Brand Equity: Case Study - Essay Example

Brand Equity: Case Study Brand equity is closely related to brand imagery, and brand s are often chosen to help elicit a desired product image. The case of the Crush brand suggests that the sources of brand equity are positive perception of the product as healthy, long selling history of the product and new image of the product. Research has shown that prunes carry the image of being dried out, worn out, wrinkled, ugly, old-aged things used only as laxatives, and are a plebeian symbol without prestige. Consumers also hold images of institutions. Images of retail-store characteristics or personalities affect shopping behaviour. Sensory impressions result in consumers' attributing distinct personality characteristics to retail units. Some stores reflect the bargain basement, discount atmosphere, whereas others reflect an atmosphere of elegance, luxury, affluence, and sophistication (Aaker, 2001). The product image stems from such diverse factors as advertisements, sales personnel, merchandise, services, pricing strategies, physical plant, and layout (Keller, 2003). Research findings seem to indicate that consumers choose to shop at stores and purchase brands consistent with their own personalities. The current sources of brand equity are brand awareness (based on brand recall) and unique brand image. The main weakness of Crush is that: “it spent less on advertising. It was promoted most frequently on sport television, in newspapers, and on outdoor signage” (Case Study p. 324). Still, the consumer's interest lies in this unique self-image of the product - the image the Crush has and would like to promote. There are four perceptions related to the concept of self -- the person as he actually is, as he thinks he is, as others think he is, and as he thinks others think he is. In understanding buyer behaviour, the most important perception is the image of what is -- the image of reality -- rather than what actually is. A direct link exists between corporate concern with company and brand images and consumer concern with the self. Whereas corporations react to enhance the former, consumers act in an effort to embellish the self. Therefore, the greater the consistency and parallelism are among product image, store image, and desired consumer self-image, the more likely it is that favorable purchase reaction will occur. Maintenance of the self is a basic preoccupation of consumers (Esch et al 2006). In spite of all weaknesses and limitations of the Crush positioning, the brand is recognized by consumers. The brand is strong because it is based on the unique brand associations and images. For the Crush, the unique image concept refers to what each individual sees in himself -- his perceptions. The consumer perceives his "true environment" as affording opportunities or restricting his actions and development, either of which affects his self-image. Within his phenomenal field, he attempts to satisfy his needs and achieve his goals, including the important goal of maintaining and extending a favorable self-image. The consumer seems to accept those experiences and opportunities that are deemed favorable to his self-image and to reject, alter, and ignore those that are not (Keller, 2003). Strong mutual reinforcement between strategy and culture goes a long way to creating a wide brand awareness of the core Values and beliefs espoused. The believed self-image of the Crush is the image that the individual has of himself. Marketing programmes should take into account a person's ideal and believed self-images, and help him move from the latter to the former through such factors as product, brand, and advertising. A good marketing programme introduced for the Crush provides the purchaser with a purchasing rationale that is aligned with self-approved reasons for product, brand, and store preference. Since most consumers lack inherited social status, they endeavor to acquire it through purchasing power. They purchase items that portray the proper symbols (Esch et al 2006). Question 2 The Crush can be characterized as a strong brand because it reflects the brand equity criteria. These criteria are financial success, brand extinctions and a strong customer base. For the Crush, consumer taste is hard to define and intangible, it is becoming more significant because of affluence. It is comprised of education, sensibility, and morality. Tastes are learned and seem to be improving. Thus it requires an important psychological shift from a work ethic to a leisure ethic. Yet when leisure increases, an interesting paradox occurs. Consumers appear to have less time. In the future, time and not money will likely be the first constraint of consumption. Two related concepts, conspicuous leisure and conspicuous consumption, explain that it is not only the quantity but also the quality of consumption that is sociologically important (Esch et al 2006). The six brand-building blocks are salience, performance, imagery, judgments, feelings, and resonance. The Crush brand meets the silence dimension as it is easy to recognize and recall. Young consumers (13-29 years old) purchase the Crush because of its unique image and positioning as a premium, Orange brand. As for performance characteristics, the Crush is positioned as a unique Orange brand with excellent taste. The price is affordable for wide range of potential customers. Imagery characteristics suggest that the self-image may be distinguished: the ideal self, the actual self, the believed self. The ideal self-image refers to the image an individual would like to have. The actual self-image refers to the real image that exists; this image involves the assessment of others (Esch et al 2006). Also, imagery is supported by history of the brand and nostalgia. Judgments and feelings about the product are based on customer’s satisfaction and trustworthiness, differentiation and social approval of the brand. For the Crush, resonance dimensions involve large number of repeat purchasers, proud of the brand and affiliation. Whereas most appropriate symbols are those that coincide with the ideal self-image, symbolism is related to the self-image concept. Symbols of dress, taste, and general life style are highly prized. Not copious consumption, therefore, but the manner of consumption confers prestige and status (Keller, 2003). The main strategies implemented by Cadbury were clear marketing objectives and positioning. “in particular, objectives for advertising and promotion had to be established and communicated to the advertising agency” (Case Study, p. 329 ) Also, the Crush’s brand equity can be seen as a part of societal norms. Group membership and group belonging relate directly to self-esteem and favorable self-image; acceptance and the grant of status by various organisations embellish the phenomenal self. The ability of groups to foster the development of more favorable self-images encourages belonging; the ability of products, symbols, services, communications, and other aspects of the marketing programme to enhance the self-image encourages consumption behaviour. One of the bases for understanding consumer behaviour in its psychological and sociological dimensions, the self-image concept adds an important perspective to economic theories of consumption and is directly related to motivation (Esch et al 2006; Urde, 1999). In order to improve the brand equity, the company should follow a clear differentiation strategy. Moreover, brand equity has an influence which, in any organisation, extends well beyond its usual functional boundaries. Thus, the fundamental strategies of the business are conceived of and accomplished on the basis of market needs, forces, and opportunities. The markets for the Crush become the major thrust in planning, directing, and organising business operations. The company should recognise that marketing's responsibilities beyond the profit motive and its contributions to human and public welfare are included. References Cadbury Beverages, Inc. Crush® Brand. Case Study. David Aaker, (2001). Managing Brand Equity, New York: Free Press. Esch, A. et al. (2006). Are brands forever? How brand knowledge and relationships affect current and future purchases. Journal of Product and Brand Management 15 (2), pp. 98-105. Keller, K.L. (2003). Strategic Brand Management. Upper Saddle River, NJ: Prentice Hall. Urde, M. (1999). Brand orientation: a mindset for building brands into strategic resources. Journal of Marketing Management. 15: 117-133 Read More