designs with the help of in-house award-winning designers blending Indian and international trends to bring outstanding products to the store shelf. Presently, Tannins is positioned as a premium brand but with some ranges affordable to the masses. Also, purity is an essential characteristic of Tannins jewelry. Nevertheless, Indian brands are there to stay because it is they who understand Indian consumer better than anybody else. In this scenario, marketing professionals sense that an increased emphasis upon price, often involving the excessive use of price promotion is resulting in the deterioration of industries into commodity – like business areas.
Hence, more resources are to be diverted into brand – building activities, to develop points of differentiation and the need to develop sustainable competitive advantages based upon non-price competition. A Consumer-psychology Model of Brands The model presented here addresses consumer perceptions and Judgments and their underlying processes as they relate to brands. In contrast to general information processing models, the consumer- psychology model of brands focuses specifically on the unique characteristics of brands. One brand, for example, can p across various products and product categories. Brand information is conveyed frequently through multi-sensory stimulation. Brands can form relations with other cultural symbols.
Finally, consumers can organize communities around brands. Consumers know and experience these characteristics about brands and respond to them. The model presented here accounts for these essential characteristics of brands. The structure of the model also reflects an understanding that consumers have different levels of psychological engagement with brands because of different needs, motives and goals. These levels of engagement are represented in the model by three layers. The innermost layer represents object centered, functionally-driven engagement; that is, the consumer acquires information about the brand with the goal of receiving utilitarian benefits from the brand.
The middle layer represents a self-centered engagement; the brand is seen as personally relevant to the consumer. Finally, the outer layer represents social engagement with the brand; the brand is viewed from an interpersonal and socio-cultural perspective, and provides a sense of community. As we move from the inner to the outer layer, the brand becomes increasingly meaningful to the consumer. Most importantly, the model distinguishes five brand-related processes: identifying, experiencing, integrating, signaling and connecting with the brand. As part of identifying, a consumer identifies the brand ND its category, forms associations, and compares the relations between brands.
Experiencing refers to sensory, affective and participatory experiences that a consumer has with a brand. Integrating means combining brand information into an overall brand concept, personality and relationship with the brand. Signifying refers to using the brand as an informational cue, identity signal and cultural symbol. Finally, connecting with the brand includes forming an attitude toward the brand, becoming personally attached to it and connecting with the brand in a brand community. These processes are not necessarily one-directional and linear, in the way that information processing is presented from encoding to choice. As will be discussed in more detail at the end of this article, processes may occur in different orders.
Moreover, while each construct is assumed to be conceptually distinct, a given construct may overlap, to some degree, with another construct, and different constructs may interact. Let’s look at the constructs within each process in more detail. What happens during the processes of identifying, experiencing, integrating, signifying and connecting? Brand Identifying The process of identifying refers to searching for, being exposed to and collecting information about the brand, its category and related brands. Depending on a consumer’s level of psychological engagement, the identification process concerns primarily categorization, associations with the brand, or inter brand relations.
Brand Categorization When consumers engage with a brand in an object-centered way, they are mostly concerned with the brand, its product category and how the two are related. The primary task is linking brand (its name and logo) to a product category, or, for corporate brands, industry category. Stimulus or memory-based categorization is a prerequisite for pursuing a brand-related goal (Alba, Hutchinson, & Lynch, 1991; that is, a consumer must know at least the name and category to purchase a brand. At times, this may be enough: awareness of the link between a brand and its category may directly lead to choice (Hoer &Brown, 1990; Unending, 1990). Depending on verbally (e. G. Kellogg Corn Flakes) or visually through physical proximity (the brand name appears on the product packaging or web site), through temporal proximity (the name appears soon after a product shot in an ad), or through design (Sauerkraut &Malter, 2005). There can be dilution effects, for example, when the distinction between brand names is blurred through similarity of the name or logo of a new brand to an existing brand (Pulling, Simmons, & Nanometer, 2006). Brand awareness is an important memory-based categorization task in which a consumer recalls a specific brand name when presented with the category. Memory depends on retrieval cues. Retrieval cues may be self-generated or externally-generated (Lynch& Gurus, 1982).
Two key retrieval cues that have been extensively studied are the product category and other brands (Alba & Psychotherapy, 1985; Alba et al. 1991; Unending, 1990). In addition, recall and recognition of a brand may be enhanced by linguistic characteristics and retrieval cues in communications and through lexical relations between the ad copy and brand name (Keller, 1987; Lowery, Shrub, & Dubiety’s, 2003; Schmitt, Dovetails, & Millard, 1993). There is one additional key categorization task, namely identifying an additional category that may fit a brand, a topic that has been the subject of the extensive literature on brand extensions mentioned earlier. In brand extension research, consumers are typically asked about hypothetical new categories for existing brands.
Consumers must thus decide whether a new product category should be integrated, and in the future be categorized, as belonging to an existing brand. Broadly speaking, two factors affect the relation between the brand and the extension: inter-category dynamics (such as overall fit, degree of congruence, intervening extensions) and brand specific dynamics (such as brand name suggestiveness, brand breadth, affect, attachment, and mood). Brand Associations To engage with a brand in self-relevant ways, consumers identify information that is relevant to them. The unique set of brand associations that a brand strategist aspires to create or maintain in the consumer’s mind constitutes a brand’s identity (Asker, 1996).
This information may include, among others, brand attributes, benefits, and images that the consumer encounters (Keller, 2003). Of course, in addition to associations provided by firms, consumers will develop their own associations with brands, for example, cognitive responses that the consumer generates about the brand (Keller, 2003). The information is stored as brand associations in consumer memory. Research has employed associative network models, in which a person’s Emory is made up of links and nodes, to represent brand associations in the consumer’s mind (Fuhrman , 1993). Brand associations can differ in valence, strength, uniqueness and coherence (Keller, 1993).
Brand associations are also structured in terms of level of generality. For example, some associations may be held about the overall brand (e. G. , Sony) whereas others may focus on exemplars of the brand (e. G. , Sony TV’s) (Eng & Houston, 2006). The activation of brand associations is often automatic in nature. The so-called”mere association effect” can be detected through an implicit cognition measure (Demote & Yalta, 2011). Brand Experiencing and the participatory experiences that a consumer may seek with a brand. Research has conceptualized experiences as multi-dimensional, including sensory, affective- cognitive, and behavioral dimensions (Brakes et al. , 2009).
Multi-sensory perception At various contact points (or”touch points”) with consumers, brands provide multi- sensory stimulations through sight, sound, smell, touch, and taste. When consumers are engaged with a brand in an object-centered, functional way, they pick up the multi-sensory stimuli of a brand (its logo, brand characters, verbal or auditory slogan) s presented in a store or on TV, in print or banner ads rather mindlessly. At times, one sensory modality may dominate (think of paint, surround sound systems, fragrances, massage services, and ice cream brands). In perceiving most brands, however, more than one sense is involved: think of the roles that sight, sound, and touch play in evaluating a car brand. At consumption, many brands involve all five senses.
Moreover, sensory cues within an environment can affect a brand; for instance, ambient scents can improve brand memory (Morris & Earthenware, 2003). Brand Integrating During the integration process, consumers combine brand information and summarize it in an overall brand concept, personality or relationship with the brand. Brand Concept Brand concept is a psychological construct consisting of the integrated information associated with a product brand or corporate brand. Brand concepts facilitate functionally-driven goal pursuit. The integrated information is usually stored in the form of a super ordinate concept (e. G. , as a “quality,” “innovative, or “lifestyle”brand).
The overall brand concept (or “image,” or “core) has been considered an integral impotent of brand equity and has been widely employed in management-focused writings (Asker,1996; Augural & Raw, 1996; Keller, 1993; Park & Cravings,1994; Park et al. , 1986). The information integration that results in a brand concept may be the outcome of some sort of cognitive algebra that, following Andersen’s information integration theory, weights the brand-related information acquired and stored in memory (Anderson, 1981). Also, certain information, particularly the information resulting from multi-sensory perceptions, may be more or less salient which affects its incorporation into the brand concept.
Finally, the information may be overall more or less well integrated. One methodology to elicit brand concepts from consumers is to create “Brand Concept Maps” (Reorder John, Looked, Kim, & Mongo, 2006). The methodology allows researchers to determine how important brand associations are, whether they are direct or indirect associations, and how interconnected they are within a brand concept. Brand Personality When consumers are engaged in a self-relevant way, information and experiences may be integrated further by inferring trait and personality characteristics about a brand (Asker, 1997). By ascribing human characteristics to a brand, consumers are anthropomorphic it (Gradual & McGill, 2007).
These brand personalities are relatively stable over time but can vary in different consumption settings, in line with the idea of a “malleable self” (Asker, 1999; Graff, 1997). Most importantly, these inferred personalities differentiate brands in the mind of consumers even when consumers cannot articulate differences in associated attributes and benefits, or product category is a case in point. One vodka may be seen as “cool” and “hip,” whereas another may be described as “intellectual” and”conservative”(Asker, 1997). A five-factor structure-?sincerity, Excitement, Competence, Sophistication, and Ruggedness-?seems to best display American consumers’ brand personality perceptions (Asker,1997).
Three dimensions (Sincerity, Excitement, and Competence) resemble closely three human personality dimensions (Agreeableness, Extroversion, and Conscientiousness), whereas two dimensions (Sophistication and Ruggedness) are not consistent with those of the big-five human personality models (McCrae & Costa, 1997). However, the brand personality structure may not be universal (Capybara, Barreling, & Guide, 2001). Only three of the five factors applied to brands in Japan and Spain (Asker, Bent-Martinez, & Garbler, 2001). Peacefulness replaced Ruggedness both in Japan and Spain; Passion emerged in Spain instead of Competency. A revised brand personality scale exhibits cross-cultural validity between the U. S. And European markets (Genes, Western, & De Wolf, 2009).
Brand Relationships In addition to assigning human-like properties to brands, consumers may also interact with brands in ways that parallel interpersonal and social relationships. Indeed, in qualitative research, Fourier (1998) found evidence for all sorts of customer-brand relationships, fifteen in total, including: arranged marriages, casual friends/buddies, marriages of convenience, committed partnerships, best friendships, compartmentalized friendships, kinship, rebounds/avoidance-driven relationships, childhood friendships, courtships, dependencies, flings, enmities, secret affairs, and enslavement. Brand Signifying Symbiotically, brands may be viewed as signifier that transfer meaning (Mica, 1986).
Depending on the consumer’s engagement, a brand may act as an informational cue, personal identity signal or cultural symbol. Signifying may occur heuristically, without the need for extensive processing (Menswear, Mackey, & Chicken, 1992). Brands as informational cues the accumulated information and knowledge about a brand can be used in a functional-rational way as informational cues. Price and quality of a brand are the most widely used types of informational signals, signifying that a brand is a value, premium or luxury brand (Estimate, 1988). In a competitive marketplace, brands can be used by firms to inform consumers about product positions in the marketplace (Order & Swat, 1998).
Brands can do so especially well hen the signal that they convey is clear and consistent, and, most importantly, credible (that is, truthful and dependable). Brands as identity signals When the self is engaged, then the brand can be a signal for a consumer’s personal identity, to both the consumer and to others. Psychological research has shown that the self consists of stable knowledge structures (so-called “self-schemas”) that organize incoming self-related information and help people make sense of themselves in their environments (Markus, 1977). People vary in their tendency to possess particular self-schemas, and this variation leads to differential attitudes and behaviors toward objects, including brands (Markus, 1983; Markus & Cent’s, 1982).
Consumers with a strong masculine self-schema described fragrance brands in more accentuated gendered terms and held sharply different brand preferences than Finally, the model distinguishes three psychological constructs to indicate various ways of connecting with a brand that differ in strength and affect the consumer’s interaction with a brand: brand attitude (resulting from object-centered engagements with brands), brand attachment (resulting from self centered engagements), and brand community (resulting from interpersonal and socio-cultural engagements Brand Attitude Brand attitudes are psychological tendencies to evaluate objects along a degree of favor or liking. Attitudes toward brands, or ads, have been central constructs in consumer psychology for a long time (Mackenzie, Lutz, & Belch, 1986; Mitchell & Olson, 1981). Recently, following dual-processing theories in psychology, a distinction has been drawn between implicit and explicit attitudes (Garrisons & Boathouses, 2006). The basis of implicit attitudes is seen in associative processes that are activated automatically with little cognitive capacity or explicit intention to evaluate n object.
For brands, they may be the result of a classical conditioning process, e. G. , by pairing sensory images with brands (Grossman & Till, 1998). Explicit attitudes, in contrast, are evaluative Judgments that are derived through a reflective system and the resulting propositions are subject to syllogistic inferences that assess their validity. Positive attitudes express a relatively weak connection with a brand. They are generalized dispositions to behave toward a brand, and they may lead to simple preference and purchase intention. But attitudes are often not stable over time, and he attitude behavior link is weak and subject to numerous moderators effects (Park & McGinnis, 2006).
Brand Attachment For self-related engagement, brand attachment seems to be the essential construct that expresses a consumer’s connection with a brand. Brand attachment provides stronger connections than brand attitudes (Thomson et al. , 2005). Attachment was originally used in developmental psychology in the realm of parent infant relationships to define a strong bond between a child and caretaker (Bowl by, 1979). After childhood, attachment can manifest itself in romantic relationships (Hazard & Shaver, 1994), kinship, and friendships (Trinket & Bartholomew, 1997; Weiss, 1988). In the realm of consumer psychology, consumers can form emotional attachments to gifts, collectibles, places of residence, and, in particular, brands (Thomson et al. 2005). Brand attachment and brand attitude have distinct conceptual properties and formation processes, and, therefore, different behavioral implications (Park, McGinnis, Priests, Considering, & laconic, 2010). Brand attachment predicts consumer intentions to perform behaviors that use significant resources, such as time, money, and reputation, better than brand attitudes. Attachment may be viewed as an antecedent of true loyalty. Challenges to Branding and Brand Management in Future Influx of information technology: The adoption of information technology (IT) is increasingly affecting the role of the brand in simplifying customer search.
IT implementations are permitting companies to develop customer loyalty programmers; ownership of this customer information is becoming the key to power. For the consumers, the internet has the potential to which in turn will cause markets to become more efficient. Although it is argued that marketing is indispensable in commodity markets, there is no doubt that marketing arks best and most effectively when the market is less than efficient. As markets approach efficiency, marketing in the traditional brand-oriented sense becomes increasingly problematic. The internet may “commodities” information, making customer search easier and less costly. Today, by using search engines, a buyer may seek, via the web, a certain product with a set of desired features at a given price.
Hence, as IT development make markets more efficient and possible lessen the role of the “search cost” function of manufacturers’ brands, the relevance and usefulness f the search agents (engines) or information provider’s brand are likely to increase. This is validated by the fact that in November 1999 Astray Inflows acquired underworld. Co. In, a Net portal for a whooping RSI. 499 core (Sahara, 2001). Changing Consumer Values: Changing demographics ensure that an ever-growing proportion of future markets will be composed of experienced buyers who are more self-assured, more willing to accept responsibility for Judging the relationship between quality and price, more skeptical of superficial blandishments, and more capable of choosing from among a multitude of sellers. Much better attuned to what value is they will seek it out tenaciously, aided in their search by technology.
Firms, in turn, are offering more services and higher product quality, that is, more value for the same amount of money. Consumers increasingly expect and even demand these added benefits. Assiduous consumer Judgments of perceived quality versus price compel brand owners to accurately benchmark competitive value and price. Brand extension or Dilution: An accepted way to expand product range and volume is the extension of brand s by introducing new products that leverage the brand across categories. Brand extension, a rational strategy if well conceived and pursued with restraint, can all too easily degenerate into brand dilution. Hence, the lure of short- term volume gain through extension can “kill” ore greatly weaken the pared brand. Short – Termite” and Rewards: For companies traded on the stock exchanges, ignoring shareholder value is a perilous course. To pursue short-term profit at the expense of long- term profit does not typically serve the interests of shareholders and can result in brand – destroying strategies. When reporting on the results of company operations, accounting inventions require the reporting of a balance-sheet and an income statement. Clearly, to protect their interests, shareholders must know whether reported profits are associated with an increase or deterioration in net asset value. The ideal objective is to increase both profit and net asset value rather than trade off one against the other.
Typically, brand managers have been encouraged to improve short-term performance measures, such as operating profit or brand share, with little consideration of the consequences for the net asset value of the brand, Better managed, fast- moving consumer goods companies have recognized this problem ND have incorporated into their assessment systems some kind of brand – equity measurement (Brother et al. , 1999). Limit on Premium that the Brands can sustain: report in 1993 in the Financial World in which Marlboro was rated as the top brand of the world. But Marlboro was in decline for some years, with its share of the US cigarette market falling from as high as 30 per cent to 22 per cent. Smokers were increasingly unwilling to pay Marlboro price premium. On Marlboro Friday, 2nd April 1993, Philip Morris cut the brand’s price and accepted lower profits as the cost of rebuilding market share. Instantly, Philip Morris market capitalization fell 23 per cent] is that the brands cane no longer prepared to pay a premium for added value.
There is no doubt that the consumer are becoming more demanding, looking for better value, rather than Just looking for better price. Provided brands are built on consumer relevant added values, they are still able to sustain a price premium. However, there are limits on the premium that can be charged. In the new branding mode, firms are becoming more aware that if their brands added values are superficial, consumer’s skepticism is likely to be aroused. The unfortunate ensconce are that rather than consumers perceiving the price premium as being fair, it is perceived as a tax, with all the consequential negative associations (De Cornerstone, 1996).
Cost Transparency – The net threat to brands: Internet represents the biggest threat thus far to a company’s ability to brand its products, extract price premium from buyers, and generate high profit margins, the Web makes price comparisons much easier, and also makes cost transparency possible. This is a situation made possible by abundance of free, easily obtained information on the internet. The net arms buyers with information about price, laity and features about competing brands with the help of a few effortless keystrokes. They can after find lower prices for books, CDC, computers, and airfares at an internet store. They can also log on to price-comparison sites and compare the prices and features of different brands.

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Brand

Brand Sense

Being graduated to the level, where marketing deciphers product in terms of a person and elevates its understanding from its mere features to personification, it is important to comprehend the difference between the product and brand. Like in case of product; the concern is about what the consumers perceive about the product considering the utility of the features. But, as per the fundamentals of branding it is much more than the features to identify the product. It is rather about the feeling, emotion, image and identity of the name behind the product, which is mainly build upon the platform of the recognition and perception.

The discussion here is about the transition of the fundamentals of branding to its advance stage to support the theory of Sensory Branding by Martin Lindstrom in Brand Sense. Here the author has applied a sense of micro issues to justify the boarder terms like feelings, emotion, image and identity of the product. Brand Sense deals with the five senses of human being; such as touch, taste, smell, sight, and sound that gives a result loaded with impacts. In the present market most of the branding companies apply this integrated method of sensory branding to achieve a measurable result that indicates the brands position in its portfolio.

The 21st century has made the world flat with its high tech engineering, communication and the knowledge to get into the nerve of the target segment the concern is catering. Here, the innovative approach of the six-step programme of brand building that includes (1) sensory audit, (2) brand staging, (3) brand drama, (4) brand signature, (5) implementation, and (6) evaluation have attracted the attention of the use of all the senses rather using the conventional idea of sight and sound to support the product marketing agenda.
Research reveals the startling fact that the emotion generation for the marketing of a brand covered and supported by smell up to the extent of 75%. Lindstrom’s list includes 20 brands to scale their future sensory awareness, among which the top three are Singapore Airlines, Apple, and Disney. In the course of the sensory branding; author has logisised the occurrings of the senses in the practical atmosphere. For instance, it is common to get a pleasant smell from a newly purchased car, which typifies the brand-new status of the car.
As matter of fact, it is the factory fitted aerosol gives the smell of a “new car aroma”. It is the smelling sense that recognizes the unique smell of a new car and sends signal to the brain to react. Similarly, in Singapore Airlines, the perfume used by the Airhostesses is the same that exists in the hot towels, given before takeoff. Eventually, the ambience inside the airplane spreads a single unique aroma that the passengers can recognize and register the brand with. In case of other senses; the crunchy sound of having Kellogg is a product of sound lab and is patented with the company’s recipe and logo.
Here the sound factor is making a brand statement and next time a person having corn flex but not Kellogg will also develop chance to relate it with Kellogg for the crunchy sound of the corn flex, which has been coined by Kellogg. Thus, here the sound sensory is able create a brand recall with the unique sound and can keep the brand as a “TOM product”. The sensory factor of Starbucks; which should be the aroma of the coffee and the taste of it, thus the smell and the taste sensory, is rather the visual impact of the interior; which adds to its sight sensory.
So apart from the smell followed by taste, which is obvious to cheer the consumers, the visual ambience of the place adds value to the brand image, its identity and thus makes their consumers the value for money (Lindstrom, 2005). In the endeavour of taking all the aesthetic decisions, companies use this theory of brand sense as a strategic branding. In this way the brand gets more vivid and comes out from the clutches of the jargons and the media gimmicks, making its message simple and bang on the point. To give a brand Source: Harvest Consulting Group LLC.
the sense of its purpose and the existence; it is necessary to perceive the same, the way the world is understood; with our five senses, the sight, the sound, the taste, the touch and the smell. And it is the same five elements of the nature the makes the sense out of a brand, in short; BrandSense. In measuring the Brand Experience of the target segment, companies focus on the response and understanding of their customers and their reactions on the part of the particular five senses while handling the brand in question.
Further, this array of experiences of the customer reveals the perception of the user extending the issue to question the self; about the identity or for using a certain brand, what image the customer gets about the self. Speaking strictly, who am I? This is a kind question that seeks the image or the perceived image of the person; thus, the personality. Relating the perceived image of the user and the brand in use; Brand Personality of the brand can be derived.
In this entire process the essence of a brand can be identified by using different senses for different kinds of brand with need and experience of different customers, the employees involved with the brand and the particular target segments. To make a cross-section of this marketing idea; the unique presentation of the senses and the allied questions to the brand, can be observed in the brand sensory wheel that segregates the divisions of the total composition of the senses (Brand Sense, 2001). Source: Harvest Consulting Group LLC.
The discovery of the sensory approach has enabled companies to unfold the essence of the current service and the possibilities of the future avenues. Author has logisised this that it will enrich the brand loyalty and makes the existing relationship deeper. Behind this happening, the five senses can play a crucial role. To know the fate of a brand conducting the sensory audit is a vital step to forecast the brand’s multiplication power on its sensory touch point. Ascertaining the brand’s stimuli, enhancement, and bonding capabilities, decides the execution of the above knowledge.
The essence of this approach is the simple fundamental of including more senses to make the brand base stronger. We also follow this while evaluating the brand and its surroundings too. To explain, a visual encounter of Starbucks retail follows the suite bellow: Sight: Brand logo on building, cups, and bags Sight/Sound: Uniform and customer approach Sight/Sound/Touch: Interior aesthetics (sofa, colors, wall paper, music) Smell/Taste: Distinct aroma of freshly ground coffee
This process also unveils the concept of smashability factor, which measures the strength of an individual sense for a brand and hoe much impact it can give. A real-time example of the application of the auditory sense reflects from the recent transformation of the Cadillac brand. For the hard penetration of the European and Japanese car makers into the American luxury car segment, Cadillac Source: brand papers. had to bear the burn of declining sales figure during late 80s and early 90s.
To retrieve the brand from the grip of the downward graph, the same has been assessed, disassembled, reassembled, and re-positioned by late 90s. To do so, the brand invested in molecule analysis to create a new meaning to its design and market preference. This entire process has remodelled the brand from its “grandpa drove into a fast, sexy, and desirable product” concept to the recent Caddy commercial with Led Zeppelin playing “been a long time” that blaring out from the speaker (Brand papers, 2009).
the innovation of the sensory branding has opened a plethora of concepts to associate the brand with the target group and it has no end to create feel factors. This is because, the central theme of this process is entirely depending on the nature, which again is the adobe of the man kind. Reference Brand Sense. (2001). Building Brands with Sensory Experiences. New York: Harvest Consulting Group LLC. Brand papers. (2009). Sensory Approach. Retrieved March 14, 2009, from http://images. google. com/imgres?
imgurl=http://www. brandchannel. com/images/papers/272_gm_flagship_cl. gif&imgrefurl=http://www. brandchannel. com/papers_review. asp%3Fsp_id%3D680&usg=__eiohIvWqTVwC7vNmelzj2n_t4JQ=&h=315&w=400&sz=52&hl=en&start=14&um=1&tbnid=Ny3PU6pNRmcVVM:&tbnh=98&tbnw=124&prev=/images%3Fq%3Dbrand%2Bsense%252BMartin%2BLindstrom%26ndsp%3D20%26hl%3Den%26sa%3DG%26um%3D1 Lindstrom, M. (2005). Brand Sense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound. New York: Simon & Schuster Adult Publishing Group.

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Brand

The Significance of Global Branding

Global branding is significant to consumers as it offers them a variety of brands from which to choose the one that best suits their needs. Global branding increases the products being offered in various markets, thereby increasing the choice options for consumers. Further global branding offers consumers a chance to attain high-quality products because firms will be compelled to provide a standardized quality globally.
Most consumers have various perceptions regarding global brands (Abbott, and Snidal 96). To begin with, they believe global brands are prestigious. Most consumers tend to associate global brands with the high-class individuals in the community. Further, consumers associate global brands with high quality. They believe that global brands have undergone a variety of quality checks before being allowed to trade internationally.
As such, they will associate themselves with such products thinking they will serve their needs better. Besides, consumers believe that global brands are expensive than the local brands. In most cases, they think the products are not produced within their locality, and that increases their prices.

Global branding has severally affected my purchase decisions. The most recent incident is when I was purchasing a phone. I had a variety of choices from which to decide on one. I automatically opted to buy a Samsung brand simply because I hold a perception that global brands are of high quality. As such, it is to my expectation that the phone will be more durable as opposed to the local brands.
Global markets pose a variety of challenges for brand management. To begin with, firms face inherent market differences in various nations all over the world. For instance, the model that a firm will embrace in the US will not be similar to the one it will employ in China due to various factors such as cultural and legal differences.
Therefore, as much as firms may be ready to standardize their brand management globally, it will be difficult due to such variations. Secondly, entrenched local brands are acting as a challenge for global brand management. The local brands have a variety conditions favoring them over the global brands, which includes the ability to serve unique market trends. As such, their brand loyalty is inherited from one generation to another, making it hard for global brands to break through.
Finally, global brand management is facing a challenge of increased focus on retail buying power. More often the goals of local brands differ from those of the global brands (Vartiak 77). Most local brands tend to serve the demands of the consumers at lower prices, as they are not required to undergo long formalities. As such, the local consumers may tend to prefer the local brands as opposed to the global ones.
Global brands require specific strategies, which can improve perceptions about the specific brand. For instance, use of digital marketing, consistent brand culture, and promotions for customers can prove to be helpful in promoting the brand name of any multinational company. Digital marketing plays a key role in spreading the word about the existence of the product and at the same time enhances sell of the products (Pernu et al. 80).
Using traditional methods of marketing might prove costly as it can fail in some areas. This will promote the brand name of the company positively. Building a consistent brand culture is essential for a multinational company that wants to do better globally. The culture of the organization should be geared towards ensuring that customers are handled well during business operations.
The brand name speaks volumes about their products hence the need to adopt a consistent brand culture. A consistent brand name will prove helpful as this will make products more attractive to consumers. Consequently, the sales will increase due to a reputable brand name. Reputable brand names will be most preferred by consumers unlike products with the poor brand image.
Promotion programs initiated by multinational companies are important in promoting the growth of transnational firms. For instance, offering discounts to various customers on products can be used to create a positive perception of the brand. Examples of such promotions include after sale services, discounts, credit sales and taking part in community programs.
Trademarks and patents are important to the production process and operations of the companies in general, and there is a need to protect them. The first strategy that can be used to protect patents and trademarks is upholding of high levels of privacy. Keeping privacy at a high level means the secret will be protected. Developments in the company should be kept confidential, and this will help the organization protect their patents.
Information on such companies should always be kept within the authorized lines until the patents have taken effect. Second, multinational companies should enforce patent ownership that is precise (Segers 200). The agreement should contain the exact partners’ roles and contribution as well as divisions of the intellectual property. Further, the companies should adopt trademarks that are unique in a way that they can be identified with the business.
Additionally, the company should find out whether any part of their product has been trademarked. This can be done through trademark clearance search. Third, the multinational companies should file any of their trademarks for registration. This will help prevent any future conflicts as to who owns the trademark rights. Most global companies have filed their patents for registration. At a small fee, the companies can download forms of certification and fill them before submitting. This can help decently protect patents and trademarks.
Works Cited

Abbott, Kenneth W., and Duncan Snidal. “Taking Responsive Regulation Transnational: Strategies For International Organizations”. Regulation & Governance, vol 7, no. 1, 2012, pp. 95-113. Wiley-Blackwell, doi:10.1111/j.1748-5991.2012.01167.x.
Pernu, Elina et al. “Creating Shared Views Of Customers: Individuals As Sense-Makers In Multinational Companies”. Industrial Marketing Management, vol 48, 2015, pp. 50-60. Elsevier BV, doi:10.1016/j.indmarman.2015.03.005.
Segers, Rien T. Multinational Management. Springer, 2016.
Vartiak, Lukas. “Global Sustainable And Responsible Investment Activities And Strategies Of Companies”. New Trends And Issues
Proceedings On Humanities And Social Sciences, vol 3, no. 4, 2017, pp. 77-87. Sciencepark Research Organization And Counseling, doi:10.18844/gjhss.v3i4.1610.