CASE STUDY ON BRAND EQUITY
SOURCE- RICHARD IVEY SCHOOL OF BUSINESS
The purpose is to determine the practices for valuation of brand equity using different parameters and analysing it from various angles.
Brands represent enormously valuable pieces of legal property, capable of influencing
consumer behaviour, being bought and sold, and providing the security of sustained future
revenues to their owner. The value directly or indirectly accrued by these various benefits is
often called brand equity (Kapferer, 2005; Keller, 2003).
* To survive competition in the market.
* Advantage to charge price favourable to producers.
* Supports decision making of manufacturers and consumers.
Ariel Research Company used multi dimensional measure of brand equity with five main variables:
* Familiarity of the product
* Uniqueness of the product
* Popularity of the product
* Relevancy of the product to lifestyle
* Customer loyalty to the product
This research company collected large data set from a random sample of Canadian consumers. The respondents were instructed to scale the variable from 1 to 10. The response 8,9 or 10 indicate high brand loyalty otherwise low brand loyalty was indicated.
We can see that the statistical data is based on the area of marketing brand equity where the value added to a brand is measured by parameters including consumer loyalty, willingness to buy, familiarity etc. which ranks the product of a particular brand among other brand products. But there are some shortcomings associated with the use of this method.
We can see that the data set is given for all the brands of fast food. Firstly, we know that the fast food is generally preferred by children, teenagers and middle age people, in short by young generation but the ranking has given equal weightage to all the age groups. The second shortcoming...