Marketing
1.Johnson & Johnson has been able to establish strong brand equity for its line of baby products. What benefits does J&J have because of its brand equity for these products?
The advantages of having a strong brand equity are that it increases the visibility of the company’s product and makes them more attractive to consumers. The brand has the benefit of a good reputation in the minds of consumers: they see the brand of the product and immediately expect it to work and be a good product. This in turn helps the company to grow its sales and increase its margins. The more popular a brand becomes, the greater the premium the producer can charge. For example, if a Johnson & Johnson is selling baby powder that is similar to what a generic off-brand is selling, Johnson & Johnson can still charge more for their product because of the premium afforded them by their brand equity. Even though their product is more expensive than the off-brand, Johnson & Johnson can still move enough product to be profitable—all thanks to the demand and appeal their brand equity affords them.
Concomitant with the concept of increasing margins is the idea that brand equity equates to customer loyalty. Customers will be loyal to Johnson & Johnson products because they feel that they should buy the brand based on past experiences. Rather than try another brand, customers who have bought Johnson & Johnson in the past will continue to do so.
This also allows for the opportunity to expand its product line. Once the company has built up considerable brand equity it can offer other products that may in essence be little different from off-brands but will have the added charm of being offered under the Johnson & Johnson brand. This gives the company an advantage over competitors—all thanks to its brand...
Brand Equity Measurement Consumer perceptions extensively influence and manipulate their purchasing behavior. Service and goods companies identify the significance of marketing strategies in influencing consumer behavior. All brands that attract high profits have desirable loyalty levels among customers. Customers tend to have a high level of perception of quality of goods and services that dominate markets in different industries. The power that emanates from consumers' goodwill and recognition of a brand,
Then soon other players came such as Pepsi who also tried to penetrate the market. With the introduction of Pepsi into the market, the market share was divided, sales volume for both commodities went low and the prices also lowered. The product life cycle of some of these products may go far beyond the expected limit, and this is attributed to the brand equity they have. Use of Interactive television
The fur aspects of loyalty, perceived quality, identity of the brand and awareness all must be unified at the operational level of a business (Aaker, 1996). Who a company really is gets communicated in its millions of customer interactions daily. With the pervasive adoption of social media, there is an exceptionally high level of transparency today. This is seen in the Dave Carroll episode of the broken guitar (Perkins,
Companies that have invested in defending their brand and managing the customer experience outside of their website have seen great returns. Within the travel industry, for example, companies such as InterContinental Hotels Group and Royal Caribbean Cruises have both extended their reach to manage the customer experience on partner sites with a very high degree of success. In each instance, their efforts have resulted in an improvement in the
This stage provides comprehensive information for use in marketing and promotional plans. Dave (2002), puts it that "The Brand Equity measure summarizes consumer perceptions on five dimensions: Familiarity, Uniqueness, Relevance, Popularity, and Quality." From this, it is apparent that the promotion point and reputation of any company and products is hinged on the brand equity. Why companies fail in brand equity All it takes to shrink a brand in today's hyper-linked global
The methodologies behind consumer-driven versus data-driven approaches vary by company yet both share a common result of quantifying in financial terms the value of a brand. In determining the value of a brand, its critical to first select a methodology that fits with the specific type of company that is working to increase the value of the brand. Consumer-driven factors that define brand equity value vary significantly from those from data-driven methodologies as defined by (Market
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