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Brand Equity Case Studies: A Guide to Building Powerful Brands

In the high-stakes game of brand equity, winning is not just about outlasting the competition. It’s akin to striking gold in the era of the Gold Rush. So, why do some brands hit the jackpot while others merely strike dust?

Unwrap the mystery with us as we venture inside the minds behind brands that took off—one brilliant strategy at a time.

Just how powerful can a well-built brand be? Consider this: Apple, the crowned king of brand equity, is now worth over $2 trillion, equivalent to the GDP of Italy, the world’s eighth-largest economy. In this modern business world where a strong brand can dwarf the economic might of entire nations, brand equity is no longer a nice-to-have—it’s a must have.

In true chronicler style, we’ve mined gold nuggets of wisdom from the trenches of successful brand building. Veterans, rookies, or mere observers of the business world—step into this treasure trove of case studies and learn how to create a brand that could figuratively (or literally!) be worth its weight in gold.

The Power of Brand Equity: Case Studies

• Probe the intricate mechanisms of iconic brands Rolex and L’Oreal
• Uncover the dynamic strategies that fortified their brand equity
• Decipher the commercial reverberations of robust brand equity

Case Study 1: Rolex’s Brand Equity

Renowned for its unrivalled precision and unwavering quality, Rolex etches its brand identity in the bedrock of luxury timepieces. Firmly revered in consumer minds, Rolex’s brand equity didn’t simply surface overnight. Endurance, consistency, and authenticity thread together the intricate tapestry of Rolex’s brand avowal.

Rolex fortified its brand equity through meticulous craftsmanship, customer engagement, and astute product positioning. Adopting a constrictive manufacturing algorithm, Rolex curates each timepiece in-house, fostering an exclusive allure. Moreover, the brand ventured beyond functional utility, penetrating cultural, sporting, and scientific realms pageantry, which resoundingly resonated with a wide consumer base. Thus, sculpting the brand into an emblem of achievement, gradually amplifying its brand equity.

The precision timepiece maker’s strong brand equity unequivocally propelled its market position, securing a prominent spot in the luxury chronograph arena. With invincible brand equity, Rolex hones enticing purchase incentives fueled by a reputation of quality and prestige, thereby nurturing customer loyalty and ensuring premium pricing.

Case Study 2: L’Oreal’s Customer-Based Brand Equity

A cosmetic colossus looming in the beauty industry, L’Oreal strategically formulated a resonating Customer-Based Brand Equity (CBBE) model. Proclaiming “Because I’m Worth It,” L’Oreal extols individuality and empowerment, coaxing deep customer connections. This assertive clarion call shapes the bedrock of L’Oreal’s CBBE model.

Masterfully orchestrating its CBBE model, L’Oreal initially established brand salience and crystallized brand performance perceptions, cultivating strong customer associations with quality and innovation. Unveiling products aligned with contemporary beauty standards, and proactively addressing beauty gender stereotypes solidified the brand’s resonance.

The intelligent CBBE model execution facilitated L’Oreal to buttress a powerful brand equity. The model nurtures proliferative brand awareness and elicits strong consumer engagement, fashioning robust brand loyalty. Consequently, the culminating brand equity not only contributes to premium pricing and greater marketing communication efficiency but also cushions potential market volatility, signaling a potent brand equity.

With deep insights into two global giants’ brand equity voyage, one can decode the power of strong brand equity: commanding premium pricing, fostering loyalty, and weaving an indomitable market position. Crafting a compelling brand narrative and fostering customer associations are instrumental in nurturing brand equity and magnifying market pervasiveness.

The Art of Building Brand Equity: Lessons from the Case Studies

• Learn to quickly recognize your target audience
• Make your brand unique and instantly recognizable
• Consistently deliver the experience your audience expects

Understanding Your Target Audience

Getting a firm understanding of your target audience is a critical first step in building brand equity. Take Rolex and L’Oreal for example.

Rolex, already a titan in the luxury watch sector, targeted its audience not only by financial status but also by lifestyle. They understood that their watches were purchased by individuals who appreciate high craftsmanship and lead lifestyles that warrant a high-end timepiece. They target their communication around these aspects, building more equity for their brand.

In a different sector, beauty brand L’Oreal understood that their target audience is not monolithic. Rather than attempting one-size-fits-all marketing, they deeply understand the demographics and psychographics of their different customer segments to tailor messages, products, and campaigns. Their brand’s strength and equity lie in this fine-grained understanding of varied consumer preferences.

Change the way you view traditional audience segmentation, remembering that it’s essential to build your brand’s power.

Creating a Unique Brand Identity

The strength of your brand equity hinges significantly on a unique brand identity. Observe how Rolex and L’Oreal transformed their brand identities into powerful assets.

Rolex exudes elegance, tradition, and impeccable craftsmanship. Their brand identity is so unique that people instantly associate these attributes with them. Rolex invests heavily in maintaining this identity through each marketing and branding effort.

Similarly, L’Oreal carved out a unique identity by aligning the brand with beauty, diversity, and innovation. These core values reverberate across their product lines, campaigns, and overall messaging, maintaining consistency and reinforcing brand equity.

Reconsider your current brand identity. Does it offer the uniqueness and consistency seen in these examples? Your brand’s strength could lie in a shift towards uniqueness.

Delivering Consistent Brand Experience

A consistent brand experience creates trust and acts as a solid foundation to build strong brand equity. Rolex and L’Oreal showcase this effectively through their customer interactions.

Rolex delivers a consistent luxury experience across all customer touchpoints. From the in-store experience to after-sales service, Rolex buyers know precisely what to expect—a high-end interaction in line with the brand’s reputation.

Similarly, L’Oreal ensures a consistent brand experience across all customer interactions. Whether through their products, customer service, or even their social responsibility efforts, L’Oreal’s consistency builds trust and reinforces brand equity.

The key learning here is consistency. A consistent brand experience at all touchpoints builds trust and affects your brand equity positively.

Measuring Brand Equity: Key Metrics and Methods

• Three robust metrics to measure brand equity – brand awareness, brand loyalty, and perceived quality
• Practical ways of how industry leaders like Rolex and L’Oreal evaluate these metrics

Brand Awareness

Brand awareness sits high on the checklist for measuring brand equity. It quantifies how icily a brand is recognised by potential consumers and to what extent their products or services are associated with the brand name. Leveraging brand awareness can make advertising efforts more impactful, ultimately leading to enhanced sales and increased market share.

Rolex and L’Oreal are two industry giants that serve as excellent examples in this context. The coveted watchmaker, Rolex, uses surveys and social media audits to gauge its brand visibility. By asking relevant questions and tracking digital engagement, it quickly identifies the areas of strength and those that need more focus.

L’Oreal adopts a similar route by incorporating digital audits, customer surveys, and competitive analysis. It also understands the power of influencer marketing and collaborations to amplify brand recognition.

Brand Loyalty

Another pivotal metric in gauging brand equity is brand loyalty. It measures the attachment and devotion customers have towards the brand and how likely they are to repeat purchases. High brand loyalty signifies minimized marketing costs, steadier revenues, and powerful word-of-mouth advertising.

In assessing brand loyalty, Rolex and L’Oreal have distinct methods up their sleeves. Rolex banks on the prestige of its brand name and customer satisfaction surveys to determine its consumer loyalty. Promotions and advertising predominantly revolve around the brand’s legacy, craftsmanship, and the feeling of exclusivity.

On the other hand, L’Oreal relies on data from loyalty programs, surveys, and customer reviews. By rewarding recurring customers through loyalty programs, L’Oreal gets first-hand data on their purchasing habits, enabling it to better cater to their needs and retain them.

Perceived Quality

Perceived quality, though slightly more abstract, is a vital metric for measuring brand equity. It refers to a consumer’s opinion of the overall quality or superiority of a product or service in relation to its intended purpose, as well as any alternates.

Rolex and L’Oreal have unique ways to determine their perceived quality. Rolex safeguards its stellar reputation for quality and craftsmanship through strict controls and certifications. Feedback from after-sales services also provides valuable insights about the perceived quality factor.

L’Oreal follows a customer-centric approach. It focuses on product reviews, feedback and continuously evolves its products based on that. It constantly checks the temperature of customer satisfaction to fine-tune its offerings and maintain high perceived quality.

These metrics and methods together provide a holistic view of brand equity. Monitoring these elements and acting upon the insights they offer, brands can draft robust strategies to strengthen their market presence.

Managing Brand Equity for Long-Term Success

• Delve into the role of regular brand audits in safeguarding brand quality
• Recognise the significance of consistent brand communication in sustaining brand value
• Understand how successfully adapting to market changes optimizes the brand equity

Regular Brand Audits

The core purpose of regular brand audits is to verify if your brand is performing well, maintaining its intended perception, and keeping its promises to customers. It serves as an established system to monitor changes to your brand’s image, equity, and overall effectiveness in the market.

For instance, Rolex, known for its timeless elegance and precision, conducts frequent brand audits. These allow the company to ensure that their brand image remains synonymous with luxury, high-quality, and craftsmanship. They frequently review their marketing strategy, products, and customer perceptions to maintain these associations.

Similarly, L’Oreal, a leading name in the beauty industry, regularly verifies that its brand stays true to its promise of innovation, quality, and beauty empowerment. The insights obtained from these audits effectively guide L’Oreal’s brand strategies, facilitating adjustments to remain aligned with the changing customer expectations and market trends.

Consistent Brand Communication

Consistent brand communication plays a pivotal role in managing brand equity. It ensures the brand’s value and message remain unvarying across all platforms and points of customer interaction, building trust and reinforcing brand identity.

Rolex excels in this domain by maintaining a uniform brand voice and aesthetics across their marketing campaigns. It effectively communicates Rolex’s commitment to quality, precision, and high status. Every public communication from Rolex, be it in print, digital, or at their flagship stores, actively embodies these values, thereby reinforcing its brand equity.

In a similar vein, L’Oreal ensures consistent messaging by emphasizing its core values of innovation, inclusivity, and beauty empowerment across all branding initiatives. From their product design to marketing campaigns, L’Oreal’s persistent communication reiterates its promise to deliver high-quality beauty solutions.

Adapting to Market Changes

Adapting to market changes is paramount if a brand aims to sustain its equity over time. It’s crucial to remain flexible, ready to evolve with changing customer expectations and market landscapes while preserving the core brand identity.

Rolex, for instance, has deftly balanced the art of incorporating cutting-edge technology in their watches without deviating from their classic design language, effectively adapting to modern market demands. This blend of innovation, along with time-honoured craftsmanship, has enabled Rolex to consistently top lists of powerful global brands.

L’Oreal, too, has shown remarkable agility in responding to market changes. Recognizing the shift towards natural and cruelty-free beauty solutions, they’ve expanded their line-up to include vegan options, effectively aligning their product offerings with customer needs and market trends. This ability to adapt while maintaining brand consistency has bolstered L’Oreal’s brand equity in the intensely competitive beauty market.

Implementing Successful Brand Equity Strategies: Key Takeaways

• Unpack the CBBE model and its application in top brands like Rolex and L’Oréal
• Extract valuable nuggets from successful brand equity strategies, Rolex and L’Oréal in particular
• Obligation for constant development and improvement of your brand equity, with Rolex and L’Oréal as prime examples

Understanding the CBBE Model

Breaking down the rather complex model into manageable and studied blocks, the CBBE (Customer-Based Brand Equity) model holds an integral role in building and sustaining powerful brand equity 

The CBBE model, in the context of business and marketing, typically refers to the “Customer-Based Brand Equity” model. This model, developed by Kevin Lane Keller, is a well-known approach to understanding a brand’s value from the perspective of the customer. It’s focused on how consumers think, feel, and respond to a brand, and is structured around four key components:

• Brand Identity (Who are you?): The starting point where a brand aims to create awareness about who it is and what it stands for.
• Brand Meaning (What are you?): Involves establishing brand associations through attributes and benefits to give the brand a specific meaning in the customer’s mind.
• Brand Responses (What about you?): How consumers react to the brand, both in terms of their judgments and feelings related to its perceived quality and emotional resonance.
• Brand Resonance (What about you and me?): The ultimate relationship and level of identification that a customer has with the brand, including a sense of community and engagement.

To illustrate this model, here’s a simple diagram:

In this diagram:

• Brand Identity is at the top, representing the foundation.
• Brand Meaning and Brand Responses sit in the middle, indicating the development of brand understanding and customer reactions.
• Brand Resonance is at the bottom, showcasing the peak of customer-brand relationship.

This structure helps in understanding how a brand can develop its equity through various stages of customer perception and interaction. It emphasizes that strong brand equity is built when a brand consistently delivers on its promises, leading to a loyal customer base.

Big brands, like Rolex and L’Oreal, harness the power of the CBBE model to develop, monitor and manage their brand equity. Rolex, a symbol of prestige and luxury, carefully crafted its brand perception through stellar product quality, distinctive design, rich heritage and celebrity endorsements. All these facets portray the CBBE model elements significant to establishing solid brand equity.

Meanwhile, L’Oreal is another CBBE model follower. By emphasizing diversity in their product line, consistent quality, and a global presence, they have successfully built a body of loyal customers.

Learning from Successful Brands

Standing on the shoulders of giants should never be underrated. Brands like Rolex and L’Oreal are not successful by accident; they employ deliberately structured and tested strategies to develop powerful brand equity.

From Rolex’s product differentiation and fascinating brand stories to L’Oreal’s inclusivity and innovative product line, several substantial lessons can be learned. Rolex is associated with luxury and prestige due to its ability to deliver on its brand promises consistently – a lesson in standing by your brand’s benefit to the customer.

L’Oreal, on the other hand, has conquered the vast and diverse beauty market by adapting its offerings to cater to different ethnic, cultural, and age groups – a lesson in adaptability, inclusivity, and market understanding.

Continuously Improving Your Brand Equity

Brand equity is not a fixed destination; it’s a relentless journey. Forces in the business landscape are ever-changing, calling for a constant evolution and improvement of your brand equity.

It’s impressive to observe how mastering brands like Rolex and L’Oreal thrive amidst such changes. Rolex has shown noticeable evolution in their designs, continuously adapting to changing fashion trends, yet retaining their classic elements that make a Rolex unmistakably a Rolex.

Likewise, L’Oreal’s continuous innovation and expansion into new product categories illustrate their commitment to building and maintaining brand equity. Their successful navigation in the advent of the digital era and social media marketing, for instance, highlights their commitment to constant development.

Rolex, a paragon of luxury timepieces, didn’t just fortify its brand equity overnight. It’s a saga of endurance, consistency, and authenticity woven into the fabric of high-end horology.

Key Strategies:

• Meticulous Craftsmanship & Exclusivity: Each timepiece is crafted in-house, signifying quality and uniqueness.
• Strategic Sponsorships: Rolex’s associations with prestigious events like Wimbledon and the Open Golf Championship elevate its luxury persona.
• Iconic Endorsements: Collaborations with influential figures like Roger Federer and James Cameron resonate with Rolex’s image of excellence and adventure.

Consumer Perception & Competitive Edge:

• Data on Consumer Perception: Surveys indicate Rolex’s synonymous association with luxury and status.
• Differentiation: Unlike its competitors, Rolex maintains a unique blend of classic design and modern innovation, appealing to both traditional and contemporary tastes.

L’Oreal has adeptly woven the Customer-Based Brand Equity (CBBE) model into its brand fabric, championing beauty and diversity.

Application of the CBBE Model:

• Brand Identity: “Because I’m Worth It” slogan champions individuality and empowerment.
• Brand Meaning: Innovative products like the wide-ranging shade foundations cater to diverse beauty standards.
• Brand Responses: Campaigns addressing beauty stereotypes to foster positive consumer reactions.
• Brand Resonance: Loyalty programs and community-building initiatives create deep customer connections.

Diversity and Digital Strategies:

• Inclusivity Initiatives: L’Oreal’s commitment to diversity is evident in its product lines, such as True Match foundation range.
• Digital Marketing: Leveraging social media for targeted campaigns, engaging with influencers to amplify brand awareness.

Impact and Innovations:

• Market Adaptability: Introduction of vegan and cruelty-free products in response to market trends.
• Customer Engagement: Digital transformation strategies, including online beauty consultations, have enhanced customer interaction and loyalty.

Outcomes & Lessons:

• Rolex: The brand’s unwavering focus on quality and luxury has solidified its market position, allowing it to command premium pricing.
• L’Oreal: Embracing diversity and digital innovation has expanded L’Oreal’s market reach and solidified its global brand equity.

Planting the Seeds of Brand Equity

Exceptional brand equity isn’t stumbled upon, but carefully cultivated. From strategic brand positioning to a razor-sharp focus on consumer engagement, every step builds towards a stronger, more impactful brand. In all of these, consistency is your comrade and patience, your power.

This information in your hands is a roadmap to building a name that not only resonates with your audience but wins their loyalty. Undoubtedly, accruing brand equity is a marathon, not a sprint.

Start now; Implement these outlined strategies in your operations. Fine-tune your brand voice, commit to delivering value, focus on customer experience, and consistently measure your progress.

Think through this: How can you infuse more value into your customer’s journey today?

Remember, the market doesn’t just respect great brands; it rewards them. Stand out, make an impact, build your brand equity. Every action today sows the seeds for a bountiful harvest tomorrow.

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Home » Management Case Studies » Case Study: L’Oreal’s Customer- Based Brand Equity (CBBE) Model

Case Study: L’Oreal’s Customer- Based Brand Equity (CBBE) Model

Customer-Based Brand Equity is defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand. The Customer-Based Brand Equity Model approaches brand equity from the perspective of the consumer — whether this be an individual or an organization. Understanding the needs and wants of consumers and organizations and devising products and campaigns to satisfy them are at the heart of successful marketing.

BRAND SALIENCE:

Created in France, L’Oreal Paris brings the sophistication and elegance derived from its French heritage to women and men all over the world. L’Oreal Paris offers leading-edge products that out-perform the competition to people who care more about the way they look. Our passion for innovation, performance, style and a sense of premium is encapsulated in the ‘because you’re worth it’ philosophy. Our core values are supported by our strong investment in scientific research and technology.

Over a third of the L’Oreal Group’s total turnover in this country is generated by L’Oreal Paris, making it the company’s largest division in the UK. Today there are strongly established L’Oreal Paris brands across all of the key areas of the beauty market, including the Plenitude skincare range, Elvive haircare and Studio Line styling products. Other brands include L’Oreal Paris Colour Cosmetics, Elnett, Rcital, Excellence, Fria, Perfect Blonde, Open, Casting and L’Oreal Kids.

BRAND PERFORMANCE:

Branding Strategy of L’Oreal has enabled the company to spread its’ business not only in Europe but also in Asia and Latin America. In the year 2005, the Brand L’Oreal was ranked first among all the cosmetics companies of the world.

L’Oreal Branding Strategy has achieved success throughout the world. Over the years, the company is successfully producing and selling different cosmetic products, haircare and skincare products in almost 150 countries of the world. This has been possible because of the well established Brand Name and Brand Image of L’Oreal.

L’Oreal has been successful in generating a worldwide Brand Identity only because of the company’s powerful and efficient Branding Strategy. This successful Global Branding Strategy of L’Oreal helped the company to earn significant levels of revenue in the past years In the year 2005, L’Oreal was valued as a $18.89 billion company. In 2004, total value of the L’Oreal Brand was $5902 million. In 2003, the company recorded a value of $5600 million.

In fact, from the year 1989, the Brand L’Oreal experienced continuous growth. The company recorded double digit growth rate in consecutive years and in the year 2005, it became the largest cosmetic company of the world.

BRAND IMAGERY :

L’Oreal has been one of the most reputed brands in the cosmetics field. The brand has made its presence felt in more than 100 countries, thanks to its numerous acquisitions worldwide. With several brands in its kitty, L’Oreal has carved a niche for itself with its unique strategies and stands out from the other cosmetics brands. The L’Oreal group develops several important communication  campaigns every year that underline the ability and the growth of the group. It is omnipresent across several media channels and the constant presence enables the brand to retain its reigning position in the market despite stiff competition from numerous cosmetic brand. The commercial communication of the group is made at a world level. The group proposes the same products and leans on the same advertising campaigns. In that case, visuals are the same, the text identical, the slogan is unchanged, and the ads are only translated with respect to countries. However, in spite of its global presence, the group realized that it could not sell the same product to all its consumers. The group knew how to diversify towards American, Asian or Latin brands.

BRAND JUDGEMENT

Few of the women in the admiring crowd realize that the trendy ”New York” Maybelline brand belongs to French cosmetics giant L’Oreal. In the battle for global beauty markets, $12.4 billion L’Oreal has developed a winning formula: a growing portfolio of international brands that has transformed the French company into the United Nations of beauty. Blink an eye, and L’Oreal has just sold 85 products around the world, from Redken hair care and Ralph Lauren perfumes to Helena Rubinstein cosmetics and Vichy skin care.

Thanks to this strategy, masterminded by L’Oreal Chief Executive Lindsay Owen-Jones, the French company has not only enjoyed a decade of double-digit growth but has pioneered new ground rules for staying on top in a fiercely competitive industry. L’Oreal’s net profits rose 12% in 1998, to $768 million, while its stock has soared 900% in the ’90s.

L’Oreal’s success is proof that when done right, global branding can speed growth in mature consumer-products companies even when global markets themselves are shaky. Asia’s economy is a mess, Latin America is lottery. Other worldwide marketers, such as Procter & Gamble Co., are suffering partly as a result. But L’Oreal is surging in markets stretching from China to Mexico. Its secret: conveying the allure of different cultures through its many products. Whether it’s selling Italian elegance, New York street smarts, or French beauty through its brands, L’Oreal is reaching out to more people across a bigger range of incomes and cultures than just about any other beauty-products company in the world. That sets L’Oreal apart from one-note marketers such as Coca-Cola Co., which has just one brand to sell globally.

L’Oreal’s strategy positions it beautifully to profit even further when the middle class begins to grow again in emerging markets . Says Veronique Adam, analyst at J.P. Morgan Securities Inc. in Paris: ”L’Oreal is the only real global leader in every segment of the industry.”

For Owen-Jones, the trick will be staying ahead in the game as his powerful rivals seek to play the global branding game. From giant P&G to niche players such as Los Angeles-based cosmetics maker Stila, L’Oreal’s competitors are hustling to catch up. ”L’Oreal want to become more of a global company like L’Oreal,” says Yoshikuni Miyakawa, a general manager of the cosmetics-marketing division of Shiseido Co., Japan’s No. 1 cosmetics company. Already, Shiseido is dominant at home and now expanding around the world. Meanwhile, the French company is No. 10 in Japan, trailing rivals such as Clinique and Estee Lauder.

BRAND FEELINGS:

It is customers emotional responses and reaction with respect to the brand. “L’Oreal” formed in France, Paris, brings the sophistication and elegance consequent from its French heritage to women and men all over the world. L’Oreal Paris offers leading-edge products that out-perform the competition to people who care more about the way they look. The passion for innovation, performance, style and a sense of premium is sum up in the customers money spending worth and also it’s’ philosophy. The core values are supported by strong investment in scientific research and technology.

The L’Oreal Group total turnover by the Paris franchise making it the company’s largest division in the world. Today there are strongly established L’Oreal Paris brands across all of the key areas of the beauty market, including the Plnitude skincare range, Elvive hair care and Studio Line styling products. Other brands include L’Oreal Paris Color Cosmetics, Elnett, Rcital, Excellence, Fria, Perfect Blonde, Open, Casting and L’Oreal Kids. The Consumer Products Division in the Europe is dedicated to offering consumers innovative, high technology beauty products from global brands at competitive prices. This is delivered through a global strategy combined with a local understanding of the needs of women and men of all ages.

BRAND RESONANCE:

The L’Oreal Group has three international brands named as L’Oreal Paris, Garnier and Maybelline that offer hair care, sun care, hair coloring, skin care and make-up products. All of these available from mass market retail outlets such as supermarkets, drugstores and leading chemists throughout the world. L’Oreal Paris remains the finest mass-market brand. It is offering consumers reachable luxury for skin care through providing its consumers leading-edge products that outshine the competition. “Garnier”, on the other hand, Europe’s no1 brand for natural beauty products in hair care category that offers a complete collection for healthy hair. Similarly, Maybelline offer world class quality for on screen requirements. The L’Oreal Group performance is marvelous due to its distribution channel too. The company focuses on “go native” strategy mean hire local firms in every country to distribute its products. Secondly, “First landing” strategy that is first commercialization is bad thing if the product is not available in a particular place. It has two bad impacts on the company: one would be if product is not at a particular place and company runs there commercials the negative word-of-mouth generate due to the consumers effortless struggle to search the product. The other is the huge advertising budget shatter due to pointless direction. The company by itself monitor, control and evaluate its channel performance especially distributors. The company follow same marketing mix for the whole world with a little bit variation according to the economic conditions of a certain country. L’Oreal is known for its strong control over its promotion, place, price and packaging strategy, which is decided from the headquarters. For these points, only minor product adaptations are made in different countries such as labels’ languages. All controls are very frequently checked to comply with prices and selling places of the group marketing strategy .

Related posts:

• Customer-Based Brand Equity (CBBE) Model
• Case Study: Business Model Innovation and Customer-Driven Innovation at Dell
• Brand Case Study: De Beers,Volkswagen and Nokia
• Case Study of Onida: Brand Analysis and Revival Strategies
• Brand Case Study: Virgin Atlantic, Adidas, Xerox, Ikea and Accenture
• Brand Equity – Meaning, Definition and Components
• Managing Brand Equity – Stages and Issues
• The Importance of Brand Equity
• Customer Based Brand Equity – Sources, Benefits and Measurement
• Case Study of LG Electronics: Repositioning a Successful Brand

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Rolex’s Brand Equity – Case Study #9

Do you know what is Brand Equity ? This is definitely what every brand that wants to grow on top of any market needs to seek.

In fact, brand equity is the combination of 5 components:

Brand Awareness

Brand association, perceived quality, brand loyalty.

• Proprietary Assets or Uniqueness

So for this week's marketing case study, we will talk about one brand with powerful brand equity, I named Rolex !

What is Rolex?

Rolex is a watch manufacturer founded by Hans Wilsdorf. Yep, not "Hans Rolex" as you could have imagined!

Indeed, Wilsdorf registered the brand Rolex in 1908. He simply wanted a name that was easy to pronounce in any language. Also, the word Rolex was onomatopoeic, making a similar sound to a watch being wound (hmm). Finally, it was practical as the name was small enough to easily fit any watch face.

I believe that most of you have heard about Rolex, so I will not do you the insult to teach you the full story of Rolex during the last 100 years, but yet, here is some famous moment in Rolex's history:

In 1926, Rolex developed the "Oyster", the first waterproof wristwatch in the world.

In 1931, Rolex will change the face of the watch industry by creating the Perpetual Movement , a mechanism that doesn't need to be manually rewound every day. Here, a little balance inside the mechanism uses the motion of the wearer's wrist to create energy. A type of mechanism that you still see, nowadays, in automatic watches .

Even better, Rolex is a synonym for exploits!

In 1927, Mercedes Gleitze crossed the English Channel with her Rolex Oyster. The cross took 10 hours and the watch remained in perfect working condition.

In 1953, a new exploit for Rolex, their iconic Oyster Perpetual Explorer accompanied the British climber Edmund Hillary to the summit of Everest, the highest mountain in the world! Hillary & Rolex's legend has just started...

I could keep going with Rolex going underwater, being part of the Pan-American outfit, or accompanying American presidents for decades but it will never stop!

Let's see how Rolex fits with the 5 points of Brand Equity.

As one of the leading luxury watch brands, Rolex is well-recognized among its potential customers. By sponsoring events or by using social media platforms to present the value of its wristwatches, Rolex connects with the people.

Also, as stated in the story of Rolex, the brand connects with extreme exploits but also with more "regular" sports competitions like the 24 Hours of Le Mans or as the official sponsor for the Women's World Golf Rankings for example.

For a big brand like Rolex, it is mandatory to be associated with positive impact activities than just a large company working in factories...

In this regard, Rolex annually funds organizations like National Geographic to support aqua and nature conservation, wildlife protection, and other environmental causes and projects.

The brand association also goes on to the relation between Rolex and technological improvements like waterproof cases and resistance.

Rolex is not only about fit & finish but also about performance and stability.

Yet, the most important aspect of the Rolex brand is its empowerment value .

With its notorious long story of success and being worn by important people, Rolex became a synonym for success.

People purchase Rolex as a recognized symbol of success. (Even though watch lovers will tell you that a Rolex is just a first step and the real prestige comes from watches made by Vacheron Constantin, Audemars Piguet, etc)

In 2014, Rolex was in the second position as one of the most reputable brands in the world.

The level of trust from consumers is still really high and they still feel that keeping a Rolex watch is like offering a present to themselves.

There is an intense and strong emotional relationship between customers and the Rolex products.

Proprietary Assets

A brand like Rolex is not only defined by its history but also by its creations and then its proprietary assets like trademarks and patents.

This is necessary to keep your loyal customer base strong as they know they will never find the same product somewhere else.

In this case, Rolex sells its watches under registered iconic trademarks like:

• Oyster & Oyster Perpetual
• Crown Device

It took decades for Rolex to have its powerful brand equity at the level it is right now.

What to be learned?

When you start your brand, never forget what you want your company to be associated with. Splitting the brand equity into 5 points makes it easier for you to prepare a full strategy by splitting the requirements for each point. Building brand equity takes time but it will be worth it as your customers will become your brand ambassadors with arguments to support you!

Check big brands and try to define what are their brand equities, you'll be surprised.

Once again, if you need help with your digital marketing strategy, Krows Digital is here to help ! Also, you can have a look at past marketing case studies you may have missed here .

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Keller Brand Equity Model

Kevin Lane Keller’s Brand Equity Model is a comprehensive framework that breaks down brand equity into four essential components, often represented as a pyramid. These components serve as building blocks for developing and managing strong brands.

Table of Contents

Understanding Brand Equity

Before delving into the Keller Brand Equity Model, it’s crucial to grasp the concept of brand equity. Brand equity represents the value and influence that a brand holds in the minds of consumers. It encompasses various dimensions, including brand awareness, associations, perceptions, and loyalty. A brand with strong equity enjoys several advantages, such as the ability to command premium prices, inspire trust and loyalty, and effectively compete in the marketplace.

Brand equity is not built overnight; it requires consistent efforts to create positive brand associations and deliver exceptional customer experiences. The Keller Brand Equity Model provides a structured approach to understand and manage the various components that contribute to brand equity.

The Keller Brand Equity Model

Kevin Lane Keller’s Brand Equity Model is a comprehensive framework that breaks down brand equity into four essential components, often represented as a pyramid. These components serve as building blocks for developing and managing strong brands. Let’s explore each component in detail:

1. Brand Identity

At the base of the brand equity pyramid lies brand identity. This component focuses on establishing a strong and distinctive brand presence. It involves crafting a compelling brand name, designing an appealing logo, selecting relevant brand colors, and creating a memorable tagline. Brand identity serves as the foundation upon which all other aspects of brand equity are built.

Key Activities for Brand Identity:

• Selecting a unique and meaningful brand name.
• Designing a visually appealing logo.
• Choosing brand colors that resonate with the target audience.
• Crafting a memorable and relevant tagline or slogan.

2. Brand Meaning

Above brand identity, we have brand meaning, which encompasses two dimensions: brand performance and brand imagery.

Brand Performance:

This dimension relates to how well the brand’s products or services meet consumers’ functional needs and expectations. Brands that consistently deliver quality, reliability, and value build positive associations with their performance.

Key Activities for Brand Performance:

• Ensuring product or service quality and reliability.
• Meeting or exceeding customer expectations.
• Demonstrating product features and benefits effectively.

Brand Imagery:

Brand imagery is about creating associations and perceptions that go beyond functional attributes. It includes aspects such as brand personality, user imagery, and brand culture. Developing a strong and favorable brand personality can resonate with consumers on a deeper emotional level.

Key Activities for Brand Imagery:

• Defining the brand’s personality traits (e.g., trustworthy, innovative, friendly).
• Creating user imagery that aligns with the target audience’s aspirations.
• Establishing a brand culture that reflects the brand’s values and beliefs.

3. Brand Response

Moving up the pyramid, we reach the brand response level. This component assesses how consumers react to the brand and their level of engagement. It encompasses two critical dimensions: brand judgments and brand feelings.

Brand Judgments:

Brand judgments refer to consumers’ rational assessments of the brand. This includes perceptions of brand quality, credibility, and relevance. Positive brand judgments lead to higher trust and loyalty.

Key Activities for Brand Judgments:

• Communicating the brand’s quality and credibility.
• Demonstrating the brand’s relevance to consumers’ needs and preferences.

Brand Feelings:

Brand feelings relate to the emotional responses and connections consumers have with the brand. Brands that evoke positive emotions, such as happiness, excitement, or trust, tend to create stronger bonds with consumers.

Key Activities for Brand Feelings:

• Developing emotionally resonant brand messaging and advertising.
• Engaging in cause marketing or social initiatives to evoke positive emotions.

4. Brand Resonance

At the pinnacle of the brand equity pyramid is brand resonance. Brand resonance signifies the deepest level of consumer-brand connection. It involves four dimensions: behavioral loyalty, attitudinal attachment, sense of community, and active engagement.

Behavioral Loyalty:

Behavioral loyalty reflects the extent to which consumers consistently choose and purchase the brand’s products or services over alternatives. It goes beyond simple repeat purchases and implies a strong commitment to the brand.

Key Activities for Behavioral Loyalty:

• Offering loyalty programs and incentives.
• Ensuring a positive customer experience throughout the consumer journey.

Attitudinal Attachment:

Attitudinal attachment refers to consumers’ emotional bond and affinity with the brand. It includes feelings of trust, affection, and connection. Brands that consumers are emotionally attached to inspire loyalty and advocacy.

Key Activities for Attitudinal Attachment:

• Building trust through transparent and ethical business practices.
• Eliciting positive emotions through brand storytelling and messaging.

Sense of Community:

A sense of community involves creating a community of brand enthusiasts and advocates. It fosters a sense of belonging among consumers who share a common affinity for the brand.

Key Activities for Sense of Community:

• Facilitating brand-related forums and discussions.
• Encouraging user-generated content and testimonials.

Active Engagement:

Active engagement represents the highest level of brand resonance. Consumers who are actively engaged with the brand not only make repeat purchases but also participate in brand-related activities, such as events, contests, or co-creation.

Key Activities for Active Engagement:

• Involving consumers in product development or innovation.
• Hosting brand events and experiences.

Applications of the Keller Brand Equity Model

The Keller Brand Equity Model offers valuable insights and practical applications across various aspects of brand management and marketing strategy :

1. Brand Strategy Development

Businesses use the model to inform their brand strategy development. It helps in defining the brand’s identity, meaning, and the desired consumer responses. This informs decisions regarding positioning, messaging, and communication channels.

2. Marketing Communication

Effective marketing communication is essential for building brand equity. The model guides marketers in crafting messages and campaigns that resonate with consumers’ perceptions and emotions. It helps in aligning brand communication with the desired brand judgments and feelings.

3. Product and Service Innovation

When introducing new products or services, understanding the brand equity pyramid can inform decisions about product design, quality, and branding. Brands can leverage existing brand equity to facilitate the adoption of new offerings.

4. Competitive Analysis

Comparing a brand’s equity dimensions with those of competitors can reveal strengths and weaknesses. This competitive analysis aids in identifying opportunities for differentiation and market positioning.

5. Customer Relationship Management

Managing customer relationships is central to building brand resonance. Brands can use the model to design loyalty programs, engagement initiatives, and community-building efforts that foster strong bonds with consumers.

Case Study: Nike

To illustrate the application of the Keller Brand Equity Model, let’s examine the case of Nike, a globally renowned athletic footwear and apparel brand:

• Brand Identity: Nike has a distinctive and instantly recognizable brand identity. Its iconic Swoosh logo, accompanied by the “Just Do It” tagline, forms a strong foundation for its brand presence.
• Brand Meaning: Nike has successfully associated its brand with performance, innovation, and empowerment. Through its marketing campaigns featuring athletes and a focus on athletic achievement, it has created a powerful brand meaning.
• Brand Response: Consumers perceive Nike as a high-quality and credible brand in the athletic industry. They trust the brand’s products and often feel inspired by its messaging.
• Brand Resonance: Nike has achieved brand resonance by fostering a sense of community among athletes and sports enthusiasts. It hosts events like the “Nike Run Club” and “Nike Training Club” to actively engage consumers.

Nike’s brand equity is evident in its ability to command premium prices, maintain strong customer loyalty, and influence consumer behavior in the sports and lifestyle market.

Challenges and Considerations

While the Keller Brand Equity Model provides a structured approach to brand management, it’s essential to acknowledge that building and managing brand equity is an ongoing endeavor. Here are some challenges and considerations:

• Changing Consumer Preferences: Consumer preferences and behaviors evolve, requiring brands to adapt and stay relevant.
• Consistency: Maintaining consistency in brand messaging and customer experiences across various touchpoints is crucial for building and preserving brand equity.
• Global Branding: Brands operating in global markets must navigate cultural differences and adapt their strategies accordingly.
• Competition: The competitive landscape is fierce, and brands must continuously innovate and differentiate themselves to stand out.
• Ethical and Sustainable Branding: Consumers are increasingly concerned about ethical and sustainable practices. Brands that prioritize these values can enhance their equity.

The Keller Brand Equity Model offers a comprehensive framework for understanding, measuring, and managing brand equity. Brands that strategically leverage this model can create powerful emotional connections with consumers, inspire loyalty, and thrive in competitive markets. Building and maintaining a strong brand requires dedication, creativity, and a deep understanding of how each dimension of brand equity contributes to overall success. As businesses recognize the pivotal role of brands in their growth and longevity, the Keller Brand Equity Model remains an invaluable tool for brand strategists and marketers worldwide.

Key Highlights

• Introduction to Brand Equity : Brand equity represents the value and strength a brand holds in the minds of consumers. It encompasses various dimensions, including brand awareness, associations, perceptions, and loyalty. Strong brand equity provides several advantages, including the ability to command premium prices, inspire trust and loyalty, and compete effectively.
• Building Brand Equity : Brand equity is not established overnight but requires consistent efforts to create positive brand associations and deliver exceptional customer experiences.
• Brand Identity : At the base of the pyramid, brand identity focuses on establishing a strong and distinctive brand presence, including elements like name, logo, colors, and tagline.
• Brand Meaning : Above brand identity, this component includes brand performance (meeting functional needs) and brand imagery (emotional connections).
• Brand Response : This level assesses how consumers react to the brand, covering brand judgments (rational assessments) and brand feelings (emotional connections).
• Brand Resonance : At the pinnacle, brand resonance signifies the deepest level of consumer-brand connection, involving behavioral loyalty, attitudinal attachment, sense of community, and active engagement.
• Brand Strategy Development : The model informs brand strategy , helping define identity, meaning, and desired consumer responses for positioning, messaging, and communication.
• Marketing Communication : It guides marketers in crafting messages and campaigns that resonate with consumers’ perceptions and emotions.
• Product and Service Innovation : Brands can leverage existing equity when introducing new offerings.
• Competitive Analysis : Comparing a brand’s equity dimensions with competitors reveals strengths and weaknesses.
• Customer Relationship Management : The model assists in designing loyalty programs, engagement initiatives, and community-building efforts.
• Case Study: Nike : Nike, a renowned athletic footwear and apparel brand, exemplifies the application of the Keller Brand Equity Model through its strong brand identity, meaning associated with performance and innovation, positive brand response, and brand resonance achieved by fostering a sense of community among athletes and enthusiasts.
• Challenges and Considerations : Building and managing brand equity is an ongoing endeavor with challenges such as changing consumer preferences, maintaining consistency, navigating global markets, facing competition, and addressing ethical and sustainable concerns.
• Conclusion : The Keller Brand Equity Model offers a valuable framework for understanding, measuring, and managing brand equity. Brands that strategically leverage this model can create powerful emotional connections with consumers, inspire loyalty, and thrive in competitive markets. Building a strong brand requires dedication, creativity, and a deep understanding of each dimension of brand equity’s contribution to overall success. As brands increasingly recognize their pivotal role in growth and longevity, the Keller Brand Equity Model remains a valuable tool for brand strategists and marketers worldwide.

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• January 2019
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Understanding the Brand Equity of Nestlé Crunch Bar: A Market Research Case

• Format: Print
• | Language: English
• | Pages: 35

About The Authors

Jill J. Avery

Gerald Zaltman

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Understanding the Brand Equity of Nestlé Crunch Bar (B): Data Analysis

Understanding the brand equity of nestlé crunch bar.

• Understanding the Brand Equity of Nestlé Crunch Bar (B): Data Analysis  By: Jill Avery and Gerald Zaltman
• Understanding the Brand Equity of Nestlé Crunch Bar  By: Jill Avery and Gerald Zaltman

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