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Looking for Alibrandi Sumary

chapter 29 summary Josie at speech night. Speech night was a very emotional night, the HSC was almost over and it would be the last time that they would be wearing their uniform. “I’m only Dux because I didn’t want you to be” she told me. When josie went to the ladies she bumps into Ivy and they start to talk to each other about how close they were to john and that they didn’t know what could have caused him to commit suicide, in the end Josie and Ivy hug each other and Josie tells Ivy that if they ever go to the same university that if they bumped into each other they would go out for a cappuccino.

In this chapter we get to see that Ivy and Josie can get along when they choose to be and even though they had there ups and downs they still ended up as good friends, just the way that john hoped it would be like. chapter 28 summary Josie is hit with a shocking surprise.

When Josie went to school the next day she sees Ivy sitting on the stairs holding her head in her hands and Josie asks her what was wrong then Ivy tells her that John was dead but Josie thought that it was a joke when Ivy told her but then when she saw anna come up to her and hold her in her arms and say that she was very sorry josie had to go to the ladies room and she vomited and then when she was done she fell to the ground and she felt like she wanted to cry but she couldn’t because she was so angry. “he killed himself. “He swallowed tablets and they found him this morning. ” “For God’s sake, josie, he’s dead, my father wrote the fucking autopsy report. ” In this chapter we get to see that josie and ivy have so much in common because they both loved john and they both cared about him so much, we also get to see that josie has a lot of fear in her because she is to scared to die and she never wants her family to die because she loves them so much. chapter 27 summary Josie goes to watch her cousin robert play at his rugby union game.

While at the game josie bumps into john who was also watching the game and asks josie what she was doing at the game, she said that she bribed her cousin because if she went to his game he had to take her to the St. Anthony’s graduation. “Oh yes, where only the privileged can attend. I promised Ivy when we were about twelve I think. ” In this chapter we get to see that josie and john get along very well and that they both like each other but they were both to shy to tell each other that they did when they were younger. chapter 26 summary

Josie forgives her grandmother for doing what she did over thirty years ago. “your grandfather francesco treated me like one of his farm animals. ” Josie and her friends were going to go to Anna’s to do some last minute studying for the HSC but when the bus came Josie say’d to her friends that she would miss out and instead she went to her grandmothers house. When Josie got to her grandmothers house she gave her the biggest hug she has ever given and she cried her guts out, when they sat down in the living room Josie asks why?

And then her grandmother tells her more of what happened and because of that she starts to resent her nonno a bit because of what he did to nonna katia. In this chapter Josie learns that her grandmother had dreams like her and that she did what she did because she was angry with francesco and only him because he had left her alone for so long. chapter 25 summary Josie and her family celebrate her mothers birthday. Josie lets her mother go to her cousins house and stays at her grandmothers house and then she blows her top off at her grandma and finds out that marcus sandford is her mother’s father and not her nonno.

In this chapter we get to see that Josie dislikes her grandmother for doing what she did and she has been telling her that australians are bad and she should go out with an italian man instead. chapter 24 summary Jacob wants to meet Josie’s grandmother. When Josie and Jacob are walking down the stairs she sees her grandmother and Jacob tells Josie that he wants to meet her because he thought it would be nice but Josie repeatedly says no because she has just earned her grandmothers trust again and she doesn’t want to lose that. “My grandmother wouldn’t understand, jacob. give it time. he was brought up in a different time and place . i know it’s hard enough for you to understand. It’s hard enough for me. ” In this chapter we get to see that Josie feels kind of ashamed of her grandmother because her grandmother always to carry on with her family tradition. we also get to see that Josie and Jacob don’t always have the right things to say to each other. chapter 23 summary Josie gets to understand her grandmother more than she has ever before. Josie learns that her grandmother was a very lonely person when she moved to australia because nonno had to work and he worked on the cain farms when they lived in Queensland. He came to see me though. he said that it would his heart if i would leave. i could see it in his eyes. but if i stayed i knew i would break my heart. ” In this chapter we get to see Josie and her grandmother really close to each other, we also get to see that Josie is interested in what her grandmothers life was like when she first moved to Australia. chapter 22 summary Josie and her mum have a splurge day. they decided to go to one of the harbourside restaurants and although the weather was cool, it wasn’t wet enough to ruin the view. “he’s ultra cool, you know.

Not cool as though he drives a sports car and dresses trendy, but he’s a cool guy, he’s up front. No bull. ” “take things slowly, and they will work out. ” this chapter reveal that christina was treated very badly by her father when she was pregnant and even before that, he called her every name under the sun, a tramp, a slut. he even hit me across the face and even hit my mother. chapter 21 summary Josie goes to the movies with John Barton to see Macbeth. While at the movies they bump into Jacob and he tries to have a go at John because Josie and Jacob are going out, but in Jacobs eyes that s not what it looks like. Well,, for your information, Miss Intellectual, we’re studying Macbeth at school and that’s what i’m going to see tonight,so never ever presume what i like and what i don’t like. ” In this chapter we get to see that Jacob gets jealous when Josie goes out with other friends that are boys, we also get to see that they both can get pissed of very easily with each other. if Josie had the option to go out with John and not Jacob she would but the only thing from stopping her is that he isn’t that fun as Jacob but he shares so many things in common with Josie and Jacob doesn’t. chapter 20 summary

Josie is put in charge of keeping an eye on he little students at St Martha’s on their annual Walk-a-thon that they have every year to celebrate St Martha’s day. While Josie is supposed to be looking after the slow people she instead goes with her friends to see Trey Hancock at the Sebel Town House. The next day Sister Louise calls the girls into her office but dismisses three of them and tells Josie to stay behind. “Ivy doesn’t have “one offs”. She’s  responsible from the moment she walks into school till the moment she walks out. ” “You were voted school captain but i gave the job to Ivy because she’d do a better job. In this chapter we find out that Josie was supposed to be school captain instead of Ivy, we also learn that Josie loves to do what her friends do and that she and her friends are trend setters for all the little people of St Martha’s. chapter 19 summary Tomato Day! Josie and her family have a tradition that they have to make their own pasta and sauce to go with it, this is when the whole tomato thing comes into place every year on a specific day all the family comes together and they pick tomatoes for the sauce, they squash them by hand and then cook them and then squash them again and then cook them one last time.

Robert and I call this day “Wog day” or “National Wog day”. Nonna and Zia started to tell the story about Marcus Sandford and how he helped them with the garden while the men where at camp. “I thought that maybe by spoke to someone they would feel sorry for us and send us back one man. Maybe all our husbands. ” This chapter reveals that Josie and her family get on very well when they aren’t fighting and telling others what to do and how to do it, we also get to see that Josie’s family loves to carry out tradition. chapter 18 summary

Jacob surprises Josie by getting a car so they can go places instead of having to ride on his motorbike. “Tons of things ,” I said excited. “We could form a company. I’d be the theory part of the business and you’d be the practical. ” This chapter reveals that Josie believes that she can have a wonderful life with Jacob but at the same time she doesn’t as well because she doesn’t believe that she has chosen the right man for her. chapter 17 summary Josie gets to know her father more than ever over the holiday that they had together in Adelaide. “You sound like Mama”, I said, standing up through the sunroof.

Josie enjoys the time that she spends with her father in Adelaide and meeting the rest of her family for the first time in seventeen years. This chapter reveals that Josie likes being with her father because she feels like she has known him for her whole entire life. When Josie gets back she sees Jacob on Saturday night and he tells her never to leave him again. chapter 16 summary Josie wags school on friday to go on a date with Jacob Coote. He leaned over and kissed me quickly. “what was that for? ” i asked, embarrassed, but laughing. “I like the way you talk, I like the way you think. So much passion behind those bifocalled eyes.

So much to say”. This chapter reveals that Josie is really opening up to Jacob and letting him into her life, and the same thing goes for Jacob he is letting Josie into his life and telling each other what they have done and what their families are like. chapter 15 summary Josie goes out with the girls to darling harbour after school, at the cafe` they see Jacob, Anton and four of their friends cramp themselves in to the booth behind them much to the dismay of Anna and Josie. “Listen, we’ll start over again, Okay, I looked into his clear green eyes which always seemed so warm and sincere no matter how bad he looked at times”.

Eyes, my mother told me, never lie. This chapter reveals that Josie starts to like Jacob again even though he treated her like he did on their date to the movies. when Josie gives Jacob a second chance he asks her to wag school with him so they could go out on a proper date. chapter 14 summary Josie meets up with John barton again and give each other their pieces of paper with their emotions written on it. John talks to Josie about the fact that his father hates him at the moment just because he didn’t win the maths competition. My father was home when i got there this afternoon . Went through my mail. He owns m y life so of course he is entitled to open my mail,” he spat out bitterly. after John finishes telling Josie about what his father think s about him at the moment they decide to talk about the HSC and that they have to write what they are feeling at the moment and then they have to give it to someone else and then after the HSC the person that they gave the note has to ask them how they are feeling and read out what they felt before the test.

In this chapter we are shown Josie’s feelings for John Barton again, we are also shown that Josie cares about what John does with his life and tries to help him with his problems. chapter 13 summary Josie goes out on a date with Jacob Coote but ends up spending the night with her father Michael Andretti. “Just because you had to meet my mother, you went and acted like a prick. Why? ” “Okay, this is my proposition. How about you come work for me at the chamber? You can do photocopying and help the secretaries,” he suggested.

Josie starts to dislike Jacob Coote because he was being a snob to her and her mother when he came to pick her up so they could go to the movies, when they got to the movies they started to have a fight and then Josie ran off and hid in one of the arcades and when she thought the cost was clear she ran out of the movies and started to walk home when she was being followed by a car, when it pulled up next to her she shouted at the driver saying that her father was a police officer and the person driving said actually he’s a Barrister, Josie jumps in the car and has dinner with Michael Andretti at a pizza place on Glebe point road.

In this chapter we get to see a father, daughter relationship build and start to get strong we also get to see Josie’s true feelings towards her father, she feels that she wants to know him more but at the same time she doesn’t want to because what he did to her mother over seventeen years ago. chapter 12 summary Josie ask’s her grandmother to show her the photos of when she was young and her past. “I regretted it when i saw the look of glee on her face. Because the way Nonna makes my mother feel , I hate making that women happy. ” Even hough Josie doesn’t like to make her grandmother happy she still tried to pay attention when she was telling her stories behind all the photos, Josie screeched when her grandmother told her that her first Australian friend was a hunk, but when her grandfather had found out that her grandmother had an aussie over about every day he got jealous and said she was never to see him again. In this chapter we get to see that Josie tries to be nicer to her grandmother. chapter 11 summary Josie talks to her mum again and ask’s if she can go to the movies on saturday. Is that what all this buttering up has been all about” after telling her mother that she wants to go to the movies with Jacob Coote, her mother says that she will think about it. this chapter reveals that Josie has strong feelings for Jacob Coote more than ever because not only did he protect her after she as hurt by Greg Sims and she liked that he was being a protective person. chapter 10 summary Josie gets raped by Greg Sims and his posy. “He grabbed me by the front of the uniform and slobbered all over my mouth and i could hear Anna scream and pull me away while the bile rose in my throat”.

Jacob Coote comes to comes to Josie’s aid while she is being forced upon by Greg Sims. In this chapter we are shown that not only can Josie be mean and cruel to other people, Jacob Coote can also be just as mean and cruel to people. When Jacob drops Josie off she tells him that if he wants to go out with  her that he has to meet her mother, Jacob puts up a fight but in the end he gives in and ask’s her out to the movies on saturday night. chapter 9 summary Josie fights with her mum. “I don’t like the fact that you’re going out with him again. Josie doesn’t like it when her mother leaves her at home alone just so she can go out with a guy, Josie doesn’t want her mum to get married because she just wants it too be the two of them until they die. The chapter reveals that Josie loves her mother but she also doesn’t want to hurt her by doing the wrong things. Josie has her moments with her mother every now and then, but they usually end up hugging each other or if it doesn’t go well they don’t talk to each other for a while. chapter 7 summary Josie goes to her grandmothers house because her mum is going out for the night. Oh God, Ma, I have to sleep in the same bed as her. She doesn’t shave her legs. ” Josie learns a lot about her grandmother that night that she sleeps over, she told Josie that she used to look exactly like her when she was her age, she also told Josie that she was forced to move to Australia with her husband and that meant that she would probably never see her family again. This chapter reveals that Josie starts to develop a stronger relationship with her. chapter 8 summary Josie brakes a girls nose. we are introduced to one of the beautiful girls Carly Bishop “they were all wogs. hey seem to be ever where,” she snickered. “I’m just the same as them and I’d appreciate you not going on about wogs every day. It offends me”  In this chapter we get to see a father daughter relationship develop between Josie and Michael Andretti. the chapter reveals that Josie does have feelings for Michael Andretti even though she told him to stay away from he he still came to the rescue when she called. chapter 6 summary Josie meets her father for the second time. “I don’t want her,” he said flatly. oth Josie and Christina had a fight with Michael Andretti, first it was Christina who told Michael that they didn’t want anything to do with him, then later on in the day Josie followed him into the lounge room and watched him look at all the photos that her grandmother had all around the place, Josie told him that if he ever hurt her mum that he would be in a lot of trouble. This chapter reveals that Josie feels anger and hatred towards Michael Andretti because he left her mum when she was young and didn’t try to contact her since then. chapter 5 summary Josie goes to the regional dance.

Jacob Coote gives Josie a ride home on his motor cycle even though Josie knows that if her mum found out that she did she was going to be dead or one of the people in another car saw her and recognized her they would tell her grandmother and she would tell her mother. “My mother will murder me”. “she’ll find out alright”. this chapter reveals that Josie starts to develop a strong relationship with Jacob Coote. “do you know that I’ve been in this country my whole life and I’ve never spoken to an aboriginal”. chapter 4 summary Josie works with Poison Ivy at the debating night.

We are introduced to John Barton. “To walk into the regional  dance with John Barton would make me the envy of every snob at St Martha’s”. This chapter reveals that Josie shows her feeling for just more than one particular boy. she likes to flirt a lot with boys that she hasn’t seen for ages or just met. chapter 3 summary Josie hates to go to her grandma’s house because its her family ritual only because her mum makes her. We are introduced to Josie’s father Michael. “Michael! my heart began to pound at one hundred miles per hour and I could feel the hairs at the back of my head standing up on end”.

This chapter reveals that Josie feels hate towards her grandmother because she sayed that the daughter’s behaviour always reflects on how good the mother is. chapter 2 summary Josie speaks about AIDS at the ‘Have A Say Day’. Josephine has friends such as Sera, Lee and Anna, who influence her life greatly. We are introduced to Jacob Coote at the ‘Have A Say Day’ “…. If your an outcast with your own kind, you’ll never be accepted by anyone”. “No matter how much I hate Poison Ivy, I want to be in her world”. This chapter shows more about Josie’s relationship with her friends and how she deals with her family life.

For days I just couldn’t help thinking about my father. I felt sick at the idea of meeting him, though at the same  time I desperately wanted to. chapter 1 summary The reader is introduced to the main character and narrator of the story, Josephine Alibrandi. as a reader we find out that Josie goes to St Martha’s high school. The narrator is a typical teenager who worries about issues such as peer pressure and relationships with others and teachers. “My biggest problem though, is being at a school dominated by rich people… ho i can’t see having a problem in the world” This chapter shows how Josie feels insecure because she is an outsider. My Mother was born here so as far as the Italians were concerned we weren’t completely one of them. Yet because my grandparents were born in Italy we weren’t completely Australian. Whole Book Summary ‘Looking for Alibrandi’ is a story about a young girl, growing up in Sydney in the nineties. The only side of life to create any hassle is that she is Italian, with an Italian mother, grandmother and father, somewhere, growing up in an Australian world.

Throughout the book, she spends her entire year twelve either at her home or at her grandmother’s, school or suburban areas, learning about herself and making friends. The main character, Josephine Alibrandi, or Josie, is a feisty and head-strong seventeen year old. She received an English scholarship at the beginning of highschool to go to a strict, Catholic college, St. Martha’s. She is very intelligent academically and can achieve excellent grades when she applies herself. She is also the vice-captain at St. Martha’s to Ivy, an Australian favourite of all, whom she calls Poison Ivy.

Most of her friends from primary school didn’t end up there, so she has made new friends, although most of the school is from the rich, Australian side of Sydney. She has only just introduced boys as a major part of her life, mostly involving Jacob Coote from the state school and forming a friendship with John Barton, from the Catholic boy’s school. Josephine was born illegitimately to a seventeen year old Christina Alibrandi. The father, a boy of the same age named Michael Andretti, had to move away to Adelaide with his family before she was born. There was a part of him that knew Christina had gone through with the pregnancy, however he as scared and not prepared for a child. Michael had to come back to Sydney when Josephine was seventeen for his work as a barrister and bumped into Christina at a wedding. Michael Andretti is stern and serious. Even Josephine notes him as “a worrier”. They have separate lives, he has a good job and a girlfriend. By the end of the story, they have grown close and he had gotten her out of trouble many times, like when she smashed Carly Bishop in the nose with a textbook and when she was wondering the streets alone after she stormed out of her date with Jacob Coote.

He begins his life with her by saying that he doesn’t need any ‘complications’ and that it is all going perfectly without an ‘obnoxious creation’. Eventually they get to know each other and Josey works at his law chamber and begins to consider changing her last name to Andretti. Christina Alibrandi, Josie’s mum, is supportive of her daughter and has raised her on her own for her whole life, with the occasional help of her mother. Jacob Coote said: “You [Josephine] come across all tough and fearless while on the inside you’re a softy. She [Christina] comes a across a softy, whereas deep down she’s tough and fearless. Christina can be strong and honest when she needs to be and will do what she thinks is right, like suggesting to her daughter, the first time she met Jacob Coote and he was acting like a pig, that she didn’t think it would be good to let her go out with him again. She also is known to compromise, in letting Josie go out with him after she saw he’d smartened up a bit. She is like Josie, a dreamer. She says herself, “I wasn’t a rebel Italian [when I had you], I was a naive Italian. ” She’d give her very life for her daughter and she loves her mother very much, despite not admitting to it.

Katia Alibrandi, known as Nonna to Josie, is the mother of Christina. She felt things too, just as her daughter and grand-daughter; she describes herself as a youth to have been a “gypsie”. When she was younger and came to Australia with her husband, she was alone in the outback with little knowledge of the language. She had the help of an Australian man, Marcus Sandford, who loved her dearly and would do things for her, seeing as her husband would be away on work. She did not pursue a relationship with him; people were talking as it was. “People will talk” is the quote that she practically lives by.

The Italian community are known to ‘talk’. He came into her house one day and Christina was born nine months later. Marcus was going to take her away where nobody knew them, however, seeing as she’d defied her marriage so much, she at least had to stay with her husband. Her husband had lied to her all of these years, he could not have kids, however they stayed together. Nobody knew about Christina’s illegitimacy, Katia distanced herself from her because of it, until Josephine figured it out after finally taking interest in her grandmother, and she never told anybody.

Katia and Josie develop a good relationship, even though Christina must never know. Katia was strong and has memories, even though she is old-fashioned, just like how she would never accustom herself to Josie’s Australian boyfriend, who she has no knowledge of. Jacob Coote is the captain of Cook State Highschool. He is “deep and meaningful when he wants to be” in the words of Josie. He is with the ‘in’ crowd at Cook High. He has his pick of the girls and is popular and athletic. Jacob bullied Josephine when she was younger, not her specifically, however that was how life worked.

He then falls for her and defends her, he beats Greg Sims when he tries to rape her and his friends, her friend, in the McDonald’s car park where she worked before the law chamber. They go through their fights, however they have high prospects in their relationship by the end of the book. Jacob’s mum died when he was young. It did hurt him, however he tries to move on from it. He does think about it, sometimes, however he is contented in his life otherwise. He now lives with his dad, who drinks a bit, and has an older sister of about 24 years of age with her own family now.

Of course he naturally has prejudices against John Barton. John Barton grows up in a prissy world and has all of the doors open to him. He does enjoy it sometimes, however it isn’t really what he wants to do with his life. He is expected to do well; while Jacob and Josie aren’t expected to get far, and he’s prefer that. Ivy Lloyd, or Poison Ivy, decides that she owns him. John does quite like Josephine though. He tries to be diplomatic with things, although he does not want to enter politics as everyone expects him to.

By the end of the book, he commits suicide with a drug overdose right before his year twelve exams. That ruined the story for me, made me cry. Ivy and Josie begin to accept each other, however they are hurt as he was a true friend to them both. I can almost relate to John Barton, not the suicide, however in means of having pressure on him and having to meet expectations. I can understand that, because it is so real. All of these characters are real and this story is only too possible. The Italian Empire, where “people will talk” is real. It is very humorous actually, because it relates so much to my own life.

Illegitimacy being the end of the world, and how gossip can start in one place and everybody know. I understand the gender stereotypes and the important role of religion, in when Katia cannot leave her husband. It is fairly old-fashioned and stubborn, the things that Josie is restricted from doing, however that seriously is life, no doubt about that. You’d have to be there to know it, and I’m there. I’m a lot like Josephine. I can see how things aren’t fair, however I am able to accept them because decisions are made for me for my own good. Josephine says, “No way, Mama. If you say no I’ll accept it. I also do think, like Josephine does, that the entire world is crumbling around me and I can be a little inconsiderate at times, accidently of course. I’m learning about myself and growing up, just as she is. Only I’m not in year twelve yet, and I’m not in a leadership role, as much as I like to be a leader. The story is basically about growing up, which can be a challenge in itself, however the main complication is that she is Italian in an Australian world as previously outlined. It creates expectations and a way of life that may have been ethical in Italy, however not so in Australia.

Also, the Italians here haven’t modernised with the Italians back there. Things that seem ordinary here just won’t flow with the Italian community, things like widows and women with children marrying, and two unmarried people living together, problems that both Katia and Christina face, and that Josephine will too unless she can run from it as she says she will, “I’ll run one day. Run for my life. I’ll run to be free and think for myself. ” There isn’t really a resolution, except that Josie learns to accept who she is.

She may still want to run, however, for the time being, she is happy with it. She even says that it will be a part of her forever, her nationality, and even if she dislikes it sometimes it will always make her who she is: “You can’t hate what you’re a part of. What you are. I resent it most of the time, curse it always, but it will be a part of me till the day I die. ” Josie grows up, that is how it all works out. She learns more about the world around her, like the hardships that both her mother and her grandmother went through, and she becomes more aware of the world around her.

A major turning point is after the death of John, she suddenly realises that her life will always be what it is, and her deciding to get along with Ivy is another way of saying that she has gotten more mature, and that she understands. In the story, the way things progress, how relationships develop, and the steps that Josephine takes to grow up, all happen through the things that she encounters. She begins her journey at a public event where every school has to make a speech. Josephine represents her school, as Ivy is too busy talking to the Premier of the entire state.

There she meets Jacob Coote and doesn’t really know what to think about him, however he is impressed by his speech on the vote. However, she hardly considers herself interested, despite everyone, including herself, finding him attractive. We then meet her grandmother and get a glimpse of her family life. She sees her father for the first time when he shows up at her grandmother’s house, however they do not converse, as ‘Nonna’ does not know who he is, and he’s only an old neighbour so far. There is inter-school debating and Josie talks to John Barton. He is friendly and Josie gets along with him well.

They decide they will see a movie together for school. He would have been her ideal boyfriend. Ivy comes and steals him away, despite the fact that he is reluctant to go with her. He doesn’t get a chance to be with her at the school dance a while afterwards, being caught up with Ivy, seeing as he is in that crowd with her. Josie dances with Jacob Coote, who gives her a lift home on his motorbike, as much as she’d rather not ride on it. She finds out that his mother died when he was younger. He tries to kiss her, however she refuses, they agree that they are from two different worlds and he leaves on good terms with her.

Next is Josie’s second encounter with Michael Andretti at her grandmother’s house. She speaks to him after her mother. Everyone is very clear that they want nothing to do with him. It is then that her grandmother realises who is and his relation to the family, at that, she decides she would not want to see him again, however she doesn’t cause a fuss. Josie stays with her mother overnight and learns more about her. She begins to take an interest after realising that her grandmother was a seventeen year old once too.

She arrives at school and attends class where she overhears Carly Bishop bagging people of European descent, calling them ‘wogs’ as an insult. Josephine had taken it for years and finally had gotten sick of it. They argued and then Josie hit her with her ‘Concepts of Science’ textbook. She calls Michael Andretti, as he is a barrister to help her, seeing as she’d probably have been expelled and sued. He comes to her rescue, even though they’d agreed to never speak to each other again. On Friday, Josie speaks to Sister Louise, the headmaster of her school, as scheduled.

She realises that she does care and notices that she’s human, despite being a nun. Her mum goes out on a date for the first time. Josie and her grandmother are furious, however her mum has a good time and Josie accepts that. Whilst working at McDonald’s with her friend, Anna, Greg Sims, a boy who teased her as a child, enters with her friends. He would have been rude to her, however police came in to buy something so he leaves her be. They wait for her and Anna in the car park; they are ready to rape them both. Jacob Coote is just passing by with his friend, Anton, and he sees what is appening. He beats the living daylights out of Greg Sims. Anton takes Anna home, and they are quite fond of each other. Jacob takes Josie home. He asks her out, she considers it and decides to ask her mother. He agrees to meet her, only he’d never do that any other time and dislikes the idea. She talks to her mother who agrees to let her go out with him. Curiosity gets the better of Josephine as she asks her grandmother to see photos and to tell her about her life. She finds out about how she met Marcus Sandford in a post office and he would help her, seeing as she was alone in the country.

When her husband found out, he was furious and didn’t want to let her see him anymore. On Saturday, she goes on her date with Jacob. He is a pig to her mother in spite of the fact that he has to meet her. The date lasts ten minutes and she storms out of the cinema complex before even entering the movie. On the long walk home, her father is driving past and picks her up to go and get pizza. He tells her that ignoring her existence won’t make her go away and they begin to develop an understanding relationship. Her mother is not angry, only she isn’t too keen on Jacob Coote.

Josie is enjoying her job at Mac Michael and Sons law chamber. Her joy is shattered when she has coffee with John Barton ant they talk about life. He worries, her, saying things like, “I don’t think I want to live this life anymore, Josie. ” She is extremely worried and they decide to write on a piece of paper the way they feel and keep each other’s so that they can read them after graduation. It gives him a little hope, however she is still extremely concerned. Josephine talks with her friends and tells them that she’d like to be a barrister when she grows up.

Jacob Coote asks her out on another date. They decide they will wag school for it, not that she’d have ever dreamed of doing so in a million years. There won’t be any mother-meeting this time. They have a wonderful time and share in their first passionate kiss. On the mid-term holidays, Jacob gets a car. Her mum is supportive of them being together. There is the St. Martha’s Walk-a-thon. Josie leaves with her friends and is in major trouble with Sister Louise because it meant that the little kids were unsupervised. She goes to see that movie with John and Jacob sees them there.

They argue but they get over it. A couple of weeks later she is at his house for the first time. He would have liked to have sex with her, and she refuses it. After some conversation he accepts it. She finds out about Marcus Sandford being her real grandfather and promises not to tell if her grandmother accepts Michael Andretti. She talks to John Barton and he is cheery and happy and the day later at her year twelve exams she finds Ivy crying that he had killed himself. It is sad. She reads the note he wrote earlier that year and realises that it was what he wanted to do.

She attends the funeral. Jacob was also torn up; he was taking it harder than Josephine. He felt had something in common with John, somewhere, and he’d experienced death before and this probably reminded him of his mum. Only now I realise that he was happy because he knew he would do it. He even said only the day beforehand, “I’ve got my whole future planned out the way I want it to be and there is nothing anyone can do to take that away from me. ” It is sad, but also a good thing in a sense. It is what he wanted. I think Josephine learns to accept it a little at the end.

At the beginning of this book review, I though the ending was ridiculous and too sad. Now I understand more that it was really what John Barton wanted to do, kill himself. He was really looking forward to being able to run free, just like Josephine always said she’d wanted to do, even if that meant death for him. I like the ending, now I do. I now like that there was a challenge in figuring that out. Besides that, I liked that Jacob and Josephine ended up having a caring relationship and that they became incredibly happy. I like happily ever afters.

Throughout the book, I enjoyed that they were always able to become friends again after a fight. It made the book a lot more exciting. I also enjoyed how the book exhibits how relationships developed throughout the novel. It was interesting to read about the way emotions develop between characters, specifically Josephine and her father. It was thrilling to read how they learn things about each other and accept each other in their lives, and the way that the Alibrandi’s become comfortable with him. It is also good to see how Josie takes interest in her grandmother and she can confide in her.

I’d change the time she spends with her friends. I’d like them to have played a more prominent role, or not be included in the story, as they add little to the plot. It would’ve made me happy if she did not skip school. It just ruined a little of the part of her that I though resembled myself. I thought I’d have liked to change that John died. I now would not change that, it adds an important lesson for Josephine to learn on her journey of growing up. Death is something she had to learn to accept. However it could be in the blurb, it would ruin the story a little, although a warning would be nice for the light-hearted.

I’d have liked if Melina Marchetta would elaborate more and explain how he saw his death was ‘running free’. I wouldn’t have understood if I hadn’t written this essay. I learnt more about death from reading this. That pretty much sums it up. I never saw suicide as a relief or an escape, although it apparently can be. I picked up on a few facts that I’d have found in a history book, they were another factor that kept me engrossed in reading. This would be a good book for somebody of European descent. It made it highly enjoyable for me as so much is only too true.

It could possibly be aimed at someone a little older than myself, somebody who certainly has the insight to deal with suicide and not let it get to them. It has to be taken maturely, so possibly it would be a good story for the sixteen-and-up age group, however it does matter on the individual. ‘Looking for Alibrandi’ by Melina Marchetta is an extremely wonderful book, definitely worth reading and re-reading. It gave me a lot, and I can understand why people made such propaganda about reading it. I rate it ‘I

Free Essays

Case Study Dove Evolution of a Brand

Q1: What was Dove’s market positioning in the 1950s? What is its positioning in 2007? Dove back in the 1950’s had one product that was the “beauty bar”, it was positioned upon its function as a superior product that doesn’t dry out the skin the way soap did. It was marketed through a mix of marketing communication tools like the TV, print media and bill boards. The advertising message was “Dove soap doesn’t dry your skin because its one-quarter cleansing cream”. All of these ads were illustrated with photographs that showed cream being poured into a tablet.

In addition; the ads were shot with natural looking women rather than models to convey the benefits of the product. Dove in 2007 had a mix of personal care products in addition to the soap, such as deodorants, hair care products, facial cleaners, body lotions and hair styling products. It was positioned as aesthetic need for consumers; it didn’t focus on the functional benefits but on the need to feel good by representing a point of view about the concept of beauty.

It delivered this message through campaigns such as Real Beauty and Self-Esteem that questioned the true meaning of beauty, and the high standard that media set to the concept of beauty. Dove used in its campaigns oversized models and elderly women in order to convey the message” Dove shifted from broadcast media to digital media, such as YouTube videos and written blogs. A short movie called evolution was the proof of success as it was viewed 3 million times during three months (it is viewed 15 388 230 times today! . The wide exposure of the digital controversial campaigns gave dove free media on TV, blogs, social networks. TV shows like Today show and Good Morning America talked about these campaigns and Oprah Winfrey show was inspired by the self-esteem campaign and dedicated an episode to discuss the self-esteem concept with centre attention on the dove campaign. Q2: How did Unilever organize to do product category management and brand management in Unilever before 2000? What was the corresponding structure after 2000?

How was brand meaning controlled before 2000 and how is it controlled at the time of the case? Before 2000, Unilever lacked a unified brand identity and brand managers were allowed to set the direction in each geographic region. There was very no control of the brand across the regions where Unilever products were marketed. For example, Unilever produced ice cream under the wall’s brand in the UK and most parts of Asia, The Algida Brand in Italy, Langnese in Germany, Kibon in Brazil, Ola in the Netherlands, and Ben & Jerry’s and Breyers in the United States.

Unilever organized their marketing using a brand management system, offering multiple brands within product categories. Each brand operated independently with its own brand manager who had the responsibilities of a general manager. In February 2000, Unilever initiated a five-year strategic plan called “Path to Growth” in order to centralize the company’s brand portfolio and to create a unified global identity. Unilever reduced the number of brands from 1,600 to 400 and changed its brand management strategy.

Under the new Masterbrands strategy, global brand categories were established for each Masterbrand, which were responsible for creating a global vision and inspiring cooperation from all geographic markets. Under this strategic initiative, the responsibility for a brand was split between two groups: Brand Development that is responsible for advertising, strategy, innovation, and long-term market share; It is global in scope. And Brand Building that is decentralized according to region; accountable for growth, profit, cash flow, and short-term market share.

Before 2000, according to the traditional media that has been used and the fixed message of dove as, the brand meaning was tight and centered on a specific concept that dove is a unique soap that is ? cleansing cream or moisturizing cream. In the time of the case study, and after the exposure of the creative campaigns, the brand meaning is open because of the unique message it delivered which was a point a view, this provoked discussions and debates about the real beauty of women. Q3: Spend a little time searching blogs to get a sense of what people are/were saying about Dove.

What does this discussion contribute to the meaning of the brand? I searched many blogs talking about dove, in particular the self-esteem and Real beauty campaigns. I noticed that a lot of bloggers counted on statics that were published by dove about self-esteem and beauty and show an emotional link to the campaign, for example a blogger named Jennifer Beer wrote after addressing some of dove’s facts about self-esteem: “When I read these statistics, it made me cry. As a mother of a daughter I’d hate to see er become part of these statistics, so I will make sure to tell her every day how beautiful she is” In addition, the blogs illustrated a great engagement of the audience in the campaign, a blogger named Blythe Newsome said in the beginning of a blog that was describing her experience with dove self-esteem campaign: “When I heard about the Dove Self-Esteem Movement I knew I wanted to get involved”. Another blog I found on wordpress. com, praised Dove for using ordinary women as models in its advertisement to change women’s attitudes about beauty as well as how they perceived themselves.

I found a sarcastic funny blog at Bros fail blogs wondering how will dove’s “real beauty campaign” looks like if it was for men, with this picture attached to the blog! I think all of the blogs that I reviewed reflects the massive success of the campaigns, the amount of exposure that they received over the free digital media is phenomenal weather it’s a positive feedback or a funny picture! Such exposure would help any company gaining a market share and retaining the message of the brand because of its controversy and open end horizons.

Those discussions and reviews contribute powerful meaning to the brand in a positive way. Q4: Footnote 1 of the case leads you to a blogger who asks, with reference to the age of YouTube advertising, “Is marketing now cheap, fast and out of control? ” Footnote 2 refers to Dove as having started a conversation “that they don’t have control of. ” In “When Tush comes to Dove”, Seth Stevenson writes about the “risky bet that Dove is making. ” Do you see risks for the Dove brand? Seth Stevenson’s article, When Tush Comes to Dove suggests that Dove is taking too much risk.

The brand’s nontraditional marketing may lead consumers, or potential customers, to believe that Dove products are for unattractive, over-weight women, or those who don’t consider themselves to be beautiful. I don’t think this might happen, because the message doesn’t send a counter message that beautiful women aren’t beautiful! The message brings up the issue of beauty for specific segment of women. In addition; such campaign would add to the value of the brand because of the contribution in the awareness of the people as part of its social responsibility obligations.

Furthermore, dove is the pioneer in the market to launch such campaign, and it might create a new trend for competitors to follow. I believe dove took the first mover advantage out of these campaigns. Let’s assume that it this negative effect that Stevenson’s talked about would occur, according to Exhibit 4 a total of 18% of respondents think that they are beautiful, sexy, attractive, pretty and stunning. If they consider the received message as negative and stopped using dove products; it wouldn’t be a great loss comparing to the 82% that will get a positive message.

Free Essays

Swarovski Branding Strategies & Products

SWAROVSKI. Branding for luxury goods Group G. Members: Truong Anh Bao Nguyen Yunkyung Choo Lilit Nagapetyan CONTENT: 1 History 2 Concept 3 Brand Strategy 4 Marketing Mix 5 Positioning 6 Services 7 Target Consumer 8 CBBE Pyramid 9 SWOT analysis 10 Competitors 11 Recommendation 12 References 1. HISTORY: 1882 Daniel Swarovski (1862-1956) invents a revolutionary machine that allows crystals to be cut more precisely than with existing manual methods. 1895 Daniel Swarovski founds the company in Wattens, Tyrol, with the vision of bringing joy to people through crystal.

His guiding principle is still followed by the company today: “To constantly improve what is good. ” 1949 SWAROVSKI OPTIK is founded, and goes on to become a leading manufacturer of precision optical instruments for hunting and nature observation (binoculars, telescopes, rifle scopes, range finders, and night vision and optronic devices). 1956 The first Swarovski crystals for chandeliers and lighting are launched, and in 1977 are registered under the STRASS Swarovski Crystal name.

Today they adorn classical chandeliers, suche as those in the Palace of Versailles and the Metropolitan Opera, New York, as well as more modern lights. Swarovski starts to manufacture precision-cut gemstones. 2002 Swarovski develops Crystal Fabric: countless tiny crystals create a delicate shimmer over a variety of materials. 2003 In conjuction with leading fashion and jewelry designers, “Runway Rocks” is founded – a collection of unique jewelry pieces featuring crystal for the catwalk, showcasing design and innovation 2009 At the “Baselword” watch and jewerly exhibition, Swarovski launches its first watch collection. . CONCEPT More than a century ago, Daniel Swarovski, its founder, once said “A diamond of everyone” that sparkles everyone’s lives, Swarovski today has been thriving for the best to serve its customers, being one of the finest crystal producers in today’s global industry. Mission Through the mastery of the poetry of precision we continue to be market leader, driving force and reliable partner within our industry to meet people’s desire for adornment and delight since 1895 as * manufacturer, marketer, and retailer of premium jewelry and customer products ranging from decorative objects to lighting and accessories. manufacturer and marketer of premium jewelry stones for customers. * Swarovski provides high quality products and services and anticipate, fulfill and exceed consumers’ desires and customers’ needs. * Swarovski offers our colleagues and teams fulfilling challenges that inspire them to be innovative and creative. 3. BRAND STRATEGY: Not so long ago Swarovski was not very famous and didn’t have any branding strategies. ‘For a long time Swarovski didn’t “brand” its product. And back then it wasn’t really about branding as it is nowadays.

We had to develop a hard-core communications strategy – a PR strategy – which we pitched to the editors and designers. ‘ said Nadja Swarovski, Swarovksi Vice president of International Communications. Today, Swarovski is almost omnipresent everywhere from fashion awards, catwalk shows, film premieres; its crystals are used by fashion designers from the edgiest Central Saint Martins graduate to the hallowed ateliers of Armani, Dior and Chanel. This is where the real success of Swarovski lies: by aligning the company with the most avant-garde young fashion talent.

When the hottest British designers of the time, Alexander McQueen, Philip Treacy and Julien Macdonald used Swarovski crystal mesh – a fine fishnet gauze studded with tiny crystals – in his catwalk show, it immediately changed people’s perception of the brand. ‘The McQueen show provided a visual that was very different to the standard idea people had of us,’ Nadja says. The company then began to re-establish the company’s links with the fashion world, sponsoring younger designers who are in need of capital to make their label take off.

Nearly ten years later this winning formula is still producing results. Designers, no matter how edgy or cool, all seem to want to use Swarovski crystals and accept sponsorship. ‘If you’re a young designer starting a collection, it’s great to have crystal in there because it makes it more haute couture,’ Nadja says. ‘It adds elegance, a seriousness, credibility. In fashion, if you have something to prove, then couture, or at least craftsmanship, is the right track. “ Not only enraptured the fashion world, Swarovski also moved on to the film industry.

Some of Swarovski’s most high-profile projects have been Moulin Rouge, where the sets and costumes groaned under the weight of Swarovski crystals, Titanic and the recent Bond films. During Oscar season Nadja sets up camp in Los Angeles, and stylists can browse the Swarovski jewellery, shoes and handbags with a view to dressing their clients on the red carpet. These days Swarovski crystals adorn everything from iPods and mobile phones to Maria Sharapova’s new Nike tennis dress. They even covered, whisper it, Jordan’s wedding dress. 4.

Marketing Mix Products: The Swarovski Crystal range includes crystal glass sculptures and miniatures, jewelry and couture, home decor, and chandeliers. They’re best known for imitating “colored germs” All sculptures are marked with a logo. The original Swarovski logo was an edelweiss flower, which was finally replaced with the current swan logo in 1988 Subsidiary companies: Swarovski Fashion accessories and crystal-based ornaments. Daniel Swarovski Jewelry, handbags, accessories and interior design objects. Swarovski Optik Optics.

Atelier Swarovski Fashion and jewellery designers. Swarovski Crystal Palace Avant-garde lighting and design (chandeliers etc. ). Swarovski Elements Crystal designs. Swarovski Gemstone Business Gemstone designs. Swarovski Lighting Swarovski finished lighting products and solutions with crystal for architecture. Tyrolit A bonded grinding and dressing tools company. Swareflex A road safety products specialist. Schonbek A crystal chandelier manufacturer. Touchstone Crystal Swarovski’s direct sales company for ready-made jewelry Place

All boutiques are beautifully set up and conveniently located in the fashion mall/heart of big 19 metropolitan cities from Dubai, Madrid, Hongkong to New York City over 20 countries in North America, Europe, Asia and Australia. Also online website is available with convenient shipping services Price 100$ to $42,800/item Promotion Promotion is via press, social network (Twitter, Facebook, Youtube) as well as via traditional and on-going sponsorship for young talented artists/ designers to use Swarovski crystals in any kinds of their designs in fashion show, film awards, etc.

Therefore, the best season to promote Swarovski crystals is during the fashion week (twice a year- January to March and from September to October) and movie/film award ceremonies seasons (October to February) 5. Positioning Swarovski is positioning itself as a luxury fashion by creating a customer experience to let people know Swarovski’s brand values of innovation and modernity. They would like to position themselves as creating premium, high-quality products for the consumers. They are trying to be a market leader in the luxury jewelry industry by innovating continuously.

Recently, Swarovski hired Yellowdoor as retained agency, which will focus on positioning as an affordable luxury brand. * Luxury fashion brand * Market leader in the luxurious crystal industry * Multi-faceted business * Affordable luxury brand 6. Service * Collection of rings, pins, earrings, pendants, necklaces, hair jewels, cuff links, charms, brooches, bracelets, bangles and gifts. * Large variety of color options * Vast selection of gifts available for fewer than $100 * Magazine and group for Swarovski enthusiasts. * Free shipping standard on orders more than $95 * Customized gift messages Free gift wrapping and bag * Scheduled delivery * Right to return (2 week return policy) * Product warranty * After sales services 7. Target Customer Swarovski’s target customer is “every female” from 17 to 71 in terms either of buying or gift receiving because they offer diverse products to such a broad range of people. Even though each group (tweens, generations X,Y and Baby Boomers) has its own needs and values, Swarovski meets most of them. Swarovski Jewellery bases most of its market on women of age 25 and above by creating bridal, business, classical and sophisticated collections.

It also include men accessories such as bracelets and watches, and of course kids over 6 years old. Also, one of the biggest Swarovski’s market target today is fashion industry. Swarovski crystals are affixed to everything from Victoria’s Secret bra sets and Kawasaki motorcycles, to the clothing collections of such as Dolce ; Gabbanna and avant-garde vintage revisionists Imitation of Christ. 1) Women collection of * Sophisticated * Business * Classical * Bridal collections 2) Men MEN’s collection * Rings * Bracelets * Necklaces 3) Kids * Disney collection Hello Kitty collection 4) Other Industries: Swarovski crystals are affixed to everything. * Victoria’s Secret bra sets * Kawasaki motorcycles * Clothing collections * DJ Headphones 8. CBBE Pyramid Resonance: HIGH LOYALTY Brand resonance is high due to active loyalty of customers Consumer Judgments: GLOBAL BRAND WITH RICH HERITAGE Perfect and innovative crystal products High quality production Consumer Feeling: PRESTIGIOUS ELEGANCE Prestigious, elegant, fragile, dedicated, timeless Humble and sophisticated Feels like a fairy Brand Performance: EXCELLENT SERVICES

Extremely durable, serviceable Offers timeless, high quality crystal products Innovative product lines: Optik gears, etc. Brand Imagery: GLAMOROUS Glamorous luxurious crystal products Women/young ladies with high income, high taste of elegant sophisticated jewelries Brand Salience: HIGH DEPTH & BREADTH Extremely high recognition on the crystal market Most known for its crystal jewelries product line If it’s crystal, it’s nothing else but Swarovski! 9. SWOT Analysis: Strengths Strong brand identity and high company reputation World widely recognized market leader

Cheap materials, high added value products Craftsmanship (durable quality) Online store New techniques Perfection High quality After sales services Weaknesses Expensive production in Austria Repetitive design Opportunities Diversity of customers of all ages New markets in Latin America ; emerging markets in Asia Various product lines through collaboration Unlimited design according to crystal cutting Threats Cheaper competitors Imitators/substitutes Relies on disposable income of consumers Slowdown in market growth Cheaper artificial crystal 0. Competitors Price: Cartier – Swarovski – Pandora – Preciosa Reputation in jewelry market: Cartier – Swarovski – Pandora – Preciosa Variety of jewelry products: Pandora – Swarovski – Cartier – Preciosa Quality of crystal: Swarovski – Cartier – Preciosa – Pandora 11. Recommendation •Product Strategy Swarovski should expand its business in the jewelry market, having more product lines as well as jewelry designs since it’s already has a reputation in the crystal industry: Extend their product lines (perfumes, watches, Home electronics , etc. Extend their jewelries products (leather bracelet, wedding ring, etc. ) Focus on jewelry customization •Place: Establish stores in Latin America and expand business in emerging markets •Pricing No changes •Promotion No changes 12. REFERENCE: http://www. swarovski. com/ http://www. brand. swarovski. com/Content. Node/home. fr. html#/en/aboutus/ourevolution http://www. brand. swarovski. com/Content. Node/home. fr. html#/en/aboutus/spirit http://swarovskijewrley. blogspot. fr/2010/09/week-4-marketing-environment. html http://online-jewelry-review. optenreviews. com/swarovski-review. html http://www. brandchannel. com/ http://www. prweek. com/uk/news/890882/Swarovski-hires-Yellowdoor/? DCMP=ILC-SEARCH http://fashion. telegraph. co. uk/news-features/TMG3361538/Swarovski-the-glitz-spirit. html http://www. crystalfanaticsclub. com/about_swarovski. php http://globalfashionanalytics. com/ritejl/brending/157-marketingovaja-strategija-v-ljuksovom-segmente. htm http://news. naver. com/main/read. nhn? mode=LSD&mid=sec&sid1=101&oid=001&aid=0005922714

Free Essays

Brand Management Article Review

Introduction: Review: Teresa da Silva Lopes & Mark Casson (Winter, 2007). Entrepreneurship and the Development of Global Brands: Business History Review 81 by The President and Fellows of Harvard College (Extract from page 651-680) World’s economy in early 1980s leaded to the merger wave in business industries. Only few independent brands have survived during that period. In the article, the authors addressed the question of why so few independent brands survived and they also aim to address about the contribution of entrepreneurs to the successful and growth of the companies.

The authors also of demonstrated some well-known brands and their related case of how did the change in ownership affect the brand name. Summary: Entrepreneurship and innovation is a competitive asset for each organization. In the past time, entrepreneur refers to the founder of the business, but the definition was expanded overtime. In the article, authors define entrepreneur as “someone who specializes in taking judgmental decisions about the coordination of scarce resources with an economic aim and under conditions of uncertainty. This means that the entrepreneur is not necessarily a capitalist or the founder of a business, but is someone who is not afraid of risk and who “gets things done” and has an economic aim. Because of the changing in business environment, today entrepreneur has more skills, business related knowledge and capabilities in expanding their brand into different geography or internationally or rejuvenate it in order to keep the popularity and still make a profit. Brand is a powerful strategic tool to distinguish company from its competitors, communicate to customer and attract customer loyalty.

A brand can have a rise, and then fall out of favor, to be out of date by the arrival of new brand. Trajectory of brands or the life of each brand is surely depends on the company’s performance and strategies they decide to take in action so as to create brand personalities for their products or services. Without careful management, brands can follow the general pattern of a product lifecycle: moving through introduction, growth, maturity, and decline stages in a relatively rapid fashion. Authors indicate that the change in brand ownership or management team may take into account when discussing about trajectory of brands.

Thus to keep the brand forever young is necessary mission that each company need to achieve. Some brands become successful immediately after introduced into the market and it remains successful until now under the single ownership and management team but some become successful after their previous ownership or management team was changed. Various strategies are suggested by the author as they are implemented by several successful brands such as the extension of an existing brand (Asahi Super Dry), or by the creation of a new brand, or by forging a compromise between the two (Nescafe).

The firm may also hire new managers and consultants in order to boost temporarily the creative resources at the firm’s disposal (as happened in the case of KitKat). Another strategy suggested is to change the firm’s recruitment policies and hiring new managers with stronger entrepreneurial capabilities to obtain a permanent solution. Furthermore, using merger and acquisition strategy to change the brand ownership enable some multi-firm brands especially the companies in food, drink, and cosmetics industries become successful and stay young.

Brand rejuvenation in the article refers to “tweaking the brand image to appeal to a new generation of consumers”. Rejuvenation of the brand should be take into action when customer in the market lose their concentration on the existing one or the traditional market for a brand may stagnate, unacceptable to an emerging market for the brand or there is an increase in demand for products or services, because in order to be well suited to the culture, demand, preference of different group of customer and to create availability of the products they want wherever they are.

Based on the study, the authors conclude that successful global brand usually originate in developed countries. It takes very long time to build their brand personalities and recognition. Strategies of brand extensions that we often see are merger and acquisition, franchising, licensing and some brands are trades as pieces of intellectual property. Critic Negative: Brand rejuvenation is a strategic tool for the company to recapture market share and to keep the brands up to date for consumers, but not all brand should be rejuvenated since due to two main reasons.

Firstly, some brand is very harmful to people health and society. For example, tobacco and alcohol products have many harmful effects are not limited to only health-related issues but as well as a whole society will suffer from its effects. Smoking cigarettes opens the possibility to the people that are around you to breathe second-hand smoke. This increases the risk of cancer in others around you. Also, smoke is bad for the environment and the ozone layer whereby people who drink and drive may cause many road accident and they tend to commit violence in the family more that people who do not.

Secondly, the negative point of brand rejuvenation is the decrease in physical communication due to the growth in technology related branding. In the past, people spend more time to talk to their friends, colleges and family but presently, digital form of communication decrease social interaction. Because the development of technology, many company try to rejuvenate their brand by introducing high- tech product to the market. Most people believe that technology such as cell phones and e-mail has made their lives easier. From e-mails, to Facebook, to television, people are becoming dependent on technology; we cannot live without our iPhones.

As a real example that happen to myself, sometimes I spend a whole day in bedroom just to tweet, facebook and surfing internet; I do not interact with people around at all within whole day. People are distancing themselves from life off- line. This create distant of people interaction from day to day. Positive: We totally agree with the authors who state that entrepreneurs contribute to the growth of a firm and brand succeeds and innovation, intelligence and skills are the required factors to build a successful brand. Brand building is an important issue in strategic marketing and driving force for shareholder’s value.

Good brand image and brand recognition in the market is what all entrepreneurs and managements intend to get. The growth and development of a firm mostly depends on the motivation and ambition of the owner itself. Among the important features of an entrepreneur that effects the firm growth involves general background of the owner involving age and education of the owner along with his growth motivation and management know how organizational practices on the behalf of entrepreneurs. Innovative idea and technological capabilities of entrepreneur also the contribution factors that each entrepreneur should care about.

We also agree with the authors that brand rejuvenation is a great tool to make more money. Brand rejuvenation is the effort to bring a brand which could not make money into the one that can generate money for company by using new positioning or communication strategy. Normally, companies decide to rejuvenate their brand in order to respond to internal and external changes. For example when new competitors come into the market, they may have taken over the category and the company is struggling to generate revenues from the current product, thus company need to rejuvenate their brand or new option has to be launched.

Another reason is when the existing product or service is in declining stage of product life cycle, it is an appropriate time to rejuvenate the brand in order to recapture the market share. Some other reason why company should rejuvenate their brand is to shed the negative image of the existing brand, to incorporate in new mission or develop a new brand when repositioning. Moreover, the target market for the brand has aged so the brand has to renew its positioning in the minds of the next generation of consumers. Because brand may no longer meet the consumers’ needs or desires, where in the consumer has shifted to a different platform.

Conclusion After reading and reviewing this article, we got more ideas on how branding is very important for each company in generate the profit in long term, how entrepreneur contribute to the firm growth and success. The authors provide enough reasons to support their article by indicated real example of some major brand how they are developed to become the global one. The authors indicate two main strategies for brand development which are entrepreneurship and brand rejuvenation. Brand rejuvenation can lead the company to capture market share as well as to compete in the market effectively in the long run.

Free Essays

Brand and Indian Medical Association

Dettol Introduction Dettol is a brand which has been protecting India for more than 75 years. DETTOL is a brand of Reckitt Benckiser and has stood for “trusted protection” in India since 1933. The brand is endorsed by the Indian Medical Association and has consistently been voted as one of India’s Most Trusted Brands (ORG Marg Brand Equity Survey). Introduced in 1933, initially used for cuts and wounds, Dettol soon took a life of its own in every Indian home. Families used it in myriad ways of – wherever they felt the need for disinfection.

Interestingly this multi-usage of Dettol Antiseptic Liquid paved the way for the next generation of Dettol Dettol Soaps was born in 1984, giving consumers the same trusted protection for a “100% bath”. Soon followed Dettol Shaving Cream for protection during shaving and Dettol Plasters. Dettol Liquid hand wash came in 1994 for protection in every hand wash and recently in 2007 Dettol Body Wash was introduced – offering the protection of bathing in a modern, convenient format. Sources of information Methods of production a.

Raw material With a soft nature, each soap contains healthy ingredient, help killing the bacteria and removing dirty and other harmful material while bathing. Adopt international advanced anti-bacteria technology, the high-effective agent not only can kill the bacteria when washing, but also can form a protection in the surface, resisting the bacteria during the next 24 hours. Add natural fruit essence and nourishing ingredient, which penetrates into the skin from outside to inside. b. Machine Competitor Savlon, Suthol Soap industry:

Lifebuoy, Lux, Santoor, Savlon, & Gogrej No. 1 Advertisement Dettol advertising starting in 1960s has centered on educating consumers on the need for protection from germs, while offering solutions to manage the problem of germs wherever and whenever they may occur. Starting then and till now Dettol advertising has celebrated the role of a mother in protecting her family Dettol launched Dettol Surakshit Parivar, a nationwide campaign, in association with Indian Medical Association (IMA) Problems Solutions Our suggestions Conclusions

Free Essays

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.

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Six Popular Brands of Cola Are to Be Used in a Blind Taste Study

Macroeconomics Homework 2 Chapter 3: 5. a. England has the absolute advantage in scones & Scotland has the absolute advantage in sweaters. England has the comparative advantage in producing scones and Scotland has the comparative advantage in producing sweaters. b. Scotland would produce sweaters and trade them for scones to England because they will be getting a good at a lower opportunity cost if they produced it in their own country. c. Yes, both countries would still gain from trade because England would still have a higher opportunity cost for producers sweaters than Scotland.

Chapter 4: 5. Technology advances have affected the market for computers by increasing the supply causing a shift to the right, which has also increased the demand for computer software, also lowering the price. As for typewriters it has decreased the demand because computers are becoming more affordable because they are cheaper to make. 10. a. Submitting graph in class. Equilibrium price is $6. 00 and quantity is 81 pizzas. b. There would be a surplus so the producers would have to cut the price to get rid of surplus inventory. . There would be a shortage and the producers would raise the price until the shortage is reduced. Additional homework problems: 1. 1)Opportunity cost of 1 parasol for Huang is 1/3 of a plate. 2)Opportunity cost of 1 parasol for Min ? of plate. 3)Opportunity cost of 1 plate for Huang is 3 parasols. 4)Opportunity cost of 1 plate for Min is 2 parasols. 5)Neither because it takes them both the same amount of labor hours to produce the same amount of parasols. 6)Min because she has lower input of producing plates. )Huang has the comparative advantage of producing parasols because his opportunity cost is lower. 8)Min has the comparative advantage of producing plates because the opportunity cost of producing one plate is only 2 parasols. 9) A. 2. 1)Equilibrium price= 25 Equilibrium quantity= 400 2)400 units would be supplied and demanded. 3)Surplus of 200 units. 4)$35 5)Shortage of 200 units 6)$15 3. 1)It would cause a decrease in demand and a shift in the demand curve to the left. )It would cause a decrease in demand and a shift in the demand curve to the left. 3)It would cause an increase in the current demand and a shift in the demand curve to the right. 4)It would cause an increase in the current demand and a shift in the demand curve to the right, because buyers would purchase more before the price goes up. 5)It would cause an increase in demand and a shift in the demand curve to the right. 6)Quantity goes down and prices go up so it would cause a movement in the demand curve to the left.

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Branding: Marketing and Answer

Chapter-9: MCQ’s and short questions: 1. _____ is endowing products and services with the power of a brand. Your Answer:| Branding | 2. _____ is the added value endowed to products and services. Your Answer:| Brand equity | 3. ______ are those trademarked devices that serve to identify and differentiate the brand. Your Answer:| Brand elements | 4. _____ marketing is about mixing and matching marketing activities to maximize their individual and collective effects. Your Answer:| Integrating | 5. _____ is consumers’ ability to identify the brand under different conditions as reflected by their brand recognition or recall performance.

Your Answer:| Brand awareness | 6. _____ occurs when customers experience the company as delivering on its brand promise. Your Answer:| Brand bonding | 7. A _____ is a consumer-focused exercise that involves a series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. Your Answer:| brand audit | 8. When a firm uses an established brand to introduce a new product it is called a _____. Your Answer:| brand extension | 9. A _____ product is one whose brand name has been licensed to other manufacturers who actually make the product.

Your Answer:| licensed | 10. _____ occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less about the brand. Your Answer:| Brand dilution | 11. _______is the set of all brands and brand lines which a particular firm offers for sale to buyers in a particular category. Your Answer:| Brand portfolio | 12. _____ measures the degree to which a brand is seen as different from others. Your Answer:| Differentiation | 13. _____ measures the breadth of a brand’s appeal. Your Answer:| Relevance | 14.

Nike has the distinctive “swoosh” logo, the “Just Do It” slogan, and the “Nike” name based on a mythological goddess. These items are called _____. Your Answer:| brand elements | 15. Burton, a maker of snowboards, is introducing a new snowboard called “The Dominator. ” This snowboard will be associated and identified with top professional riders. What marketing strategy is Burton using? Your Answer:| leveraging secondary association | 16. The purpose of the _____ is to provide a current, comprehensive profile of how all the products and services sold by a company are marketed and branded. Your Answer:| brand inventory | | 7. A _____ typically employs quantitative measures to provide marketers with current information as to how their brands and marketing programs are performing on the basis of a number of key dimensions. Your Answer:| tracking study| | 18. Nivea, a strong European brand, has expanded its scope from a skin-cream brand to a skin-care and personal-care brand through carefully designed and implemented brand extensions. This is an example of _____. Your Answer:| brand reinforcement | 19. Dannon Yogurt offers several types of new yogurts, Fruit on the Bottom, Natural Flavours, and Fruit Blends to name a few.

This is an example of a _____. Your Answer:| line extension | 20. Honda uses the company name to cover different products such as automobiles, motorcycles, snow blowers, and snowmobiles. This is an example of a _____. Your Answer:| category extension | 21. A _____ brand may be kept around despite dwindling sales because they still manage to hold on to a sufficient number of customers and maintain profitability with little or no marketing support. Your Answer:| cash cow | 22. All products marketed by Heinz carry the brand name ‘Heinz’. This is an example of ___________. Your Answer:| blanket family names |

Short Questions: Chapter-9: 1. Describe the functions a brand provides for the firm. Ans:Brands simplify product handling or tracking. Brands help to organize inventory and accounting records. Brands also offer the firm legal protection for unique features or aspects of the product. Finally, brands signal a certain level of quality so that satisfied buyers can easily choose the product again. 2. What are the two basic approaches to measuring brand equity? Ans: The indirect approach assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures.

The direct approach assesses the actual impact of brand knowledge on consumer responses to different aspects of the marketing. 3. From a marketing management perspective, there are three main sets of brand equity drivers. List these factors. Ans: The initial choices for the brand element or identities making up the brand. The way the brand is integrated into the supporting marketing program. The associations indirectly transferred to the brand by linking the brand to some other entity. 4. What are the six criteria used to choose brand elements? Explain each of these.

Ans:- 1. Memorable – how easily is the brand element recalled and recognized. 2. Meaningful – to what extent is the brand element credible and suggestive of the corresponding category? 3. Likeability – how aesthetically appealing do consumers find the brand element? 4. Transferable – can the brand element be used to introduce new products in the same or different categories? 5. Adaptable – how adaptable and updatable is the brand element. 6. Protectable – how legally protectable is the brand element? How competitively protectable is it? Can it be copied? 5.

Discuss the four general strategies used in choosing a brand name. What are the advantages to each of these strategies? Ans:- ? First, a company can use an individual name strategy. This way the company does not tie its reputation to the product’s. If the product fails or appears to have a low quality the company’s image is not hurt. ? A second strategy is to use blanket family names. By using this strategy, there is no need for “name” research or heavy advertising to create brand-name recognition; this reduces initial development costs. ? A third strategy is to use separate family names for all products.

This works best for companies that produce quite different products and one blanket family name is not desirable. ? Finally, a company can use the corporate name combined with individual product names as a branding strategy. The company name legitimizes and the individual name individualizes the new product. 6. The Marketing Insight – Applying Permission Marketing, presents the practice of permission marketing as an important tool for building customer loyalty. List the five steps which Seth Godin, a pioneer in the technique, has identified as important in creating effective permission marketing.

Ans:-  Godin identifies the following 5 steps: Offer the prospect an incentive to volunteer (e. g. , free sample, sales promotion, or contest). Offer the interested prospect a curriculum over time that teaches the consumer about the product or service. Reinforce the incentive to guarantee that the prospect maintains the permission. Offer additional incentives to get more permission from the consumer. Over time, leverage the permission to change consumer behaviour toward profits. Chapter-10: MCQ’s and short questions: 1. ____ is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. Your Answer:| Positioning | 2. Companies can gain a strong competitive advantage through having better-trained people. This is called _____. Your Answer:| personnel differentiation | 3. _____ pass through four stages: distinctiveness, emulation, mass fashion, and decline. Your Answer:| Fashions | 4. In a _____ pattern of the product life cycle, sales grow rapidly when the product is first introduced and then fall to a “petrified” level.

Your Answer:| growth-slump-maturity | 5. The _____ stage is marked by a rapid climb in sales. Your Answer:| growth | 6. During the _____ stage sales slow down creating over-capacity in the industry, which leads to intensified competition. Your Answer:| maturity | 7. During the _____ stage sales and profits decline and some firms withdraw from the market. Your Answer:| decline | 8. _____ calls for gradually reducing a product and business’s costs while trying to maintain sales. Your Answer:| Harvesting | 9. If a new product sells well, new firms will enter the market, ushering in a(n) _____ stage.

Your Answer:| market-growth | 10. Eventually, when competitors cover and serve all the major market segments the market enters the _____ stage. Your Answer:| maturity | 11. A company may follow the strategies of deletion, harvesting, or contracting in the _______ stage. Your Answer:| decline | 12. Creating the image of a “delivered pizza” rather than a “frozen pizza” category for McCain’s pizza is an example of _______. Your Answer:| positioning | 13. Attributes or benefits consumers strongly associate with a brand, such as FedEx-guaranteed overnight delivery-are called _____.

Your Answer:| points-of-difference | 14. Associations that are not necessarily unique to the brand are called _____. Your Answer:| points-of-parity | 15. A _____ is a basic and distinctive mode of expression appearing in a field of human endeavour. Your Answer:| style | 16. During the _____ stage prices remain where they are or fall slightly. Your Answer:| growth | 17. The _____ stage divides into three phases: growth, stable, and decaying maturity. Your Answer:| maturity | 18. During the _____ stage product managers try to stimulate sales by modifying other marketing program elements.

Your Answer:| maturity | 19. During the _____ stage firms may withdraw from smaller market segments and weaker trade channels. Your Answer:| decline | 20. _____ is used to milk the firm’s investments to recover cash quickly in the decline stage. Your Answer:| Harvesting | 21. In a _____ strategy a new product can be designed to meet the preferences of one of the corners of the market. Your Answer:| single-niche | 22. Which of the following is not a key desirability for PODs? Your Answer:| Feasibility | Short Questions: Chapter-10: 1.

What are the three key consumer desirability criteria for POD’s (points-of-difference)? Ans:- 1. Relevance – target consumers must find the POD personally relevant and important. 2. Distinctiveness – target consumers must find the POD distinctive and superior. 3. Believability – target consumers must find the POD believable and credible. 2. What are the four stages in the Product Life Cycle? Describe what happens at each stage. Ans:- ? In the first stage, introduction, the product experiences slow sales growth as the product is introduced in the market. In the second stage, growth, there is a period of rapid market acceptance and substantial profit improvement. ? In the third stage, maturity, the product experiences a slowdown in sales growth, profits stabilize or decline because of increased competition. ? And in the fourth and final stage, decline, sales show a downward drift and profits erode. 3. Companies can gain a strong competitive advantage through better trained people. List some of the characteristics of better-trained personnel, and give some illustrative examples.

Ans:-  Competence – they possess the required skill and knowledge Courtesy – they are friendly, respectful, and considerate Credibility – they are trustworthy Reliability – they perform the service consistently and accurately Responsiveness – they respond quickly to customers’ requests and problems Communication – they make an effort to understand the customer and communicate clearly Some examples of the above: Singapore Airlines – excellent reputation in large part because of its flight attendants McDonald’s people are courteous IBM people are professional Disney people are upbeat. . What are the three main ways to convey a brand’s category membership? Ans:- 1. Announcing category benefits — benefits are frequently used to announce category membership to reassure consumers that a brand will deliver. 2. Comparing to exemplars — well known noteworthy brands in a category can also be used to specify category membership. 3. Relying on the product descriptor — the product descriptor that follows the brand name is often a concise means of conveying category origin. 5. What five strategies are available to firms in declining industries? Ans:- 1.

Increasing the firm’s investments. 2. Maintaining the firm’s investment level until the uncertainties about the industry are resolved. 3. Decreasing the firm’s investment level selectively by dropping unprofitable customer groups and simultaneously strengthening the firm’s investment in lucrative niches. 4. Harvesting the firm’s investment to recover cash quickly. 5. Divesting the business quickly by disposing of its assets as advantageously as possible. 6. Define and discuss the concepts of points-of-parity (pop) and points-of-difference (pod). Use examples to illustrate your discussion.

Ans:-  Points-of-Difference (PODs) are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Strong, favourable, and unique brand associations that make up PODs may be based on virtually any type of attribute or benefit. Examples are FedEx (guaranteed overnight delivery), Nike (performance), and Lexus (quality. ) Points-of-Parity (POPs) are associations that are not necessarily unique to the brand but may be shared with other brands. They come in two basic forms: category and competitive.

Category POPs are associations consumers view as essential to be a legitimate and credible offering within a certain product or service category. They represent necessary conditions for brand choice. They may change over time due to technological advances, legal developments, or consumer trends, but they are the ‘greens fees’ to play the marketing game. Competitive POPs are associations designed to negate competitors’ PODs. If a brand can ‘break even’ in those areas where the competitors are trying to find an advantage and also can achieve advantages in other areas, the brand should be in a strong, and even unbeatable, competitive position.

Chapter-13: MCQ’s and short questions: 1. A distinct characteristic of services is _____. Your Answer:| intangibility | 2. Services are typically produced and consumed simultaneously. This is an example of the _____ characteristic of services. Your Answer:| inseparability | 3. Services cannot be stored. This describes the _____ characteristic of services. Your Answer:| perishability | 4. _____ describes employees’ skills in serving the client. Your Answer:| Interactive marketing | 5. SSTS refers to _____. Your Answer:| self-service technologies | 6.

Top firms audit service performance by collecting _____ measurements to probe customer satisfiers and dissatisfiers. Your Answer:| voice of the customer | 7. The services a customer expects are called the _____ service package. Your Answer:| primary | 8. Added features to an offering are called _____ service features. Your Answer:| secondary | 9. The intangibility of services has implications for the choice of _____. Your Answer:| brand elements | 10. _____ cost refers to the product’s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value.

Your Answer:| Life cycle | 11. According to Parasuraman, Zeithaml & Benny, the most important determinant of service quality is: Your Answer:| Reliability | 12. An offering that consists primarily of a tangible good with no services at all is considered a _____. Your Answer:| pure tangible good | 13. A restaurant is an example of a(n) _____. Your Answer:| hybrid | 14. _____ refers to the willingness to help customers and to provide prompt service. Your Answer:| Responsiveness | 15. _____ refers to the knowledge and courtesy of employees and their ability to convey trust and confidence.

Your Answer:| Assurance | 16. _____ refers to the ability to perform the promised service dependably and accurately. Your Answer:| Reliability | 17. Mystery shoppers refer to the use of _____. Your Answer:| undercover shoppers | 18. Customers often view a service as fairly homogeneous, caring less about the provider than the price. Service marketers must therefore _____ their services. Your Answer:| differentiate | 19. Marriott is setting up hotel rooms for high-tech travelers who need accommodations that will support computers, fax machines, and e-mail.

These are examples of _____ service features. Your Answer:| secondary | 20. _____ extensions often require sub-branding strategies where the corporate name is combined with an individual brand name or modifier. Your Answer:| Vertical | 21. Services such as installations, staff training, maintenance, and repair services and financing are called _____ services. Your Answer:| facilitating | 22. Ritz-Carlton Hotels’ legendary service is an example of which one of the following distinct characteristic of service? Your Answer:| Intangibility | Short Questions: 1.

What are the five categories of offerings in the product-service mix? Ans:- 1. Pure tangible good – the offering consists primarily of a tangible good, no services accompany the product. 2. Tangible good with accompanying services – the offering consists of a tangible good accompanied by one or more services. 3. Hybrid – the offering consists of equal parts of goods and services. 4. Major service with accompanying minor goods and services – the offering consists of a major service along with additional services or supporting goods. 5. Pure service – the offering consists primarily of a service. . What are the five determinants of service quality in order of importance? Ans:- 1. Reliability – the ability to perform the promised service dependably and accurately. 2. Responsiveness – the willingness to help customers and to provide prompt service. 3. Assurance – the knowledge and courtesy of employees and their ability to convey trust and confidence. 4. Empathy – the provision of caring, individualized attention to customers. 5. Tangibles – the appearance of physical facilities, equipment, personnel, and communication materials. 3.

Holistic marketing for services requires external, internal, and interactive marketing. Define these terms. Ans:-  External marketing describes the normal work of preparing, pricing, distributing, and promoting the service to customers. Internal marketing describes training and motivating employees to serve customers well. Interactive marketing describes the employees’ skill in serving the client. Clients judge service not only by its technical quality (e. g. , was the surgery successful? ) but also by its functional quality (e. g. , did the surgeon show concern and inspire confidence? ).

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Brand Equity

Introduction Indomie is one famous brand of instant noodle in Indonesia is produced by PT. Indofood Sukses Makmur Tbk. , The first time Indomie hits the market was on 1970, people doubted that selling instant noodle as one of the staple food in Indonesia, but the company proved the people’s judgements were wrong (www. indomie. com). Indomie accounted for approximately 37% of net sales and 39% of income from operations in 1999. The Company produces a wide range of instant noodle products with prices that cover the low-end, mid-range and high-end retail market segments in Indonesia.

The Company owns the three major instant noodle brand names in Indonesia, Indomie, Sarimi and Supermi, which are leading household names and have been in existence for many years. In 1999, Indomie accounted for approximately 44% of the Company’s instant noodle sales, while Sarimi and Supermi accounted for approximately 28% and 18%, respectively, of the Company’s instant noodle sales. The Company sold approximately 8 billion packs of instant noodles in 1999.

While the Company sells most of its instant noodles domestically, a small percentage of instant noodles are exported to nearly 30 countries, including Saudi Arabia, Brunei, Nigeria, Australia, Hong Kong, the United State and certain European countries. In 1999, instant noodles accounted for net sales of approximately Rp. 4, 315 billion and income from operations of Rp. 892 billion. (www. indofood. co. id/index_2. htm) We were amazed on how big Indomie since 1999, even up until 2010 the instant noodle that produced by the Indofood group dominated the instant noodle market, it dominated about 70 percent of the market in Indonesia. ith the biggest shares goes to Indomie with 40-50 percent and other 20-30 goes to Sarimi and Supermie altogether. In this case just Indomie itself most likely dominated about half of the instant noodle market in indonesia. According to Boediyanto from Republika Newspaper Tuesday (12-10-2010), in a year, it is estimated that Indonesian people consumed about 14 billion packages of indomie per year. Looking at how Indomie could consistently maintain its position as the market leader in Indonesia for several decades, had risen the curiosity of looking into more depth of the power of the brand.

Jacques R. Chevron (1998) said that a brand that is well known and trusted by the people is a priceless asset. Brand has several roles for companies, brand can make company reach the economy of scale by mass producing the product under the brand name, it also can halt other competitors that want to do the business under in the same industry. in other word, a brand that is strong enough to reach the brand equity will automatically gain trust from buyer and reseller (A. shimp, 2003). Since brands are the most valuable assets for the marketer has, it is important to have strong brand equity.

Landor Associates’Antonio Marzza said, “A brand represents the most powerful link between the offer and consumer” (Kleppner, 2008), this statement become the reason for the importance of brand communication, since the essential aspect of communication is accountability and brand awareness could be one of the appropriate tools to evaluate and learn the brand performance. Brand awareness refers to how aware customers and potential customers are of the brand and its product. In definition, brand awareness is a marketing concept that enables marketers to quantify levels and trends in consumer knowledge and awareness of the existence of the brand.

Most advertising is directed to consumers whose preferences are already formed and who have experience with the advertised product. Keller (1993) suggests that part of the strength of brand equity is a result of brand associations being easily accessible in memory. While Aaker (1991) suggested that brand equity can be categorized in 5 categories, the categories for brand equity are as follow 1. brand awareness. Shows the ability of the customers to recognize or remember that that brand is a part of certain product category, for example : The Botol Sosro is one of the bottled tea product. . brand association. Reflects the image of a brand in a sense that related to certain habit or lifestyle, for example: BMW is associated mostly by people as high class brand of car. 3. perceived quality. Reflects the perception of the customers on the overall quality/advantages of a product and how the services provided meets the expectation of the customers. 4. Brand Loyalty Reflects the level of the bond between the customers to certain brand. 5. Other proprietary brand asset. More depth into the factors that build Indomie’s brand equity will be discussed further in this report. . Brand Awareness “Brand awareness is the recognition and recall of a brand and its differentiation from other brands in the field”, East (1997, p. 29). Brand awareness is an important and sometimes undervalued component of brand equity. Awareness can affect perceptions and attitudes. It can make peanut butter taste better and instill confidence in a retailer. In some contexts, it can be a driver of brand choice and even loyalty. Brand awareness reflects the salience of the brand in the customers mind, (CALIFORNIA MANAGEMENT REVIEW VOL 38.

NO. 3 SPRING, 1996). There are levels of awareness, of course, which include: – Unaware of Brand= the lowest level in the brand awareness hierarchy, which costumers didn’t even aware of the brand existence. – Brand Recognition= aided recall. The ability to identify a similar brand when given the product category and a list of brands. – Brand Recall= Unaided recall. The ability to rename the brand when provided with the similar product category. – Top-of-Mind= The first named brand in an aided recall task. First Indomie Promotion in 1970

Indomie brand is launched by PT. Indofood CBP Sukses Makmur Tbk. This product is launched first time in Indonesia at 9 September 1970. Indomie market covers some country such as U. S, Australia, Nigeria and some others Asian and African countries. In the local market “Indomie” brand awareness level is at the Top-of-Mind brand (Wulandari, Dwi Sayekti, Essay Journal, April, 2003). In her Essay research, it is stated that Indomie has the highest brand awareness in the market compared to the competitors Supermie (second place) and Sarimi (third place).

What makes Indomie brand awareness high is because Indomie is the first instant noodle in Indonesia, great promotion and publicity, unique selling point, unique jingle, great tagline, often held event sponshorship. Indomie as the first Brand for instant noodle has big advantages, because people will be easy remember the brand name. Indofood also make the Indomie publicty and promotion in a large scale. Indomie also has a unique selling point which is the taste and cheap price. Indomie also has unique jingle which they make from the event in 2008 “Indomie Jingle Dare”, and Indomie also held event sponshorship regularly. . Brand association A brand association is “anything linked in memory to a brand” (Aaker,1991, p. 109). brand associations may be seen in all form and reflect characteristics of the product or aspects independent of the product itself (Chen, 2001). The importance of brand name associations, for instance, is emphasized by Rio et al. (2001a) in obtaining differential advantages. Product associations and organizational associations are taken as the two mostly referred categories according to Chen’s (2001) brand association typology.

Associations represent basis for purchase decisions for brand loyalty, and also create value to the firm and its customers. Aaker (1991) has listed these benefits as follows: helping to process or retrieve information, differentiating the brand, generating a reason to buy, creating positive attitudes or feelings, and providing a basis for extensions. Rio et al. (2001b) proposes that brand associations are a key element in brand equity formation and management. In this respect, high brand equity implies that consumers have strong positive associations with respect to the brand.

Positive associations J20 the nigerian rapper singing with background activity Indomie brewing in the kitchen, Since uploaded on May 8, 2011, the video had been viewed 126,000 times as much. Youtube user from Indonesia provide comments on instant noodles and popular in other countries were drawn into wondering what it Indomie products some interesting there is no official statement from the Indomie whether this video is a video made by Indomie for advertising purposes abroad, We can see how the rapper loves Indomie up as if he had Indomie official jingle and have a patent for his work. http://internasional. kompas. com) 3. Perceived quality Perceived quality is defined as “the customer’s perception of the overall quality or superiority of a product or services with respect to its intended purpose, relative to alternatives” (Zeithaml, 1998). It is a competitive necessity and many companies today have turned customer-driven quality into a potent strategic weapon. They create customer satisfaction and value by consistently and profitably meeting customer’s needs and preferences for quality.

Kotler (2000) draws attention to the intimate connection among product and service quality, customer satisfaction, and company profitability. Based on the Hazard Analysis and Critical Control Point System (HACCP) principles of food safety risk management and includes the use of pre-requisite program to make a safe food supply. This unwavering commitment to strict quality control systems and procedures has resulted in an enduring favorable customer perception of the “Indomie” brand. All the Group’s products are registered with NAFDAC, attesting to their suitability and safety for human consumption.

In March, 2008, NAFDAC honored the Company with an award of excellence for being one of the most regulatory compliant organizations. The Company’s products are also MANCAP-certified, which demonstrates that the products are in conformity with industrial standards. The internationally recognized Quality Management System ISO 9001:2000 certification in February 2007. As an organization that believes in continual improvement, necessary arrangements are already being put in place in pursuance of the ISO 22000:2005 certification.

The ISO 22000:2005 certification is for companies that operate within any part of the food chain. (http://www. dufil. com) 4. Brand Loyalty Brand Loyalty is a situation that reflects on how likely a customer will switch to another brand, especially if the price of that brand change, it could be a change in the price or in the features of the product (Aaker, 1991) while Keller (2003), had his own view on the brand loyalty, he examined brand loyalty under the term “brand resonance” that refers to the nature of customer-brand relationship and how far that customers can feel that they are really connected to the brand.

Those who are deeply attached to the product (or those who have true brand resonance), will have high level of loyalty, while they are not just purchase the product regularly but they also actively seek means to interact with the brand and would gladly do word of mouth marketing to others. Now according to Aaker (1996), there are 2 factors that can be used to measure the degree of customers’ loyalty. They are Price Premium and Customer Satisfaction.

But since the price range between instant noodle is not that much of a difference, so price is not really considered to affect the loyalty of the consumers, so Price Premium will not be used as a measure of consumers loyalty in this case because one of Indomie’s strength is in its cheap price also. While on the other hand, customers’ satisfaction is applicable in this case, since most of the people consume instant noodle because it is efficient, effective and also tasty.

Like mentioned before, it can be seen that from the data gathered the sales of Indomie has been consitently stable from time to time, it shows that there are consumers that are loyal to Indomie. CONCLUSION In conclusion, when a brand reached strong brand equity, it can achieve a few achievements, according to Kotler (1997) by having a good brand equity, then a company will achieve these results: * The company will enjoy less marketing cost because of the level of awareness and loyalty of the consumers is high, example: Indomie only do advertising periodically and the gap between one advertising to other is quite long. Company will have a stronger position in negotiating with distributors and reseller because consumers are expecting that they will have the product under that certain brand with them. Example: all the “ropang” stand by the roadside have indomie banner on their store. * Company will be able to charge higher price compared to most of its competitors because that certain product compared to other product from different brand perceived as to be high of quality. * Company will be easier to do brand extensions and extending the product line since the brand itself already hold high credibility. The brand will shield the company from fierce price competition, indomie survived up until know, even the sales constantly going up from year to year (taken from Indofood financial statement) It can be concluded that Indomie achieved strong brand equity, it results in the consistent performance and maintaining its position as the market leader over the few decades, with the increase in sales (taken from Indofood financial statement), it can be seen that from year to year there are more people consume indomie.

Strong brand awareness, Strong brand association, Perceived by consumers as product of good quality, then leads to the loyalty of the consumers caused indomie to have such a strong brand equity from time to time. Reference List Aaker, D. A. 1991. Managing Brand Equity Capitalizing on the Value of Brand Name. The Free Press, New York. Aaker, D. A. 1996. California Management Review Vol. 38. No. 3 Spring. The Free Press. Chen, A. C. 2001), “Using free association to examine the relationship between the characteristics of brand associations and brand equity”, Journal of Product & Brand management, Vol. 10 Nos. 6/7, pp. 439-49. http://internasional. kompas. com/read/2011/05/15/15553014/Indomie. Dielu-elukan. Rapper. Nigeria (5 Nov 2012, 19:40) http://www. dufil. com/prodqual. asp (5 Nov 2012, 19:00) Http//:www. indofood. co. id/index_2. htm, browsed on 7th of November 2012 Jacques R.

Chevron, (1998) “The Delphi Process: a strategic branding methodology”, Journal of Consumer Marketing, Vol. 15 Iss: 3, pp. 254 – 264 Jennifer L. , 2002 Conceptualizing and Measuring Brand Personality: A Brand Personality Scale, working paper. Kevin Lane Keller. 1993. Journal of Marketing, Vol 57, No. 1 (Jan. , 1993), pp 1-22 Kotler, P. 1997. Marketing Management ; Analysis, Planning, Implementation & Control (7th ed. ). Prentince Hall. USA Kotler, P. (2000), Marketing Management: Analysis, Planning, Implementation and Control, 10th d. , Prentice-Hall, Englewood Cliffs, NJ Lane, W. Ronald; King, K. Whitehill; Russel, J. Thomas, 2008, “Kleppner’s Advertising Procedure”, Pearson Prentice Hall Rio, A. , Vazquez, R. and Iglesias, V. (2001b), “The effects of brand associations on consumer response”, Journal of Consumer Marketing, Vol. 18 No. 5, pp. 410-25. Zeithaml, V. A. (1988), “Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence”, Journal of Marketing, Vol. 52 No. 3, pp. 2-22.

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Define and Explain Branding Principles with Examples

Define and explain Branding principles with examples? Principle # 01 KEEP IT SIMPLE:- One most common mistake that marketing and advertising people do is that they say a lot through their ads. so keep it simple so it remains in mind of consumer for longer period of time. because one big idea is best. Example:- 1. Subway focus on health 2. Nestle on health. 3. Nike say just do it 4. Addidas say impossible is nothing. 5. Gulahmad of high class 6. Sana safina quality lawn for summers. 7. Daewoo express provide safe and timely journey. On average one person is hit by 500-1000 ads in one day. onsumer cannot saturate all of them. It should be personal and simple means talk about consumer, tell how customer can get maximum benefit through it. Principle # 02 WORD OF MOUTH PRODUCE IN MASSES:- This rule builds the brand. its difficult to build brand only through advertising. its important to build advertising and public relation side by side. many dots and cons fails to build brand. those who survived only through media, public relations and word of mouth. PUBLIC RELATION ACTIVIST:- 1. Paid documentaries by baharia town. 2. GEO news. 3. News on facebook on launching new brands. . Promotion in magazines before brand comes i. e. tooti fruit in nation magazine 5. Can feed news to the media, write about the elements. 6. Photography Result of activist is not predictable i. e Amazon. com had good HR. RED BULL doing PR activities around the globe not spending much on ads but on PR. Principle # 03 DEFINE USP OF YOUR BRAND:- Focused on that point which is its strength,on which brand is powerful. because that point consumerwi ll not forget. Broadly define traits of your brand either it is Big/small,expensive/inexpensive,local/international.

Narrow down list to define your brand. Examples:- NIRALA initially was a local business but now national brand in sharjah and dubai. CHAMMAN initially was in Lahore now in different cities i. e Islamabad,multan,Karachi. MASOOMS in Lahore Karachi and multan. SHAAN MASALA was local brand but now it is international one. STARBUKS harward idea in mid 1980 to create chain of coffee houses. TOY R US initially just they store on small scale; now leading kids store for toys; video games; dolls; action figures. Belong to different nice but being focused and different is best. cattered messages on too many traits ;rather be focused on single/few traits is in effective way. One cannot be every thing to every one. One have to get in to mind of consumers; scattered message is not effective. Principle # 04 DIFFERENCIATION IS THE KEY:- If you can’t be different then make it different. what make your company and your product different from the compotators. EXAMPLES:- 1. Balli ki chay:-sitting environment is different; for hanging out for boys. 2. Gans ink:- making ink; they differentiated by putting chocolates in packaging of ink to attract consumer. . Pepsi give shaan tikka masala to attract customers. 4. Frozen yogurt differentiated as it is replacement of ice-cream and low sugar having less calories. Principle # 05 1ST BRAND ADVANTAGE:- Its not about the quality of the product or the size of the marketing budget. most often its not about being the first one. being first in mind not in market. Examples:- 1. Coke is first carbonated. 2. Polaroid was the first instant developing camera. 3. Fedex was first company of ship packages overnight across the US. 4. Lado marka first cloth wasing soap. . Haleeb sab sa garha doodh first tetra pak. These companies and their products succees in being the first to gain space in our mind. when first gain advantage then other stand its behind and by doing better marketing they can beat compition in consumer view. But what if u not # 01? Strong 2nd is not a bad in business. world buyers like choices. if you have a choice to become 2nd in market;compete hard against leader and permote your overall category. Examples:- 1. Macdonalds is #1 in fastfood chain buts ubway is #1 in healthy food. 2.

Coke #1 but pepsi #2 3. Merinda #1 in orange flavor and 7up in lemon flavor. 4. Mobilink #1 in business class but ufone in youth. Principle # 06 PERCEPTION AND QUALITY Its not about the quality of the product but also the perception of quality that really counts. if it is branded it is automatically valueable. Example:- 1. PIZZAHUT is an international chain perception built its pizza will be best but those who taste local lassani pizza is also high quality with low cost. 2. LAYS is high quality as compares to SUPER CRISP though it is also good in taste.

If cost is high it is understood of best quality Often the price tag is major contributor to the perception of quality. we are quick to connect the cost of something to the value we place on it. our judgement of the quality may change based on other factors. but actual cost is indeed and important factor in influencing the perception of quality. its almost impossible to separate the value of the product from the actual cost in our mind. we immediately assumed that the lowest priced items is of least quality;and the most expensive of the best quality.

Principle # 07 BE CONSISTENT AND PATIENT:- Building a brand is not easy. It takes time and patience to build a brand and maintain the quality of your product or service. The key is to show consistency and patience. brands cannot be build overnight. EXAMPLES:- * Quaker oates (since 125 year) * Coke since 1987 In order to stay on target and to present consistent image in the market place. you must institutionalize your brand within the organization. Otherwise when you have change in personnel invariability your brand will change. ith branding most of the time change is not good. Principle # 08 WRITE YOUR OWN BRAND DEFINITION:- Despite change in market directions; personnel or ad agencies your brand must be constant. one must writeth e quality and specifications of the brand. brand diffrenciation not define what they do rather who they are and want to present themselves as. it can serve as yardstick from which to judge. EXAMPLE;- Expensive, high quality products, easy going, friendly ,customized care. Whatever you provided; write it down on paper.

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Strategy of Apple Brand

INTERNATIONAL BUSINESS STRATEGY OF PARENT COMPANY When a firm decides to go international with their business they must face many competitive decisions. Two of the most important decisions a company will face are the pressures for cost reduction and pressures for local responsiveness. The pressure of cost reduction forces a firm to lower their value of the cost of creation. Firms can outsource to places where costs of their products are much cheaper or they can mass-produce a standardized product in one location. A firm must have the feeling of local representation.

Every country has its own way of life. If a company does not adhere to each country’s differences in traditional business practices, distribution channels, and the demands from the host government, there will be no reason going international. Customers in different countries all hold to their own ways of doings things. It is important for a multinational firm to become aware of all traditions and rules in the countries of entry. There are four different strategies an international corporation can choose from. They are global standardization, localization, transnational and international.

Each strategy leads to the deciding factor that firms will use to determine the amount of pressures for cost reduction and local responsiveness. Global standardization is used to increase profitability by obtaining cost reductions through economies of scale. A firm whom wants to pursue a low-cost strategy on a global scale will normally offer a product that can be mass-produced at a low cost. A localization strategy offers a product that is custom to the host country. The product satisfies the countries preferences and taste. The third strategy is transnational.

It is used when the firm is faced with strong pressures for both reduction and localization. This strategy is hardly used when competitors are in the market because it is hard for a firm to please the local tastes and preferences of its customers at a low cost. The last strategy is international. This strategy is used when firms are confronted with low pressures for both cost reductions and local responsiveness. This strategy is scarcely used when competition enters the market. With each strategy, business can find which one works best for their organization.

Also Case Study will describe why Apple Inc. is a very successful company.

Companies will decide to go international depending on the country it chooses to enter and the amount of profit it can earn. In corporate strategy there are two types of diversification, linked and constrained. “Companies using linked diversification, enter new businesses when it relates in some way to another business they are already in but it does not necessarily have any connection to their other businesses. If they are using constrained diversification, they only enter a new business if it is based on their core resources or competencies.

Companies based on linked diversification have little coherence to their overall corporate strategy, while companies using constrained diversification tend to be more focused. Constrained diversification allows companies to maximize the effect of their resources because they are shared (100). ” Apple is a personal computer, hardware and software company, inherently leading to use constrained diversification because they utilize their competition and they share resources between businesses. For example iPods, iPads, iPhones, MacBooks and Apple TVs all run on the same operating system.

This intends customers to link their music with laptops, TVs, cell phones and other Apple products. This allows for a more appealing product to the customer. Apple is saving money by sharing resources throughout their multinational business. The product of Apple has such a distinct business that competitors have not been able to match their techniques. Each electronic device is unique, allowing for them to be used anywhere in the world and each is different from any of its competitors. Apple’s goal for a mobile business is to be fundamentally innovated and differentiable.

It does not concentrate on the size of its industry because it maintains strong profit margins that have high percentages in the industry’s profit share. Apple does not focus on the quantity of its products but the quality and relevance. “. Peter Drucker wrote that “What makes the future happen is always a business’s embodiment of an idea of a different economy, a different technology, a different society. It need not be a big idea; but it must be one that differs from the norm of today”. This means defining what the devices are (e. . , a pocket-sized device, or a tablet-sized device), and what they do. Apple must do this through constant innovation. ” Apple has secured itself as the industry innovator and a position of strength by constantly defining what their products are and what their products do. Since Apple is continuously redefining the industry, they do not need an overwhelming market share. Apple can dominate the market through their intelligence of inventing new electronics and the respect they have for their customers.

Apple’s basic business model is to sell hardware; every other product, iTunes, Apps, operating systems, is to make their hardware more valuable. The main goal of this strategy is to maximize the value of the firm. Customers are willing to pay high prices to obtain products of high value and high quality. Within an international business setting, firms are competing to receive the highest profit against one another. Apple is competing at a differentiation strategy. They increase the attractiveness of their products, making the products stand out so customers will purchase their products over another.

Apple’s strategic positioning choice is to have high valued electronics that all customers want. Apple products are unique compared to the rest of the world. This allows Apple to charge a higher price. Many people are willing to buy Apple products because they are well produced, have a high quality and are known as a luxury item to the customers of Apple. Apple’s main goal is to maximize all values for the firm. This includes increasing shareholder value in a legal, ethical and a socially responsible manner. Managers can increase the profitability of a firm by pursuing strategies that lower costs or by pursuing strategies that add value to the firm’s products. Managers can also increase the rate at which the firm’s profits grow over time by pursuing strategies to sell more products in existing markets or by pursuing strategies to enter new markets”. Apple is always looking at new ways to increase its value and shareholder profit. Our main strategy to increase profit is to add value, raise prices and to enter new markets.

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Consumers’ Perceived Value and Brand Image Towards

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

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Brand and Proper Branding

Branding Meaning of Branding: The word “brand” is derived from the Old Norse “brandr” meaning “to burn. ” It refers to the practice of producers burning their mark (or brand) onto their products. Branding is the practice of giving a specified name to a product or group of product of one seller. Branding is the process of finding and fixing the means of identification. In other word, naming product, like a naming a baby, is known as branding. Parents have children and manufactures also are eager to know the character and the capacity of their names. Thus branding is management process by which product is name; i. . branding. Proper branding can result in higher sales of not only one product, but on other products associated with that brand. For example, if a customer loves Wai Wai Noodles and trusts the brand, he or she is more likely to try other products offered by the company such as Kwiks Cheese Balls or Kwiks Potato Chips. Definition of Branding According to the American marketing Association, “A brand is name, term, sign, symbol or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. According to William j Stanton, “All trademarks are brands and thus include the word, letter or numbers which may be pronounced; they may also include pictorial designs. ” Threes of Cs of Branding 1. Clarity: Strong bonds are clear about what they are & what they are not. They understand their unique promise of value. And this promise of value sets them apart from their competitors. It differentiates them and allows them to attract and built loyalty among a desirable set of consumers. 2.

Consistency: In addition to being clear about who they are, strong brands are also consistence. They are always what they say they are. 3. Constancy: It is not enough to be clear and consistent if you are not always visible to your target audition. Strong brands are constant, they are always there for their customers and prospects. A brand can convey up to six level of meaning 1. Attributes: Mercedes brings to mind expensive, well built, well engineered, durable, high prestige automobiles. 2.

Benefits: The attributes “Durable” could translate into the functional benefits and the attributes “Expensive” translates into the emotional benefits. 3. Values: Mercedes stands for high performance, safety and prestige. 4. Culture: Mercedes represents German culture; organized, efficient and high quality. 5. Personality: Mercedes may suggest a no nonsense boss “person”, reigning lion “animal” or an austere palace (object). 6. User: Suggest the kind of consumer who buys or uses the product. A top executive behind the wheel of a Mercedes and not a young secretary.

Purpose of Branding 1. Brand is a massive asset. 2. Brand is a promotional tool. 3. Brand is a weapon to protect market. 4. Brand is antidote for middle man survival. 5. Brand is a means of identification for customers. Significance/advantage of branding 1. Advantage to producers a. Easy to advertise. b. Easy to identify the products. c. Creation of separate market. d. To get more price. e. Easy to expand the product mix. f. Personal contacts with consumers. 2. Advantage to middle man g. Easy to understand needs and wants of consumers. . Less risks. i. No need of advertisement and sales promotion. j. Increase in sales. k. Increase in profit. 3. Advantage to consumers l. Easy to recognize. m. Availability of quality product. n. Minimum fluctuation in price. o. Mental satisfaction. p. Improve packing. Branding decision Branding of products are mainly done under following criteria: 1. Founder’s names. 2. Blanket family names. 3. Separate family name for all products. 4. Corporate names combined with individual product name.

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Managing High Growth Brand-Starbucks

Submitted To Mahbub Hossain Course: brand and product management American International University – Bangladesh (AIUB) Submitted By Khan Samara Salsabeel #07-09162-2 . | | Mr. Mahbub Hossain Course Instructor Brand and Product Management, sec-A Subject: STARBUCKS CORPORATION: Managing high growth brand. Dear Sir, We are grateful to you for giving us the chance to work on this case study.

We would also like to express gratitude to you for your gracious cooperation and valuable guidance for preparing the report. Sincerely, Khan Samara Salsabeel (07-09162-2) Sadia Rezwana (07-09013-2) Kazi Masum (08-09933-1) Mohammad Abdul Kader (08-11783-2) In 1971, Seattle entrepreneurs Jerry Baldwin, Gordon Bowker and Zev Siegl first opened Starbucks in Pike Place Market. At that time, Country’s major coffee brands were engaged in price war, therefore they were forced to use cheaper beans in their blends to reduce costs.

As a result there was a decline in coffee consumption. To harness the potential of the gourmet coffee trend in the Seattle area, the founders of Starbucks experimented with the new concept of a store dedicated to selling only the finest coffee beans and coffee brewing machines. This emphasis on quality whole-bean coffee retail was fairly unique. Starbucks placed quality as its top priority. The Starbucks management dedicated a great deal of their time and financial resources to establishing strong relationships with coffee growers from around the world.

In 1982, Howard Schultz, current CEO of Starbucks recognized that the conservative business plans of early Starbucks management hindered the company from reaching other potential coffee lovers. Hence he transformed Starbucks from a coffee retailer into a cafe business. He had a vision of expanding the scope and reach of the Starbucks brand. In addition to selling only ‘best of class’ coffee, Starbucks worked to fill its stores with only the highest quality of everything, from coffee making equipment to the fixtures and furnishings to the music and artwork.

Each Starbucks store is carefully designed to enhance the quality of everything the customer see, touch, hear, smell or taste. The stores are designed in such a manner that it gives a warm, inviting environment essential for giving Starbucks a pleasurable coffee centered experience. The keys for success for Starbucks in building the brand are: 1. Starbucks was the first to introduce Coffee house with premium coffee to American market. 2. Consistent premium coffee. 3. It placed quality as its top priority. 4. Starbucks established strong relationships with coffee growers from around the world. . Formation of dynamic management team with highly innovative and creative employees. 6. Profitable partnerships and joint ventures with some of the nation’s strongest corporations such as Host Marriott, United Airlines, Pepsi Co, Dryers and others. Brand values of Starbucks: 1. Top priority is the quality of its products 2. Premium coffee experience 3. value simplicity over technology 4. Investing in innovation 5. Employees as partners and viewed as the most important assets of the corporation. The sources of equity of Starbucks are Brand awareness and brand image.

Brand awareness and image are collectively known as brand knowledge. Brand awareness has been established through word-of mouth, partnership and selective and fruitful location of Starbucks outlets. Brand image is established through: 1. premium coffee beans 2. brewing techniques 3. store designs, artwork and music 4. Consistently good customer service 5. Classy, romantic atmosphere with consistent store design that meets five senses. Pivotal to Starbucks high growth strategy was the carefully planned expansion of its specialty coffee stores to new markets throughout North America and eventually worldwide.

Hence geographical market expansion, joint ventures and partnerships are some of the strategies the corporation followed to grow the brand. However these strategies had both merits and demerits for Starbucks which have been discussed later in the report. There are several things which are needed for a corporation to become a world class global brand which are also discussed in the report. For Starbucks to become a world class global brand, it must overcome some major hurdles. In addition to hurdles, Starbucks has many challenges which they need to meet in terms of American market. All these are discussed in detail in the report. SI |DESCRIPTION |PAGE | |01 |Objective Of The Report |07 | |02 |Methodology of The Report |08 | |03 |Limitation Of The Report |09 | |04 |Starbucks Corporation At A Glance |11 | |05 |Success Keys For Starbucks In Building Brand |12-13 | |06 |Starbucks’ Brand Values |14 | |07 |Sources Of Equity For Starbucks |15 | |08 |Evaluation Of Starbucks’ Growth Strategy |16-18 | |09 |Starbucks’ Challenges In Becoming A World Class Brand. 19 | |10 |Recommendation |20 | |11 |Conclusion |21 | |12 |Reference/Bibliography |22 | 1. It reflects a brief description of the corporation. 2. To know the following: • Success keys for Starbucks • Starbucks’ brand values • Starbucks’ sources of equity • Starbucks’ growth strategies • Starbucks’ hurdles and challenges in becoming a world-class brand. We have collected almost all data from the case study. Moreover, we have collected data from Annual Report published by the corporation. Reference books, study materials and the internet were also of great aid for the preparation of the report.

The first and foremost limitation was the time constraints. Gathering information on various aspects of the corporation was quite difficult. This is the reason we could not go to the in depth analysis within the limited time frame. In less than a decade, Starbucks was transformed from a fledgling whole bean coffee retail chain into a globally recognized brand. In 2002, Starbucks was comprised of more than 5400 stores located throughout North America, Latin America, the Pacific Rim, Europe and the Middle East. Growth of the corporation’s coffee retail business continued at a steady pace of one store opening a day on average, and annual revenue for 2001 topped $2. 7 billion.

Moreover, joint ventures with some of the nation’s strongest corporations including Pepsi, Kraft, Dryer’s and Capitol Records, allowed Starbucks to launch a lucrative consumer product division to complement its cafe business. Licensing partnerships with other companies such as United Airlines, ITT Sheraton and Host Marriott further added to the growth of the Starbucks brand. Indeed, Starbucks rose to become one of the most impressive high growth brands in the 1990s. Despite this remarkable growth, some questioned whether Starbucks began to lose focus as the company strove to constantly reinvent itself. Critics wondered if perhaps the brand grew too quickly rapidly to remain focused on its core values and business objectives.

In less than a decade Starbucks was transformed from a fledgling whole bean coffee retail chain into a globally recognized brand. By 2002 Starbucks was comprised of more that 5400 stores located throughout North America, Latin America the Pacific Rim, Europe and the Middle East. There were some success keys which accelerated the growth of the company, some of which are given below: 1. The company had a strong and dynamic management team. The creative and highly innovative team monitored the problems of the customer and the employees. They also found out effective solutions to the problems the company encountered at different stages of its operation.

In other words, the key to the company’s success and widespread appeal among loyal customers had always been the employees, whose knowledge and dedication attracted customers to continue returning to the store. 2. joint ventures with some of the nation’s strongest corporations including Pepsi, Kraft, Dryer’s and Capitol Records, allowed Starbucks to launch a lucrative consumer product division to complement its cafe business . 3. Licensing partnerships with some other companies such as united airlines ITT Sheraton and host Marriott further added to the growth of the brand. 4. Use of improved and new technology was another key to the success of the brand. This made it easier for the company to maintain the quality of the products.

Innovations such as the FlavorLock bags prevented harmful air and moisture from seeping into the coffee thereby preserving the quality and saving the company from much more significant costs. 5. Starbucks was the first to introduce Coffee house with premium coffee to American market. 6. It placed quality as its top priority. To distinguish their coffee from the bland and tasteless store brands, Starbucks only purchased Arabica beans from a carefully selected network of suppliers across the globe, from places like Sumatra, Kenya, Ethiopia and Costa Rica. Arabica beans were selected because the bean’s chemistry is such that it can withstand high roasting temperatures, resulting in richer flavor. 7. Starbucks established strong relationships with coffee growers from around the world.

Starbucks sought vendors who sold products that would protect and even enhance the arabica’s flavor. This required the formation of partnerships across the globe with coffee brewing equipment suppliers who provided products that captured the essence of the coffee brewing tradition. The brand values of the company are given below: 1. The company placed quality at its top priority they emphasized on quality and never compromised with it. The Starbucks founders realized that if they wanted to enhance Seattle’s appreciation for fine coffee, they had to provide the best ingredients and brewing equipment to ensure that customers had the most enjoyable coffee experiences possible. 2.

Employees are viewed as the most important assets and partners of the corporation. They were adequately educated and trained to provide the best customer service. The knowledge and dedication of the employees attracted customers to continue returning to the stores. The employees played a vital role. This is because word-of-mouth publicity can only be achieved if the company continues to recruit and retain talented individuals who can lead the company to new markets and communicate Starbucks’ strong values to the communities who knew little about the brand. 3. Another brand value for Starbucks was investing in innovation. It made easier for the company to maintain the quality of the products.

Innovations such as the Flavor Lock bags prevented harmful air and moisture from seeping into the coffee thereby preserving the quality and saving the company from much more significant costs. The source of equity for Starbucks is Brand knowledge. Brand knowledge is the key to create brand equity because it creates differential effect that drives brand equity. Brand knowledge has two components: • Brand awareness • Brand image – Brand image is the impression in the consumers’ mind of a brand’s total personality. Brand awareness is again consists of: • Brand recognition – relates to consumers ability to confirm prior exposure to the brand when given the brand as a cue. • Brand recall – Relates to consumers’ ability to retrieve the brand from memory when given the product category.

Brand awareness for the company has been established through word-of mouth, new channels partnerships and selective and fruitful location for Starbucks outlets. Brand image is established through: • premium coffee beans • brewing techniques • store designs, artwork and music • Consistently good customer service • Classy, romantic atmosphere with consistent store design that meets five senses. Starbuck’s growth strategy mainly comprised of Geographical Market Expansion, Diversification and Partnerships. Pivotal to Starbuck’s high-growth strategy was the carefully planned expansion of its specialty coffee stores to new markets throughout North America and eventually worldwide.

The first phase of the Starbucks expansion strategy focused on securing a major foothold in the Pacific Northwest while experimenting in other key markets that were farther away, but had a high potential for rapid growth in cities such as Chicago, Los Angeles, San Francisco, New York and Washington, D. C. Successful expansion throughout Florida, Hawaii and Tokyo showed that fine coffee could be a hit in warmer climates as well as in the cold cities. The Starbucks management team agreed of the company’s massive expansion program by owning the operation by itself instead of pursuing franchising. This was a smart move because franchising runs the risk of a possibility of ruining the brand’s image to some extent. Other disadvantages of franchising are: • Franchisees are self-employed there may be problems in ensuring that they all adhere to the operational methods that are designed to achieve uniformity.

Failure by an individual franchisee will reflect badly on the whole franchise operation. • The franchisee may have different objectives from those of the franchisor. In the long run, they may begin to resent the control exercised by the franchisor. This may cause problems in terms of ‘policing the franchisee’ Diversification means developing new products for new markets. Some of the reasons why it is advantageous for companies like Starbucks are: • Diversification promises to be especially profitable • To avoid dependence on a single product • To strengthen existing products by synergy • To compete on all points with a rival firm • To take advantage of byproducts.

Although diversification strategy is risky, the company runs the risk of neglecting the existing products and introduces new products to new markets which are a desperate move. Starbucks diversified with new products namely • Frappuccino, a popular bottled cold coffee beverage using extracts from Starbucks famous Arabica beans. Frappuccino put the Starbucks brand into supermarkets for the first time. • In November 1999, Starbucks launched Barista Aroma thermal coffeemaker which was positioned as a ‘durable, convenient and consistent way to brew coffee. • Two new lines of proprietary products were launched in 1999: chocolates and hot cider. • Starbucks also introduced a line of coffee blends, called Milder Dimensions that aimed at capturing demand for lighter roasted coffees. Starbucks purchased Tazo Tea, an Oregon tea retailer, indicated a potential new trend for Starbucks to acquire companies as a means extending product lines. With Tazo Tea, Starbucks hoped to attract new customers who were looking alternatives to coffee. With Starbuck’s geographical market expansion proceeding at a phenomenal rate and with much success, many companies across the country began to approach Starbucks with partnership proposals. But selecting the wrong partner company or the wrong product to introduce with a partner could have devastating consequences for the brand. As a result, Starbucks entered into partnerships with companies who maintained the same commitments to quality such as Kraft, Dryer’s, Pepsi, Host Marriott, and United Airlines.

These partnership arrangements provided the company with a number of benefits given below: • Increased brand awareness • Broader range of potential customers • Exposing to new customers helped the company to cultivate stronger brand image • Partnership is a way so that consumers regard Starbucks as a world class brand. • Partnership resulted in innovative product development. • The Dryer’s joint venture with Starbucks led to the creation of six popular Starbucks coffee ice cream flavors that are marketed under the Starbucks name but produced and distributed by Dryer’s. Sales of these ice creams surpassed others such as Haagen-Dazs and increased to 54% in the year becoming the market leader. By partnering with Kraft, the second largest packaged-foods company in North America, Starbucks was able to benefit from Kraft’s extensive distribution network. The Kraft partnership also left the door open for Starbucks to explore the possibility of marketing food products with the help of Kraft’s distribution and marketing expertise. Despite of the above benefits the partnerships were providing to Starbucks, they also had problems: • There was a risk that the partner companies will not maintain the same quality, customer service and commitments because Starbucks was allowing an outside source to brew its coffee. • Staffs and bartenders may not be well trained and may not provide adequate information to customers regarding Starbucks. In case, bad tasting coffee was being served to thousands of customers, then the brand would develop a negative connotation. For the above problems, Starbucks were able to solve these problems so that Starbucks’ brand image would be harmed in the partnerships. The partnering companies were quick to remedy coffee quality problems by working with Starbucks to install more effective filtering devices in aircraft brewing equipment, and to better educate staffs of the partnering companies on how to protect on how to protect the quality of the coffee. Therefore, since Starbucks could overcome the problems, partnerships have proved to be beneficial.

To make Starbucks a world-class global brand the followings are needed: • Production and distribution (saving costs and coffee quality). • Marketing costs ( packaging and promotion ) • Power and scope ( credibility, acceptance, social status, high quality, etc ) • Consistency in brand image. • Sustainability of core competences • Uniformity ( controlling and coordination ) The hurdles which Starbucks must overcome are given below: • Consumer needs and wants in different cultures. People in different countries may have different coffee drinking behavior and coffee consumption. • Consumer response of marketing mix (attitudes and opinions). • Legal environment (different labor policies between countries). Administrative procedures. In terms of American market, Starbuck’s biggest challenges are: • Biggest threat : Dunkin’ Donuts • Increasing of direct competitors • Aggressive global marketing strategies • Focus on overseas growth and brand development Despite Starbuck’s remarkable growth, it began to lose focus as the company stove to constantly reinvent itself. The brand was growing too rapidly to remain focused on its core values and business objectives. Starbucks developed non related or other products, such as in November 1999 it launched Barista Aroma Thermal coffeemaker which was positioned as a durable, convenient and consistent way to brew coffee.

In case of this coffeemaker the problems were, it was blocking the sightline and the traditional coffee taste was being lost. Hence in this case it can be recommended for semi-automated coffee machines and designing of proper layout for the coffee machines so that the machines do not block the sightlines. It also launched non related products such as custom made CDs and other entertainment products. Although these have the advantages of increased brand awareness, improved brand image and enhanced parent brand, these products have the demerits of losing brand identity, core values and the company may end up with frustrated and confused customers.

So it can be recommended to pull out unrelated diversification and focus on being number one in the coffee business. Starbucks’ meteoric rise from a tiny local retailer to an international coffee powerhouse as one of the great success stories in American business in the last decade. The fact that Starbucks’ garnered such media and investor attention in the midst of the Information Age without an ounce of ‘tech’ in its product made this growth all the more remarkable. Incredibly, Starbucks achieved its market leader position largely without aid from advertising campaigns. Instead, the company built the brand by relying on the quality of their products and services to induce free word-of-mouth ‘advertising’ from customer to customer.

As Starbucks’ continued to push for new product innovations and business opportunities as a way to differentiate itself from its competitors, the company ran the risk of straying too far from its original focus of spreading its passion for fine coffee. The ballooning size of the corporation suggested that the quality of Starbucks’ products and services, and the strength of the company’s relationships with its most valued people, would need to be closely monitored. A larger, global Starbucks’ had to find the right balance in pursuing product- driven, people- driven, value- driven and sales- driven objectives. www. starbucks. com www. hoovers. com www. businessweek. com Strategic Brand Management, Keller, 2006 Best Practice Cases in Branding written by K. L. Keller ———————– STARBUCKS |BRAND & PRODUCT MANAGEMENT | Acknowledgement Executive Summary Table of Contents Objective of the Report Methodology of the Report Limitation of the report Starbucks at a glance STARBUCKSSuccess keys for Starbucks’ in brand building Brand values of Starbucks’ SRAR Sources of Equity Growth Strategies Starbucks- A Global Brand Recommendation Conclusion STARBUCKS | |STARBUCKS | [pic] References STARBUCKSssS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS STARBUCKS ———————– Brand & Product Management

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Different Brands of Car Dealerships Are Usually Located Near One

1. Different brands of car dealerships are usually located near one another on the same street. What are the pros and cons of this strategy? There are several pros and cons when considering car dealerships locating near one another on the same street. Car dealers cluster because it is in their best interest to do so, given consumer behavior. Buyers would be less prone to buy if dealers were discrete and far away from one another, but they are more prone to shopping if dealers cluster along the same street. One disadvantage of this strategy is the high level of competition amongst each other.

This strategy also encourages dealerships to decrease prices, have sales or promotions on vehicles to attract customers. It also encourages the employers to find additional ways to keep their employees motivated to maintain high quality customer service. 2. How does the mall that you shop at frequently combine the shopping and entertainment experience? The mall that I shop at frequently combines the shopping and entertainment experience by expanding the size of the mall and introducing a vast selection of food choices in the food court.

Recently, they open another food court on the other end of the mall, which also has new restaurants from which persons can choose from when they desire to have a meal. In addition, they built a theatre which has eight screens that can be viewed on a daily basis. Also, the entertainment experience is enhanced by performances of both local and international artiste on a regular basis as they perform different genres of music and dance. 3. Why would a Payless Shoe Source store locate in a neighborhood shopping center instead of a regional shopping mall?

A Payless Shoe Source would locate in a neighborhood shopping center instead of a regional shopping mall because neighborhood shopping centers are attached rows of stores managed as units, with onsite parking usually located in front of the stores. Payless would want to locate here because they offer customers convenient locations and easy parking, and they have relatively low occupancy costs. Whereas, a regional shopping mall have higher intensity of competition. This is so because it is an enclosed area with similar types of stores with the same products.

Also, the occupancy cost is high, in addition to the restricted rules governing window displays and signage. And, customers don’t always have time for a leisurely stroll through a mall. A freestanding location is more convenient because customers can park in front the store, buy what they want, and continue their other errands. 4. Staples and Office Depot both have strong multichannel strategies. How does the Internet affect their strategies for locating stores? Internet has become a major turning point in businesses today.

Because of the internet, customers can now order their products from both Staples and Office Depot via the internet. There is no need for them to actually visit a store to see what they have to offer and purchase goods. As a result of this shift in the internet technology, Staples and Office Depot don’t have to be as concerned about the location of their stores. Once their goods and services are well advertised and popular (which they are), people will see them via the internet and make the necessary purchases.

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Brand Loyalty vs Generic Brands

Brand Loyalty: Brand Names vs. Generic Brands Why do we as, customers and consumers chose to stay loyal to specific brands? Are you guilty of being loyal to one brand and not attempt to try other brand names and/or generic brands? I am. There are so many different products, materials, strategies, etc. that companies compete with each other to try to get us (the consumers) to be loyal to that brand. Example: Coke vs. Pepsi; AT&T vs. Sprint. There are also, people that wonder are their big differences in products when it’s a brand name vs. eneric brand. Upon my research I hope to answer these questions that we all have, a time or two, have wondered about? Definition The extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands. (www. businessdictionary. com) Brand Loyalty ranges from foods, clothing, cars, places, electronics, etc. How they get us to stay loyal

There are many reasons why we stay true to the brands we’ve developed to familiar ourselves with such as: knowing the quality in the product, don’t trust other brands or don’t care to try it, costs, availability, and /or easier resources, such as internet, the reputation of the brand by word of mouth and society standards. Companies are always developing newer and better ways to outdo their products, and old products and the products of their competitors. Brand Name vs. Generic Brand People have also stayed loyal when it comes to comparing the same products, but the difference is one is a brand name and the other is a generic.

Such as, Tylenol vs. generic store name such as equate (wal-mart store brand). There is a difference in price? The generic (store brand) is always less in cost but is the product the same? Yes, the generic store brand of Tylenol is the same as the brand name Tylenol, the dosage, effects, risks, safety and strengths are the same, except for the price the store brand is cheaper and that’s because the manufacturer has not had the expenses of making and selling a new drug. Interviews on brand name loyalist: I have interviewed the following people to compare their loyalty to a brand and why?

Questions asked: Friend: 1. Q: What brand are you loyal to? And Why? A: Sony, the picture, sound and quality of the different products. Nike, the comfortability of the shoes, larger range of styles, the different professional athletes under that name; meaning that they’re producing more of the products that allows the cost to lower, making it more affordable. Lexus, the quality, the appearance, the non-depreciate value it has compared to other brands and the reputation of the name? 2. Q: How long have you been loyal to the brand?

A: Sony, 1995 is when I purchased my first Sony product; Nike, 1984 in High School, I bought a new pair of sneakers; Lexus, 2010. I bought my first Lexus, and currently I’m driving my second Lexus. 3. Q: Have you tired other similar/competitors brands? And what was your outcome? A: Yes. a. before my Sony, I owned a Zenith, RCA, and Magnovox and none of them have compared to the quality of Sony. Sony’s bottom of the line product is better than the Vizio’s top of the line products. All the electronics currently in my house is all Sony. b. I had Adidas sneakers in the past but the quality doesn’t compare to Nike.

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Brand Switching Behaviour

Executive summary In a modern business world product maker and consumer are playing an important role. They cannot be seperated each other in every business activities. Nowdays people are facing free global trading which required producer to be innovative, creative, and competitive in every aspect. They must aligable to attract their consumer to be loyal to their product. The responsibility of the producer is not only creating some products, in fact, they have to make sure that every single product that they have created must be competitive compare with others by not forgetting about the safety aspect of their product itselfto the market.

On the other hand as a consumer, we have a right to choose which product that are suitable for us in order to fullfil our demands. Besides that, as a consumer we also are required to understand and know the information details of the product that we are going to purchase. However, both parties are different that make them cannot be seperated. Producer are required to be more creative by producing a good product and the other side consumers are required to be more wisely choosing a good product.

The best issue in order to interrclation between those 2(two) parties is BRAND-SWITCHING of SUV cars in Indonesia that I am going to emphasize on. Acknowledgements Before I begin to write my dissertation, I would like to express the deepest acknowledgement to God (Allah S. W. T) and all the people who support me finishing all the requirements to settle my master program in International Business. Firstly, God have giving me a strength to be patient to solve all the problems that I have faced during the class period. Besides that, I also believe He will never stop to give me a strong spirit to finish my dissertation.

Secondly, parents are important for me. They are my best supporter in my live and I do believe without their attention, I will never can finish my master study. Thirdly is my respective supervisor Mr. Alan Go who always give me a best way and an amazing idea how to finish my dissertation nicely. And last but not least, I would like to thank to my special Fiance who always beside me to cheer me up when I lose my idea. In addition, I believe that by doing my dissertation is my chance to implement all the knowledges that I have studied and give an explaination to what I ave understood. Table of Contents Executive Summary…………………………………………………………………………… 1 Acknowledgement…………………………………………………………………………….. 2 Table of Content………………………………………………………………………………. 3 1. 0INTRODUCTION6 1. 1Background of the study7 1. 2Statement of problem8 1. 3Objectives of the Study9 1. 4Research Questions9 1. 5Significance of the study9 2. 0LITERATURE REVIEW11 2. 1Brand switching11 2. 2Advertising and brand-switching13 2. 2. 1Advertising effectiveness14 2. 2. 2Customer responses to advertising15 2. 3Promotion and brand-switching17 2. 4The influence of price consciousness19 . 5Theoretical Framework of the study20 2. 6Assumptions based on the literature review20 2. 7 Conclusion………………………………………………………………………….. 21 3. 0METHODOLOGY22 3. 1Data Collection:22 3. 1. 1Primary Data22 3. 1. 2Secondary Data23 3. 2 Chosen Methodology24 3. 2. 1Interview25 3. 2. 2Observation25 3. 2. 3Questionnaire25 3. 3Questionnaire Structure26 3. 4Data Analysis28 3. 5 Conclusin……………………………………………………………………………29 4. 0FINDINGS AND ANALYSIS30 4. 1The relationship between advertising/promotion and brand-switching30 4. 2 The impact of Customers’ Price Consciousness31 . 3 Assumption analysis33 4. 4 Conclusion…………………………………………………………………………. 34 5. 0DISCUSSION35 5. 1 Advertising and Brand-switching35 5. 2 Promotion and Brand-switching36 6. 0 CONCLUSION38 6. 1Limitations of the Research39 6. 2Further Research Recommendations39 References41 Appendix 145 Table of Tables Table 1: Market Share Car Sales in Indonesia………………………………………………… 8 Table 2: Correlation Analysis of Brand Switching with its two possible reasons…………… 26 Table 3: Correlation Analysis of Brand Switching and Promotional Tools…………………. 7 Table 4: Correlation Analysis of Brand Switching and Advertising Content……………….. 27 Table 5: Correlation Analysis of Price Consciousness and Promotional Tools……………… 28 Table 6: Correlation Analysis of Price Consciousness and Advertising Content…. ….. ……. 28 CHAPTER 1 1. 0INTRODUCTION As per the American Marketing Association, a brand can be defined 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” (Kotler, 1995).

Aaker (1995) defines a brand on different levels rather than taking it as a physical product like  brand attributes, symbols, brand-consumer relationships, benefits of self-expression, customer  profiles, associations with the culture of the country of origin, and corporate identity. In simple terms a brand can be defined as a characteristic feature that distinguishes the goods and services of a particular marketer from the rest of the marketers. The earliest signs of branding was seen in Europe where crafts people used to put trademarks on their products to protect the customers from inferior quality.

Branding has been around for centuries and is a pivotal component of present date marketing with increase in the consciousness level of customers regarding various brands. Brand switching is said to have occurred when a customer using a product of a particular brand changes to product of other brand. Often referred to as brand jumping, it is the process of changing from routine use of one product or brand to steady usage of a different but similar product. For example, a customer goes to a shop and finds that the product of a particular brand he uses daily is not available and takes a similar product from some other brand.

This type of brand switching is temporary. However, brand switching can be long lasting also where a customer changes from the product of a brand to a newer product or brand for longer period of time. This type of brand switching usually occurs in the products that are used for longer durations and where likelihood of switching away is harder like cars. This brand switching is often influenced by the competitiveness among the brands available in the market. Or in other words it may be said that intensity of brand switching would be higher if the degree of competitiveness between the brands is higher.

For last decade automobile industry has seen a big boom and new entrants have entered into the automobile market giving a tough time to consumers while choosing their brand of choice. However, this also brings a lot of benefits to the consumer community. The entry of new car brands into the market further increases the number of options and choices one has in choosing the brand he likes. In this case, consumers have a variety of choice to easily compare different types of options and features available in different cars provided by these available alternative brands and decide on the features, cost etc. . 1Background of the study Currently in Indonesia, other than the car brands that have existed for long like Suzuki, Toyota, Honda, Daihatsu, Mitsubishi, Isuzu, Nissan, and many others; new entrants such as Hyundai, Kia, Proton and many more have also come in into the automobile sector. Based on a survey conducted by GAIKINDO (Association of Indonesian Automotive Industries), the highest market share in automobile sector for Indonesia region is dominated by Honda. Among all other card brands, Honda is considered the most competitive compared to other car brands in Indonesia.

As per the study Honda is ranked first with a market share of 37. 2% while Toyota got the 2nd position with a market share of 28. 4%. Table. 1, given below shows the market share of various car brands in Indonesia. No| ATPM| Market Share (%)| 1| Honda| 37. 2| 2| Toyota| 28. 4| 3| Suzuki| 12. 2| 4| Daihatsu| 10. 4| 5| Mitsubishi| 7. 1| 6| Other brands| 4. 7| Table 1: Market Share Car Sales in Indonesia Source: Gaikindo Survey2011 In past few years marketers have noticed and reported many changes which have taken place in the market like increased competition and customers’ new preferences.

This severe competition has mostly resulted from product similarity and large numbers of competitive brands in the same market as reported by marketers and researchers. Companies are thus pushed to study this budding intensity of competition by their competitors, and also try to know their customers including both existing as well as prospective buyers. In Indonesian markets also, many changes have been seen in consumers’ behaviors especially in the automobile sector due to the changing lifestyle. Probably, during recent years, one of the most fretful behavioral changes among Indonesian consumers is the mounting eagerness of buying SUVs.

In a company’s perspective customer satisfaction is an important solution to prevent customers from switching brands. Companies are now trying to increase their customer loyalty through different loyalty programs such as loyalty card and membership club in order to maintain their customers and to lure new customers. In the meantime, marketers are trying to find out reasons as to why consumers change brands and how marketing tools like promotional tools and advertisements affect the behavior of consumers’ in choosing a brand. 1. 2Statement of problem

For researchers, brand switching has remained a motivating topic in the recent years. Several factors have been studied that influence the growing switching behavior among consumers, among which advertising and promotion have been found as key determinants. The consumers may not change their brand preference immediately from one brand to another, then how and why consumers want to move from one brand to another or why do they just think of moving up to the next alternative is a critical issue for understanding customers’ brand switching behaviour.

And, it is also useful for increasing the effectiveness of marketing communication. In Indonesia, the penetration of new car brands like Hyndai, Proton and others have made the car market become more and more competitive and SUV is a typical product category of automobile industry which is also extremely competitive nowadays. Facing the growing competition, it was necessary to take an insight into Indonesian car market to help marketers find out the ways which would be used to improve the effectiveness of marketing tools.

The reason for choosing SUV to be the research topic was that the competition in SUV segment of car market in Indonesia is extremely intensive and is one of the most competitive markets in Indonesia. 1. 3Objectives of the Study The primary objective of this study was to determine the impact of various external factors on the brand switching behaviour of the Indonesian customers for SUV segment of cars. However, there were two secondary objectives of this study: 1. To examine the impact of advertising and promotion on brand switching in Indonesian car market. . To study the interaction between advertising/promotion and price-consciousness, and to investigate how customers’ responses to advertising and promotion can be influenced by price consciousness. 1. 4Research Questions Following were some of the questions that this study intended to find answers: 1. Does Advertising and Promotion have an impact on the consumers’ brand switching behavior? 2. What is the influence of price consciousness on promotion/advertising and the brand-switching behavior among the consumers of SUV cars in Indonesia? . 5Significance of the study Factors influencing brand switching has been an important topic for research as its implications are of enormous significance to the manufacturers. As advertising and promotion have been identified as massive determinants, in addition to some other factors, to explain the brand switching behaviour of the consumers, therefore, the findings of this study will help car manufacturers in deciding upon the level of effort they need to put into promotion and advertising.

Maintaining customers has been of primary importance to most of the companies due to the greater saturated markets. The findings of this study will present some key factors to the car manufacturers to improve customer satisfaction and therefore maintaining the existing ones. The efficacy of advertising and promotion is an essential element for marketers to identify so as to develop the brand consequently and attract more customers. For this purpose, they need to understand the relationship between advertising/promotion and brand switching and the interaction with other important factors.

The reason why customers switch to other brands has not been clearly understood due to a huge number of substitutes nowadays, who provide numerous choices and benefits to the customers. The majority of marketers have been concentrating on finding out the ways of improving the customer satisfaction with the belief that the satisfied customers will not change the brands. It seems logical and reasonable, and the statement that satisfied customers will prevent existing customers to switch to other brands cannot be denied.

However, some studies have also shown that the satisfied customers also switch the brands and therefore we cannot over shade this fact as well. Therefore, marketers are fond of getting inputs on finding out the major reasons of brand switching by applying the marketing tools in perspective of several other factors like demographics, pricing and psychological intuitions. This study therefore has the implications for the car manufacturers of Indonesia on how they must design their advertising/promotional strategies with respect to certain other factors to keep their existing customers and attract the new ones.

The advertising contents and promotional tools used by marketers are not always significantly related with brand switching. This study will help the marketers to identify those tools and contents which they can use in establishing a satisfactory relationship with the customers so as to prevent brand switching in their cars. This research focussed on one aspect of marketing mix elements which influence brand switching, namely advertising/promotion (marketing communication tools), and several other relevant determinants were also tested simultaneously, like the influence of emographic factor, product category, and price consciousness in the Indonesian car sector. The research was conducted under the background of Indonesian Car market, and the focus was on the SUV product category of automobile market. Hopefully, this research would benefit fast moving automobile companies in Indonesian market through their improvement of the effectiveness of their advertising and promotional tools. CHAPTER 2 2. 0LITERATURE REVIEW 2. 1Brand switching Brand switching is said to have taken place when an individual or a group of individuals jump from using one brand to another.

This shift can take place due to several reasons like the presence of close substitutes with better benefits in the market place, the sound promotional activities by the competitors and the price wars among various companies within an industry which gives consumers the benefit of choosing among various variants (variety seeking). This phenomenon of variety seeking which gives consumers power to choose has been explained by Menondan Khan (1995). His study explained that switching behavior can result from the availability of several other variants of offers of other similar products.

Mutyalestari (2009) argued that the brand switching may occur due to a certain problem that a user may face from the product that he has been using that makes him to make a move to another one seeking more benefits. Pratikno (2003) declared in general customers switch from one brand to another in case of the products with low involvement characteristic. Customers stop using a particular brand and shift to the other after using one for a particular period of time i. e. it is a post purchase behavior (www. swa. co. id).

According to Purwani and Dharmmesta (2002), the switching behavior of the consumers is not that simple to be backed by the concept of being dissatisfied from one to look for the satisfaction from another. There are certain other factors that include financial and non-financial drivers of the switching behavior certified by the consumers. The main factors that make individuals to stop using one brand and switch to another are: that they perceive that they are getting less benefits to satisfy their needs expected from a particular product called core product problem; that they are isappointed with the services provided to them from the owners of the brand that they hold called augmented product problem; that even if an individual is satisfied from the product or service he is using, he/she may still switch to another brand if he perceives that it can provide additional benefits to him/her and that the consumer of a product wants to move from using that product and is looking to try something else and this concept is called variety seeking (www. mars-e. com). Some car buyers switch from one brand to another at trade in time, whereas others display consistency of choice from purchase to purchase.

On that decision, whether to remain loyal to the previously purchased make or switch brands, hangs the fortune of automobile manufacturers. But the observed decision has its genesis much earlier in a process that incudes the buyer’s prior experience, product knowledge, satisfaction, media search, consideration-set formation, and retailler search. According to Lin (2003 444) the behaviour of consumers switching brands can be seen from the following characteristics: i) Brand loyalty is low due to the absence of product differentiation that makes consumers evaluate brand and use the brand because of other factors. i) Involvement is Consumer knowledge about the cost, effort and experience when buying consumer products for the future prospects such as product mix, quality, know-how to use, fulfilling demand and price information. iii) Customer satisfaction is satisfaction with services that can respond to the needs of consumers and consumer demand as the popularity of the brand, product packaging, service attitude and ease of purchase. The Switching behavior can be due a variety of various intrinsic and extrinsic factors.

The factors can be psychological factors like curiosity, mental makeup of customers . The various other factors can be Advertisement and other promotional tools. Modern day marketers understand the importance of implementing both individual and organizational promotional incentives. Sales promotion activities have been seen as an important factor that plays a significant part in the switching to other brands. The various sales promotion tools implemented by the companies are price discounts, Coupons, Warranties and Guarantees.

Marketers have also recognized the importance of reducing cognitive dissonance which comes into the mind of customers after the purchase is made. The need is to reduce the doubts that strike the minds of customers after purchase is made by duly communicating with the customers or the customer may switch to some other brand. To view more details on the brand switching, from exploratory research conducted by Keaveney (1995), the factors that can lead to brand switching are as follows: i) Pricing category includes all switching behaviour including price, cost, service charge, and penalty. i) Inconvenience is discomfort category which includes all instances where the consumer finds the location of customer service, hours of operation, and waiting time. iii) Core service failure or services encounter failure and response to services failure is due to a failed service not administered properly by the provider. iv) Competitors’ price promotions, better service, in-store promotion, product promotion, and packaging quality suitable for entry into the variable category competitors. ) Ethical problems are critical switching factors where the customer describes the illegal, immoral, unsafe, unhealthy and other behaviours that do not conform to social norms. vi) Involuntary switching which reflects when consumers will move due to factors beyond the control of consumers and service providers. 2. 2Advertising and brand-switching The relationship between brand switching and advertising has been studied by many researchers and therefore diverse points of views have been presented so far. The influence of advertising on the behaviour of customers before buying a product has been studied by numerous researchers.

Some studies argue that it is necessary to review the stages through which the customers go in response to the advertising before making a purchase because of certain transitional phases through which customers go before the final purchase. Therefore this study divides the review of previous researches conducted in two categories for the better understanding. 2. 2. 1Advertising effectiveness In case of frequently used products, Ehrenberg (2000) argued that the majority of the revenue for the companies comes from the customers who repeat their purchases.

The author also stated that the investigation on the effectiveness of advertising should not be carried out for the purpose of finding out the purchase behaviour of the customers only or the effectiveness of advertisings’ persuasiveness on them, rather it should be carried out to find out the responsiveness of the customers because there can be no such evidence to see the persuasiveness the advertising will lead to in customers. In addition, the study of Ehrenberg (2000) also stated that the reinforcement of the advertising activities may not necessarily produce immediate results but it will be beneficial in the long-term.

The customers can show the reverse switch behaviour by buying back the brands they used to purchase before and can even show the repeat purchase behaviour if the advertising and promotion activities are appropriate. The effectiveness of advertising is mostly measured by the increment in the sales. However, these short term effects are not the complete criteria an advertiser may look for. The longer effects need to be taken into consideration in spite of the fact that it may take too long in most of the cases.

As suggested by the study of Lavidge and Steiner (1961), through sales increment, although we can measure the effectiveness of advertisement in the short run but the long term effects contribute to the majority of the results of an advertisement activity and should not be ignored. Ehrenberg (2000) also supported this concept by stating that the long term effects must not be ignored and the effects can not necessarily be direct. So it is necessary to study both short term and long run effects of an advertising campaign according to Lavidge and Steiner.

The effectiveness of an advertisement cannot be accepted if it fails to achieve its objective. Advertising effectiveness need to be defined clearly as per Beerli and Martin Santana (1999). Their study emphasized on the importance of having a clear objective of advertising. As per the study, the goal of every company is to increase sales but the advertisement goals must be defined separately from business goals to fulfil the main purpose of advertising which is to communicate to the existing and potential customers and pass the necessary information to them.

In simple words, the effectiveness of advertising is said to be high if it successfully achieves its objectives. Therefore, high effectiveness of advertising, is not only reflected by the increment in sales, somewhat advertising effectiveness can be measured on the basis of following three objectives according to Lavidge and Steiner (1961); developing brand awareness and providing product knowledge, creating brand preference and positive feeling, building up trust and stimulating purchase. There are many factors that judge the effectiveness of advertisement simultaneously. The According to the research conducted by Lodish et al. 1995), advertising expenses and sales revenue does not show a strong correlation because several other factors influence simultaneously like brand strategy, diverse product categories and media strategy. Biel and Bridgwater (1990) in their study found that the responsiveness of viewers of the advertisement, the likings and feelings towards the advertisement, has a major role to play in determining the effectiveness of the advertisement particularly for fast moving shopper goods. They stated that the more an advertisement is liked by the viewers, the more effective it will be.

Therefore, to persuade a customer to purchase a product, the companies need to design their advertisement in such a way that it is liked by everyone. Effective advertisement would be therefore explained by the properties of being meaningful and relevant rather than having more advertisement function. And the properties that must be there in an advertisement so as to be high in effectiveness depends on the product category and therefore has to be different for different products depending upon the utilization of the product (Biel and Bridgwater 1990). 2. 2. 2Customer responses to advertising

The effect of advertising were studied by Vakratsas and Ambler (1999) after analyzing numerous number of researches on the effect of advertising and finally came to the conclusion that there were basically three kinds of models that would describe this concept: The first model referred to as “market response” model, does not consider the short term effects or the immediate effects on the customers. The individual behaviour of purchase or brand choice have been explained as the major behavioural measures that have been related to advertising, price, and promotional tools.

Moreover, “aggregate-level” and “individual-level” are the two levels of studies. While the “aggregate level” uses the market-level data like brand advertising expenditures or market share, the “individual-level” uses single source data which is individual brand choice (Vakratsas and Ambler, 1999). The relationship between the impact of advertising sales and advertising spending studied by Lodish et al. (1995) is one of the examples of aggregate-level studies. Vakratsas and Ambler (1999) grouped the second category as hierarchy effect models. There are several other hierarchy odels that define the process of effects of advertisement. Hierarchy effect models presume that the influence of advertising on consumers involves certain levels and steps and is therefore a process with the presence of several intermediate advertising effects. “AIDA (Attention Interest Desire Action) studied by E. St. Elmo Lewis in 1989 is one of the examples of Hierarchy model (Vakratsas and Ambler, 1999; Ehrenberg, 2000). Although the validity of the hierarchy models have been questioned (Palda, 1966) but the effect of advertisements on the customers follows some steps and therefore the process needs to be studied.

The consumers may not change their brand preference immediately from one brand to another, then how and why consumers want to move from one stage to another or why do they just think of moving up to the next alternative level is a critical issue for understanding customers’ brand switching behaviour. And, it is also useful for increasing the effectiveness of marketing communication. Lavidge and Steiner (1961) stated that it is necessary to evaluate the changes at every stage of influence, than only to concentrate on the measures of sales volume and brand awareness so as to know whether an advertisement has been effective or not.

The classical psychological model (Lavidge and Steiner, 1961) can give us these three aspects of the customer responses. Beerli and Martin Sartana (1999) also stated that the three-component behaviour is the best way to measure the responsiveness of the consumers’ behaviour, namely; cognition, affection and conation or rational, emotional and striving states (Lavidge and Steiner, 1961). In addition, Ehrenberg (2000) stated that the effectiveness of advertising can be studied by measuriong the important three factors of product awareness, product trial, and repeat purchase.

An advertisement has a direct and immediate impact on the customers’ beliefs, attitudes and behaviour (Vakratsas and Ambler, 1999). They concentrated on these three personal characteristics giving more focus towards the behavioural aspect like the impact on brand choice. 2. 3Promotion and brand-switching Promotion has been thought as one of the most successful tool to influence the buying behaviour of customers and increase the sales volume in the short-run (Laroche et al. , 2003). Neslin et al. 1985) stated that promotion can be used as an important tool for accelerating the sales. Gupta (1988) declared that what brands consumers will choose and the quantity in which they will make the purchase directly depends on the price and promotions. Laroche et al. (2003) came up with three major advantages of the promotions; initiating purchases which an individual had not planned, encouraging customers to buy the non-promoted merchandises and increasing the number of visits an individual will make to the store.

Promotional activities have a major impact on the brand switching behaviour of the consumers than increased sales due to increase in consumption (Oliveira Castro et al. 2005, p. 309). Their study also stated that when a customer buys a particular brand, his/her purpose is not only the functions of the product but mainly to satisfy the emotional needs. Therefore this purchasing behaviour of the customers need to studied not in a single direction. The authors stated two dimensions; utilitarian and symbolic factors, through which consumers on buying a particular brand look for benefits from these two perspectives i. . utility and informational benefits. Increased purchasing and new purchase from existing customers & new customers respectively have resulted from promotion which in turn results in increased sales. Usually, promotion is more focused to get new customers instead of exciting old consumers to buy more same products. However, Ehrenberg and Hammond (1994), argue that impacts of price promotion are more on old consumers rather than new customers.

Contrary to this, studies by Gupta, 1988; Bell, Chiang and Padmanabhan, 1999 show that the promotion is not so high on the existing customers but it mostly affects the consumers who switch from other brands. More than 80% of sales increase is by promotion which only includes a negligible percentage of increase that come from switching within a brand (Gupta 1988). Promotion is one of the aspects in the marketing mix which have been studied in terms of its relationship with customers’ responsiveness, especially at the stage of behaviour: the actual purchase behaviour (Shi, Cheung, and Prendergast, 2005).

It has been established by many researchers that there exists a strong correlation between promotional activities and brand switching and promotional activities and has been seen that many companies use promotional tools to acquire a strong customer base and make the customers using other brands switch towards their brands. However a marketer cannot build a sustainable competitive advantage by the use of promotional tools only. Many other researchers do not rate the romotional tools the prime factor that contribute towards brand switching because they believe the customer becomes loyal to any brand that designs its products so as to best satisfy its customers. They conducted various researches before promotional activities were undertaken and after the promotional activities and found that there was no great deal of brand switching on part of customers. According to Shi et al 2005, price discounts, buy-one-get-one-free, and in-store demonstrations significantly influence brand choice among the various promotion tools studied in Hong Kong.

The explanation to these the effects on these promotion tools on brand switching has been provided by other researchers also. According to Ram & Sheth 1989, a great affect has been observed on customers trying new products due to the demonstrations in stores and showrooms. Lichtenstein et al 1997 found that other promotional tools like “cents-off and free gifts” also have a considerable effect on the buying behaviour of customers. 2. 4The influence of price consciousness According to Linear Learning Model by Lilien 1974, price has been measured as a determinant factor in brand switching.

A consumer cannot buy everything that he wishes to buy e. g. every customer who wishes to buy a Mercedes car cannot have it because of the income factor. The study of consumer behaviour had revealed that the most of consumers are price conscious. They will go for products that give them the desired benefits at an affordable price. In contrast to a product of a particular Brand which is high priced a consumer will go for a product of some other brand that offers him the same benefits but is relatively priced at a level that the consumer can afford.

The consumers do not respond in a similar way to price promotion . Many consumers may not respond to price promotion at all and may stick to their preferred brand only. However most of the customers will acknowledge the price promotion and respond to it in a positive way. According to Krishna 1992, customer expectations regarding pricing are different for different brands. The customers may purchase in bulk from preferred brands and may purchase fewer items from less preferred brands in response to price expectations.

According to the study by Mela et al 1997, advertisement and promotion impact the price sensitiveness differently. The customers become less price sensitive under the influence of advertisement and more price sensitive when the promotional incentives are offered. 2. 5Theoretical Framework of the study 2. 6Assumptions based on the literature review Some assumptions were made on the basis of the studies previously done and will be tested with the help of survey questionnaire. Five such assumptions were made on the basis of previously reviewed research. 1.

In the Indonesian market Advertising and promotion have a significant impact in the brand switching behavior among SUV users. For the testing of this assumption the customer’s attitude and behavioral change with respect to advertising and promotion will be tested. 2. Price consciousness has a significant role to play in customer’s response to advertisement and promotion in brand switching. Correlation analysis will act as a powerful tool in testing the relationship between price consciousness and brand switching behavior and same will be used for testing of this assumption.

The test will be carried out to find out whether there exists a positive or negative correlation between price consciousness and brand switching and to evaluate whether price sensitivity influences brand switching and also the relationship between consumer attitude and price consciousness 1. 7 Conclusion Indonesia one of the unique countries with hundred cultures exist. One of the most important aspects in Indonesia is transportation. Indonesians are more interested to have a car compare using a public transportation.

As a result, there are many types of brands that people can choose, even sometimes they have to jump from one brand to another brand with some reasons. CHAPTER 3 3. 0METHODOLOGY The main purpose for which a research project is carried out is to prove a stated hypothesis true or wrong, the various objectives are stated firstly for the purpose of establishing further research objectives, the data collection methods need to be reviewed carefully so that a method most suitable for the research can be selected which will be most reliable for the researcher to gather information.

The respondents for the research questionnaire were two different classes of Indonesian consumers middle and rich class because of their different purchasing behavior and tastes and preferences. As the previous research on the relationship between customer characteristics and brand switching depicts that customer characteristics may to some extent influence brand switching, it is evident to examine the influence of advertising on brand switching for every group separately and to compare the difference between different groups in terms of advertising effectiveness and subsequent brand switching. 3. 1Data Collection:

There are different types of data collection, such as primary, secondary, quantitative and qualitative, which can be used to collect the data for all kinds of researches. Both qualitative and quantitative methods can be used to collect the primary data. Quantitative research produces or deals with defining the data in terms of numbers or figures. The main data types used in this research are discussed below: 3. 1. 1Primary Data Questionnaire: A questionnaire contains various questions relevant to the research with specified answers among which the respondents may choose an answer which they fel most appropriate for a particular question.

The questionnaire may contain multiple choice questions or may be designed using various scales. Postal survey: Can reach a large number of people geographically. Interviewee is able to fill in the survey of multiple-choice questions in their own time and return it by post. Telephone interview: Telephonic interviews are regarded as an cost and time efficient method of collecting data. Moreover with the help of telephonic interviews the data can be collected with speed and information can be processed quickly without any undue delay in time.

The data where it can be quantified can be counted in numbers and analysed with the help of various statistical methods. Qualitative methods give a general idea about the data. Qualitative methods are used where a researcher needs to evaluate the psychological aspects of customers like motivation, attitude, social class, life style etc. Where qualitative methods are adopted the results cannot be quantified in numeric terms. The various qualitative methods that are used during research programs are: In-depth Interviews: Under this method a trained interviewer discusses various topics with the respondents freely.

The questions usually preferred are open ended that allow the respondents to share their feelings and thinking. In this qualitative method the results cannot be numerically measured. Group Discussions: Group Discussions are somewhat similar to In-depth interviews yet involve a gathering of small number of people who discuss various topics under the instructions of a group leader. There is a great deal of interaction among the members under this method and is most commonly used.

Diary panel: members of the public (panel) were asked to keep a diary of purchases made over a particular period of time, which can extend to up to a year. This provides information that cannot be collected in a personal interview. Observation Method: Under observation method a trained observer is selected who monitors the behaviour of the various respondents under study that are selected from a particular environment. 3. 1. 2Secondary Data There is a tremendous amount of already collected data available for researchers. This sources can be classified into internal and external sources.

Internal sources are sources within the organisation in its day-to-day operations. These include data on sales, advertising, promotion and reports and so on. External data is collected from sources that exist outside the organisation. These include various commercial, government and industry sources of data. A source of secondary data is that data which has already been collected for some other research purpose and has been used for some other project. Secondary data is collected for the designing of literature review and background on customer brand switching and the car market.

The information required was collected from the Internet, various search engines, Libraries , Journals, Market findings, industry and various library databases. The prime benefit of using secondary data is its accuracy at the time it was produced, the source from which it was taken , and it provides relevant information on how the industry has grown over the years. The secondary data provides numerical data, which can help to properly evaluate social, demographic and economic happenings, and is time and cost efficient.

In addition to this, usage of secondary data means the privacy of people is not effected to a great extent. The common fault of using secondary data is that the data is already used from some other research objectives and purposes, that are altogether different from the present hypothesis under investigation. In addition to this secondary data becomes out of date, as it has been collected before a long time for some other purpose. Moreover access to secondary data becomes very difficult in certain cases due to privacy concerns. 3. Selected Methodology The research methodology used for the project is qualitative research with the main objectives of analysing the reason for which the customers make a switch from among different brands in the car industry SUV sector in Indonesia. The quantitative methods will be adopted for data collection in numbers and the application of qualitative research will assist in having a proper insight of the consumer behaviour. Eventhough the primary data has its disadvantages it still has been used as the main method of data collection.

Firstly primary data can be very time consuming, questionnaires in particular, as many different people need to fill them in. Additionally, questionnaire can give misleading results as the respondents may be reluctant in giving the truthful results. Method used in the research is qualitative research, to fulfil the objectives of the study, which is to study the behaviour of consumers switching brands of four-wheeled vehicles. In collecting the data, some methods which were used are: 3. 2. 1Interview An exclusive interview was performed with some car manufacturing companys’ key management as a source to get information and descriptions.

A brief idea about tactics, history and background was known so as to get initial description about factors that can affect consumers’ behavior in car brand switching. Apart from them, some users of the SUV cars were also interviewed to understand and analyze their viewpoints and draw some research related facts. 3. 2. 2Observation Observation might become one of the data collection techniques which can be controlled if it is done appropriately according to the aim of the research. Field research that can be done is seeing insight of company’s target market. The observation was done on the company showrooms of the car outlets o study the settings and the behavior of the customers and sales people. The behavior of SUV-car consumers was also studied through observation so as to help in generalizing their tastes and preferences. 3. 2. 3Questionnaire Questionnaire could be a way of data collections to investigate an issue, which is generally related to the interests of a group of people. This method uses a list of questions and circulate proposed in writing to a number of respondents to get a reply or a response. The point to ask in the questionnaire is based on the research question.

So, questionnaire was made, to know deeper about the customer brand switching decisions. Whether client or consumers willl notice and be interested with the new identity of the company, and so on. Questionnaires were self-administered, in the presence of the researcher to ensure they are completed correctly and the researcher can resolve any problems that may arise, to collect primary data. This will provide the opportunity to find out the selected sample’s responses as quantitative data can pick out small differences, which would be ideal for testing the hypothesis of the project.

Self-Administered questionnaire was chosen as opposed to using postal or drop in questionnaires because it has low cost per survey and less interviewer bias. Moreover, the responses are gathered in a short period of time as compared to postal or drop in surveys (Malhotra et al. 2003). Results will also be up to date and relevant as research being carried out is directly related to the project. Another reason for using primary data is that there is little literature, research and evaluation relating directly to customer switching in the SUV-car sector of the car industry. . 3Questionnaire Structure The questionnaire consists a total of 27 questions. All questions were closed ended (also referred to as fixed alternative questions) and semi-structured which consisted of multiple choice questions, where respondents selected and marked their answers from a pre-specified list which was closest to their opinion or wrote in their answers if it was not an option in the list. It not only makes answers easier to interpret and tabulate but to code as well.

In order to make the thesis purposive, Questions were designed to be logical, clear, unambiguous and easy to understand, and as the questionnaire was being self-administered, any confusion towards it could be resolved instantaneously. The lengths of the questions were short and concise and non-biased by providing all possible answers. To get the desired results, the questionnaire was split into sections or parts, which was designed to get the logical responses. The questionnaire began by getting the basic information like whether the respondent owns a SUV, how many, if not then, whether they would consider getting one.

This was asked so that it could be determined whether the respondents qualified as someone who belonged in the sample to be researched. The respondents who were considering getting a SUV car were given more attention and their behaviour was studied through observation additionally. There were four parts included in the survey questionnaire: brand switching, price consciousness, customers’ responses to advertising, and customers’ responses to promotional tools. At first, customers’ brand switching behavior was evaluated. The related questions include “the reasons for changing car brand, the number of brands changed before”.

The part two of the questionnaire investigated the price sensitivity of customer. Three questions were asked to test to what extent customers will be influenced by price change. The third part of the questionnaire focussed on customers’ response to advertising by a car manufacturer. Customers’ brand switching behavior related to advertising contents were tested by probing different questions. The last part of the questionnaire was to test the relationship between brand-switching and promotional tools. Mainly, four promotional tools were tested in terms of their effects on brand choice behavior.

These promotional tools include “price discount, in-store demonstration, coupons and free gifts”. The responsiveness of these promotional tools will be evaluated in the results and findings part later. The main body of the questionnaire consisted of questions that covered the information needed to test the hypothesis. The focus here was around the reasons why consumers switched away from a particular brand to another. The reasons for switching were broken down into the options related to our research i. e. , the impact of promotion and advertising on them and the effect of price consciousness.

The questionnaire ended by asking information about the individual. This comprised of demographics about the respondent, which could provide a method for identifying differences of key results in response by subgroups in terms of age, gender, location and working status. Demographics are primary factors, which can influence factors such as attitude and behaviour, such as switching and consumer loyalty. This could be used later when analysing the results to comparing to switching behaviour. This survey questionnaire was designed based on the several research works, and comes from the assumptions made previously.

Research on price and advertising/promotion responsiveness, is the basis of the questionnaire. The four promotional tools are based mainly on Shi et al. (2005)’s research, the evaluation of price consciousness was designed according to Huff and Alden (1998)’s research 3. 4Data Analysis Once questionnaires were completed and the data had been collected, they were entered onto a spreadsheet using SPSS. This enabled responses for individual questions to be coded, calculated, analyzed and interpreted, which were later used to form cross tabulations and pivot tables.

The pivot tables were then used to explore and compare responses from different questions to one another, as well as to test the hypothesis. The main statistical techniques used in analyzing the data are Regression analysis and correlation analysis that will be discussed. Quantitative research methods such as general linear model (Univariate), regression and correlation will be the main data analysis methods. General linear model can be used to analyze the impacts of each variable and the effects of their interaction on dependent variable (Foster, 2001).

So it will be used to analyze the impacts of different age groups, product categories, and the interaction between them on the responsiveness of advertising and promotion (the attitudes towards advertising contents and the importance of promotional tools). Given that correlation analysis can present to what extent two variables can change together (Foster, 2001), it will be adopted to test the relationship between price consciousness and brand switching, and the relationship between customers’ price consciousness and their responses to advertising contents and promotional tools. Meanwhile, because several independent variables ( e. . reasons for brand-switching) can be applied to predict the dependent variable (e. g. brand-switching) through regression analysis (Foster, 2001), regression will be used to analyze the reasons of brand-switching, such as the main reason for brand-switching, the effects and the importance of advertising/promotion in terms of brand-switching compared to other reasons. 3. 5 Conclusion There are various research collection methods need to be review so that a suitable method can be revealed. In this chapter, I do characterize the consumer based on 2(two) types, rich people and poor people.

The first step that I do to process this research collection of the data of the market and business situation. Secondly is choosing of the method. In this part I do believe that qualitative research method is suitable for this project. Thirdly is creating structured questioners for the market itself and producing some feedback. Lastly, analyzing the data itself is important to get the whole picture of our research. CHAPTER 4 4. 0FINDINGS AND ANALYSIS 4. 1The relationship between advertising/promotion and brand-switching This study studied the relationship between advertising/promotion and brand-switching.

The two major reasons for brand switching assumed by this study are advertising and promotion. To find out the significance level of the above said reasons on brand switching behaviour of customers, regression analysis has been carried out to examine the affiliation between these two possible reasons and brand-switching. Testing has been done by taking ‘the frequency of brand-switching (the number of switched brand in the past ten years)’ as dependent variable and ‘the two reasons for brand-switching’ as independent variables.

The results of regression analysis clearly confirm that the two factors viz: promotion and advertising greatly affect brand-switching behavior of customers. But it is worth to mention here that though these two reasons tested in the linear model only cannot interpret brand-switching at a larger scale and there could be many other important reasons missing, however, the effects of promotion and advertising have been proved. In addition it is also clear from the results that promotion has larger impact on brand-switching than advertising.

The importance of promotion and advertising as compared can be seen from the correlation analysis given in Table 2 below. Table 2: Correlation Analysis of Brand-switching with its two possible reasons Reasons for Brand Switching| Pearson Correlation with Brand Switching| Sig. | Promotion| 0. 367**| 0. 000| Advertising| 0. 328**| 0. 000| (** means very significant correlation) Table 3 provides the correlation analysis of relationship between brand-switching and promotional tools adopted by the companies. The results show that the relationships between brand-switching and price discounts, in-store display, and coupons (e. . Free 1year Warranty) are significant. Given below is the Table 3 showing the detailed figures of correlation analysis. Table 3: Correlation Analysis of Brand Switching and Promotional Tools Promotional Tools| Pearson Correlation | Sig. | Discount| 0. 216***| 0. 0061| In-Store Display| 0. 314***| 0. 0000| Coupons| 0. 188**| 0. 0171| Free Gifts (Insurance)| 0. 119| 0. 1350| (*** means very significant correlation, ** means significant correlation) The relationship between advertising tools and brand switching has been analysed through correlation and the results have been shown in Table 4 given below.

It is clear that brand image and good quality have a significant impact on brand switching behaviour among Indonesian SUV cars users. Table 4: Correlation Analysis of Brand Switching and Advertising Content Advertising Content| Pearson Correlation | Sig. | Brand Image| 0. 210***| 0. 008| Good Quality| 0. 324***| 0. 006| Money Value| 0. 019| 0. 813| Celebrity| 0. 118| 0. 017| Interestingness| 0. 010| 0. 623| (*** means very significant correlation) 4. 2 The impact of Customers’ Price Consciousness

It has been assumed that price consciousness has a relation with brand-switching, however, the results of correlation analysis show that there is no strong relationship between brand-switching and customers’ price sensitivity (Pearson correlation: -. 020, sig. : 0. 801). On the other hand, it has been found that price consciousness may to some extent determine the effectiveness of some promotional tools in terms of leading to brand switching, when correlation analysis was applied to test the relationships between customers’ price consciousness and the influences of promotional tools on brand switching (See Table 5 below).

Thus it may be inferred that customers, who are high price conscious, tend to prefer coupons, price discount, and free gifts type of promotions and are more likely to switch to other brands when they are lured by these types of promotional tools/promotions. Table 5: Correlation Analysis of Price Consciousness and Promotional Tools Promotional Tools| Pearson Correlation with Price Consciousness | Sig. | Free Gift (Insurance)| 0. 438***| 0. 0000| Discounts| 0. 306***| 0. 0000|

Coupons| 0. 194***| 0. 0140| In-store Display| 0. 056| 0. 4560| (*** means very significant correlation) In the analysing of the relation that exists between customers’ attitude towards advertising contents and their price consciousness (Table 6), the outcomes of correlation analysis got the preference for favourable brand image and value in money customers place on their purchases contents in advertising are bonded strongly to the level of customers’ price consciousness (See Table 6).

It was found that there exists a negative correlation between price consciousness and preference for strongly favoured brand image content in an advertisement, and there exists a positive correlation between price consciousness and the impact of strong money value in advertising. The other advertisement aspects, like interest, viral communication, and reliable quality, have a negative relation to price consciousness (See Table 6).

Thus it can be established that, customers with small price consciousness may easily make a switch to other brands under the pressure of the interest in content of the advertisement, the viral communication used and the valuable information about sophisticated quality in the advertising. Table 6: Correlation between Price Consciousness ; Advertising Content. Advertising Content| Pearson Correlation with Price Consciousness | Sig. | Good brand Image| – 0. 381| 0. 0000| Good value for money| 0. 295| 0. 0000| Interestingness| – 0. 238| 0. 0020| Celebrity in Ads| – 0. 230| 0. 0030| Good Quality| -0. 158| 0. 460| 4. 3 Analysis Of Assumptions There were two assumptions which were made in the report and whether they hold true or will prove wrong will be tested with the help of statistical tools. In the Indonesian market Advertising and promotion have a significant impact in the brand switching behavior among SUV users. To study the relationship between the advertising, promotion and brand switching regression analysis was used. During the analysis it was found that advertising and promotion had the most significant bearing on the brand switching and was found to be the most alarming reason for brand switching.

The analysis also made it clear that there is a strong relationship between brand switching and advertising and promotion. Also the assumption was proved with the same analysis. Price consciousness has a significant role to play in customer’s response to advertisement and promotion in brand switching. It was found during the analysis that there exists a strong correlation between the advertising and promotion and the price consciousness and it was found that price consciousness has an important bearing on advertisement and promotion and the assumption stated was found out to be true.

The correlation analyses have been run in this study: the relationship with the usage of promotional tools, reasons for switching brand and attitudes towards advertising contents. The results show that the level of customers’ price consciousness will to some extent determine which aspects are the main reasons for changing brand, which promotional tools and which aspects of advertising contents will have strong influences on their brand choice decision. In addition, the result of the correlation analysis shows that customers who have high price consciousness are more likely to be attracted in turn by free gift (Insurance), coupons (e. . free 1 year maintenance/service/warranty), and price discount, and they are more easily to change to other brands which have good value for money and which may not have good brand image. Similarly, high price consciousness customers may be less interested in good brand image, interestingness, celebrity, and good quality in advertising. 4. 4 Conclusion In this chapter, I have discussed about some reasons why people do brand-switching. There are two main aspects that effect brand-switch exists which are advertising and promoting.

Those two aspect playing the important role on brand-switching. However, those two aspects cannot be implemented if there is no supporting aspect, such as, pricing matters of the product. CHAPTER 5 5. 0DISCUSSION 5. 1 Advertising and Brand-switching The influence of advertising and promotion on brand switching behavior among Indonesian SUV car users has been found varying at different stages of purchase and stages of awareness and advertising as depicted by the comparison of the impacts of advertising and promotion on each stage of customer’s responses to advertising and promotion.

It becomes clear that the helpfulness of advertising and promotion may increase customers’ brand awareness and encourage existing customers to go for the same brand, rather than influencing customers to buy another brand which they have not used yet. This result has also been shown by some arguments of other researchers. As per Simon and Arndt (1980) and Tellis (1988) the main objective of advertising is not to attract new customers but to strengthen the satisfaction of existing customers.

They argue that advertising can strongly influence the customers who already know the brand advertised rather than the new customers who have not used the brand before. It can be seen from the results that the influence of advertising on purchase stage is not the main impact of advertising, rather increasing customers’ brand awareness and repeat purchase may be the main objectives of advertising. Other previous research (Neslin 1994) studied the relationship between brand switching and advertising, and establishes the fact that advertising has a positive effect on brand switching.

The results of their research found that advertising has a positive influence on sales and advertising could increase brand-switching. This study also found advertising as one the main reasons for brand switching. Looking to the above two aspects of the findings of this research, it can be said that the influence of advertising on brand-switching do not challenge each other; rather they illustrate the two different aspects of the influence of advertising on brand switching.

On the one hand, advertising has positive impact on brand-switching; on the other hand, its influence on brand-switching may not be as strong as on other stages of customers’ responses to advertising, such as increasing brand awareness and repeat purchase. This study also studied the relationship between brand switching and advertising contents, and it was found that advertising contents have been preferred by customers

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Brand Community Analysis

Brand Community Analysis As the development of communication technology and global market, the concept of Brand Community was fist defined as ‘a specialized, non-geographically bound community, based on a structured set of social relationships among admirers of a brand’ by two social scientists, Albert M. Muniz, JR and Thomas C. O’Guinn (2001). This essay will firstly give a brief overview of brand community, and then point out three main characteristics and further discuss these features of brand community based on the article by Muniz and O’Guinn (2001) using the supporters of Manchester United Football Club as an example.

Brand community is a customer-customer-brand triad. It reflects on a collection of brand-centric social group stressing the use of brand and the relationship formed by emotion between consumers (Muniz and O’Guinn, 2001). Furthermore, McAlexander, Schouten and Koenig (2002) have extended this model to the extent that brand community is actually a customer-centric network and aim to provide customer special brand-related consumption experience. They have also emphasized the concept of brand experience in a community.

Any brand experience comes from the interaction among members, and at the same time customers also construct the meaning of the brand in the process of interaction and experience. Subsequently, by the research in the abandoned Apple Newton, Muniz and Schau (2005) found brand community can be regarded to a kind of religious affiliation. Manchester United Football Club (MUFC) is a famous professional football team founded in 1878 in England. It is the best supported in Europe (Rice, 2009) and probably the most popular football club in the world.

According to the article by Cass (2007) from Daily Mail, the number of worldwide MUFC supporters was closed to 333 million in 2007. In this case, I assume the fans of MUFC all are the members of the club community and they principally consume match tickets and club-related products. Muniz and O’Guinn (2001) raised 3 basic characteristics for brand community, like other traditional communities, which respectively were a shared consciousness, rituals and traditions and a sense of moral responsibility. The most important shared consciousness is group awareness.

It means there is an implicit relationship between community members and members can be distinct from others. Rituals and traditions is a vital social process. Brand and the meaning of brand community with their history, culture and consciousness can be duplicated and passed on through ritual and traditions. Moral responsibility indicates that community members are responsible for each other. These 3 characteristics show the nature of brand community. For the sense of consciousness, members feel a great relation toward one another is more important than the connection to the brand (Muniz and O’Guinn, 2001).

That is why two main organisations for MUFC supporters in the UK, Independent Manchester United Supporters Association (IMUSA) and Manchester United Supporters Trust (MUST), were established to let like-minded people join together and formed local communities. IMUSA has even set up a committee to better represent the interest and voice of supports. Supporters from all around the world can also just easily use web-based communication tools such as Twitter, Facebook, and forums like MUFC fansforum (http://community. manutd. com/forums/) to share updated news and maintain connections.

On the other hand, members, ‘also set them apart from others and makes them similar to one another’ Muniz and O’Guinn (2001) claimed, especially try to distinct them from the main competitive brand in the market. This regards to oppositional brand loyalty. In this MUFC case, the oppositional brand is its main rivalry in the Premier league located in the same city – Manchester City Football Club (MCFC). Fans from MUFC always differentiate them against MCFC supporters. Members usually said MCFC is built by money, just an upstart and a noisy neighbour.

Most of the community members despise this kind of team because they think MUFC has the glories that MCFC lack of and embodies the passion and excitement of the world’s most popular sport (Hill and Vincent, 2006). Muniz and O’Guinn (2001) indicated rituals and traditions focus on sharing consumption experience with the brand. Supporters sing several specific songs during the match regarding to different circumstances to encourage and cheer the team. Those songs have already become a kind of spiritual symbol of the MUFC brand, and therefore will be passed on each time they are sung in matches.

Celebrating the history of the brand is crucial for maintaining community and reproducing culture (Muniz and O’Guinn, 2001). For the MUFC community, the most vital history is the trophies they gained. After MUFC won their 19th English top league title last season, the Barclays Premiership Trophy Cup was being demonstrated around the world for the whole summer in 2011. This tour is not only presenting the precious trophy cup to supporters but also a promotion of the great history of MUFC to further raise reputation and attract new members.

Sharing brand stories is another important means of maintaining and creating community (Muniz and O’Guinn, 2001). MUFC fans always mention either face to face or on internet about the classic victory of the champion league final in 1999 in Munich. This can be related to viral marketing by which positive image and consciousness of the brand and community can be delivered through word of mouth or improved by the internet network effects. ‘The sense of moral responsibility is what produces collective action and contributes to group cohesion’ Muniz and O’Guinn (2001) said.

There are two traditional shared missions: intergrading and retaining members and assisting members in the proper use of the brand. Firstly, it is crucial to retain existing members and obtain new ones. The fundamental way for MUFC to save and fascinate supporters is to keep winning. Getting consistent good record and reputation will really help the brand to attract and retain members. MUFC also gives discount to the existing official members to renew their membership and buy season tickets in the following year. Thus members can gain benefit from their loyalty.

Secondly, moral responsibility also provides assistant normally in problem solving and shares brand-related information. For instance, members share transport information in away games on fansforum. In conclusion, the notion of brand community has been extended in recent years and become a usual marketing phenomenon. The three key characteristics represent the essence of brand community and each of them has its own manifestation. Due to the improvement of communication way, members of brand community are more convenient to communicate and the brand is also easier to build connection with customers and create brand communities.

Looking to the future, I believe brand community will become a crucial and staple marketing strategy. Reference: Cass, Bob (2007). “United moving down south as fanbase reaches 333 million”. Daily Mail (London: Associated Newspapers); 15 December 2007. Manchester United official fansforum: http://community. manutd. com/forums/t/84281. aspx Manchester United Membership benefit: http://www. manutd. com/en/One-United/Member-Benefits. aspx McAlexander, J H, Schouten , J W, and Koenig , H F. Building brand community[J ] . Journal of Marketing; Jan 2002; 66, 1; ABI/INFORM Global p. 8 Muniz Albert M. Jr. and Thomas C. O’Guinn (2001), Brand Community, Journal of Consumer Research; March 2001; 27, 4; ABI/INFORM Global p. 412 Muniz Albert M. Jr. and Schau, H J. (2005), Religiosity in the Abandoned Apple Newton Brand Community, Journal of Consumer Research; Mar 2005; 31, 4; ABI/INFORM Global p. 737 Rice, Simon (6 November 2009). “Manchester United top of the 25 best supported clubs in Europe”. The Independent (London: Independent Print). Vincent, John, Hill, John S. (2006) Globalisation and sports branding: the case of Manchester United.

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Brand Positioning of Maruti Suzuki

MARUTI SUZUKI – BRAND POSITIONING By: Shweta Amin [ Market Research Analyst ] on February 13, 2011 1 Comment What comes to your mind first when u come across the term ‘MARUTI SUZUKI’, it always absolutely has to be Maruti 800, best known as ‘The Middle class car of India’. BRAND IMAGE:- MARUTI from as a brand itself is seldom looked at, as a luxury brand. Maruti as a brand is more linked with the SEC B rather than A. And over past many years Maruti Has maintained and up till certain extent restricted its Target Market to same SEC’s.

VARIOUS MODELS OF MARUTI SUZUKI IN MARKET:- Hatchback: – Maruti 800, Wragon R, Alto, Swift, Estilo, Ritz, A-star Sedan: – SX4 & Dzire. SUV:- Grand Vitara, Maruti Gypsy, EECO This is quite evident that Maruti Suzuki is leading in its variety of ‘Hatchback’ cars. These for all this while were targeting the group of people who are middle incomed, but Maruti Suzuki has slowly entered and is steadily growing into the category of ‘Sedan’ Vehicles. REMARKABLE GROWTH:-

If we observe Maruti as a brand over the years we can note a remarkable phenomena or strategy from their growth in past years. * It first became popular n still is with its launch of Maruti 800 many years back. They targeted middle income groups, who were first time car buyers, looking for low ownership cost with basic need of a family vehicle and the price was approx 2lacs. * After this they never looked back. Then came the other various hatchback models of Maruti like Zen, Wragon, and Alto etc.

These Cars again targeted the middle income groups, but this time the positioning was not as the basic need, it was comfort at comparatively lower price, of 4 – 5 lacs. * Then putting Yet another Step forward, they came into Sedan’s with a price of 8-9 lacs these Sedans targeted SEC A as well as B(up till a certain extent) MARUTI KIZASHI The most recent development from Maruti Suzuki is the Launch of ‘Maruti Kizashi’. It has been positioned as the sports sedan; it is fairly high on cost with a Price of approx 17 to 19 Lacs.

This Sedan is targeted towards the SEC A with a luxury touch to it. By this way, Maruti Suzuki is now able to target and provide a solution to various types of car buyers, who basically are the different targeted groups according to its Database. Maruti Suzuki seems to have efficiently planned and structured to connect its brand to masses as not only an ‘Economic Brand’ but also a ‘Luxury Brand’ turning it into an all-rounder. It will be interesting to see the consumers’ reaction to this change in the Brand Image of their one of most trusted brands

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Developing Brand Positioning Strategy for Canadian Club

Developing Brand Positioning Strategy for Canadian Club Whiskey [pic] Developing branding strategy for Canadian Club A. Assess and fully critique the success of Canadian Club’s repositioning strategies used in the case. Use brand theories and concepts to evaluate the company’s branding strategies listed in the case. According to Keller(1993) the effective brand positioning gives a brand a competitive advantage or “unique selling proposition” that determines a reason why consumers are buying this product or service (Keller, 1993).

Similarly, Kay (2004) argues that brand’s strength depends on its successful positioning within consumers’ mind. Furthermore, it is claimed that strong brands should possess “difference” and “consistency”, however the difference should be meaningful for consumers. In the case of Canadian Club whisky it aimed to differentiate its quality and uniqueness through exciting advertising campaigns such as “Adventure Series”, “Hide A Case”, “CC Find-A-Case Challenge” or “Damn Right Your Dad Drank It”. Also, Keller (1993) claims that brand knowledge consists of brand awareness and perceived brand image among consumers.

Brand image is further divided into favourability, strength and uniqueness of brand associations. Therefore, in the case of Canadian Club a brand image is conveyed through unique and distinctive experiences that consumers associate with a brand. For example, introduction of “Adventure Series” advertising campaign in 1920s aimed to increase CC’s global sales whilst showcasing print ads of travellers going to remote locations all over the world and performing brave actions. After that they were relaxing with a glass of CC.

As a result a brand’s image is distinctive from the category as it appeals to its target audience as a unique and exclusive drink associated with adventures. Also, it benefits consumer experientially. In addition, Keller (1993) claims that developing a brand equity requires four value stages: marketing program investment, customer mind-set, market performance and shareholder value (Keller, 1993). Furthermore, marketing program should be clear, relevant, distinctive and consistent throughout all the marketing communications.

For example, CC introduced “Hide-A-Case” campaign in 1967 which aimed to challenge drinkers to search for bottles of Canadian Club kept hidden at remote locations all over the world. CC cases were hidden in places such as the Swiss Alps (Switzerland), Mt. Kilimanjaro (Tanzania), Angel Falls (Venezuela) etc. Therefore, the campaign was interactive and engaging which is another distinctiveness for the category. Also, the campaign was communicated through the hints of where to find CC cases published in magazine ads or sport pages in daily newspapers.

Therefore, it was relevant for targeted audience and consistent throughout all the communications. Other campaigns involved “CC Find-A-Case Challenge”(1981) and “Find A Case Challenge”(2004) which were similar to earlier launched “Hide-A-Case” campaign, however CC cases were hidden in locations such as in Death Valley in California, on top of a skyscraper in New York City, etc. Also, the campaign involved a form of contest where teams were participating in 7 different fun-filled events or games assessing their physical and mental skills like CC Poker Run, Roll the Barrel, CC Hockey Challenge etc.

The winning team was awarded of US 10000. Hence, all these campaigns were interactive, engaging and communicating brand’s uniqueness and exclusivity to the target audience. However, due to failure to address declining sales in 1990s the company had to develop new repositioning strategy for a brand. Therefore, they launched “Damn Right Your Dad Drank It” campaign aiming to expand their target audience into young male drinkers. The campaign was based on nostalgia branding concept. According to Kay (2006) reviving brands is a viable strategy.

Furthermore, it is claimed that retro branding or nostalgia branding is where perception towards brand depends upon consumers’ nostalgic leanings can be a powerful management option (Kay, 2006). Similarly, Kessous and Roux (2002) argue that nostalgia can be used to reposition company’s product in the market and differentiate it through creating emotional appeals to the consumers of their past experiences (Kessous, 2002). Therefore, nostalgia is defined as a preference towards objects (people, places or things) which were common when one was younger.

The nostalgia can be further classified into “first-time nostalgia” and “long-standing nostalgia”. However, nostalgia branding is usually used within confectionary or sweets market which is why pursuing this type of strategy for Canadian Club whisky was criticised as being risky. Furthermore, whisky category itself is viewed as drinks for mature and old consumers and there was a threat to strengthen this image even more whilst using nostalgia branding. However, the campaign succeeded as it was relevant to the target audience (young males) and consistent to its brand image as it provoked masculinity and stylishness.

Also, it was consistent through all the marketing communications such as billboards, point-of-sale items, radio advertising, out-of-home advertising, in-market events, and experiential elements. In addition it was distinctive to the usual category’s advertising campaigns that usually consisted of stereotyped “sex sells” ads playing on hot chicks and smoking’ bods or “James Bond” appeal. Finally, the brand’s image and values were clearly communicated through the campaign. Therefore, nostalgia branding enabled company to reposition itself from being an exclusive and sophisticated drink into more of a mass market product.

Finally, Shamma (2011) claims that total brand equity consists of product and corporate brand equity which depends on company’s market, social and financial performance. Furthermore, there is a positive relationship between company’s corporate brand and socially responsible marketing and total brand equity (Shamma, 2011). Similarly, Grace and King (2011) talks about employee brand equity, which is the result of positive and productive employee brand-related behaviour and is strongly linked with brand’s strength (Grace and King, 2011).

In contrast, Kay (2004) argues that corporate branding differs from product and service branding as it is aimed at different target audiences. For instance, corporate branding usually targets company’s shareholders and employees whereas product and service branding is focused on consumers who are not really interested in corporate brand identity (Kay, 2004). However, it is also claimed that some companies, especially those that started as niche businesses that appealed to small segments of socially conscious customers succeeded in creating strong and distinctive corporate brands.

Referring to CC and Jim Beam corporation consumers are not that concerned about company’s overall image, however introduction of corporate social responsibility and socially responsible marketing could enhance employees’ satisfaction and therefore employee brand equity. B. You have assumed the role of, Brand Manager for Canadian Club. Develop a brand positioning plan to strengthen the Canadian Club brand for the next three years (2014-2017). Suggest a variety of branding strategies that are appropriate for the brand’s identity and target market.

Use current research about the brand and the whiskey industry prior to answering this part of the assignment. Use theory to justify your arguments! Canadian Club whiskey belongs to UK spirits market which was estimated to be worth ? 11. 09 bn. at current prices in 2011 (Keynote, 2012). The UK spirits and liquors market is expected to grow by 16. 4% reaching a value of ? 13. 42bn in 2016. Thus, there is an opportunity for Canadian Club to further increase and strengthen its share of market. Canadian Club whiskey is a prestigious brand owned by Beam Global Spirits & Wine Corporation which is US-based company.

It also owns brands such as Jim Beam, Courvoisier and Tequila Sauza. Since 1920s Canadian Club differentiated itself as a high quality, exclusive whisky offering experiential experience for its drinkers. Its current target market is those from legal drinking age to 34, however company is looking forward to strengthen its appeal among younger consumers in order to capture their life-time loyalty (Twiss, 2012). Referring to its main competitors the direct competitors are Diageo’s Johnnie Walker scotch whiskey and Jack Daniels “Tennessee Whiskey”.

Diageo is a leading distiller which currently owns more than 35% of the spirits and liquors market globally and is expanding to emergent markets such as India and Asia (BBC, 2013). It also owns brands such as Smirnoff Vodka and Gordon’s Gin. Furthermore, Scotch whiskey is the leader of whiskey category in UK and worldwide and its exports were worth ? 4. 23bn in 2011 (BBC, 2013). However, there is an increasing trend among younger consumers to choose vodka and other “white” spirits to mix them in their cocktails.

Therefore, in order to sustain and increase its market share Canadian Club needs to tackle competition arousing not only from “dark” spirits but also from “white” spirits such as vodka, rum, gin etc. Referring to category’s recent adverts Johnnie Walker Scotch whisky (Diageo) launched a new global advertising campaign in September 2012 entitled “Where Flavour is a King”. The campaign uses facebook application to educate users about different flavours that make up each Johnnie Walker label (MarketingWeek, 2012).

Meanwhile, Jack Daniels “Tennessee Whiskey” has recently introduced their “Legend” campaign where it is positioned as a whiskey of “Rock & Roll” era (International Business Times, 2013). On the other hand, Canadian Club recently introduced its “Beer fairies” campaign in Australia featuring unattractive beer drinker possessing all the negative traits associated with beer drinking. The campaign seeks to position CC as a refreshing alternative through the use of parody and provocative advertising (Campaign Brief, 2012).

Furthermore, it introduced “Join the Club” campaign where company’s CEO is represented as a brand ambassador and is sharing his “Whiskey wisdoms” with consumers about masculinity and manhood. It is evident that several classic liquor companies have been recently using manly images in order to appeal to growing macho men population. For instance, John Jameson and its campaign “legend of John Jameson” with images of its founder arm-wrestling or Canadian Wiser’s whiskey and its “Wiserhood” campaign featuring a “society of uncompromising men” who applaud any man who resists an occasion that threatens his manhood (Krashinsky, 2012).

Also, many of spirits and liquor companies are incorporating social media when creating a branding strategy in order to target younger and more affluent audience. For instance, Canadian Club whiskey fans are encouraged to share their “Whiskey Wisdoms” on facebook in order to get an access to exclusive content, invitations to local events and wisdom (Lukovitz, 2012,). Similarly, Smirnoff promoted its Vodka Ice drink through social media whilst encouraging fans to participate in a drinking game and share experiences and photos on facebook page.

According to Avery and Fournier (2011) open source branding is a new concept in marketing where a “brand is embedded in a cultural conversation such that consumers gain an equal, if not greater, say than marketers in what the brand looks like and how it behaves” (Fournier, 2011, pp. 194). It is enabled through social media technologies such as blogging, video sharing, social bookmarking, social networking, and community platforms (Fournier, 2011).

Furthermore, it is evident that engaging with the “right” individuals through social media platforms can help to promote word-of-mouth for a brand, spread brand knowledge, generate sales and increase return on investment (Kumar, 2012). However, since the marketers do not have so much control on the overall brand’s image in open source branding social media can also have a negative impact on brand’s equity.

Therefore, it is claimed that when incorporating social media in their marketing activities companies should take into consideration four powerful and challenging Web-enabled themes: The Age of the Social Collective, The Age of Transparency, The Age of Criticism, and The Age of Parody (Fournier, 2011). Referring to social collectiveness it is evident that online communities provide an opportunity for in-depth discussion of shared interests among consumers, therefore strengthening group bonds. Also, some of the companies developed their business models based on social collectiveness concept.

For instance, Groupon offers a variety of daily deals for restaurants, spas, massages and other activities for its members but offers are valid only if enough people sign up to receive them (Fournier, 2011). The Age of Transparency and The Age of Criticism claim that due to significant technology changes the news and opinions about particular brand spread very fast and can have a significant impact on brand equity (Fournier, 2011). For instance, due to transparency BP recently experienced a fiasco with its leaking Deepwater Horizon oil rig.

The news had a significant impact on negative brand’s reputation as BP was pursuing an image of the environmentally-friendly petroleum company and was developing activities to strengthen this image. Similarly, there is a power of disappointed company’s internal employees revealing market’s and firm’s secrets to a wider public that can damage company’s image. Criticism enabled through social media technologies can also have a great impact on company’s brand equity even if a small number of consumers is complaining. For instance, when introduced its new product formulation called Dry Max,

Pampers had to deal with a negative impact arousing from consumers who claimed that a product caused diaper rash and was not suitable for consumers. Finally, The Age of Parody refers to online users’ view of social media being a pastime or a source of entertainment. Therefore, it is not surprising that many companies are trying to grab consumers’ attention through creating funny and interactive campaigns that go viral. However, the difficulty is to evaluate the impact and reach of these campaigns. Another recent trend in social media applications is mobile marketing and mobile social media.

With increasingly powerful mobile devices, many social media applications have gone mobile in order to reach customer instantly without any time or location limitations (Kaplan, 2012). Thus, mobile marketing is defined as “any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device” (Kaplan, 2012, pp. 130). In contrast, mobile social media is defined as a “group of mobile marketing applications that allow the creation and exchange of user-generated content” (Kaplan, 2012, pp. 31). It is also claimed that mobile social media applications can be classified according to users’ time and location sensitivity. For example, quick-timers involve transfer of traditional social media applications to mobile devices to increase immediacy such as posting Twitter messages or Facebook status updates. In contrast, space-timers involve exchange of messages with relevance for one specific location at one specific point-in time, for example Facebook places, Foursquare and Gowalla.

Space-timers are the most sophisticated form of mobile social marketing applications as user’s participation does not primarily depend on user’s monetary motivation. According to the theory the increasing willingness to check in certain locations through Foursquare can be explained through self-presentation and self-disclosure concepts, and impulsiveness theory which claims that individuals often struggle between displaying long-term control and giving into short-term temptations (Kaplan, 2012).

Therefore, lots of companies are collaborating with Foursquare to promote their sales and discounts, develop relationships and loyalty programs. Furthermore, it is estimated that by 2020 a mobile device will be the primary Internet connection tool for most people in the world (Kaplan, 2010). However, when integrating mobile social marketing applications companies should also make sure that it is integrated into the lives of consumers, offered activities or promotions are individualized according to each user’s preferences and interests and users are involved through engaging in conversations.

Otherwise, it can become intrusive, annoying and threaten personal privacy. Nevertheless, mobile marketing provides high rate of personalisation, interactivity, low cost of reaching large audience at the right time at the right place, immediate, one-to-one communication, does not depend on time and space etc. Hence, followed the benefits of increased brand awareness and sales through social media and mobile social marketing applications here are proposed brand positioning strategies for Canadian Club 2014-201 Strategy One

Firstly, a new brand positioning campaign called “Canadian Club-Unexceptional Quality” will be launched in September 2014. A campaign will focus on promoting major brand’s assets quality and exclusivity in order to capture wider audience. The main company’s strategy will be to use facebook application to educate users of brand’s quality and suitability for various occasions in order to increase the usage. It will involve posts of various taglines such as “There’s no better way to impress a woman than… Canadian Club-Unexceptional Quality” or “To be well groomed is an exception…

Canadian Club is Unexceptional! ” in order to strengthen marketing communications message. The campaign is also going to encourage users to post and share photos of various occasions when CC can be consumed. This way brand tries to engage with audience whilst suggesting that CC is not only old men drink and can be consumed during various occasions. Additionally, in order to boost users’ confidence and strengthen the relation between brand’s image and quality the campaign will provide tips on their facebook page for exclusive Canadian Club consumers of how to best dress up when drinking Canadian Club.

These tips will only be accessed if users liked a page. This campaign’s aim is to engage users in open and active conversations about the brand and its quality, as well as increase awareness. The campaign will be supported by billboards, radio and youtube videos. Strategy Two Secondly, since company aims to target younger audience in order to capture their life-time loyalty the use of mobile social marketing is essential. Therefore, it is suggested to develop a mobile application that either engages, interacts or benefits consumer.

Furthermore, many of the companies nowadays collaborates with mobile social media applications such as Foursquare in order to generate users’ word-of-mouth, facilitate sales promotions and discounts or develop relationships through loyalty programs. Hence, Canadian Club will use foursquare website to promote brand’s image and increase sales. Therefore, users will be encouraged to check-in at five high class luxurious bars, restaurants or hotels listed on Canadian Club’s foursquare web page in order to get a 40% discount for a suit for upcoming occasion from a local high quality retailer.

The check-ins should be followed by user’s comment about Canadian Club’s exceptional quality and shared on facebook with his friends. The number of discounts will be limited and the promotion campaign will run until all the discounts will be given away. Users will be updated of the remaining promotions on Canadian Club’s facebook page and personally reminded how many more locations they need to check-in if entered a competition. The campaign firstly will be tested in US and then adopted in emerging markets such as India, China, Russia. Some adjustments will be made if needed to adapt to local market. Conclusions

For decades Canadian Club whiskey was known for its exclusivity and unexceptional quality. A brand always tried to differentiate itself from competitors whilst launching various interactive and exciting advertising campaigns that were unusual and innovative for the category. Therefore, when suggesting different brand positioning strategies for 2014-2017 Canadian Club should remain enforcing its distinctive image and promoting high quality in the market. Hence, a number of social media and mobile social marketing strategies were suggested in order to capture younger users’ attention and build life-time loyalty towards the brand.

For instance, the use of facebook application to educate users about Canadian Club’s high quality and suitability for various occasions is suggested, which will increase brand’s awareness whilst engaging in users’ conversations and encouraging them to share comments and photos. Also, due to increasing number of mobile applications’ users and forecasts of mobile phone becoming as a primary internet connection tool marketers should pay a great attention into mobile social media marketing when developing a brand positioning plan.

Therefore, a Canadian Club’s collaboration with Foursquare website was advised in order to grab consumers’ attention, spread word-of-mouth and increase sales whilst asking users to check in at 5 high class listed locations to get a 20% discount for a high quality suit from a local retailer. Overall, both of these strategies will allow Canadian Club to position itself as high quality and suitable for various occasions drink among younger consumers and will help to achieve a competitive advantage through the use of mobile social marketing. References E-jounals: Fournier, S. , 2011.

The uninvited brand. Business Horizons, [Online]. 54, 193-207. Available at:http://www. sciencedirect. com/science/article/pii/S0007681311000024 [Accessed 02 March 2013] Kaplan, A. M. , 2010. Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons, [Online]. 53, 59-68. Available at:http://www. sciencedirect. com/science/article/pii/S0007681309001232 [Accessed 03 March 2013] Kaplan, A. M. , 2012. If you love something, let it go mobile: Mobile marketing and mobile social media 4×4. Business Horizons, [Online]. 55, 129-139. Available at:http://www. ciencedirect. com/science/article/pii/S0007681311001558 [Accessed 06 March 2013]. Kay, M. J. , 2006. Strong brands and corporate brands. European Journal of Marketing, [Online]. 40, issue 7, 742-760. Available at: http://www. emeraldinsight. com/journals. htm? articleid=1562577&show=abstract[Accessed 11 March 2013] Keller, K. L. , 1993. Conceptualizing, Measuring, and Managing Csutomer-Based Brand Equity. Journal of Marketing, [Online]. 57, 1-22. Available at: http://www. jstor. org/stable/1252054? seq=2&uid=3738032&uid=2&uid=4&sid=21101887384081 [Accessed 12 March 2013] Kessous, A. , 2008.

A semiotic analysis of Nostalgia as a connection to the past. Qualitative Market Research: An International Journal, [Online]. 11, issue 2, 192-212. Available at:http://www. emeraldinsight. com/journals. htm? articleid=1718576&show=abstract [Accessed 11 March 2013] King, C. , 2011. Employee brand equity: Scale development and validation. Journal of Brand Management, [Online]. 19, issue 4, 268-288. Available at: http://www. palgrave-journals. com/bm/journal/v19/n4/abs/bm201144a. html [Accessed 14 March 2013] Kumar, V. , 2012. Increasing the ROI of Social Media Marketing. MITSloan Management Review, [Online]. 4, issue 1, 55-61. Available at: http://scholar. google. co. uk/scholar? q=Increasing+the+ROI+of+Social+media+Marketing&btnG=&hl=en&as_sdt=0%2C5&as_vis=1 [Accessed 03 March 2013]. Shamma, H. M. , 2011. Integrating Product and Corporate Brand Equity into Total Brand Equity Measurement. International Journal of Marketing Studies, [Online]. 3, issue 1, 11-17. Available at:http://scholar. google. co. uk/scholar? q=Integrating+Product+and+Corporate+Brand+Equity+into+Total+Brand+Equity+Measurement&btnG=&hl=en&as_sdt=0%2C5&as_vis=1[Accessed 14 March 2013] Websites and Industry Reports: Campaign Brief. 2012.

Canadian Club hires comic legend John Cleese to poke fun at ‘beer fairies’ in new campaign set to launch tomorrow via The Works, Sydney. [ONLINE] Available at:http://www. campaignbrief. com/2012/04/canadian-club-hires-comedian-j. html. [Accessed 05 March 13] Fraser, D. 2013. How Scotch whisky conquered the world. BBC News. [ONLINE] Available at:http://www. bbc. co. uk/news/uk-scotland-20946411. [Accessed 15 March 13] Joseph, S. 2013. Johnnie Walker launches first umbrella brand campaign. [ONLINE] Available at:http://www. marketingweek. co. uk/news/johnnie-walker-preps-umbrella-brand-campaign/4003702. article. Accessed 11 March 13] Key Note (2012) Spirits and Liquors Market 2012. Hampton: Key Note Krashinsky, S. 2012. Mustache marketing: Selling ‘whisky wisdom’ to younger drinkers. [ONLINE] Available at: http://m. theglobeandmail. com/report-on-business/industry-news/marketing/mustache-marketing-selling-whisky-wisdom-to-younger-drinkers/article5508749/? service=mobile. [Accessed 05 March 13] Lukovitz, K. 2012. Canadian Club Intros “Join the Club” Campaign. Marketing Daily. [ONLINE] Available at:http://www. mediapost. com/publications/article/188057/canadian-club-intros-join-the-club-campaign. html#axzz2O2P5U9uX. [Accessed 14 March 13]

Free Essays

Brand Management of Cadbury

Cadbury: The Brand The Cadbury brand enjoys a high level of brand equity in Ireland. Research shows 96% of consumers recognise the brand, while 74% state that when it comes to chocolate, only Cadbury’s will do! There are three main brand name strategies: Family brand names: The parent brand is also known as an “umbrella” brand. This term is given to product ranges where the family brand name is used for all products. The advantage of this approach is that positive associations with the parent brand will transfer to all sub-brands.

The risk however, is that if one brand is unsuccessful or falls into disrepute, the reputation of the complete family of brands can be tarnished. Cadbury is a family brand. ? Individual brand names (or multibrands): In this case each brand is created and named separately and has a separate identity. Using a family brand may not be suitable as the brand values may be too far apart. ?Combination brand names: This approach allows for the optimal use of the corporate (family) brand name, while allowing an individual brand to be identified, e. . Cadbury Dairy Milk. Developing brand identity BRAND PYRAMID A brand pyramid can help managers plan and analyse a brand’s identity. The top tier of the pyramid consists of the brand core. Brand core values are the genetic code of the brand and remain the same over time. Closely related to these values is the brand proposition: the promise the brand makes to consumers. This proposition should be easy to understand and appeal to the target market.

The middle tier represents the brand style; or elements of the brand’s identity that represent the self image of the brand and need to be relatively stable over time. The base of the pyramid is formed by the brand themes which are concerned with how the brand currently communicates through its advertising, packaging, physical appearance etc. Brand themes are flexible and change with fashion, technological developments and changing consumer tastes.

The brand pyramid helps managers understand the strengths of the brand and ensure consistency of its message. This also helps to identify opportunities for brand stretching and brand extensions. A brand extension is the use of a well known brand name on a new product within the same broad market or product category. We will discuss this in relation to the Dairy Milk brand. Brand stretching is the use of an established brand name in unrelated markets or product categories. Brand Extensions and Elements Cadbury India Cadbury is mainly into three segments Chocolates – Cadbury India is the market leader in the chocolate confectionery market in India with over 70 per cent market share. The leading brands in this category are Cadbury’s Dairy Milk, Fruit & Nut, Crackle, Temptations, 5 Star, Perk & Celebrations Gift boxes. • Sugar Confectionery – Cadbury Dairy Milk Eclairs is one of the leading brands in this category. It is amongst the largest eclair brands in the market in terms of value share. Cadbury also owns Halls (which was acquired as a part of the global acquisition of the Adams business from Pfizer in 2003).

Halls is amongst the largest brands in its segment of Minty/ Breath freshness brands in India. • Food Drinks – Cadbury’s Bournvita is a leading brand in the brown drinks segment of milk/ malted food products. Cadbury’s other products include Drinking Chocolate and Cocoa powder. Overall share in the malted food drinks market is estimated to be around 19 per cent. The company has recently made a foray into snacking category with Cadbury Bytes, its sweet snacking brand. The company has been performing well in India.

Free Essays

Brand Philosophy of a Radio Channel

Brand philosophy ”It’s Hot” the promo for the channel has become everyday lingo of the youth. “Its Hot! … Most Popular Radio Channel amongst Youth at the 2nd Global Youth Marketing Forum, the tag line “ its Hot! ” conveys that the brand is young, exciting. Radio Mirchi is also very adaptive as it customizes itself based on the city it is in. Radio Mirchi Chennai is typically in Tamil and its slogan ‘What a Fun! ’ has bowled its fans over. Radio Mirchi Mumbai is dominated by Marathi. Thus, the language, culture and region are carefully kept in mind by everyone from the RJs to the producers.

Radio Mirchi is truly an innovative radio station. It caters to the needs of all sections of society in spite of its ‘young’ feel. For example, ‘Chatpati Baatein’ is a show for women, specifically housewives, bored out of their wits after a long day of work. Similarly, ‘On the Move’ is for executives and the movers and shakers of the corporate world. Music, chat shows and interviews are enjoyed by the youth and are relayed throughout the day at regular intervals. It keeps customer informed. Willingness to help customer through different programs. They are having gender base segmentation, age group base, etc.

In the early morning they are targeting to the old persons because they likes bhajans & kirtans. In the early morning they stared this programme at 5 am to 7 am. They are providing gift vouchers, gifts couple tickets, etc. So consumer or the listeners are attract and listen the radio mirchi. They are using Clustered Preferences. Radio Mirchi targeted to the college students and teenagers so they are playing hot & new songs. They are also targeting the mature person & they like to listen songs. Radio Mirchi are playing this kind of old songs in the night in the show Purani Jeans.

For many different occasions Mirchi came up with unique game or any kind of attractive show. For eg. New Year’s, Diwali, R. D. Burman’s birthday etc. customers are highly attracted to all these innovative shows and participated. It uses the tagline “Sakat hotmaga, Mirchi SunneWale Always Khush, It’s hot. Radio Mirchi promotes its radio station in different cities in their local language. The punch line of Radio Mirchi (Mirchi sunnewale always khush) focuses on its customer and the quality of music provided by them. They try to come up with new innovative ideas thereby making their radio the most preferred station with largest listenership.

There latest innovation is in the style of radio jockeys. Generally, radio jockeys speak non-stop quite fast entertaining the masses. Their way of telling jokes attracts people. It delivers the best combination of innovative content and interesting initiatives. Their programs: SHOW TIME which target TARGET AUDIENCE, Female oriented Khoobsurat , Quizzes related to Total Filmy bollywood, Sunset Samosa , Play old music Purani Jeans, Ask solution for Dr. Love relationship problems . -Naina Sharma Roll no. -935

Free Essays

What is Rebranding?

What is Rebranding? Rebranding is the creation of a new name, term, symbol, design, or combination thereof for an established brand with the intention of developing a differentiated (new) position in the mind of stakeholders and competitors. This may involve radical changes to the brand’s logo, brand name, image, marketing strategy, and advertising themes. These changes are typically aimed at the repositioning of the brand/company, sometimes in an attempt to distance itself from certain negative connotations of the previous branding, or to move the brand upmarket.

However, the main reason for a re-brand is to communicate a new message for a company, something that has evolved, or the ‘new board of directors’ wish to communicate. Reasons for Rebranding Proactive Rebranding: Sometimes a company sees a reason to rebrand to seize an opportunity or thwart potential threats in the future. Proactive rebranding might happen in the following situations: * Predicted Growth: When a company is preparing for expected growth, particularly international growth, it might rebrand products and services into a consolidated brand. This is often done for consistency and to save money over time.

This type of rebranding is also done when a company simply needs to create a greater sense of brand unity across its business. * New Line of Business or Market: When a company enters into a new line of business or market that is not cohesive to the existing brand identity, a rebranding might be in order. * New Audience: When a company wants to appeal to a new audience, a rebranding might be necessary. Keep in mind, the rebranding might not require an actual name or logo change. * Relevancy: When a company realizes its brand is losing relevancy in consumers’ minds, it might be time to rebrand.

The Yellow Pages rebranding is a perfect example. With the use of printed Yellow Pages directories declining, Yellow Pages rebranded to YP and began to focus more attention on the digital space making it significantly more relevant. Reactive Rebranding: Companies could also rebrand in reaction to an event that is so significant that the existing brand must be changed. For example, reactive rebranding might happen in situations like the ones listed below: * Merger or Acquisition: When companies merge or acquire other companies, rebranding is often required. Legal Issues: There are a number of different legal issues that could cause a company to rebrand. Trademarks are often at the root of these rebranding examples. Hence, it is imperative to conduct an exhaustive trademark search and obtain the trademark rights to your brand name before you launch it. * Competitive Influences: Sometimes a company’s competitors’ activities can be the catalyst to a rebranding. When a competitor renders your brand useless or dated, a rebranding could help you regain a foothold in your market and give you the facelift you need to effectively strike back. Negative Publicity: When the image of the corporate or the brand has been tarnished by a sudden happening or more so, a crisis that has arisen, companies adopt a rebranding marketing strategy. The mistakes when while rebranding 1. Do not rely only on history: Rebranding well means staying relevant. Assumptions made when the brand was established may no longer hold true. Analyze changes in target markets when exploring opportunities for brand expansion, repositioning and revitalization.

One must try and evaluate current market conditions before finalizing a rebranding exercise for the brand. However, one must ensure that the core offering is in line with the initial offering, the essence could be the differentiator. 2. Thinking the brand is the logo, stationery or corporate colors: The brand not only encompasses these elements, but also customer perception and experience to quality, the overall look and feel of the brand, customer care, retail and web environments, the tone and voice of communications, and more.

One must ensure that the new image, thus to be communicated, touches upon all the aspects of the brand. 3. Navigating without a plan: Effective rebrands rely on a creative brief to keep everyone focused as the project progresses. Include sections for a situation analysis, objectives, target markets, budget and resources, timeframe, point person, known parameters, approval structure, stakeholders and metrics for assessing results. 4.

Refusing to hire a branding consultant without industry experience: It’s ok to consider an agency that hasn’t worked in your specific industry before. Sometimes it is ideal – especially if you’re serious about a turnaround. Smart companies recognize the value of a fresh perspective. 5. Not leveraging existing brand equity and goodwill. Dismissing brand equity when rebranding alienates established customers, while unnecessary overhauls can irreparably damage a brand’s perception.

Consider the needs and mindset of the target market carefully before digging into the process. Sometimes a small evolution – or a new coat of paint – is all that’s needed to rejuvenate and make a brand relevant. 6. Not trying on your customer’s shoes. Simply calling your own 800-number or receptionist may reveal challenges customers face and inform your rebranding strategy. Take the time to navigate your own website, buy your products and return something. Better yet, ask a friend or family member to do so and learn from their experiences

Free Essays

A Case Study on Branding Bangladesh

[pic] DEPARTMENT of MARKETING COURSE NAME: Product and Brand Management. An assignment on- Country Branding: A Case Study on Branding Bangladesh. Submitted To: Shaikh Rafiqul Islam Associate Professor, Department of Marketing. Submitted By: Revolution 8th Semester, Session: 2008-09. Date of Submission: 10/12/2012. [pic] REVOLUTION 3rd Batch Session: 2008-09 |Serial: |Name of Students : |Roll No: | |01. |Farjana Nur Purabi |091648 | |02. Anik Kumar Devnath |091654 | |03. |Sheikh Sazzadur Rahman |091664 | |04. |Md. Ashiqur Rahman Rana Biswas |091695 | |05. |Rumana Jahan |091743 | |06. |Md. Masudur Rahman |091750 | |07. |Md. Rabiul Islam |091758 | |08. Md. Mushfiqur Rahman |091759 | |09. |Mohammad Ullah |07882876 | December 10, 2012. Shaikh Rafiqul Islam. Associate Professor. Department of Marketing . Jagannath University. Dhaka-1100. Dear Sir, Here is the assignment you allocated us to prepare on “Branding Bangladesh”. After researching and studying the current situation of the country based on collected data we have been able to prepare the assignment.

All of the major points and insights information associated with the given issue are included here. Besides, we have attempted to include some of our personal assumption, practical experience and idea to make the assignment more fruitful. Thanking you for giving the break accomplishing such an interesting educative task. Hope to hear from you soon. Sincerely, Group :- Revolution. 8th Semester. 3rd Batch. Session :- 2008-2009 Title Page Country Branding: A Case Study on Branding Bangladesh Tourism Export Brands Culture and Heritage pic][pic] People Investment Foreign and domestic policies [pic] [pic] [pic] Country branding is different in branding from a product. In developing the strategy, it would involve many intricacies and can be a long drawn out process. Branding Bangladesh is all about positioning Bangladesh in the minds of people. Branding Bangladesh is an important concept because it will help the country to understand how publics perceive her across the nations.

Those people are consumers, potential tourists, and, most importantly potential investors. In the growth process of Bangladesh they all are participating actively. An effective nation branding campaign accelerates the economic growth of Bangladesh and the citizens feel dignified. It must be remembered that there are around 195 nations in the world; all are aggressively competing for the attention of investors, tourists, and citizens. Therefore, a well-planned nation branding campaign is crucial for the branding of Bangladesh. Table of Contents TOPIC |PAGE | |PART: A (Introductory Part) | | |Preamble |7 | |Objectives |7 | |Methodology |8 | |Limitations |8 | |PART: B (Theoretical Framework/Literature Review) | | |Literature Review |9 | |PART: C | | |Brand Dimensions of Bangladesh |10 | |Strategies for Branding Bangladesh |12 | |Country and Corporate Brands Co-positioning |16 | |Findings at a glance |16 | |PART: D | | |Recommendations |17 | |Conclusion |17 | |References |18 | Creating a branding program for Bangladesh demands an integration policy that most countries do not possess. To boost our commercial success it is very important to take action regarding branding Bangladesh.

Branding Bangladesh the government should always observe their global image in countries they aim to target and the stakeholder should collaborate together and agree on a national stratagem. If the stakeholders could unite as one, pin down the purpose and objectives, and fulfill the process, it would reflect the will of one nation. Maintaining continuously the reputation in every sector (Tourism, exports, culture, people, brands and policy) is important to accelerate the task of branding. This assignment aims at clarifying the concepts of branding Bangladesh and argues that for a developing country like Bangladesh, branding is a prerequisite for national development. The specific objectives of this paper are: Review the conceptual and theoretical foundation of nation branding by leading authors in the marketing field; ? Examining and defining Branding Bangladesh and discussing its challenges. ? Attaining insights into branding Bangladesh ? Being familiar on the subject matter for later investigation for branding Bangladesh. DATA COLLECTION: Considering the objectives of the assignment, time, types of respondents, we collected both Primary and Secondary data to find out the necessary information regarding the strategies of branding Bangladesh. The sources are mentioned here- PRIMARY DATA: ? Taking personal interview of concerning people of tourism board; ? Discussing with the concerning people of Brand Forum of Bangladesh.

SECONDARY DATA: ? Studying different articles and advertisements published in daily newspapers; ? Visiting different websites and journals. While preparing the assignment we faced some problems that were unavoidable and these limitations are mentioned below: ? This assignment was totally an unfamiliar type of assignment to us; ? People of the authority were unwilling to provide full information about our given topic; ? The permitted survey time we have got was very limited; ? We did not get enough concern person to collect necessary information; ? Our communication was confined only to the Dhaka city. Bangladesh has always held great promise.

It enjoyed widespread international public support during the war of liberation, not only because its struggle was identifiable, but also due to the fact that it aimed to establish a socio-economic equilibrium and an equitable society where each citizen would have the opportunity to flourish. Another interesting problem the nation faces is that when it is compared to other countries it is invariably compared to nations with drug, mafia, and terrorist problems. While it is true that Bangladesh a huge population, with high unemployment rates, and increasing price inflation, often comparing it to failed or a semi-failed states does not do it justice. The weak status continued till the nineties. Then even Transparency International started ranking us as one of the most corrupt countries in the world. However, the nation’s image started improving post-2000 as did its performance indicators.

The major indicators for socio-economic growth include: improvement in health status, increasing literacy, progress in gender balance, enhancement of employment opportunities, building transport and communications facilities, huge increases in media reach amongst rural and urban people, booming ITC businesses, a rise in remittance and agricultural, industrial, and ready-made garments (RMG) booms. In 2006, our global image increased exponentially with Prof. Yunus and Grameen Bank winning the Nobel Peace Prize. That put Bangladesh in a strong position, globally and we cannot let that slip. Therefore, it has become imperative to develop a nation branding campaign to keep us in the global limelight for the right reasons.

While branding Bangladesh, the brand strategists must consider two key basic objectives: Firstly, it is crucial to instill pride in Bangladeshis and to persuade our people to be positive and feel dignified about themselves and for their country. The success of the nation branding program strongly depends on their active participation, ownership, and support. They should be proud of their country, culture, and heritage. Secondly, the government should come up with an aggressive but distinct nation branding campaign immediately, it is essential for our progress. Countries like India, Thailand, China, Malaysia, etc started similar branding journeys more than a decade ago and should not lag too far behind.

We need a forceful branding campaign for our country so that we can emerge as an Asian Tiger by 2021; which will also mark the 50th year of our independence. Dr. Khalid Hasan is Managing Director, Nielsen Bangladesh and Treasurer AmCham Bangladesh. Acknowledgement: AmCham Bangladesh. Brand Dimensions of Bangladesh Anholt is recognized for Anholt-GfK Nation Brand Index (NBI), and it is based on the same six categories to measure the global perception of a country. The brand of a country is judged based of the six dimensions. In case of branding Bangladesh we might focus on these dimensions and create brand image for Bangladesh. Fig: The Six Dimensions of a national branding Dimension 1: Tourism

Tourism is one of the most visible aspects of a country brand because it receives considerable financial support from governments, and is therefore the main marketing tool at the national level. It is a major economic driver through employment, international visitor expenditures, investments, and regional development. Bangladesh Tourism Board has adopted different policies and strategies to promote and champion Bangladesh. It includes brand taglines like “Beautiful Bangladesh. ” Dimension 2: Export brands There is a constant struggle to increase share of exports within the global market. In order to attain this purpose, the quality of exported products or services has to be superior to that of competitors. Export brands represent an important mark for Bangladesh.

An increase in exports can raise the self-esteem of a country, which in turn boosts self-confidence and further success. Ten years ago, as a country Bangladesh was little known across the Globe. Today, most of the countries label as the country of high quality garments product and this is mainly due to the performance of our garments industry. Dimension 3: Investments All countries, be they developing or developed, are now striving for an investment-friendly image. Country brand, and everything that it stands for, has a lot to say when it comes to attracting foreign direct investments. In case of Bangladesh it is very good for us that a large number of investors are coming in different sectors.

Dimension 4: Foreign and domestic policies. Nations are also judged in accordance with the foreign and domestic policies that their leaders initiate. Foreign and domestic policies must be coordinated so that they would invigorate the national brand. As a country we have to increase the ability to meet the residents’ needs for health, education, human rights, political participation more effectively. Dimension 5: People It is worth mentioning that the branding of a country must start from inside because a country’s brand is most frequently promoted by its people. In 2006, our global image increased exponentially with Prof. Yunus and Grameen Bank winning the Nobel Peace Prize.

That put Bangladesh in a strong position, globally and we cannot let that slip. Beside, Sakib-al-hasan, a Bangladeshi cricketer also increases the brand image of our country holding number one position in ICC Cricket ranking. Joining the mission of UN, Bangladesh Army has created a new dimension for Bangladesh and it is obviously a good sign for our country Dimension 6: Culture and Heritage Last but not least, one should not overlook the cultural dimension of a country brand. Culture penetrates all areas of life, including all scientific endeavors. For this reason, culture has turned into the ultimate reference point, a conventionally accepted solution to all problematic questions.

Strategies for branding Bangladesh We should take on a more conscious effort in branding country because country images draw out identifications, affect evaluations and purchase decisions. Additionally, countries compete for tourists, foreign investments and talented people. Let us look at this figure- Setting objectives: Branding Bangladesh we have to set clear and distinctive objectives that will help us to accomplish the different task most effectively. Different objectives might be: ? To be a Middle Income Country (MIC) ? 30th largest economy ? Per capita us dollar 6000 ? Economic goal • Agro and labor intensive industry • GDP growth to 10% • Environmental protection Transportation and ship building hub. Performing SWOT analysis: Performing a SWOT analysis for nations is an idea that has been promoted by many others. In his book The Marketing of Nations, Philip Kotler (1997) confirmed the idea that each nation must assess its strengths, weaknesses, opportunities and threats (SWOT) periodically in its five areas of capability: • Government leadership; • Factor endowments; • Industrial organization; • Social cohesion; • Culture, attitudes and values. Based on the guidelines we might perform an effective SWOT analysis that will help to figure out our own most effectively and define the country’s objectives. S- Strength |W- Weakness | | | | |Potential Growth economics, |Lack of Coordination among different groups, | |Successfully meeting the millennium development goal. |Lack of coordination between corporate and country co branding, | | |Insufficient budget. | | | | | | |O- Opportunity |T- Threat | | | | |Positive sovereign credit achieved, |Corruption, | |Making agreement with different countries. |Political instability. | | | | Choosing a Specific direction for distinctive branding For distinctive branding we might choose a specific direction from industries, personalities, natural landmarks or historical events.

This process will help create brand image more effectively. Expanding upon an Umbrella concept: Expanding upon an umbrella concept will help to cover separate branding activities with consistency. Different branding activities will be coordinated through an umbrella concept. Consulting with opinion leaders to look at national strengths and weaknesses and compare those with the research we might do create this concept. Allocating adequate funds to finance each branding activities: To create a successful brand image and create a greater impact regarding brand adequate fund is necessary and concerning people should handle the matter with kin interest Creating Export Control:

Creating export controls to ensure exported products are trustworthy and meeting the affirmed performance is necessary for branding Bangladesh. We have good will in foreign market in case of exporting garments products but sometimes it has been seen that due to some reasons our country is branded negatively and to avoid this we need to control export market. Maintaining balance between promise and performance: We will have to be very careful to maintain balance between the promise and performance. Sometimes it has been seen that we can’t afford quality service for the promising things e. g sometimes foreigners come to our country to enjoy heritage sides but due to transportation facility and accommodation facility they don’t get expected performance.

This point is the main thing to create a positive brand image for Bangladesh. Performing Activities on a regular basis: Creating positive brand image different campaigns are needed. But we have to keep in mind that these campaigns should be taken consistently and thinking the vision and long run interest of the country. Creating strategy and Working out program to make the strategy tangible through improvement programs, campaigns are important to reinforce the past campaign. Making all the members interactive: Ensuring the cooperation and involvement of representatives of government, business, the arts, education and importantly the media we can make a fruitful effect for Bangladesh.

In recent years the growth of Media sectors has constantly drawn our attention and the media might play a crucial role to brand Bangladesh. It is necessary to mobilize all those available forces of politicians, business people, artists, sportsmen and scientists to create a strategy for enhancing the image and reputation of Bangladesh on the international markets, i. e. for creating the national branding strategy. Country and Corporate Brands Co-positioning The concept of countries as brands has been increasingly recognized in the post-modern global world. A strong country brand can provide corporate brands with a unique set of values, which supports their positioning on the international market.

Simultaneously, once corporate brands achieve worldwide success, they contribute actively to developing new features of the country brand. A nation’s image can provide competitive advantage to its company/product/service brands. Until and unless Bangladesh has some international brands it will be very difficult to create good brand image for Bangladesh. Consider Finland, a country which was outside the global arena ten years ago, and therefore little known. Today, we label it as the country of high-tech mobile phone technology, and this is mainly due to Nokia’s performance. In Bangladeshi context there are some brands (Square, Walton etc) so the overnment should coordinate to development of the company and in the mean time these companies should take initiatives for the country branding Besides that we might consider the task of Prothom Alo and Airtel Company, who jointly arrange the design of the largest “Alpona” at Manik Mia Avenue and thus made a new dimension for themselves as well as create a good image for Bangladesh in the world. Findings at a glance: ? It is now more critical than ever to create a unique identity for destination because it is now more competitive for survival in the global market. ? Limited budget and little management control create obstacles on the way of creating good brand image for Bangladesh. Political pressures, External environment factors such as economic downturn, natural disasters and pandemics can affect the process of branding Bangladesh. ? A major challenge for Bangladesh is that when the tourists’ visit the destination and found the reality does not match the projected image from the pre-trip information gathered prior to trip, the gap will lead to disappointment and they will become brand terrorists. This would lead to low repeat visitation and damage the brand image indirectly. ? Local governors and mayors have different objectives to promote their own region and cities rather than the nation. ? Failure of government to control the flow of information through the Internet that shapes the national image. We need to conduct research among the people of Bangladesh, covering different segments, to understand their views and expectations. This will help in understanding the pulse of the nation and giving ownership to everyone, thus, satisfying different target audiences, different needs, and different institutions. The research should be conducted both internally (to understand the country’s socio-economic situation) and externally (global research among the investors and tourists). The findings will help develop a strategic plan on the nation-branding campaign; ? Concerned groups should make regular promotional activities to brand this country; The tourism sector of should be taken under focus to increase international brand value of Bangladesh by capturing large number of tourists; ? Both the government firms and Multinational Firms need to make attention to increase the international brand value of Bangladesh; ? The key focus should be on the six dimensions which are mentioned earlier in the assignment to make our country value stronger. Country branding is not about constructing slogans. Country branding involves planned communication management and purposeful social engineering. Branding is no longer a choice but a necessity, and the branding is not a function to be performed solely by the state or individual corporations, but an integrative and concerted effort by all concerned stakeholders.

If a country is effectively branded “soft power” can be engendered giving that country vast competitive advantage. However, only few developing countries have articulated and implemented a country branding strategy. The notion of an umbrella country brand inspiring, guiding and feeding commercial brands is a compelling one. Branding of developing countries could unleash a sustainable wealth creation behavior which will greatly help these poor countries break out of their poverty cycle. There is now an opportunity for developing countries to close this gap by turning their attention to employ professionalism in country branding. Books:- ? Kevin Lane Keller (2012-2013), Strategic Brand Management,3rd edition. Philip Kotler, Nation Branding 1997. Publications:- ? Mathias Akotia, CEO – Brand Ghana Office Accra, Ghana,” Country Branding: Promoting Investment, Tourism and Exports through Country Communication Management and Social Engineering”. ? Dr. Khalid Hasan, Managing Director, Nielsen Bangladesh and Treasurer AmCham Bangladesh. Acknowledgement: AmCham Bangladesh, “Nation Branding”. Websites:- ? http://www. bangladeshbrandforum. com ? http://www. thedailystar. net ? http://www. tourismboard. gov. bd ? http://www. interbrand. com ———THE END——— ———————– Letter of Transmittal :- Executive Summary PART: A Preamble Objectives

Methodology Limitations PART: B Literature Review PART: C Findings Export Brands Tourism Country Brand Investment People Foreign and Domestic polices Culture and Heritage Setting Objectives Step-1 Performing SWOT Analysis Step-2 Expanding upon an Umbrella concept Step-4 Choosing a Specific direction for distinctive branding Step-3 Strategies of Branding Bangladesh Creating Export Control Step-5 Making all the members interactive Step-9 Allocating adequate funds to finance each branding activities Step-6 Maintaining balance between promise and performance Step-7 Performing Activities on a regular basis Step-8 PART: D Recommendation Conclusion References

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Samsung: Building a Great Brand

Samsung: Building a Great Brand Presented By: Michael Baccus, Marcial De Castro, Judith Dupin, Monica O’Neil, and Jose Santillan Marketing Management- MAR 3023-P80 October 5, 2011 Samsung grew its brand equity by 186 percent in just five years from 2000 to 2005. “Brand equity is the value of the brand name, its worth as an asset to the company. ” (Marketing Principles, 2011, Module 6 p. 1). When new management came into the South Korean based firm, it scraped the all the various brand names that the company was selling low end electronics under, and consolidated by branding all of the company’s products as Samsung. Ten years later,

Samsung is a force to be reckoned with to its competitors and a global brand name. However, the decision to only use the brand name Samsung is not the critical key to its success. Samsung has focused on innovation and product design to build its brand equity and it is working. Samsung implemented different innovative ways to inspire and deliver great designs. The former chairman hired hundreds of new designers, implemented usability laboratories, and opened design centers around the world. The investment in product design, the progressive culture, and Samsung’s ability to step outside the box has all been invaluable in uilding a great brand. The critical activity in the process of Samsung’s transformation into a world- beating developer of new cell phone handset designs and other product line designs was its innovation with investment in product design and quality. Samsung built its brand into a superior brand by thinking and acting outside of the box. Instead of focusing on textbook product development funnels, it focused on more cutting edge methods such as the implementation design centers staffed with highly trained, creative, and skilled young designers and no bureaucracy to get in the way of design and innovation.

According to Roll (2011), “Samsung has created a strong brand around innovation, cutting edge technology and world class design. ” (para. 1). Samsung Chairman Lee Kun Hee concluded that “great design and innovation would be the way to build Samsung into a great global brand,” and he was correct (Marketing Principles, Module 6, p. 1). Instead of forming panels and hiring managers or more marketers to come up with new gimmicks, he hired hundreds of designers. The designers were from prestigious colleges of design and had an average age of just 33. The design force at Samsung multiplied y over 400% to over 400 designers in 10 years. This out of the take on product development allowed Samsung to transform its product line into world class. Competitors such as Sony have also followed in Samsung’s footsteps. According to Kunkel: “With nearly 250 industrial designers; graphic, packaging, and logotype designers; user- interface specialists and Web designers working in offices from Tokyo to San Francisco to Cologne, the Sony Design Center is responsible for nearly 2,000 new products, concepts, packaging schemes and design strategies every year, driving sales of products nd services totaling nearly $50 billion per year” (Product Description, para. 2). Although Sony also employs a lot of designers, Samsung still leads the industry in allowing their designs to inspire innovation. Samsung’s progressive culture of effective, efficient, and fast implementation is part of its advantage over competitors. According to the dynamic theory of competition presented in Marketing Principles (2011): “Suppliers with an insatiable improvement drive are more competitive. ” “Suppliers who implement effectively, efficiently, and faster are more competitive. ” (Module 1 p. 6).

Samsung changes its product line three times as fast as its competition such as Motorola. Samsung has shown agility, according to Marketing Principles (2011) “… i. e. the ability to implement change to change processes to introduce new technologies, new skills into the organization very quickly and effectively” (Module 1 p. 7). Change is managed very well at Samsung and they have lower manufacturing cost on top of their time to market being faster than that of competitors. Samsung avoids bureaucracy at its 24/7 design centers. Designers can work through problems without being delayed by non-productive orporate presentations and politics. Samsung has a constant focus on improvement and being faster and implementing the next innovation before the completion. Fackler (2006) explained, “”Our TVs are better,” Nobuyuki Oneda, Sony’s chief financial officer, said in an interview earlier this year. ”But Samsung’s cash flow is amazing. It is hard to invest in and develop products” at the same pace as Samsung. ” (para. 23). Samsung’s use of usability laboratories have been key in its market orientation skills and understanding the user interface. Samsung does not follow the textbook best-practice of product development, which is idely now considered “yesterday’s best practice” in product development. According to Marketing Principles, Samsung uses concurrent engineering and fast prototyping in an around the clock approach to problem solving (Module 6 Case 2 p. 1). The traditional best practice only produces a success rate of 50 percent in product development. This out dated way of thinking is burdened with “gates”. These gates are where bureaucracy in an organization can delay forward movement of the product design. Samsung has “decentralized” and broke away from this way of development.

It is actually criticized in the case study with the example of the use of Samsung’s design centers. Product development is free to develop in a creative environment without lawyers or other hold ups. Samsung has taken its out of the box approach and its investment in design and turned it into profits. As Marketing Principles explains, according to the current CEO of Samsung “we still have a lot of things to do before we are a great company. ” (Module 6 Case 2 p. 2) With that approach and its constant drive to beat itself, The Samsung brand equity is likely to continue to grow. References:

Marketing Principles. (2011). Portsmouth, NH: Backbone Press Frackler, M. (2006). Electronics company aims to create break-out product. The New York Times, p. C. 1. Kunkel, P. (1999, September 4). Product Description [Review of the book Digital Dreams: The Work of the Sony Design Center]. Amaonz. com. Retrieved from http://www. amazon. com/Digital-Dreams-Work-Design-Center/dp/0789302624 Roll, M. (2011). Samsung: Building brand equity through brand community. Venture Republic. Retrieved from http://www. venturerepublic. com/resources/Samsung_Building_brand_equity_through_brand_community. asp

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“Whitebook”: Cross-Marketing Platform for Luxury Brands in Japan

Ad-comm Group “Whitebook”: Cross-marketing Platform for Luxury Brands in Japan 1. What is a Whitebook? What role(s) does it play in the Marketing strategy of Ad-comm’s client companies? Answers 15 lines maximum. Whitebook is a cross marketing platform, a magazine that is published in Japan every 4 months and which displays nine luxury brands in nine diverse types of product. The magazine is customized for each luxury sponsors. The Whitebook plays an important role in terms of marketing strategy as it is a brand ambassador and CRM tool.

As the Whitebook is mainly distributed through sponsors, the Whitebook targets a prequalified small group of costumers but right ones, right at the beginning. Being displayed in the magazine can be seen a recognition of being a top luxury brand and be therefore an award. The Magazine creates a strong relationship between the brands and the costumers, as the costumers feel privileged to receive special attention from the brand. Moreover the Whitebook organizes event as well, which gathers customers and one brand.

Those events gives the opportunity for luxury brands to create a personal relationship (“face-to-face” relationship) with its customers, by telling its heritage and answering questions. 2. Take the perspective of the general manager of Porsche Japan. How would you assess the cost effectiveness or ROI of investing 20 million Yen a year to sponsor Whitbook? Would you be willing to be a sponsor? Why or why not? Answer by using a break-even analysis, and by calculating the expected customer lifetime value (i. e. oday’s expected value of a customer’s purchases over the course of his/her life as a Porsche customer). 1 to 2 pages. a. You must know what a break-even analysis is: this is when your return/revenue covers your investment – in other words: how many cars to sell to repay for the investment in Whitebook? b. Customer Lifetime value: refer to the last class definition – expected value of a customer over the course of his/her life as a customer = selling price of a Porsche x number of Porsches purchased in a lifetime.

Be creative by using the data of the case and common sense. There is no magic formula. I will take your assumptions into consideration. c. Then the cost effectiveness can be assessed by comparing to competitive offerings Porsche sales increased by 4. 55 ( 3000/658= 4. 55 – p. 8) in 6 years. For a luxury brand, democratization of the product also means loss of prestige and exclusivity. Whitebook is a way to keep the luxury image of the brand by creating a special relationship with the best costumers. 20 million Yen represents 2. % of the total marketing budget (p. 8). Assuming that an average price of Porsche is 75 000$ USD , in 6 years they have sold for 175 650 000$ (75 000 x 2320) . 20 million Yen is equal to 214 241. 04$ USD which corresponds to 1 285 446. 24$ USD in 6 years. In terms of break-even analysis and still assuming the average price of 75 000 $, they need to sell 3 cars (2. 86) (214 241. 04 / 75 000) per year to repay their investment in Whitebook. However, the case mentions that “10% of the VIP customers own 8-9 Porsches” (p. ), therefore we can assume that Porsche company sells at least 3 cars per year and therefore sponsoring Whitebook is profitable. In terms of Costumer Lifetime value, we shall still assume the average price of 75 000$ USD per car and the number of Porsches purchased in a lifetime of 8. 5 (“8-9 Porsches” own over lifetime – p. 8). The Costumer Lifetime Value is therefore equal to 637 500 (75 000 x 8. 5). Finally, in terms of cost effectiveness, if we look at exhibit 9, we see that the manufacturer’s suggested retail price of Whitebook is best advantageous compared to other selected print media in Japan.

The manufacturer’s suggested retail price is relatively low (5 000 000 Yen) compared to the number of pages and the location. Let’s take 25ans’. The MSRP is 4 200 000 Yen for 2 pages on the back cover; compared to 800 000Yen more for Whitebook (therefore 1. 19 more expensive (5 000 000 / 4 200 000 = 1. 19) ) for 3 times more pages inside the magazine for Whitebook. It is then clear that Whitebook is more profitable compared to less expensive magazines in terms of cost effectiveness. Moreover 25ans’ targets women’s luxury, however Porsche and fast cars are commonly known to be of mainly great interest for men.

Concerning Esquire, the MSRP is 3 200 000 Yen of 2 pages on the back cover, Whitebook is 1 800 000 more (therefore 1. 5626 more expensive (5 000 000 / 32 000 000)) for 3 times more pages inside the magazine. Thus, Whitebook magazine is more profitable than Esquire. Moreover Esquire targets Men’s fashion/lifestyle only, however purchasing a Porsche can also involve women (Porsche Cayenne for example). Concerning Nikkei Business, the MSRP is 5 680 000 Yen of 2 pages on the back cover which target business customers. Compare to Whitebook, Nikkei Business is 1. 36 more expensive than Whitebook for less pages. Moreover the Nikkei Business target only business Concerning Asahi Newspaper, the MSRP is 22 500 000 Yen for full page. Compare toe Whitebook, Asahi Newspaper is 4. 5 more expensive. Moreover, Asahi Newspaper targets general public, however Porsche wants to keep the luxury prestige and exclusive image of the brand by investing in a magazine, the target readers doesn’t therefore correspond to the main aim of Porsche. In conclusion, Whitebook is the best investment in terms of cost effectiveness compared to competitive offerings. . Put yourself in the shoes of Andreas Dannenberg. Whitebook exploits opportunities (and leverages strength, addresses weaknesses, and counter threats) in the luxury market and advertising industry, and it helps Ad-comm stay ahead of potential capability improvements by Japanese and multinational competitors. What is Whitebook to you? What role(s) does it play in the marketing strategy of Ad-comm itself? Answer by using a SWOT analysis (for Ad-comm) to understand internal and external strategic position. 1 to 2 pages. In terms of Strengths: Whitebook enables to be independent from Japanese Players * Doesn’t have to be subcontracted by Japanese agencies * Target the right costumers * Plays a role of CRM tool * Create privilege relationships between the brands and the costumers * Maintain the luxury and exclusive image of the sponsors * Create events to build a face to face relationship and build a trust relationship in the long run with VIP costumers -> the brand tells stories and heritage to the customer and the Japanese consumption, customers are choosing a brand mainly because of its heritage, recommendations of experts and experiences of family and friends. Plays a role of brand ambassador * Enable luxury companies to display the corporate portfolio * Enable luxury brands to make their cash flows easier In terms of Weaknesses: * Limited to Japanese market * Limited to the Japanese market * Implementation on international market requires global corporate decision In terms of Opportunities: * Cross-marketing platform * Select prequalified targeted and top-tier customer Create a unique virtual experience for privilege guests as well trough its website and entry key * Track behaviors of target customers * The website tracks behaviors of target customers * Create events which can be an opportunity to launch a new product to a right target costumer * Enable luxury companies to get new costumers * Work as a CRM tool In terms of Threats: * No competitors at the moment because is very selective and the nurture the relationship with the brand. However, competitors can come in the market, target also luxury clientele with more luxury brands or more subcategories * New competitors can come and create other type of cross-marketing platform like a privilege club which enables the brands to meet * New competitors can come an create the same magazine suited for the global market or USA market which number of customers are greater 4. What would you do with the expansion opportunities described at the end of the case (pp. 10-13)? Would you pursue: (a) increasing the number of sponsors I the current Whitebook? b) replicating the current Whitebook in overseas market; or (c) developing an alternative Whitebook focused on the new “edgy” brand market? Why? Answer with Pros and Cons in 1 to 2 pages. (a) Increasing the number of sponsors I the current Whitebook Pros: * Increase flexibility when planning events * Increase quantity of events (number of events) * Increase quality of events, as more VIP customers and sponsor companies are available * Increase the use of CRM tool * Make the relationship between brand and consumer more visible Cons: Additional cost could offset the fixed costs of production * Losing credibility * Losing trust with the brands * Losing luxury appeal because luxury is based on scarcity and exclusivity (b) Replicating the current Whitebook in overseas market (the best option because:) Pros: * Minimize additional effort and attention required to Whitebook * Provide learning opportunity for the account managers * Can introduce new categories in the book * Multinational sponsor already present in the Japanese version can be included in the overseas version * Already implemented in US, Singapore

Cons: * There’s a small budget required by sponsors * The decisions so fare are regional and not on corporate level * Changing the marketing strategy at a global level will be uncontrollable for Whitebook unless they change the whole corporate structure, which possible (c) Developing an alternative Whitebook focused on the new “edgy” brand market Pros: * Maintain most loyal costumers * Help to acquire innovative customers * Guarantee of 50 000 targeted customers * Involves high-margin brand segments Developing new relationships with new companies Cons: * Should redirect the target customers on young customers * Being part of a community takes out their own personality and uniqueness * Because edgy brands target young customers and customers prefer interactive marketing tools so edgy brand prefer to invest their marketing budget and events or promotions rather that printing marketing * Change the value of luxury image of the book * Because luxury is based on exclusivity and scarcity, including edgy brands will damage this luxury image

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Marriage and New Brand-name Establishments

– What a surprise to see you here. How many ages, since we’ve last seen, what’s new? – Oh, a lot of things. We’ve moved to another city, it’s much more comfortable to live in a city, not in countryside. It’s faster to get to the job, there are much more amusements and children are enraptured with their new school! – As for me, I don’t agree with you that live in the city is much easier, it’s healthier to live in the countryside, and, besides, what happened to you? I remember, that you had told, that you’ll never move to another place. We were all delighted about our city after graduation.

By the way it has changed much. – You see, life moves fast, so I try to be in the swim. Now I think it’s time to move in the cities, it’s much more interesting there, much more employment prospects. And how are you? – I have left in our town after graduation. My life has changed a lot. We were graduated as lawyers, but then I realized that law is not something for me, so I became a designer. – Oh, dear, what you are talking about? Are there any other women who would graduate from university of law and become a designer? Oh, well, you’ve always amazed me with your decisions.

So, I see you’ve got married as well. – Yes, do you remember Harry? Our group mate? He is my husband. – Oh, what a surprise, my congratulations! Is he is still working as a legal assistant? – No, he is a court-appointed attorney. He used to work hard, finally he got this high position, I’m so proud of him. – You seem to have a very happy family life. I have never thought that you would become such a nice and adorable wife, you used to tell, that you’re going to take up the world as the best lawyer the earth ever seen and now you tell me, that you’re married and proud of your husband making your career. I do, I used to work as attorney as well, but I have left the job, because it’s very difficult for me to combine job and family. Now I am making some money on the side being a designer for one of those new brand-name establishments in our town. For me it’s very important to be a good wife, and, by the way, we’re waiting a baby. – Are you serious? Such a great piece of news! My congratulations. And as for me, I’ve got divorced. My husband didn’t like that I’m working so much, it was the time, when I was coming up to the world, I didn’t like the idea to risk with my career for living with him, so it was the end. But I know that you have a wonderful daughter, how old is she? – She is nine. We’ve got divorced after her birth. It was a good experience for me. I will not marry anyone, who’s going to teach me how to live. – You sound very independent. Are you really happy being single, I mean are you really sure of that kind, that happiness is when you’re making up your career and there’s no man in your life, who would take care of you? – Oh no, I just don’t want to live with somebody, who thinks, that my opinion is not that important as his.

As for family, I hope to meet somebody, a true love, you see, and I feel, that this moment is quite near. – You’re right, and I’m sure, you’ll meet it very soon. Do you remember Patrick? – Oh yes, that boy from our group, that I used to like so much. – He was quite interested, when he heard that you’re coming to our city and he wants to see you. What do you think about going to an alumni reunion this evening? – I’d love to! I’ll be there. – Ok, see ya there, I’ll wait you in the hall at 6 pm – Ok)

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Brand Awareness

Marketing Research On-Line Vol. One, 1996 Page 1 Management Perceptions of the Importance of Brand Awareness as an Indication of Advertising Effectiveness Emma Macdonald Dept of Management Newcastle University Central Coast Campus, Brush Road Ourimbah, NSW 2258, Australia. Email: [email protected] newcastle. edu. au Byron Sharp Marketing Science Centre University of South Australia North Terrace, Adelaide, Australia. Email: Byron. [email protected] edu. au In 1987 Rossiter and Percy wrote “Brand awareness is widely misunderstood and often wrongly measured, even by experienced managers” (p141).

Yet brand awareness is covered in most texts on advertising measurement, it is a central part of the popular hierarchy of-effects advertising model, and marketing managers claim it as an important goal of their communications activities (Kelly 1991). This paper discusses recent theoretical developments which attempt to explain the role which brand awareness plays and then presents empirical findings concerning how Australian managers utilise brand awareness as a measure of marketing and advertising effectiveness.

Marketing Research On-Line Vol. One, 1996 Page 2 THE ROLE OF BRAND AWARENESS Rossiter and Percy (1987) describe brand awareness as being essential for the communications process to occur as it precedes all other steps in the process. Without brand awareness occurring, no other communication effects can occur. For a consumer to buy a brand they must first be made aware of it. Brand attitude cannot be formed, and intention to buy cannot occur unless brand awareness has occurred (Rossiter & Percy 1987, Rossiter et al. 1991).

In memory theory, brand awareness is positioned as a vital first step in building the “bundle” of associations which are attached to the brand in memory (Stokes 1985). The brand is conceptualised as a node in memory which allows other information about the brand to be “anchored” to it (Aaker 1991b). The conceptualisation of a network of brand associations in memory with the brand as a central core has been put forward by many others (eg. Keller 1993, Holden 1993, Holden & Lutz 1992). Brand Awareness in Decision Making

The above two roles of brand awareness should be well known to marketing managers. The role of brand awareness in decision theory is probably less well known. Brand awareness and the consideration set Brand awareness has been hypothesised to play a crucial role in determining the consideration set: the small set of brands which a consumer gives serious attention when making a purchase (Howard & Sheth 1969, Narayana & Markin 1975). The composition of this small set of brands which are considered during decision-making is important. A brand that is not considered cannot be chosen (Baker et al. 986), and further, the probability of the brand being chosen is a function of the number of other brands in the consideration set, for instance, the probability of a brand being selected from 1, 2, 3, or 4 brands, decreases rapidly from 1. 0 to 0. 5, 0. 33, and 0. 25 respectively. In a situation where the consumer is aware of a number of brands which fit the relevant criteria, he or she is unlikely to expend much effort in seeking out information on unfamiliar brands. A brand that has some level of brand awareness is far more likely to be considered, and Marketing Research On-Line Vol. One, 1996 Page 3 herefore chosen, than brands which the consumer is unaware of. Additionally, the strength of awareness of the brands within the consideration set can also be significant. Wilson (1981 cited in Woodside & Wilson 1985) confirmed the importance of top-of-mind awareness in a study which found that the higher the position of the brand in the consumer’s mind measured by unaided recall, the higher the purchase intention and the higher the relative purchase of the brand. In another study, increases in brand awareness were shown to increase the probability of choice even without any accompanying change in attitude or perceptions (Nedungadi 1990).

Brand awareness as a heuristic Brand awareness can also affect decisions about brands within the consideration set (Hoyer & Brown 1990, Keller 1993). Consumers may employ a heuristic (decision rule) to buy only familiar, well-established brands (Roselius 1971, Jacoby et al. 1977, both cited in Keller 1993). Consumers do not always spend a great deal of time making purchase decisions. In a study of pre-purchase search for laundry powder, Hoyer (1984) found that the median number of packages examined in-store was 1. 2 before a selection was made.

Dickson and Sawyer (1986) found that for purchases such as coffee, toothpaste and margarine, the consumer took an average 12 seconds from the time of first looking at the shelf to the time they placed the item in their trolley. In many cases consumers try to minimise the costs of decision making in terms of time spent, and cognitive effort, by employing simple rules of thumb, such as ‘buy the brand I’ve heard of’. This is particularly likely to occur in low involvement situations where a minimum level of brand awareness may be sufficient for choice (Hoyer & Brown 1990, Mackay 1990).

In such situations, the consumer may lack the motivation or the ability to judge between brands (Petty & Cacioppo 1986). Brand awareness enhances perceived quality A further way brand awareness may affect choice within the consideration set is by influencing perceived quality. In a consumer choice study by Hoyer and Brown (1990) over 70% of consumers selected a known brand of peanut butter from among a choice of three, even though another brand was ‘objectively’ better quality (as determined by blind taste tests), and even though they had neither bought or used the brand before.

This result is even more surprising considering the subjects were given the opportunity to taste all of the brands. Just being a known brand dramatically affected their evaluation of the brand. Intuitively, this makes sense: a consumer may rationalise that if they have heard of a brand, the company must be Marketing Research On-Line Vol. One, 1996 Page 4 spending a fair sum on advertising. If it is spending a lot on advertising, then the company must be reasonably profitable which means that other consumers must be buying the product and they must be satisfied enough with its performance, therefore the product must be of reasonable quality.

Stokes (1985) found that for a low involvement product (rice) familiarity had a greater magnitude of effect on the quality perception of a brand than either price or packaging. And further, that familiarity had a significant effect on purchase intention whereas price and package design did not. How Does Brand Awareness Benefit the Marketing Manager ? Brand awareness should be an important goal of the marketing communications efforts of a firm as it has a number of important functions. It is widely acknowledged that without brand awareness occurring, brand attitude and brand image cannot be formed.

However, equally important but less widely recognised is the importance of brand awareness as a heuristic which can affect inclusion in the consideration set, and in many situations may be sufficient by itself to determine choice from the consideration set ie. , brand awareness can determine not only entry to the consideration set, but can also determine which brand is chosen from the consideration set. Aaker (1991a, b) argues strongly the case for brand building and maintaining brand equity; he cites brand name awareness as one of four major brand assets which add value to the product or service and/or its customers.

Investments in brand equity and in particular brand awareness can lead to sustainable competitive advantages and thus to long term value. Brand awareness can add value by 1. placing the brand in the consumer’s mind, 2. acting as a barrier to entry to new unestablished brands (Stokes 1985), 3. reassuring the customer of the organisation’s commitment and product quality, and 4. providing leverage in the distribution channels (intermediaries are customers too, and are just as suspicious as consumers are of unknown products) (Aaker 1992). However, there is difficulty in demonstrating the value of assets such as brand awareness to managers.

Aaker (1991a) complains the problem is that, firstly, enormous pressure exists for organisations and their brands to demonstrate short-term profit results. Brand managers are often given a one to three year time horizon and little incentive to make strategic brand building investments. And secondly, demonstrating the long-term value of brand building is “exceptionally difficult” (Hogarth 1980, Aaker 1991a). Even managers who claim that they are concerned with the brand building activities of their firm, find difficulty in gaining support and Marketing Research On-Line Vol. One, 1996 Page 5 esources for these activities. In the light of Aaker’s findings, a study by Kelly (1991) is very interesting. Kelly carried out a series of interviews with Australian marketing managers. Many of the managers he interviewed “maintained that their advertising was directed towards building the longer term effects of favourable brand image and strong brand loyalty”. Other managers were quoted as saying that they “were not looking for short-term results” but that advertising provides them with the opportunity “for corporate branding and image building which is very much oriented to the longer term” (Kelly 1991 p. . ). In other words, these managers claimed the long-term goals of brand-building and brand image to be of greater interest to them than short-term objectives such as sales. However this research was based on discussion with managers, and might obviously suffer from managers saying what they felt they should do, rather than what they actually do, especially when talking to a marketing academic. Why is brand awareness misunderstood?

Rossiter and Percy (1987) claim that the difficulty lies in that there are two types of brand awareness: brand recognition and brand recall, and which of these occurs will depend on the choice situation. Brand awareness does not necessarily require recall of the brand name. The consumer may identify a brand by its location (”the store on the corner”) or its packaging or shape (”the hexagonal bottle for Heinz tomato sauce”). Furthermore, brand recall may not be necessary for purchase; mere recognition of the brand in the store, “Hey that’s the new banana flavoured milk” may be sufficient for purchase to occur.

Lynch and Srull (1982) defined these different choice situations as stimulus-based (where all the relevant brand and attribute information is physically present), memory-based (where all relevant information must be recalled from memory) and mixed-choice (where some of the information is physically present, and some must be recalled from memory). Obviously, brand recognition occurs in stimulusbased situations, and recall occurs in memory-based situations. Both types of awareness would occur in mixed-choice situations*. The objective of this study was to determine the level of understanding of brand awareness Alba, Hutchinson and Lynch (1991) argue that a pure stimulus-based choice situation does not occur in the real world. They claim that even in a supermarket, which intuitively would be a stimulus-based choice situation, the external stimulus environment is so complex that the consumer must recall what they are seeking in order to find the relevant brand and product category in the display. Marketing Research On-Line Vol. One, 1996 Page 6 amongst marketing practitioners, and their use of it as a measure of their marketing effectiveness. METHODOLOGY

Personal in-depth interviews were carried out with ten marketing managers initially. These were used to determine how a questionnaire to managers would be received and how it should be structured. It was important to use language in the questionnaire which would be widely understood. The final questionnaire was administered over the phone to 100 marketing managers in South Australia. Screening allowed those responsible for the majority of marketing decisions within an organisation to be targeted and avoided those who are called “marketers” but have little true responsibility in the area.

The questionnaire was administered over a three-week period in 1993. Subjects The subjects involved were marketing managers in South Australia. The majority of these were accessed through the database of the Australian Marketing Graduate Association which has a large alumni base and also through more general sources (eg. Yellow pages). The managers represented a variety of organisations from service and manufacturing fields, and government and private sector. In-depth interviews The purpose of the in-depth interviews was primarily to design a questionnaire which would capture managers’ perceptions.

From these ten interviews it was determined that a strong variation exists in the level of understanding of the brand awareness concept amongst marketing managers and in the value that is perceived to derive from brand awareness. Surprisingly, two managers became quite defensive when the topic of the interview was reached and one actually refused to answer any more questions. The majority of the managers however, were very helpful, and made a valuable contribution to the design of the study. Of the ten managers interviewed, four showed a good understanding of the concept.

Marketing Research On-Line Vol. One, 1996 Page 7 However, a number of managers failed to delineate brand awareness from other marketing communications outcomes, such as, brand image, attitude and consumer perceptions. Half of the managers surveyed used brand awareness as a measure of their communications effectiveness, however, it was not measured in a deliberate manner, or on a regular basis: “No, we don’t directly measure brand awareness, but when we launch a new product part of the survey is targeted at whether people recognise the product and corporate brand”.

Lack of resources was partially to blame: “As to monitoring brand awareness, we can’t do it as often as we would like due to cost restraints”. It was noted that the tone of a couple of managers was regretful: “Yes we should do that”. A number of managers commented that sales level was the most frequently used measure of marketing effectiveness. If sales were not doing well for some reason, then a survey might be carried out which possibly included a question giving some indication of brand awareness.

Surprisingly, the marketing manager from one of the most highly advertised and recognised brands in the world claimed that “brand awareness is a useless concept”. He appeared however, to have brand awareness confused with ad awareness, which rather than being a long-term asset is merely a measure of the recall of a particular ad campaign: “the only use of brand awareness is to tell the advertising agency if they have made a good commercial”. Questionnaire On the basis of the findings from the in-depth interviews a questionnaire was designed which could be administered to marketing managers in a variety of organisation types.

The questionnaire was divided into three main sections: the first section aimed to determine how managers measure their marketing communications’ effectiveness, and whether brand awareness was mentioned in this context; the second section was designed to test managers’ understanding of the brand awareness concept and their perceptions of its usefulness; and the third section aimed to find out if and how they used brand awareness as a measurement tool. RESULTS The results of the questionnaire are presented in the order of the questions that were asked. Marketing Research On-Line Vol.

One, 1996 Page 8 1. Measures of marketing communications activities When asked (unprompted) what measures of their communications activities they used, 57% of the marketing managers claimed that they used their sales figures. The measures that were then rated as most used were coupon response 16%, customer feedback 12%, and customer enquires 12% (Table 1) , all of which are response-based measures. These are all short-term measures of communication effectiveness and seem to contradict Kelly’s (1991) findings that managers are most concerned with long-term measures.

Less than 5% mentioned cognitive, long-term measures, such as attitude or awareness (Table 1). TABLE 1: Measures of marketing communications used (Unprompted) TYPE OF MEASURE Sales level Mail response (ie. coupons) Customer comments / feedback Customer enquires Phone enquires Market share Attitude Retention Awareness Other Don’t measure NOTE: Multiple responses allowed. Respondents 57% 16% 12% 12% 09% 03% 03% 01% 01% 10% 11% Not surprisingly, when prompted, the number of managers who claimed to use any of the measures listed rose dramatically (Table 2). Marketing Research On-Line Vol.

One, 1996 TABLE 2: Measures of marketing communications used (Prompted). TYPE OF MEASURE Sales level Customer’s perceptions Market share Brand awareness Ad awareness Attitude NOTE: Multiple responses allowed. Respondents 98% 90% 74% 64% 61% 58% Page 9 More interesting is a comparison of the rankings that some of the measures received when prompted versus unprompted (Table 3). Sales level was consistently ranked as the most useful measure of a firm’s marketing communications which firmly contradicts Kelly’s (1991) findings that marketing managers are not concerned with the short-term measures of their communications’ effectiveness.

Customer perceptions (a response-based measure) was ranked second and market share (a short-term measure) was ranked third in both instances. Attitude which was ranked as highly as market share in the unprompted situation, received the lowest ranking of all when prompted. It was pushed out of its reasonably high position by brand awareness and advertising awareness. It appears that in the prompted situation the respondent was suddenly reminded about brand awareness and ad awareness (which had received very low measures when unprompted) and rated these quite highly.

One possible interpretation is that the first unprompted question found out what managers actually do whereas the second question found out what they thought they should be doing, and one of the things they thought they ought to be doing was measuring their brand awareness. TABLE 3: Ranking of measures of marketing communications: Comparison of unprompted ranking versus prompted. Unprompted (Table 1) TYPE OF MEASURE Sales level Customer’s perceptions/comments Market share Brand awareness Ad awareness Attitude 1 2 3 5 not applicable 3 Prompted (Table 2) RANKING* 1 2 3 4 5 6 Ranking determined by the number of managers who listed the measurement type. Marketing Research On-Line Vol. One, 1996 Page 10 2. Level of understanding of brand awareness When asked what does the term ‘brand awareness’ mean (unprompted), 46% of marketing managers could provide a reasonable definition, though few showed a clear understanding. Another 38% confused brand awareness with other related but higher order cognitive processes such as brand image, customer attitudes and perceptions.

Twelve percent of respondents gave answers which could not be classified because they either just repeated the question or gave nonsensical evasive answers (Table 4). Again, this highlights the difficulty involved in talking to marketing people about areas in which they perceive that they are supposed to be experts. Four percent of managers were bold enough to actually come out and say that they believed it a concept of limited value, with comments such as “its a feel good thing”, “its just a modern day term which will go out of fashion”.

TABLE 4: Definition of brand awareness (unprompted) DEFINITION Brand awareness Confused with brand image, etc. Response could not be classified* NOTE: Five respondents gave multiple answers. * Answer was vague, evasive or merely a repetition of the question. Respondents 46% 38% 12% Of the 46% of managers who provided reasonable definitions of brand awareness, the definitions given could be classified into a few distinct types (Table 5). The majority of these managers (61%) defined brand awareness as simple recognition of the brand, a partially correct answer. Another 30. % of managers defined brand awareness as the percentage of customers who know the product in the market (16. 3%), or the association of the brand with the product category (14. 3%). These last two definitions are more accurate and show a greater level of understanding of brand awareness. TABLE 5: Elements of brand awareness definition DEFINITION Recognition How well known the brand is (% of market place) Association of brand with product category Recall Familiarity NOTE: One respondent gave a multiple answer. Resp (%) 61% 16. 3% 14. 3% 06% 01% Resp (No. ) 30 08 07 03 01 Marketing Research On-Line Vol.

One, 1996 Page 11 3. Measuring Brand Awareness When asked “Have you ever measured the awareness of any of your brands? ” only 44% of managers responded in the affirmative, despite the fact that 64% claimed to use brand awareness as a measure of their communications effectiveness (Table 2) and 61% claimed to measure their competitors’ awareness levels. The majority (93%) of those managers who had measured their brand awareness employed an agency to carry out their research. The remainder of this section considers only those managers who had measured their brand awareness at some stage.

Of the 44 managers who claimed to measure their brand awareness, 75% said it was measured on a continuous basis (includes 16% who answered “sometimes” to this question! ). This result seemed somewhat surprising considering findings by Aaker (1991a) and others, that brand assets are frequently ignored by managers. In terms of advertising and ad development, 61% said brand awareness was measured during the development of a new ad campaign (incl. 7% “sometimes”), and 59% said it was used to test a new ad campaign. Only 27% (incl. % “sometimes”) said they measured brand awareness during the initial commercialisation of a new product (Table 6). TABLE 6: When is brand awareness measured? During initial commercialisation of a new product Measure Brand Awareness? YES NO SOMETIMES Not Applicable When developing a new ad campaign To test a new ad campaign On a continuous basis RESPONDENTS No. 08 28 04 04 % 18% 64% 09% 09% No. 24 17 03 _______ % 54% 39% 07% _______ No. 26 18 00 _______ % 59% 41% 00 _______ No. 26 11 07 _______ % 59% 25% 16% _______ Managers reported the frequency of measuring brand awareness as annual (43%) or every few years (25%).

Less than a third of managers reported measuring brand awareness quarterly or monthly (Table 7). This result seems inconsistent with managers’ reports that they measure brand awareness on a continuous basis. It appears that by “continuous” many of the managers actually meant every year or two, and quite possibly this would coincide with the frequency with which they are required to develop and test new ad campaigns. Therefore it is possible that contrary to their claims, many of the managers do not measure their brand awareness Marketing Research On-Line Vol. One, 1996 Page 12 continuously at all.

TABLE 7 Frequency of measuring brand awareness RESPONDENTS FREQUENCY Monthly Quarterly Annually Every Few Years No. 05 09 19 11 % 11% 21% 43% 25% When asked (unprompted) how they measure brand awareness, not surprisingly, 77% of managers said they use a questionnaire. More surprising, is the 43% of managers who claimed to use their sales figures to determine their brand awareness (Table 8). What this really means is that they do not measure their brand awareness at all. This result seems consistent with the findings from the in-depth interviews that sales figures are the most commonly used easure of marketing effectiveness. If sales levels are reasonable, then managers assume that their marketing communications and their level of brand awareness are acceptable. In many cases, brand awareness is only measured if something appears to go wrong with the brand. TABLE 8: Measurement of brand awareness (unprompted). RESPONDENTS MEASURE AWARENESS Carry out a questionnaire Face-to-face at point of contact Look at sales figures Using a competition No. 34 25 19 13 % 77% 57% 43% 30% NOTE: Multiple responses allowed.

Fifty percent of managers who had measured brand awareness at some time claimed satisfaction with the frequency with which they measure brand awareness (Table 9). Considering that less than a third of managers measure brand awareness at least quarterly, this result appears to show the lack of importance that many managers attach to brand awareness. Another 48% of managers said that they do not measure brand awareness as often as they would like to, and the main reason given for this was a lack of resources, such as time or money. Marketing Research On-Line Vol. One, 1996 TABLE 9: Satisfaction with frequency of brand awareness measurement.

Do you measure brand awareness as often as you would like to? YES NO No response No. 22 21 01 RESPONDENTS % 50% 48% 02% Page 13 DISCUSSION Against the advice of nearly every marketing and advertising textbook managers appear to do little to monitor communications effectiveness and pay scant regard to direct measures of communication effect instead preferring sales or related measures. These results seem to indicate a large discrepancy between the importance attributed to brand awareness by marketing texts and its use by marketing managers. This may be partly explained by the sample being of South Australian managers.

Few head offices of very large organisations are located in South Australia and it might be that in larger organisations marketing management is more sophisticated and managers better qualified. Another potential explanation for the failure of management to undertake regular measurement of brand awareness is that managers of well established brands may lose interest after conducting several surveys which all report similar high levels of brand awareness. Though this does not explain why managers make such little use of advertisement awareness as a measure of the effectiveness of a new campaign.

The reason for this is likely to lie simply in the almost active discouragement of such testing by advertising agencies and by the unwillingness of some advertising/marketing managers to subject aspects of their work to measurement. It is precisely the reason why textbooks advise against using variables such as sales to measure communications effectiveness that advertising managers may use them – it allows them to escape scrutiny and to blame bad sales results on other causal events such as current pricing levels, competitor actions, and sales force efforts.

CONCLUSION This study helps to explain the attitude of many managers to the concept of brand awareness. Marketing Research On-Line Vol. One, 1996 Page 14 Despite marketing theory which proposes that high brand awareness can be a very valuable asset to a firm, our finding is that the concept is frequently dismissed by managers as unimportant and certainly not worthy of monitoring. The authors’ interpretation is that amongst a great many managers, gaining brand awareness is regarded as a once-off battle which must be fought, and once it is won, it can be forgotten.

Managers give little consideration to the idea of maintaining and monitoring brand awareness on a continuous basis. While brand awareness offers a great deal of potential value to the marketing manager, the difficulty lies in its measurement. Managers’ lack of interest is partially justified by the insensitivity of existing measures of brand awareness. While determining the breadth of a brand’s awareness (ie. the percentage of the population who recognise the brand) is quite easy, measuring depth of brand awareness is extremely difficult.

Yet it is the depth of brand awareness, that is, the level of accessibility or “salience” of the brand in the consumer’s mind, which is of most interest to mature markets. A need exists for more extensive research in this area so that greater sensitivity in measures of brand awareness can be developed. Aaker, David A (1991a) “Are Brand Equity Investments Really Worthwhile? “, Admap, Vol. , 14-17. Aaker, David A (1991b) “Managing Brand Equity: Capitalizing On the Value of a Brand Name”, The Free Press: New York.

Aaker, David A (1992) “The Value of Brand Equity”, Journal of Business Strategy, Vol. 13 No. 4 (Jul-Aug), 2732. Alba, Joseph W; Hutchinson, J Wesley; Lynch, John G (1991) “Memory and Decision Making”, in Handbook of consumer theory and research (Kassarjian, H H; Robertson, T S eds. ), Prentice Hall:Englewood Cliffs, NJ. Baker, William; Hutchinson, J Wesley; Moore, Danny; Nedungadi, Prakash (1986) “Brand Familiarity and Advertising: Effects On the Evoked Set and Brand Preferences”, in Advances in Consumer Research (Lutz, Richard J ed. ), Association for Consumer Research:Provo, UT.

Dickson, Peter R; Sawyer, Alan G (1986) “Point-Of-Purchase Behaviour and Price Perceptions of Supermarket Shoppers”, Marketing Science Institute: Cambridge, MA: MSI. Hogarth, Robin (1980) “Judgement and Choice: The Psychology of Decision”, Wiley: New York. Holden, Stephen J S (1993) “Understanding Brand Awareness: Let Me Give You a C(L)Ue! “, Advances in Consumer Research, Vol. 20, 383-388. Holden, Stephen J S; Lutz, Richard J (1992) “Ask Not What the Brand Can Evoke; Ask What Can Evoke the Brand”, Advances in Consumer Research, Vol. 19, 101-107.

Howard, John A; Sheth, Jagdish N (1969) “The Theory of Buyer Behaviour”, Wiley: New York. Hoyer, Wayne D (1984) “An Examination of Consumer Decision Making for a Common Repeat Purchase Product”, Journal of Consumer Research, Vol. 11, 822-829. Hoyer, Wayne D; Brown, Steven P (1990) “Effects of Brand Awareness On Choice for a Common, RepeatPurchase Product”, Journal of Consumer Research, Vol. 17, 141-148. Marketing Research On-Line Vol. One, 1996 Page 15 Jacoby, J; Szybillo, G; Busato-Schach, J (1977) “Information Acquisition Behavior in Brand Choice Situations”, Journal of Consumer Research, Vol. 3, 209-216.

Keller, Kevin Lane (1993) “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity”, Journal of Marketing, Vol. 57, 1-22. Kelly, P (1991) “Advertising Research and Decision Making”, Procedings of the Australasian Marketing Educators’ Conference, University of South Australia: Adelaide. Lynch, John G Jr; Srull, Thomas K (1982) “Memory and Attentional Factors in Consumer Choice: Concepts and Research Methods”, Journal of Consumer Research, Vol. 9, 18-37. Mackay, Hugh (1990) “Australian community attitudes towards the subject of alcohol advertising”, November, Mackay Research research report.

Narayana, L L; Markin, R T (1975) “Consumer Behaviour and Product Performance: An Alternative Conceptualisation”, Journal of Marketing, Vol. 39, 1-6. Nedungadi, Prakash (1990) “Recall and Consumer Consideration Sets: Influencing Choice Without Altering Brand Evaluations”, Journal of Consumer Research, Vol. 17, 263-276. Petty, Richard E; Cacioppo, John T (1986) “Communication and Persuasion”, Springer-Verlag: New York. Roselius, Ted (1971) “Consumer Rankings of Risk Reduction Methods”, Journal of Marketing, Vol. 35, 56-61. Rossiter, John R; Percy, Larry (1987) “Advertising and Promotion Management”, McGraw-Hill: Singapore.

Rossiter, J R; Percy, L; Donovan, R J (1991) “A Better Advertising Planning Grid”, Journal of Advertising Research, Vol. , 11-21. Stokes, R C (1985) “The Effects of Price, Package Design, and Brand Familiarity On Perceived Quality”, in Perceived Quality (Jacoby, J; Olson, J eds. ), Lexington Books:Lexington. Wilson, C E (1981) “A Procedure for the Analysis of Consumer Decision Making”, Journal of Advertising Research, Vol. 21, 31-38. Woodside, Arch G; Wilson, Elizabeth, J (1985) “Effects of Consumer Awareness of Advertising On Preference”, Journal of Advertising Research, Vol. 25, 41-48.

Free Essays

Brand and Chapter

CB2201 Consumer Behaviour Lecturers: Kristina Georgiou and Alison Barker Tutorial Questions Trimester 1, 2013 Students Week 2 – 04/03/13 Chapter 8 1. 2. 4. How does a discrepancy between the ideal state and the actual state affect consumer behavior? What factors affect the inclusion of brands in the consideration set, and why would a company want its brand in the consideration set? What six broad groups of sources can consumers consult during external search. Where does the Internet fit into these groups. Chapter 9 3. 6. 7. How do consumers use compensatory and noncompensatory decision-making models?

How do appraisals and feeling, as well as affective forecasting, influence consumer decision making? What three contextual elements affect consumer decision-making?

Week 3 – 11/03/13 Chapter 10 5. 6.

What is brand loyalty, and what role does it play in low-effort decision-making? How do price and value perceptions affect low-effort decision making? Chapter 11 3. 5. How do expectations and performance contribute to disconfirmation? Why is complaining important to marketers and how should complaints be handled?

Week 4 – 18/03/13 Chapter 2 Case Study – SUBMIT CASE ANSWERS IN CLASS WHAT’S IN A STORE AT UMPQUA BANK 1. 2. 3. How does Umpqua enhance consumer motivation by making itself personally relevant to customers? Explain, in consumer behavior terms, how the Innovation Lab enhances customers’ ability to process information about banking products and services? What is Umpqua doing to enhance consumers’ opportunity to process information about financial services? Week 5 – 25/03/13 Chapter 3 1. 4. 5. How do zipping and zapping affect consumers’ exposure to stimuli such as products and ads.

What is perception, and what methods do we use to perceive stimuli? Differentiate between the absolute threshold and the differential threshold, and explain how these concepts relate to Weber’s Law. HEINZ IS LOOKING FOR ATTENTION – SUBMIT CASE ANSWERS IN CLASS 1. Using the concepts discussed in this chapter, explain how Heinz has been successful in generating exposure and capturing attention. What other ideas would you suggest Heinz try to foster exposure, attention and perception? In terms of exposure, attention and perception, what are some potential disadvantages of Heinz’s Top This TV contests?

Do you think Heinz will benefit long-term from holding a contest for students that focused on the visual appeal of designing single-serve ketchup packets? Explain your answer.

2.3. Teaching Free Week Friday – 30/03/13 – Thursday 04/03/13

Week 6 – 08/04/13 Mid Term Test in Class BASED ON CHAPTERS 2, 3, 8, 9, 10 & 11

Week 7 – 15/04/13

Chapter 4 – SUBMIT CASE ANSWERS IN CLASS HYUNDAI ACCELERATES NEW IMAGE MARKETING 1. 2. 3. Why would Hyundai have a voice-over stating “We’re pretty sure that Mercedes, BMW, and Lexus aren’t going to like it very much” in a Genesis ad? How is Hyundai using country of origin to influence consumers’ inferences about the Genesis? In terms of knowledge and understanding, how is the introduction of the upscale Genesis sedan likely to affect how consumers think about lower-priced Hyundai models? Chapter 5 1. 3. What are attitudes, and what three functions do they serve.

What role does credibility play in affecting consumer attitudes based on cognitions?

Week 8 – 22/04/13 Chapter 6 2. 3. 5. 7. What role do source, message, context, and repetition play in influencing consumers’ cognitive attitude? What is the mere exposure effect, and why is it important to consumers’ affective reactions. Explain the dual-mediation hypothesis. What are the implications for affecting consumers’ brand attitude? What are the advantages and disadvantages of featuring celebrities in advertising messages? Chapter 7 4. . 6. How can retrieval failures and errors affect consumer memory? How does recognition differ from recall? What is implicit memory, and how can it affect a consumer’s ability to retrieve a brand name?

Week 9 – 29/04/13 Presentation Day

Week 10 – 06/05/13 GROUP PROJECT DUE AT BEGINNING OF CLASS 8. 30am Chapter 14 1. 2. 5. Explain the differences between global values, terminal values, instrumental values, and domain-specific values.

What are the four main value dimensions along which national cultures can vary? What are the three components of a consumer’s lifestyle? . Chapter 15 2. 5. 7. Why do companies sometimes target opinion leaders for marketing attention? What three techniques can marketers use to encourage consumer compliance? Why is word of mouth so important for marketers?

Week 11 – 13/05/13 Chapter 16 4. 5. 6. How can consumers be categorized in terms of their timing of adoption relative to other consumers?

What is the product life cycle, and how does it differ from product diffusion? How do consumer learning requirements and social relevance affect resistance, adoption, and diffusion? Chapter 18 1. 5. 6. What is compulsive buying, and why is it a problem? What influences environmentally conscious consumer behavior? What can consumers do to resist marketing practices they perceive as unwanted or unethical?

Week 12 – 20/05/13 Final Test – In class BASED ON CHAPTERS 14, 15, 16 & 18

Free Essays

Financial Analysis of Yum Brands

A Financial Analysis of Yum! Brands, Inc Restaurants are, and will continue to be, an extremely profitable business. As a result, shareholders who have interest in brands such as McDonalds and Starbucks need not to worry about negative implications for the food giants compared to more risky industries. One company in particular, Yum! Brands (YUM), is another brand investors should become familiar with. Consumers may recognize the more specific stores the company owns such as Taco Bell and Pizza Hut, but investors should realize the sales and earnings growth associated with this organization.

In addition, while there are many companies in the restaurant industry, Yum not only rings familiar with consumers like Starbucks, but Yum engenders excellent financial news at a level above its competitors. However, before trying to access these financial statements, it is important to understand more specifics about Yum’s business model. According to Reuters, Yum “is a quick service restaurant (QSR) with over 34,000 units in more than 100 countries and territories. ” These quick service restaurants include consumer favorites such as Taco Bell, Pizza Hut, Long John Silver’s, and KFC.

Whether the operating segment sells pizza or chicken, “Yum develops, operates, franchises and licenses a worldwide system of restaurants, which prepare, package and sell a menu of food items. ” As each of these fast-food places is obvious to most readers in America, it is also quite interesting that over 100 countries are familiar with these names as well. In fact, segments like KFC were actually introduced in many markets like China before more obvious competitors like McDonalds. Since fast food is generally considered an inelastic, or non-cyclical, good, even during times of economic uncertainty, Yum will prosper.

While most of its food is relatively cheap compared to rivals such as Brinker and Darden, consumers will still flock to Yum restaurants in similar volume during any stage of the economic cycle. Therefore, revenue growth should continue to remain steady, but positive, year after year making Yum a great portfolio choice at any time. To justify this claim, during the past twelve months, Yum received a revenue figure, according to Reuters, of $9. 56 billion. This number was a 5. 05% increase compared to the previous year number.

While this increase in margin was a bit below the average year-to-year increase of 6. 58%, the difference in growth decline was only a 23% difference. Other companies like Brinker saw a 43% deceleration during this same time period. In addition, while some investors may critique the industry 11. 31% growth in sales during the past to Yum’s lower numbers, it is also important to realize that Yum supports the seconds highest sales figure in its industry, and appreciation of revenue growth will be much difficult than smaller-capitalization companies to come-by.

This is in addition to the fact that many lower-revenue companies in this industry are actually seeing negative sales growth (not deceleration) during the same time frame as the aforementioned analysis. With these thoughts on sales at hand, these numbers can be used at the broadest of levels to illustrate that the steady increase and influx of money into Yum over its career has aided in the appreciation of its share price. Since 2003, not once has Yum seen a calendar year decrease in price. This comes with a 25% appreciation in 2006 and a 12% escalation so far in 2007–despite the recent economic turmoil.

These sales and share price indications illustrate that Yum will fair very well during all types of economic activity. Nevertheless, revenue cannot be the only financial analysis required to find superior companies. It is vital to understand how efficient a company is in reducing costs and using capital and labor to actually produce the final good. These intangible-sounding comparisons can actually become tangible given the use of margins. Starting from gross margins, investors should be happy to find out that over the past twelve months, growth at 25. 9% has been higher than the pervious five year average of 24. 82%. While the former is a bit below the industry’s average of 29. 04%, it is important to stress that Yum’s revenue is the second highest in a fairly large industry, making outstanding margins difficult to come by. Nevertheless, compared to close revenue competitors, Yum’s gross margins are better than Starbucks’s (23. 62%), Darden’s (23. 50%), and Brinker’s (16. 42%). In addition, Yum’s operating margins of 13. 14% are not only higher than its five year average of 12. 84%, but is doing better than the industry’s twelve month margin of only 11. 76%.

Moreover, these operating figures for Yum are also better than the same-time period numbers of Starbucks (11. 18%), Darden (9. 53%), and Brinker (7. 87%). While these numbers all indicate growth for Yum, the biggest instrument (that will be justified later with valuation tactics) is earnings differences. Fortunately for Yum, a 16. 27% increase in earnings per share over the past year is 29. 74% higher that the company’s five year average increase. Compared to competitors, all three of Brinker, Darden, and Starbucks saw a deceleration of earnings growth last year, and none of these yearly increases matched the top-revenue producer, Yum.

While there is clear evidence that Yum is great growth story, some investors may wonder whether Yum is overvalued given its success. Fortunately for these investors, this is not the case. In fact, some potential shareholders may make the claim that Yum is undervalued. Currently the industry has a P/E multiple of 31. 88 and a price to sales ratio of 2. 10. However, if analyst expectations are correct or and underestimate actual results (5/5 and 4/5 correct or below last five quarters for EPS and sales respectively), Yum sees a forward price to sales ratio 1. 9 and price to earnings ratio of 20. 18. Now while these numbers are not extraordinarily undervalued, as companies like Darden have slightly lower figures, compared to the industry as a whole and competitors like Starbucks (2. 25 price to sales and 31. 48 price to earnings), Yum’s valuation is far from being labeled as a negative characteristic. Therefore, given good growth reports and not too much speculation relative to share price, there is strong news from both further financial achievement and valuation.

However, before reaching a final conclusion, there are some other indicators to look at. One of these criteria is management efficiency. According to Reuters, Yum had seen a 60. 80% ROE figure for the past twelve months. While a bit smaller than the five year average, the number easily obliterates the industrial average and all three aforementioned market-cap competitors. This figure illustrates that Yum is not only increasing its net profit year after year, but helping investors by purchasing back some of its stock. Although capital spending is a bit below industrial averages at -0. 0% over the past five years for Yum, the company still has a healthy balance sheet of cash, especially compared to its price (undervalued). In addition, efficiency also comes from the company’s turnover ratios. Receivable turnover at 41. 62%, inventory turnover at 80. 93%, and asset turnover at 1. 61% are all quite above the industrial averages and many competitor averages as well. Solvency with a current ratio of 0. 59 is quite low, but inline relative to the rest of the industry, but fast food restaurants need not to worry too much about liquidating assets.

In addition, 83. 13% of equity for Yum is owned by institutional investors. This number is above the industrial figure at 74. 07% and also above Darden’s and Starbuck’s respective numbers. While there are many intelligent retail investors, having the real experts in institutional investors carry the bulk of the company shows optimism for future performance. And in additional to this control, another enticement in a 1. 81% dividend yield should also help investors relay this company into more hands at a higher share price.

Looking at the business model and fundamental features, there is strong evidence to support that investing in this company will yield strong returns. Technically speaking, the share price of Yum just recently crossed both the 50 day SMA and EMA–a bullish signal, and while there is encouragement to invest any time to profit from this company, now would be an almost ideal situation. Therefore, with the above information provided to benefit long term investors, it is closely assured that investing in YUM! Brands will produce genteel capital gains for shareholders. Article Source: http://EzineArticles. com/712239