Understanding Brand Equity Zou Deqiang, Ph. D School of Management, Fudan University Apr130,2008
1 Understanding Understanding Brand Equity Brand Equity Zou Deqiang, Ph.D. School of Management, Fudan University April 30, 2008
Why is Brand So Hot?
2 Why is Brand So Hot?
Brand value MMSCIWORLD INDEX SMP SDD IND since 2000 w M 2002 2003 2005
3 Brand Value
Contribution of Brands to shareholder Value Brand value of company Brand value of company s billion market value s billion market value 1 Coca-Cola US 11 Mercedes 2 Microsoft US 12 Hewlett-Packard US 13 Citibank 8 4 GE 12 14 Amex US 5 Intel US 16 Gillette 6 Disney 27 51 16 Cisco 7 McDonalds US 17 BMW 8 Nokia 18 Honda 9 Toyota Jap 19 Ford 10 Marlboro US The world's most powerful brands 2004 SourceAdaptedfromwww.interbl O Copy rights reserved, Zou Deqiang
4 4 © Copy rights reserved, Zou Deqiang The world’s most powerful brands 2004 Source: Adapted from www.Interbrand.com Contribution of Brands to Shareholder Value
COKES MARKET CAP BRAND VALI S120 BILLION WITHOUT THE BRAND CoKE'S GLASS WOULD BE HALF EMPTY COKES MARKET CAP NOT INCLUDING BRAND VALUE, S50 BILLION NEUTRONLLG COM
5 5 © Copy rights reserved, Zou Deqiang
What is a Brand?
6 What is a Brand?
Brand: A Mechanical Definition A brand is 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 7 O Copy rights reserved, Zou Deqiang
7 7 © Copy rights reserved, Zou Deqiang Brand: A Mechanical Definition A brand is 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
Brand: The Real Definition A brand is also the companys promise to consistently deliver its unique brand benefit to its customers 8 O Copy rights reserved, Zou Deqiang
8 8 © Copy rights reserved, Zou Deqiang A brand is also the company’s promise to consistently deliver its unique brand benefit to its customers. Brand: The Real Definition
Branding and STP Branding is the outward expression of the company's earlier decisions on positioning its products and articulating its value propositions to buvers 9 O Copy rights reserved, Zou Deqiang
9 9 © Copy rights reserved, Zou Deqiang Branding and STP • Branding is the outward expression of the company's earlier decisions on positioning its products and articulating its value propositions to buyers
What is a Brand? A product is something that is made in a factory, a brand is something that is bought by a customer. A product can be copied by a competitor,; a brand is unique A product can be quickly outdated; a successful brand is timeless S King, WPP Group, London O Copy rights reserved, Zou Deqiang
10 10 © Copy rights reserved, Zou Deqiang What is a Brand? A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless. S. King, WPP Group, London
