10-1108_mbe-07-2014-0025
10-1108_mbe-07-2014-0025
10-1108_mbe-07-2014-0025
1. Introduction
Received 24 July 2014
Revised 24 October 2014 In a growing economy, the importance of brands is increasing. A brand represents very
4 November 2015
10 April 2016
important assets (Günter and Kriegbhaum-Kling, 2001). A brand is a mark on a product or
Accepted 22 May 2016 service, tangible or intangible, that serves as identification for its particular manufacturer or
PAGE 26 MEASURING BUSINESS EXCELLENCE VOL. 20 NO. 3 2016, pp. 26-41, © Emerald Group Publishing Limited, ISSN 1368-3047 DOI 10.1108/MBE-07-2014-0025
creator (Srivastava et al., 2013). According to Aaker (1991), understanding of a brand is an
important step in building the brand and equity. Various factors come into play in managing
brand equity and, therefore, its valuation of yearly basis may be difficult and time
consuming.
According to Andrew (2003), there is greater enhancement of gaps between perception
and reality caused because of the promotion of a brand. Good brand equity and increased
market share may have the higher the share of consumer mind (Srivastava et al., 2013).
High mind share means better brand recall in a positive direction under normal condition.
Brand strategy could affect the same. Brand management strategy is used for initiating and
maintaining a continuing dialogue with the customers and for enhancing relationships
(Vargo and Lusch, 2004). There is ample evidence in the literature that suggests that
various marketing communications are based on strategy influence brand equity, including
advertising (Aaker and Biel, 1993; Cobb-Walgren et al., 1995, Rajagopalan, 2011),
sponsorship (Cornwell et al., 2001) and various alternative options (Joachimsthaler and
Aaker, 1997). A firm may develop brand scores to enable the firm to measure key
behavioural dynamics associated with the brand and compare with other competing
brands in the market. The benefit of brand scores is that it identifies the posture of the brand
in reference to the strength of the brand in the given market. The brand score would be
helpful in improving, guiding the brand led investment and marketing strategy (Rajagopal,
2007). The brand score, generally, is an increasingly utilized tool for businesses seeking to
move strategy to the action stage. A brand extension in different categories is normally
difficult and may erode the brand equity. A brand with higher brand equity extending in the
new category through brand extensions is an interesting area for study. Brand score
measured on different factors may help in measuring the communication strategy. This
becomes important when there is brand extension in a different category of a brand. Brand
score measured after the brand extension in different category can give the effectiveness
of the brand communication strategy and brand equity. Brands with good brand equity will
inherit the value of brand extensions (Srivastava et al., 2013). This is crucial if the extension
is in different product categories compared to its own present segment.
3. Literature review
Successful strategy of brands of a product category requires measurement models that
are able to disentangle a brand’s unique traits from that trait that are common to all
brands in the product category. Brand performance denotes a brand’s strength in the
market (O’Cass and Ngo, 2007). A number of researchers such as Reid (2002);
Chaudhuri (2002) and Wong and Merrilees (2007); Tuan (2012, 2014) view brand
reputation, awareness and loyalty as a brand’s crucial performance. Rajagopal’s (2007)
and Tuan (2014) view, numerous companies engage a variety of integrated marketing
activities to monitor brand performance indicators by 5As explicated as brand
awareness, acquaintance, association, allegiance and appraisal spread over
perception, performance and financial factors. Brand acquaintance refers to
customers’ familiarity with the brands of a company, and brand association refers to
customers’ buying behaviour towards the acquainted brands. At the same time,
according to O’Cass and Ngo (2007), allegiance and an appraisal are synonymous with
performance of a brand of investments made by the company. Brand market share and
brand sales volume were utilized as metrics of the market performance of a brand
(Keller and Lehmann’s, 2003). Brand market share and brand sales volume indicate the
relative market share and sales volume of a brand compared to other brands.
Respondents are invited to rate the sales volume, market share and overall brand
Communicaon
Brand Score Brand Equity
Strategy
Endorsed
Product/Brand
Extension Inherited
Communicaon Inherited
Strategy
6. Developing hypotheses
Brand extension is a well-researched area across the globe. However, when a brand of
strong equity introduces a brand extension in a category, which are new categories and a
low involved category creates a new thinking about the steps taken by the organisation. As
eastern culture, being collective culture, is different from western culture, which is
individualist in nature, acceptance of the same cannot be in line with other publications.
Measuring the effectiveness of such communication strategy is important. Brand score
results from a quantitative assessment of customer perception linked to purchasing
behaviour, consumer preferences. Thus, brand equity, brand score as dependent
variables and communication strategy as an independent variable are considered in
developing hypotheses. Brand scores could directly measure the impact of the strategy.
Therefore, our first hypothesis is:
H1. The brand score is dependent on the communication strategy of the brand and
higher score results in higher sales.
The brand measurement system is dependent on the effective brand strategy. Wrong
strategy will have an adverse impact on the brand equity and subsequent brand extension.
Brand equity is also inherited while brand extension. Hence, good brand equity because of
inheritance may help on success of the brand extensions. This can be measured by brand
scores. Therefore, the second hypothesis is proposed as under:
H2. The brand extension product performs well due to the inheritance of the brand
equity of the parent brand.
Brand inheritance or acquaintance is described as the familiarity of consumers with the
brands and buying behaviour of consumers towards the acquainted brands refers to brand
association. Frequent introductions of new brands also lead to instability in the brand
management process. Therefore, strong brand equity may help in brand extensions. An
effective brand measurement system helps businesses to understand how the brand is
performing. High brand equity provides many competitive advantages to the company.
Brand equity is understood as the highest value paid for the brand.
7. Methodology
A survey was conducted to test the brand score and to see if communication effectiveness
impacts the brand scores. This paper discusses the essential components of a brand score
and its use to adjust its brand when compared to other brand business strategy. Three
brands in liquid washing categories are taken for study. Pril, Vim and Dettol are global
brands. Introduction of premium soap – Dettol in a liquid washing category – is the
interesting area because premium soap with its own brand equity has introduced the brand
extension in a category, which is different and has its own category of customers. Western
culture is different from eastern culture (Baverlee and Srivastava, 2012). Therefore,
acceptance of brand extensions is the point of interest, especially in context of eastern
culture. There is a paucity of similar research in emerging markets likes India
8. Results
“What is not measured is not managed” is a well-worn management catchphrase. Brand
scores are considered to be effective tools for measuring the qualitative assessment of brand
performance in a given market and time, allowing the firm to measure the effectiveness of
brand strategy in brand building activity in reference brand impact in business in comparison
with competitors. Effective brand portfolio management starts by creating a fact base on equity
in each brand and the brand’s economic contribution. An effective brand measurement system
offers, expectations from the brand, product offers some unique solution, benefit more than
pricing (ANOVA, Fcal ⫽ 7.44 ⬎ Ftab). The brand score signifies the strength of the brand.
The strength of brands could be traced to a customer’s perception and understanding
about what they have gained, observed, sensed and heard regarding a brand as a
consequence of customer involvement with a particular brand in the past (Keller, 2003).
None of the brands have been successful in wholly meeting the needs of the customers.
However, Dettol is perceived to offer products, which are the most relevant, consistent,
meeting expectations, greater value for money. As a result, the expectations from the brand
are high and the outlook seems bright. This is despite of the fact that Dettol offers the lowest
promotional offers. Thus, this confirms the brand extension product performs well because
of the brand equity of the parent brand (H2), but the communication strategy should be
aggressive. One of the reasons could be that the respondents perceive products of lesser
offers as the one with better quality. The respondents also feel there is a scope of
developing allied products of the future. Higher brand scores mean better strength of the
brand. It may lead to better brand equity too. Yoo et al. (2000) and Atilgan et al. (2005) have
stated that a strong brand association leads to higher brand loyalty. Brand loyalty means
better brand equity too.
The next part of the study is to rate the products on different parameters such as quality,
price, availability, performance, etc. Jacoby et al. (1971) conducted an experimental
research and have discovered that the consumers’ perception of quality and value are
significantly affected by the brand image. Similar conclusions are derived from Shimp and
Bearden (1982), as well as Rao and Monroe (1989). It will be interesting to study the
product rating of two well-established brands with Dettol, a new entrant to this category.
This is given in Table III.
Fcal ⫽ 5.96 ⬎ Ftab, so there is a significant difference with respect to quality, price,
availability, performance, advertisements, schemes, bottle size and value for money.
Dettol liquid outshines its competitors in almost all fronts. Thus, we can conclude that Dettol
liquid has a favourable customer perception of the respondents. This position in the
customer’s mind can allow Dettol liquid to charge price premiums or experiment with allied
products because the customer has strong associations with the brand. Strangely, Dettol
liquid indulges in little sales promotion vis-à-vi its competitors still it has a favourable
perception in the minds of the customers. Overall, Dettol liquid has a good share of mind,
Importance while buying the product 8.89 7.83 7.89 8.63 5.59 5.67 6.85 8.63
Table V Brand performance of two major brands when compared to Dettol brand extension in liquid dishwasher
market
Aware of the customers’ Focus on maximising Optimisation on Success in satisfying
Brand tastes and preferences the product experience price and quality the unmet demands
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Corresponding author
Rajesh Srivastava can be contacted at: [email protected]
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