Pepsi Brand Equity Measurement

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Pepsi Brand Tracker
(Project2 Part2 Brand Equity Measurement)

PRAXIS BUSINESS SCHOOl

A report Submitted to Prof. Srinivas Govindrajan In partial fulfilment of the requirements of the course Product and Brand Management On 03/08/09 BY Apoorva Jain Gunjan Dugar Hardik Mishra Manoj Mani Iyer PEPSI BRAND EQUITY PRAXIS BUSINESS SCHOOL

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Executive Summary
The objective of this project was to find out the brand equity of Pepsi . The parameters which enabled us to arrive at the brand equity were Brand Knowledge, Brand Vitality, Brand Association, Brand Leveragability and Buying Behaviour. For this purpose we did a survey where we interviewed thirty respondents on the basis of our questionnaire. The questionnaire comprised eight questions covering the above mentioned parameters. The next step dealt with ranking the brands and giving scores based on the rank achieved. The cumulative score of the brand formed the basis of arriving at the Brand Equity. Our brand Pepsi did reasonably well on the parameters Brand Leveragability (Rank 2), Brand Knowledge(Rank 3) and Brand Association(Rank 3) but could not stand up to the test of Brand Vitality(Rank 5), and Buying Behaviour (Rank 5). Overall, Pepsi ranked fourth on Brand Equity, considering all the parameters used to arrive at it. The suggestions that we could come up with for enhancing its Brand Equity were that, Pepsi needs to reposition itself as a promising brand to increase the repeat purchase. Pepsi as a brand is capable of leveraging and should leverage its name to other products like Beer, Condom, Shampoo and Apparel. It is capable of diversifying and should cash on this opportunity.

PEPSI BRAND EQUITY

PRAXIS BUSINESS SCHOOL

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TABLE OF CONTENTS

TOPICS

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1. Introduction 2. Brand equity measurement model 3. Rationale 4. Assumptions 5. Research Methodology 6. Questionnaire 7. Findings 8. Pepsi brand equity 9. Suggestions 10. Bibliography

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PEPSI BRAND EQUITY

PRAXIS BUSINESS SCHOOL

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INTRODUCTION

Brand equity is outcome that accrue to a need/want satisfier when the brand name is added on. It is the incremental contribution (Money) per year obtained by the brand in comparison to the underlying product (or service). The incremental contribution is driven by the individual customer’s incremental choice probability for the brand in comparison to his or her choice probability for the underlying product with no brand-building efforts. The method provides what-if analysis capabilities to predict the likely impacts of alternative strategies to enhance a brand’s equity. Brand equity is one of the more popular concepts in marketing today. It is also one of the most used terms in marketing research, and the subject of much fuzzy thinking. In fact, there are several definitions of brand equity, all of which stem from the concept of 'brand.' A useful definition is that a brand is the sum total of all that is known, thought, felt and perceived about your company, service or product. Branding, then, is the process of making products and companies into brands the consistent and disciplined way a company communicates a brand's essence to the public. Consumers' response to the brand revolves around the brand's image. This makes the concept an essential input into marketing strategy since a positive, strong brand image will presumably lead to choosing a particular brand.  Achieving strong brand differentiation is absolutely fundamental to building a compelling brand relationship with customers.  Brand equity can be thought of as the differential effect of brand knowledge on consumer response to the marketing of the brand.  Fundamentally, high levels of brand awareness and a positive brand image should increase the probability of brand choice. That is the fundamental goal of managing one's brand.  Brand equity only exists as a function of consumer choice in the marketplace. And although...
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