P&G case study
1. Is it important to develop Brand Equity?
Brand equity can be defined as the added value awarded on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands (Kotler & Keller, 2009). Additionally, Brand equity is an intangible asset built up by a company overtime by building awareness, having a well-known name or a clear identity, consistent communications, marketing to the consumer, acting socially responsible, and spending on advertising and promoting the brand.
Procter & Gamble (P&G) has been known to be one of the most skillful marketers of consumer packaged goods and also the company holds one of the most powerful groups of trusted brands. Developing brand equity is vital as it allows companies to more effectively engage with their customer base in such a way that drives brand loyalty, allowing the business to grow further. P&G energies brand loyalty due to its numerous capabilities and philosophies. Some of the capabilities are huge market research and intelligence gathering, active product innovation, brand management system and also quality strategy in which the company designs and improve products of high quality in ways that matter to consumers. Therefore, developing brand equity is important because the products associated with the brand command a premium price in the market and is perceived to be higher quality when compared to the similar generic unbranded products. Brand equity also offers competitive advantages by reducing the marketing costs to companies that enjoy high “Brand Equity” such as P&G as a result of high brand awareness and loyalty and thus enhances their earnings.
2. What are the key factors when considering a brand strategy?
A branding strategy categorizes which brand elements a company chooses to apply across the various products it sells (Kotler & Keller, 2009). Firstly, market size can be
Brand equity can be defined as the added value awarded on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands (Kotler & Keller, 2009). Additionally, Brand equity is an intangible asset built up by a company overtime by building awareness, having a well-known name or a clear identity, consistent communications, marketing to the consumer, acting socially responsible, and spending on advertising and promoting the brand.
Procter & Gamble (P&G) has been known to be one of the most skillful marketers of consumer packaged goods and also the company holds one of the most powerful groups of trusted brands. Developing brand equity is vital as it allows companies to more effectively engage with their customer base in such a way that drives brand loyalty, allowing the business to grow further. P&G energies brand loyalty due to its numerous capabilities and philosophies. Some of the capabilities are huge market research and intelligence gathering, active product innovation, brand management system and also quality strategy in which the company designs and improve products of high quality in ways that matter to consumers. Therefore, developing brand equity is important because the products associated with the brand command a premium price in the market and is perceived to be higher quality when compared to the similar generic unbranded products. Brand equity also offers competitive advantages by reducing the marketing costs to companies that enjoy high “Brand Equity” such as P&G as a result of high brand awareness and loyalty and thus enhances their earnings.
2. What are the key factors when considering a brand strategy?
A branding strategy categorizes which brand elements a company chooses to apply across the various products it sells (Kotler & Keller, 2009). Firstly, market size can be