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CHAPTER 6 : BRAND MANAGEMENT
BRAND Associations
BRAND
Brand Associations
MANAGEMENT
F.GAUCHER - Brand Management - Leveraging Secondary Brand Associations to Build Brand Equity
Learning Objectives
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Objectives
Explain the process by which a brand can leverage
secondary associations
Introduction
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Definition of Secondary Brand Associations:
Brands may be linked to other entities that have their own
knowledge structures in the minds of the consumers
Because of these linkages consumers may assume that
some of the associations that characterize the other entities
may also be true for the brand. This linkage is called a
transfer.
Brand knowledge refers to all of the thoughts, feelings,
images, experiences, and beliefs that become associated
with a businesses brand.
Introduction
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What is Secondary
Brand Associations?
In other words…The brand
borrows some brand equity
from other entities.
It is an indirect approach of
building brand equity
Introduction
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Brand leveraging may be important if…
If the existing brand associations are deficient in any
way
Brand leveraging helps create strong, favorable and unique
associations and positive responses that are not present.
Brand leveraging may help new brands to grow under the
umbrella of other most renowned brands.
To reinforce existing associations in a fresh and
unique way
Understanding Transfer of Brand Knowledge
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Introduction
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Brand Leveraging operates by linking the brand to…
① Companies
② Countries or geographic areas
③ Channels of distribution
④ Other brands – Co-branding
⑤ Licensing
⑥ Spokespersons
⑦ Events
⑧ Other third party sources
1. Company
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Existing brands can be related to a corporate or family
brand
A corporate or family brand can be a source of brand
equity
2. Country of Origin or Geographic
Location
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A place of origin can be linked to the brand to generate
secondary associations
Consumers choose brands originating in different
countries based on:
Their beliefs about the quality of brands or products from these
countries
The image that these brands or products communicate
2. Country of Origin or Geographic
Location
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A place of origin can create strong points-of-difference
(POD)
Geographic associations are possible at a state, regional
or city level as well
2. Country of Origin or Geographic
Location
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3. Channels of Distribution
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Retail stores can indirectly affect brand equity
through an “image transfer” process
Retailers have their own brand images in consumers’
minds due to the following associations
Product assortment or category
Pricing
Quality of service
Credit policy
Location & store layout
etc.
3. Channels of Distribution
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4. Co-branding
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Co-Branding
When two or more existing brands are combined into a joint
product or are marketed together in some fashion
4. Co-branding
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4. Co-branding
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New fashion brand strategy: co- branding with other well-
known brand or collaborating with famous designers or
designer brand
Chinese fashion designer
Alexander Wang has been
recently worked with H&M
which increases his brand
awareness and at same time
this collaboration has made
H&M more culture diversity in
the mass fashion market and
gained more fans in China.
4. Co-branding
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Co-branding between carmakers and watchmakers
Aston martin and Jaeger-Lecoultre
4. Co-branding
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Fast fashion brand H&M and Karl-Lager Feld
This strategy blurred boundary between high–ends, luxury and mass
market product. And at the same time, it increases the market share
for both brands.
4. Co-branding
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Increase brand uniqueness
The uniqueness of collaborative products between the mass market
brand and designer brand.
4. Co-branding
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Increase brand uniqueness
The uniqueness of collaborative products between the mass market
brand and designer brand.
5. Licensing
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Contractual arrangements whereby firms can use:
Names, logos, and characters of other brands to market
their own brands for some fixed fees (Royalties)
5. Licensing
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Examples:
Entertainment (Star Wars, Jurassic Park, etc.)
Television and cartoon characters (Walt Disney, The Simpsons)
Designers apparel and accessories (Calvin Klein, Pierre Cardin,
etc.)
5. Licensing
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6. Celebrity Endorsement
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6. Celebrity Endorsement
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Draws attention to the brand
Shapes the perceptions of the brand
Celebrity should have a high level of visibility and a rich set
of useful associations, judgments, and feelings
Q-Score (Quotient-Score) to evaluate celebrities
Revert to document provided during class
6. Celebrity Endorsement
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Potential Problems
Celebrity endorsers can be overused by endorsing many
products that are too varied.
There must be a reasonable match between the celebrity and
the product.
Celebrity endorsers can get in trouble or lose popularity.
Many consumers feel that celebrities are doing the endorsement
for money and do not necessarily believe in the endorsed brand.
Celebrities may distract attention from the brand.
6. Celebrity Endorsement
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Nivea has dropped Rihanna as
a spokesperson due to her
"party girl" personality.
7. Sponsoring
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Sponsored events can contribute to brand equity by
becoming associated to the brand
Sponsored events may improve
brand awareness,
adding new associations,
the strength, favorability, and uniqueness of existing
associations.
The main means by which an event can transfer
associations is credibility.
7. Sponsoring
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7. Sponsoring
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8. Third Party Endorsements
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Involves linking the brand to
various third party sources (e.g.
Rewards, Reviews, Studies, etc.)
Example - Grey Goose's eventual
success was a taste-test result from
the Beverage Testing Institute that
ranked Grey Goose as the number-
one imported vodka
8. Third Party Endorsements
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Marketers can create secondary associations in a number
of different ways by linking the brand to various third-party
sources.
Third-party sources can be especially credible sources.
Marketers often feature them in advertising campaigns
and selling efforts.
Example: J.D. Power and Associates’ well-publicized Customer
Satisfaction Index
To Sum Up...
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The extent to which an entity can be leveraged as a source
of equity depends on:
Consumer knowledge of the entity
How easily the appropriate associations or responses to the entity
transfer to the brand
34 Case: EVA Air & Sanrio
EVA Air & Sanrio
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A successful example of long term brands collaboration
between the Taiwanese airline company EVA Air and Sanrio,
the official home of Hello Kitty.
EVA Air & Sanrio
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In 2005, Sanrio approached EVA to sell Hello Kitty-
branded products inflight.
Chairman Chang, the visionary leader of EVA, had a bigger
idea.
Make Hello Kitty part of the flight experience
create an immersive Hello Kitty travel experience.
After only six months of collaboration between the two
companies, EVA Air launched its first generation of the
Hello Kitty Jets in October 2005.
EVA Air & Sanrio
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How did these two companies successfully work
together?
The process of co-branding is not always an easy one and EVA and
Sanrio overcame numerous challenges. The successful partnership
moved forward due to strong leadership and shared values.
Chairman Chang reviewed every detail and surprised Sanrio by
investing significant resources into the co-branding program.
Both companies emphasize customer service, quality products and
excellent customer experiences.
Both companies had different customer bases and working
together meant sharing their customers with each other.
EVA Air & Sanrio
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Successful results
Thisconcept appeals to a wide range of travelers as
some passengers book flights to collect the service
items (pillow cases, utensils, headrest covers and more).
Besides the colorful décor and theme, every passenger
receives warm, friendly service and comfortable aircraft.
Passenger bookings on the Hello Kitty Jets are
approximately 3 percent higher than their regular
aircraft
Inflightduty-free sales of exclusive Hello Kitty and
Sanrio items has climbed to $3 million a year.
EVA Air & Hello Kitty
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Here are some tips for executives considering
such strategies:
Think big: Hello Kitty Jets are much more than co-
branding.
Select the right partner with shared values and goals.
Do everything possible to meet and exceed customer
expectations.
EVA Air & Sanrio
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Fun-filled Immersive Experience
EVA Air & Sanrio
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Fun-filled Immersive Experience
EVA Air & Sanrio
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Fun-filled Immersive Experience
Immersive Experience
EVA Air & Sanrio
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Fun-filled Immersive Experience
Immersive Experience
EVA Air & Sanrio
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Fun-filled Immersive Experience
EVA Air & Sanrio
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Fun-filled Immersive Experience
EVA Air & Sanrio
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Fun-filled Immersive Experience
