9Creating Brand Equity.ppt

After flying for only a few years, Virgin America became an award-winning airline that passengers adore and that makes money. It is not unusual for the company to receive e-mails from customers saying they actually wished their flights lasted longer! Virgin America set out to reinvent the entire travel experience, starting with an easy-to-use and friendly Web site and check-in. In flight, passengers revel in Wi-Fi, spacious leather seats, mood lighting, and in-seat food and beverage ordering through touch-screen panels. * * Every brand makes a promise to its customers. The promise is expressed in the brand’s promotional work but must be delivered when the product is used. * * Like brand names, slogans are an extremely efficient means to build brand equity. They can function as useful “hooks” to help consumers grasp what the brand is and what makes it special. Can you name the brands that match these slogans? * Table 9.4 displays the world’s most valuable brands in 2009 according to one ranking. In these well-known companies, brand value is typically over half the total company market capitalization. * Many firms have decided to leverage their most valuable asset by introducing a host of new products under their strongest brand names. Most new products are in fact line extensions—typically 80 percent to 90 percent in any one year. Moreover, many of the most successful new products, as rated by various sources, are extensions. Two main advantages of brand extensions are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. * Copyright ? 2011 Pearson Education, Inc. ?Publishing as Prentice Hall 9-* Copyright ? 2011 Pearson Education, Inc. ?Publishing as Prentice Hall 9-* Copyright ? 2011 Pearson Education, Inc. ?Publishing as Prentice Hall 1-* Copyright ? 2011 Pearson Education, Inc. ?Publishing as Prentice Hall 9-* Copyright ? 2011 Pearson Education, Inc. ?Publishing as Pren