Chapter 9 – Building & Managing Brand Equity This chapter discusses two issues:

1. Chapter 9 – Building & Managing Brand Equity This chapter discusses two issues: Brand Equity (the set of assets & liabilities linked to the brand, is a key asset of the firm) Brand Identity (a brand strategy that provides direction, purpose, and meaning for the brand) 1. The process of creating a brand identity -BI elements, Core elements, Brand essence 2. Criteria guiding the process (objectives of BI) 3. Difference between brand identity & positioning, brand essence & tagline; core identity & extended identity

2. For Discussion: What are the strongest brands that you think of? Coke, Microsoft Why they are strong? -value the top, top of mind (brand awareness) -awareness is high, everyone knows it (awareness) -exiting base of loyal customers (loyalty) -the only sponsor for Olympic (association: organization association) -attach to the old coke (loyalty) -representative of drink (awareness, product category association) -user friendly, innovative, the first one who enters the market (attributes/benefits, organization association) -monopoly (organization association) -global-oriented, localization (organization association) -available everywhere (benefits/attributes) -associated with friendship and happiness (personality association)

3. For Discussion: Why they are strong? • The sources of strength will cluster around: • Awareness • Loyalty • Associations • - Attributes/benefits associations • - Relevance • - Organization associations (e.g., innovative, global) • - Personality (e.g., professional, competent, upscale, sophisticated) • - Emotional or self-expressive benefits • These are three types of brand assets: • each creates formidable competitive advantages • each needs to be actively managed.

4. For Discussion: • Case: Virgin Atlantic Airlines (Page 167-168) • Create a brand identity for Virgin Atlantic Airlines. Are their potential dimensions such as high quality and superior service that are inconsistent with its personality? If so, how is that handled? How has the identity been brought to life? • What are the proof points? • Why don’t more brands emulate Virgin’s brand-building programs?

5. For Discussion: Virgin Atlantic Airlines (1) • Virgin Atlantic Airlines’ brand identity: • Service quality • A good value for the money • Being the underdog • With an edgy personality • The feisty/underdog personality supports an innovative culture that lead to over-the-top outrageous services (like massages in first class). So a personality can be spun in a way to support quality if quality is defined in the right way. • The identity is brought to life through the stunts of its Chairman, Richard Branson, and by the very visible service innovations.

6. For Discussion: Virgin Atlantic Airlines (2) • Virgin Atlantic Airlines’ personality: • Rule breaker • Fun-loving • Feisty and competent • Virgin has delivered on each facet of their personality. BI is consistent with its personality. • The proof points for Virgin: • Virgin has delivered on the basics and often dazzled the customers with “wow” type experiences; • Virgin’s upper class is priced at the business class level of their competitors; • Virgin presents itself as the underdog who cares; innovates (sleeper seat); and deliver an attractive viable alternative to their customers.

7. For Discussion: Virgin Atlantic Airlines (3) • Why don’t more brands emulate Virgin? • More brands would have a difficult time emulating Virgin’s brand-building program, because its leader, Richard Branson, embraces all the personality traits of the airline. Other brands simply do not have this DNA. • Virgin Atlantic Airlines was positioned as travel can be fun and a value. They essentially own the trans-Atlantic market. They offer freebies, customer lounges, great customer service, limo service, and massages. While these are nice amenities, it may not translate into all markets – especially those that value “cheap”.