Ralf Lauren-The Role of Brand and Brand Equity - Case Study Example

Ralf Lauren Case Study -The Role of Brand and Brand Equity Student’s Name: Instructor’s Name: Subject: Date: The Role of Brand and Brand Equity Introduction In the current world of business, every company is concerned with instituting measures to brand itself within the market and gain an appreciable competitive advantage over other players in the market. Most of the companies concentrate on what makes a brand strong and how to build a strong brand. In this regard, these questions can only be answered by applying Customer-Based Brand Equity (CBBE) model. This model facilitates in understanding the brand equity and ways inn which it is supposed to be built, evaluated, and managed. Besides, the approach of this model is from a customers’ perspective, individual or organization, because they are the nerve of successful marketing. Reason being marketers are wary of ‘what do different brands mean to consumers?’ and ‘how does the brand knowledge of consumers affect their response to marketing activity?’ Brand is an important asset to any business and it depicts what a business enterprise is made of or it is about in a snapshot. Park et al. (1986) in his work agues that brand represent an enormous valuable property and are capable of influencing customer’s behavior or will as facilitating security for sustained future revenues to the business enterprise. The fundamental concept of brand equity lies in the fact that the brand has power implanted in customer’s mind and this is facilitated by their experience over a long period of time. Therefore, brand equity is a culmination of processes that head to realization of a special and distinct brand identify. In this respect, this paper takes a closer look at the Ralph Lauren’s brand equity and brand association using the CBBE model. Customer-Based Brand Equity (CBBE) Model Figure 1. Customer-Based Brand Equity pyramid. The first step entails building a brand salience with the customers and encompasses the frequency with which and how easily consumers a brand is recognized by the customers. Besides, the brand elements such as logos land other symbols should sufficiently aid the consumers in identifying the product. Having built a salient brand, the second step would involve building a brand performance. The products themselves are the core points of brand equity and thus influence to a large extent, what consumers experience with the product. Therefore the product is supposed to satisfy the consumers’ wants and needs without considering whether it’s a service or a tangible good. Thus, brand performance can be explained the ways in which the functional needs of consumers are met. Thirdly, brand equity involves realizing brand imagery and this is largely influenced by the extrinsic properties of the services and/or product as well the ways in which the brand meets the social and psychological needs of the customers. Therefore, the aspects of brand imagery are intangible fro instance personality and values, user profiles, heritage and experiences. The most common type of brand imagery associations is an organization or type of person using a particular product. Fourth step in creating brand equity is brand judgment and it concentrates mush on the customers’ personal evaluation and opinions. It is the customers’ holistic conceptualization of brand performance and imagery. The most common type of brand imagery is quality, credibility, consideration, and superiority. Fifth step entails the brand feelings which entail the consumers’ emotional reactions and responses in reference to a particular brand. Such feeling can be intense or mild and/or negative and positive. Major types of brand feelings are for instance warmth, fun, excitement, security, social approval, and self-respect. Brand resonance is the final step in creating customer-based brand equity and it concentrates much on level of identification and ultimate relationship that consumers have with the brand. Besides, it entails the depth and degree of intensity in terms of psychological bond that customers have in a particular brand. Brand resonance comprises of categories namely behavioral loyalty, attitudinal attachment, sense of community, and active engagement (n.a. 2008). Elements of Brand Equity in Ralph Lauren In the case of Ralph Lauren, the company managed to come up with various brand identifies ranging from logo and symbols, Unique Selling Proposition (USP), brand ambassadors and style among others .These identifiers facilitated in mapping the consumer brain with the main target being creating awareness and brand loyalty The first achievement that the company made was to successfully associate its product with the name ‘Ralph Lauren’. This became the brand name of the company and therefore consumers were capable of distinguishing its product among others. Secondly, as Keller (2008) notes in his work, the company adopted another brand identifier in its products line -the polo logo .This logo attained an appreciable position in the company’s brand equity considering the fact that polo sport was becoming so popular the year early 1970s majority of the sport lovers were therefore lured into associating the company’s product with the sport and they formed a market niche of some kind. Another form of brand equity that the company achieved was the imaging in terms of price. Besides, the company engaged in selling ties at a high price than the prevailing market price (Keller 2008). Thus it confused and deceived customers into believing that the higher price is due to the quality subsequently, the company applied the concept of brand ambassadors in marketing its products. This improved the company’s style of marketing and advertising as well shifting its target market. In one instance, Tyson Beck Ford ,a Jamaican model, was used to market the company’s fragrance polo sport label division considering that in the past the company had used concussion models in its advertising company’s this enable to expand the market beyond ethic background. It is in the period that hip hop artists rappers, and a number of African-American celebrities adopted the style of wearing baggy clothes .In their music videos, their buggy clothes displayed /exposed underwear waistbands with the name Ralph Lauren Polo hence making it a fashion style (Keller 2008). Subsequently, as Keller (2008) notes the company come up with RRL line in 1993 which depicted a cowboy’s lifestyle .This facilitated to brand the company’s line of clothes for instance denim jeans flamed shirt, and belt in that customer associated them with what they saw in a TV program called Bonanza .Besides all the aforementioned brand identifier the company accomplished the strategy of tapping various market riches and branding it products. These included women, children, and men specialized type of clothe for these group were for instance Polo Sport Women in (1996) Polo Sport Men and Blue Label (2002/2003). The Role of Brand Association in the Company Success Brand is a marketing tool that a company can use to aid its customers in recognizing its products. Besides having a unique brand name in place facilitates an organization to differentiate itself among other competitors in the market. Nowadays, the competition has become so stiff and every product must have a brand name. For the case of Ralph Lauren, the company products were branded with the owners name and various sports for instance polo and rugby. Therefore, the customers were able to a relationship with the products as well as the brand name. For example, although there were other similar products in the market with respect to sports like polo, sports enthusiasts would go for sportswear with the brand name polo so as to compete the whole package. Subsequently as Park et al. (1991), argues, branding does not only entail tapping a certain market niche but it also encompasses achieving the prospects of customer seeing the company as the only available solution to various problems they are encountering. A good brand, therefore delivers intended message clearly to its customers. In another perspective, Aaker et al. (1990) notes that brand association vary in accordance with their uniqueness strength and favorability. Therefore, it is important for the company to come up with a marketing program for the company to come up with a marketing program that will create brand association encompassing aforementioned characteristic. Beside it should entail mechanism such as product positioning instruct in the case of Ralph Lauren. The polo logo was on outstanding table in the clothes market, and advertising among others. Furthermore, Park et al. (1991) argues that the purchase situation may as well affect the manner in which customers assess the favourability of the brand association in relation to other factors. For instance, incase customers are under pressure, they may consider speed to be more important rather than if time pressure is low. In normal circumstances how price may be of more value apart from cases where the pressure come in between and speeds become more important. In respect to strength of brand association, this is considered to be more related to the quality and control of cognitive processing that customers devotes to the information. Therefore, Dennis and Lea (1995) writes that the ‘more elaborate the processing the more likely a consumer is to recall it’ (p. 55). For instance, successful advertising campaigns aims to achieve an increase in the level of customer involvement via questions. For example in the case of Ralph Lauren launched a website, RaplphLauren.com, as well as an online magazine, RL magazine (Keller 2008 p.48) Nevertheless ,the fact that particular brand associations perceived and held by a customer are entirely dependent on individual purchase situations and personal values. It is important for management of a company to learn when they operate and what they are. Besides, competitive offerings may overlap uniqueness associated with particular brand associations. This is vital on situation by situation and product by product basis to evaluate customers’ relevant brand association. As mentioned in question one above, the elements of brand equity increases the profitability of brand loyalty and choice as well as provides protection of a certain brand from Arguments for and against Ralph Lauren’s Brand Extension Decision to Rugby Ralph Lauren extended its brand into a wide range of products from clothes, sportswear and cosmetics among others. Besides, it even extended its market into other countries especially in Europe. This resulted in achieving creative thinking, market networking and increasing the level of awareness among the public. On the other hand, such brand extension facilitates creating a consistent brand image. Generally, successful brands of a company are vital assets and in particular they represent knowledge created in customer’s minds. These results from marketing strategies and/or programs that are adopted such brands. Subsequently, in highly competitive market environments, pioneer products face stiff competition from new products. New products are usually developed over a long period of time and therefore they are more robust in terms of quality. In such cases, a company aims at improving its existing products as a strategy for managerial risk avoidance. Dennis & Lea 1995 notes that the assessment by customers in regard to brand extension is basically described as a process in which the key brand association is conveyed into other products. In most cases, well established brands possess a well-defined brand image in the minds of the customers. They therefore avail a ‘group of salient, positively evaluated, relevant associations which are valid within or across product categories’ Dennis & Lea 1995 p. 58). In this regard, the extension by Ralph Lauren to extend its range of products into Rugby was way of conveying its quality associations into other products. From another prospective, the company avoided marketing conflicts based on specifications of its products and made a paradigm shift to compete with others based on perceived high quality of its products. In instances where quality of products is regarded to be of high degree, then it is necessary for a company extension. Although this is impossible for companies without a well-established brand-association, Ralph Lauren achieved due to the fact that it had other successful products such as the polo brand. In another perspective, brand extension brings in a cross fertilization because the main brand is advertised along the new ones. In this regard, the new ranges of fragrances that the company launched were marketed along the established polo sport brand. This saw it winning the converted fragrance foundation’s FIFI award in the years 1990 and 1991. This facilitated customers to easily recognize the new products and acknowledge that although they were new, they were as well of high quality and familiar. Subsequently, a new product if launched enhances the image of the main brand. The key product and/or its brand image become more strengthened rather than being weak. However, the dimension in which a company extends its brand also matters. It seems that the company was capable of capitalizing between both the horizontal and vertical dimensions. The horizontal dimension was favorable in that the prevailing brand name of ‘Ralph Lauren’ was extended to the new product category within the same company. On the other hand, vertical extension was realized in that a new product that had new quality and price characteristics was introduced (Dennis & Lea 1995). Recommendations to Ralph Lauren’s Stewardship Regarding their Brand In Future The current advancements in technology is rapidly changing the market environment and thus bringing a lot of dynaminism within these markets. The constant evolution of new products, regulatory frameworks, government rules and change in customer’s taste and prevalence have to be put in consideration while instituting important for any company to come up with branding strategies and marketing communication programs that looks forward into the future so and maintain customer-based brand equity. Besides Dennis & Lea (1995) argues that a company is supposed to come up with a brand management program that puts into consideration future preferences of its customers. This requires a company to be proactive in creating new brand s and/or extending the existing ones. One method that can be applied in strengthening the brand equity is to develop market programs that express knowledge in brand which is consistent so as not o conflict consumers’ taste and preferences. Even if Ralph Lauren has attained a sizeable market share in the last few decades, it must constantly run market programs that are p to date. Nevertheless, this does not necessarily imply running a monotonous campaign but it is a way of coming up with creative strategies geared at reinforcing brand knowledge among consumers. Subsequently, the managers of the company are also required to continue concentrating on the perceptions, associations, and beliefs of their consumers. The characteristics of the company’s intended market perceptions influences in some way the managerial actions that may influence them. It is no secret that the management exerts some form of control on brand perceptions through various ways for instance distribution, promotion, and pricing. However, of importance is that the management has to understand the belief and brand knowledge of a particular market segment. This forms the background as well as the baseline for estimating the effects of any marketing actions. In another perspective, reduction in the key brand equity may be worthwhile but the management of the company must be able to determine whether or not eroding brand equity is acceptable. In case the decision is right, then the management may go ahead. On the other hand, when such a decision is not favorable, the management has to dismiss such plans and avoid further extension of the company’s brand (Keller 1993). In the process of extending a company’s brand, challenges arise and it is important for the management to specifically focus on ways in which it can expand brand awareness. Adoption of new advertising strategies such as on line adverts would come in hand at such instances. Another concern for the management is avoiding poor implementation strategies. This can be avoided by having knowledge of customer-based equity. Finally, the management is supposed to provide protection of the company’s key brands by distancing them from the extensions this may be done by adopting horizontal extension (Dennis & Lea 1995). Conclusion CBBE has a differential effect that brand knowledge has on customer response in marketing a brand. Thus a brand has positive CBBE if and when consumers react more positively to a certain product and it is therefore important for the management of a company to focus more on building brand equity in their strategic plans. References Aaker, DA & Keller, KL. 1990, ‘Consumer evaluations of brand extensions’, Journal of Marketing, vol. 54 no. 1, pp. 27-41. Dennis, AP & Lea, PK 1995, ‘Understanding brand equity for successful brand extension’, Journal of Consumer Marketing, vol. 12, no. 4, pp. 51-64. Keller. KL, Aperia, T. & Georgson, M 2008, Strategic brand Management: A European Perspective, Pearson Education. Keller, KL 1993, ‘Conceptualizing, measuring and managing customer-based brand equity’, Journal of Marketing, vol. 57, January, pp. 1-22. n.a. 2008, ‘Customer-based brand equity’, STBM, pp. 42-93, viewed 22 November, 2010 . Park, CW, Jaworski, BJ & MacInnes, D 1986, ‘Strategic brand concept image management’, Journal of Marketing, vol. 50, October, pp. 135-45. Park, CW, Milberg, S. & Lawson, R 1991, ‘Evaluation of brand extensions: the role of product feature similarity and brand concept consistency’, Journal of Consumer Research, vol. 18, September, pp. 185-93. Read More