MARK 319 Brand Management

MARK 319 Brand Management

2020.1

Individual Assignment 2

• Discuss the brand resonance model regarding the New Zealand Prime Minister, Jacinda Ardern. Explain all the components/building blocks and relate the Prime Minister to each.

The brand resonance model describes how a business can establish staunch loyalty with customers. The model is based on the creation of strong customer relations. Creation of strong customer relations and understanding the needs of customers and creating a brand that resonates with the customers need (Keller, Parmeswaran, and Jacob, 2011). In resonance brand relationships in 4in to establish a psychological bond with the customers. This is been depicted or interpreted in terms of their level of activity that results from this brand loyalty. There are four categories of brand resonance the first involves behavioural loyalty this category involves studying the behaviour of customers regarding how much they purchase from that brand including purchase volumes and purchase frequencies. For it to be considered brand resonance behavioural he has to generate sufficient as sales volumes and sells frequencies for the brand the second category is attitudinal attachment. To achieve brand resonance customers need to establish a personal attachment with the particular brand (Keller, Parmeswaran, and Jacob, 2011). Customers perceive the brand as something that they consider special or something that they love and look forward to in daily life. The third category involves giving customers a sense of community in this category the brand provides a sense of community to the customers who identify with a particular product people feel connected when there’s a sense of affiliation or association with other fellow brand uses hence creating a community that is representative of the company. In the fourth category which is active engagement in, customers show their affiliation with the brand by investing resources such as time money and energy when purchasing or consuming the brand. In this category, customers participate in community activities of the brand such that joining a club receiving marketing updates, oil communicating with fellow brand uses an activity platforms such as website social media pages fan pages brand-related events etc. (Keller, Parmeswaran, and Jacob, 2011). In the active engagement category, customers participate in marketing the brand through communication with other potential customers providing positive reviews of the brand, and strengthening the sense of community with other fellow brand users.

The New Zealand prime minister, Jacinda Ardern, has built a strong brand that sofa appeals to citizens of New Zealand (Smith, 2015). The brand resonates with New Zealanders both young and old. The pm has built an international profile which also appeals locally to New Zealanders. Treating the prime minister is a brand indicates that the reason it’s well across all New Zealand generations. New Zealanders consider him one of the top five brands in the country. The prime minister has indicated strong levels of brand visibility given that he is known to both the young and the old throat New Zealand. The virtue and vitality aspects of the prime minister’s performance as a brand indicate that people love her despite her personal political opinions.

It is interesting to note that New Zealanders of all ages still resonate with the prime minister despite disagreeing with her views. For instance, people consider her as a sincere communicator. How communication style is honest open and warm. She uses this style to communicate both negative and positive information to the public. in cases where our communication goes against the expectations of the public, they still resonate with her given that most politicians do not display this communication behaviour. In most cases, politicians hide their personal views to appeal to the public or provide inefficient negative communication to the public corner of pass on the responsibility of communicating negative information to the public. Jacinda, on the other hand, owns up to both positive and negative communication (Smith, 2015). This makes her a realist whom the public feel that they can identify with and trust. It makes her a different politician, attractable politician. As a person, she masters how communication and the message that you communicate. She is authentic with various subjects ranging from simple family matters such as how to be a mum or complex that matters that New Zealanders do not understand. She communicates have values virtues and priorities clearly, thereby establishing a staunch stand about who she is. as a brand, the singer has a clear sense of self which implies a clear sense of a brand. Another value drawn from this model is that the prime minister is consistent. How communication whether personally or on virtual platforms such as social media gives the same information. She communicates naturally and insists on clarity and positivity, whether communicating positive or negative information. Her consistency stands out because politicians are known to waiver depending on the situation and how their actions or inactions favour their image to the public. The Jacinda brand, on the other hand, transcends these irregularities of politics. She presents herself as a leader who is available for the people of New Zealand through good and bad times.

Jacinda has established a psychological bond with New Zealanders which is characteristic of the brand resonance model. For instance, common New Zealand has a strong positive reputation both nationally and internationally for maintaining natural green open spaces (Smith, 2015). This is in line with the global tendency to conserve the environment. This reputation is communicated by the positivity adopted by the prime minister. what this means psychologically is that New Zealanders take up the responsibility of maintaining the natural green open spaces in the country to maintain the strong reputation that the country has grown over time both nationally and internationally. Concerning the brand resonance model. Jacinda as a brand has established a strong psychological bond with her customers. in this case our customers and New Zealanders. Behavioural that is observed in New Zealand is as a result of the Jacinda brand through the generation of sufficient purchase volumes and frequencies over the years. Evidence of this behavioural loyalty can be derived from the success of the 100% pure New Zealand campaign that was launched in 1999 (Patil, 2019). The campaign branded the natural green open spaces of New Zealand as pure. The country was branded as a combination of natural spices that could attract tourists from all over the world. The campaign was a success because New Zealanders participated in maintaining the green spaces for the 100% pure New Zealand experience for tourists. Today, the tourism industry in New Zealand is a multimillion-dollar industry that supports the country’s economy. In so doing the country benefits from sustainable revenue options and preserve the natural resources in the country even as tourists visit the country in large numbers. The 100% pure New Zealand campaign change perceptions of both New Zealanders of all ages and other international populations about what the country has to offer (Patil, 2019). In so doing businesses in New Zealand, with the notion of protecting a multimillion-dollar industry that contributes to the country’s economy.

As a brand, Jacinda has given New Zealand as a sense of community. This will investigate the generation X what age between 35 and 54 years in New Zealand today. Discount prices Jason duster first audience. Generation X is optimistic. Generally, so they’re considered the list supported in both the emotional and other generational needs in any country worldwide. In New Zealand, Jacinda has to provide positivity about the future of generation x-ers amidst the challenge that they face today. This generation has experienced different politicians in the country neglect failures of the New Zealand economy and government in supporting the future. As such Jacinda has to appeal to there needs by providing a sense of quality policy substance. To generation X Jason the faces challenge of meeting their financial and time needs. So far, statistics indicate that generation Xers who live outside New Zealand still love their country, quoting aspects of the Jacinda brand as their reasons (Stats NZ, n.d.). This is an indication of successful psychological value for New Zealand as is cultivated by the Jacinda brand. However, their continued stay overseas indicates a lack of activity or engagement that corresponds with this psychological resonance. Overall, the Jacinda brand can be said to have significant resonance with New Zealanders of all ages.

• Select any brand of products and conduct a brand inventory of your chosen brand. You only need to cover:

1. the brand elements, each of which you will assess according to the six criteria.

Brand elements play both the defensive (transferability, protectability, and adaptability) and offensive roles (memorability, likeability, and meaningfulness) (Farhana, 2012)The Coca-Cola brand elements are analysed based on the six criteria used for choosing brand elements (pp. 112).

The red colour used by Coca-Cola is easily recognizable. The company uses Spencerian script on all the inscriptions written on bottles and other equipment used by the company to deliver products to consumers. This makes the brand easily recognizable internationally. The red colour is easily recalled as it has been used over time for the glass bottles of plastic bottles, and soda cans used by Coca-Cola.

get different packaging requirements and rules in the countries that Coca-Cola operates, the company adopts a localization packaging policy for each different country. This makes it possible for Coca-Cola to adopt cultural elements on the Coca-Cola brand to make it memorable to the customers. For instance, in China, the Coca-Cola brand adapted the AFU clay doll that reminds customers about the 2001 Chinese spring festival. The image of a smiling jet girl and a golden boy who hold a package is memorable and friendly to the Chinese market. It particularly appeals to the people who like the spring festival. Adapting a memorable element of the spring festival is meaningful to the Chinese market. Culturally the spring festival is valued in China which makes the AFU clay doll persuasive to the Chinese market. The two dolls are interesting and fun. They’re popular in China making them rich in verbal and visual imagery. The students generate communication and interaction among the Coca-Cola market. Furthermore, they’re adorable which makes the Coca-Cola brand aesthetically pleasing to the Chinese market. However, over time, they might lose meaning as people forget the 2001 festival. It would be advisable to replace them with a more recent alternative that has equal or more appealing cultural significance in China.

Aspects of transferability are observed in the continuity that the Coca-Cola brand has had over the years. For instance, launching the diet coke in 1982 was successful in the international markets of Coca-Cola. This added to the brand equity for completely new products in the same Coca-Cola market. The slogan used was “ just for the taste of it”. a second new product was launched internationally Coke zero with the slogan real Coca-Cola taste and zero calories. this was launched later in 2005. The second slogan implies an improvement in the first slogan. It implies that the market did not like the taste of Coca-Cola in the diet coke launched in 1982. The company then responded to these complaints or customer needs through launching a second product with a different slogan that communicated the company’s intention to meet client needs. This also implies that Coca-Cola is adaptable and flexible (Gehani, 2016). The drink itself is considered high sugar high calorie and with carbon. Coca-Cola can move with the trends in the consumer market globally. For instance, the innovative bottles used for the coca-cola drink as a result of inefficiencies in business that affected customer relationships with the brand.

The Coca-Cola brand is protectable both legally and competitively. First, the company protect its “unique” formula for Coca-Cola as a business secret. Secondly, the company makes an effort to market the unique aspects of its brand which discourage unauthorized infringement on the brand. However, over time other brands that manufacture similar products with Coca-Cola have come up. The taste and quality of these products are near similar to Coca-Cola and draw customer loyalty. In some cases and authorized competitive infringement of Coca-Cola has resulted in legal entanglements of the company. Coca-Cola uses and easy slogan open happiness. The slogan is easily remembered as it is unique to Coca-Cola international. It is easily recognized because no other company has used it and its brand. It is persuasive because instruct the consumer to open a Coca-Cola can or bottle and find happiness. The verbal imagery in the slogan is rich as people are generally seeking happiness in life. The slogan is transferable across all products hence the use of open happiness as the overall Coca-Cola slogan. However, this slogan is not flexible or updatable. It has been used by Coca-Cola over the years without change. Generally, however, the predictability aspect of the Coca-Cola brand the defensive purposes.

1. Provide illustrations of your brand as it is applied to several products

5 marks

The red colour and unique font adapted by Coca-Cola

Source: Coca- Cola

Coca-Cola products

1. Discuss the pricing strategy adopted by the brand

5 marks

The pricing strategy of a company needs to reflect the amount of revenue that the company is at achieving from selling the products. The price should also be set based on the demand of the public. The price should be set according to how competitors charge. If it is either too high or too low consumers will opt for competitor products. pricing should also reflect the target market. In the case of Coca-Cola, the company is a market leader in the beverage and soft drinks industry. Hence the pricing strategy used by Coca-Cola reflects that of the target market. The company uses a variety of pricing strategies to suit the needs of the market in various geographical regions and economic situations.

Promotional pricing is used by Coca-Cola during cultural events or other notable phenomena for each local market  (Keller, Parameswaran and Jacob, 2011). For instance, in Islamic countries, Coca-Cola office reduced prices for different products during Ramadan. promotional pricing is also used during such events as Christmas and New year’s when most people are likely to purchase soft drinks from Coca-Cola. Promotional prices make it possible for Coca-Cola to increase sales volumes and also introduced its products to new markets. In this pricing strategy for Coca-Cola offers free branded items to consumers such as dishes, bottles, and tumblers letter branded with Coca-Cola to attract sales. Promotional pricing increases the volume of sales for instance when Coca-Cola sells two bottles at the price of 1 and offers a free Coca-Cola brand this makes it possible to increase the volume of sales and also the sales volume in that particular market.

Segmented pricing strategy is used in Coca-Cola to differentiate between the different products offered by the company. based on the different packages that Coca-Cola offers a unique price is available for each. This makes it possible for consumers at different levels to ensure that they can afford at least one product of Coca-Cola. The segmentation is done based on different packaging. For instance, the plastic bottles have a price that is different from the aluminium cans to tropics, refillable glass bottles and beverages that are packaged in bags. Coca-Cola also categorizes each product in different sizes. The soft drinks are available from as little as 200 ml to 2.25 l full-. each of the differently sized packages and has a different price that is unique to that size.

Discriminatory pricing strategy is also used at Coca-Cola. Discriminatory prices are used based on the way that the products are sold. Exercises direct selling in which the company offers the transport and direct supply to customers at Coca-Cola shops and departmental stores. Direct selling eliminates middle-men and offers the company a higher profit margin. Indirect selling is used through distributors wholesalers and retailers. The company contracts distributors wholesalers and retailers to reach a wider target market. This ensures that Coca-Cola covers the whole area of a target market. The strategy has ensured that Coca-Cola retains its market leadership position globally.

International pricing strategy is used at Coca-Cola. Since the company packages, its drinks in near similar packaging, there is a need to consider the different economic conditions in different international markets. For instance, one can compare a 2-litre bottle of Coca-Cola In the US and China in terms of size packaging and quality. However, the price reflects the different economic conditions in the two countries. the company also employs evaluative procedures to identify the different financial conditions legal requirements and unique aggressive market circumstances that may affect the pricing. However international pricing is only done to reflect market penetration pricing strategy.

Coca-Cola is famous for using psychological pricing strategies in all its markets worldwide. Instead of setting the price of a two-litre bottle of Coca-Cola at $2.50, Coca-Cola opts to use $2.49 which seems cheaper than $2.50 to the consumer. in this way, a different brand that sets the cost at $2.50 automatically seems more expensive than Coca-Cola that has set its price at $2.49.

Market penetration pricing strategies are used in new markets for Coca-Cola. Market penetration requires that Coca-Cola charges the lowest possible price in a new market to achieve the highest possible sales in that market.

1. Discuss the appeal (pro’s and con’s) for using each of the following as a means of advertising aspects your chosen brand:

• TV

Advertising on TV is one of the most expensive forms of advertisement globally. Using TV for Coca-Cola employees the profits of a company will decrease and the price of a product will increase above the market penetration pricing policy strategy. TV ads in the first movie. They are only valid for a limited period. Hence the amount of exposure to the same advertisement Despite this cost, companies and attracted to the larger worship that TV’s attract. Hence using TV to advertise Coca-Cola grabs the attention of viewers. Timing is everything for TV advertisements. Hence, the use of emotional language that appeals to their conscience and subconscious of the market during premium timing, and is most likely to translate into real sales. TV advertising is preferred to attract the younger market that spends a lot of time watching TV. For Coca-Cola, this may translate into sales because most of the products sold by the company are cheap and affordable to all target audiences on TV.

• Radio

Radios are more affordable than TVs in markets where the population has limited purchasing power. Radio advertisements reach a wide target audience. They are scheduled to run at different times of the day, which reaches different classes of people in the target population. It is possible to localize radio advertisements to increase the social and cultural appeal of the advertisement to the local population. This increases its significance, and therefore, the likelihood of translating into positive consumer behavioural response. However, radio advertisement is virtual, just like TV advertisements. They are only available to the listener for a short period that may last for 30 seconds in some advertisements. Radio advertisements also lack visual appeal. The target audience can only listen. Due to localization, the company would have to pay for the same advertisement in different radio companies separately, making it expensive to communicate the same message to different markets.

• Print

Print allows consumers can read the message and cut out the advertisement for future reference. This implies an increased lifespan of print advertisements. When making a print advertisement, the company may obtain other related services for free such as designing the advertisement (Keller, Parameswaran, and Jacob, 2011). This makes the advertisement more affordable. However, it increases the likelihood of distorting the advertisement message and the company’s brand image and reputation. Print advertisements are easily trusted by consumers because the media is known to present unbiased opinions about products. Therefore, print advertisements are most likely to drive the intent to buy.

• Place
  • Billboards

Billboard advertisements are one of the most popular means of advertising Coca-Cola worldwide. One of the advantages of using billboards is that it is possible to market Coca-Cola within five seconds to the consumer. This is because the Coca-Cola brand is well-known recognizable and memorable. Given that Coca-Cola is a big company billboard advertisement is affordable (Keller, Parameswaran, and Jacob, 2011). The message is written and billboards are a good way to influence the subconscious thinking of consumers of Coca-Cola throughout the world. Billboards are often placed strategically in locations where the distressed passengers, drivers and other road users can read and internalize the message. having open access to roads wire reports have been set up by Coca-Cola makes it possible to influence the subconscious thinking of consumers because they read the message written on the billboards frequently. using billboards is a reliable way of instantly connected to consumers because the brand is well communicated and known to consumers hooked up billboards is photographic data that is easily recognizable, which makes it easy to register. Does also use short phrases and slogans to appeal to the customer. Placing one billboard on a strategic location and rich thousands or hundreds of thousands of consumers who are already familiar with the product or who are new to the products. For instance, mobile billboards can be transferred to different strategic locations such as different roads that are used at different times. Do both the large and eye-catching. This makes it possible for consumers to see them from a long distance with a strong visual effect due to the use of photographic information that is easily digested the remind full-. billboards appeal to the middle and upper-class segments of the Coca-Cola market. Based on the mini pricing strategy of the company comer reaching the middle-class and upper-class is important to increasing the frequency and sales volume of a company. Coca-Cola billboards have built a positive reputation and products image for the products.

• Movies

People do not necessarily watch advertisements in cinemas or on movies. Advertisements are regarded as breaks, which the audience my use to take a bathroom break or a popcorn break. However, advertising on movies is affordable as it has the potential of reaching a rather wide audience. This depends on how the target audience perceives the movie. Timing is crucial for these advertisements. In most cases, it is best to invest in advertisements when the target audience flocks cinemas for subscription channels to watch the movie. As such, the company may not be sure about how the target audience would perceive the movie, and hence the value of the investment (Keller, Parameswaran, and Jacob, 2011).

• Placement

The funds used to pay for product placement can be termed as sponsorship for the film and content creation. Hence, the brand may be associated with positive support for society. Product placement may enhance the viewing experience of customers, thereby attaching a psychological connection with this audience. If associated with a good character or movie, product placement increases sales volume and frequency. However, if associated with the wrong character, the brand may suffer a bad reputation and a negative brand image. The second disadvantage of product placement is that it is expensive for the brand. Sometimes, it is not possible to control the products placed in the same film. In some cases, brands or products may cancel each other out or initiate a negative cold war amongst themselves.

• Point of purchase

Point of purchase advertisement for Coca-Cola act as an invitation to consumers to purchase Coca-Cola products. This makes it the most feasible place to advertise. Advertising on window displays doors and other strategic locations on the point of purchase boost the business in which. it is less expensive as compared to other forms of advertising such as billboards. in some cases it is possible to display the price of the product which communicates this price information to the consumers. However, the point of purchase advertising covers very little ground for Coca-Cola. On the one hand point of purchase, advertising is effective because most shops in Coca-Cola markets to sell Coca-Cola products. However, only the people who visit the point of purchase receive the advertisement information (Keller, Parameswaran, and Jacob, 2011). In some cases, only large-scale sellers and distributors take up the point of purchase advertisement. However, this display does not necessarily persuade the buyer to buy.

• Select a brand that you feel would illustrate the different levels of a brand hierarchy well. Discuss the different levels, illustrating each concerning your chosen brand.

Brand hierarchy refers to the process of summarizing the branding strategy by displaying the number and nature of the common and distinctive brand elements throughout the firm products, to reveal the explicit ordering of the brand elements. The main issue is to show the most recognizable features of the brand so that the products are readily recognized when the products are on display. There are many distinguishable brand elements which, go on to identify the context of branding strategy. The main categories in the brand hierarchy are corporate brands, family brands, individual brands and modifiers.

One of the most recognizable brands across the world is Coca-Cola Company. The company has been using the same brand elements for a prolonged throughout its history that has resulted in people recognizing the brand readily regardless of the location culture and society (Brexendorf, & Keller, 2017). the main elements that make Coca-Cola brand a recognizable brand across the world include the use of the font with which its name is written as well as the red colour providing the main background while the white colour provides the colour to the font. the Coca-Cola company illustrates that creating and maintaining a brand takes time considering that the company started in 1886. throughout time there has been a consistent approach to the branding of the products regardless of the type of products that the companies providing. For example, the company is noted for being a global leader in provisional cola drinks but at the same time, there are many different varieties of carbonated soft drinks that the company provides. People still readily associate the different varieties of carbonated drinks offered by the company with the Coca-Cola brand. this is a clear indicator that the brand and the company have been successful in their brand hierarchy.

The corporate branding hierarchy is a strategy in branding which sees the company used its corporate name with the product. For the consumers, over time it becomes a challenge to dissociate the name of the company with the product (Gehani, 2016). As a result, the company as a corporate entity and the product are recognized as one. one can immediately perceive when viewing the Coca-Cola company branding strategy. The flagship product being the cola drink for the company has the name Coca-Cola written across the containers. To an extent, people assume the name Coca-Cola is about the carbonated drink brand and not the company itself. This correlation is therefore indicative of a corporate branding strategy which has enabled Coca-Cola company to create and maintain a clear brand for its Cola carbonated drink.

The second main brand hierarchy is known as the family brand strategy. In this strategy, a company readily market a variety of products under the same brand name. It makes it easy for consumers to correlate the different variety of products with the company of choice. For consumers, it becomes an easy task to select products that are coming from the same company. If the company is already enjoying a significant reputation amongst the consumers then putting all the different variety of products under the same brand name allows the company to further its marketing strategy. consumers who are loyal to the same company as likely to continue purchasing different products as long as they come from the company of choice. If a new product arises then the consumers can relate this new product to the company of choice. As a corporate company, it is clear that there is great benefit in marketing the products under the same name or relating each product to the main company brand elements. Coca-Cola Company has over the years implemented our family branding strategy in which most of its products despite being different from the main products can readily be correlated with the company. This is done mainly by attaching the name Coca-Cola to the different products are on sale so that their customers can differentiate their various products from competing. As a result, Coca-Cola company can continue cultivating its market by ensuring that consumers can get or satisfy their preferences using products straight from the company.

Individual branding strategy is applied by a company that is looking to separate its products from the main products that it is known for. The individual branding strategy allows for the marketing of a single product without necessarily attaching the main brand elements to the new product. When applied correctly it is possible for a company to ensure that consumers who may want a different type of products continue to purchase from the company. New edition a company can apply this strategy when it is producing different types of products unrelated but looking to satisfy the same market. The Coca-Cola company has employed a strategy when marketing a different variety of beverages that it is producing. Apart from producing mainly carbonated drinks the company also produces non-carbonated soft drinks under different names such as Minute Maid. Minute maid is marketed as a fresh fruit juice that lacks additives such as sugars and preservatives (Radis, 2015). The idea of doing such marketing and ensuring that minute maid is set apart from Coca-Cola is to ensure that customers who are looking for beverages that are not carbonated drinks can still purchase from Coca-Cola. Consequently, Coca-Cola company is still able to sell to customers who are no longer looking to purchase carbonated soft drinks because of the perceived health issues attached.

The modifiers branding strategy is designed to ensure that a company is able to set apart its various products from the competing companies. Modifiers which are phrases used to function as adverbs or adjectives that are descriptive and derive meaning from the consumer. This approach ensures that the company is able to market different products while at the same time emphasizing on the qualities of this product regardless of corporate family or individual branding strategies already employed. As a result, the context of branding using modifiers allows a company to ensure that it is able to cultivate a market or rather a niche market within the industry. When used properly the individual products branded using modifiers are likely to experience a demand based on the characteristics attached to the product. As a result, the strategy ensures that a company is able to distinguish its own products from the rest of the product line. Theoretical e it may be possible for a new product to be marketed more effectively using the modifiers as well as the corporate family or individual brand. The marketing process that the company decides on introducing this new product is, therefore, able to benefit from the existing reputation of the company while at the same time emphasizing on the innovative and beneficial characteristics of the individual product to the consumers. As such it may be possible to convince consumers about the new product since they are able to see exactly the new characteristics that are beneficial to them and they associate this new product with a company that they have known over time. The Coca-Cola Company has implemented this approach whenever it is marketing products closely related to carbonated soft drinks but are not as popular as the Cola drinks. A good example is how the company has been able to market it’s Fanta and Sprite brands by emphasizing on the individual characteristics and attaching the individual names.

15 marks

• Compare the Interbrand Top 10 brands of 2019 with those of 2018, commenting on the differences and to what you think they might be attributed.

The Top 10 brands of 2019 according to rankings were: Apple, Google, Amazon, Microsoft, Coca-Cola, Samsung, Toyota, Mercedes, Mac Donalds, and Disney. In 2018, the top 10 brands were: Apple, Google, Amazon, Microsoft, Coca-Cola, Samsung, Toyota, Mercedez, Facebook and Mac Donalds. The only new entrant into the list in 2019 was Disney, which replaced Facebook from 2018. All companies on the 2019 list were listed among the fastest-growing companies.

The Interbrand valuation formula involves comparing brand value, brand growth, and brand performance. The definition of “the best” brand by Interbrand reflects financial returns. Hence, to some extent, the definition of the best brands also implies the biggest brands in terms of financial returns. To rank in the top-10 list, a brand has to attain competitive sales and turnovers during the year. Hence, a reduction in sales revenues and sales volume in 2018 resulted in dropping Facebook from the top 10 rankings. The brand value of Facebook reduced by 12% to $39.9 billion. The probable lack of trust in Facebook as a brand may have affected the perceived and actual brand value of Facebook. The company was caught up in investigations regarding the role played by Facebook and other tech giants globally in fueling political unrest and the achievement of democracy. The companies were accused of selectively monitoring information posted by users to perpetrate selected political opinions in the US presidential election. It was also purported that Facebook and other tech companies participated in campaigning for certain political interests as opposed to the country’s motive of availing an equal chance to all candidates and presenting unbiased information. Facebook was accused of influencing voters through the use of algorithms in favour of certain presidential candidates, which built guided political opinions. Such negative attributes reduced companies’ trust with Facebook, which resulted in reduced business and hence, a drop in brand value. As such, Facebook dropped from the Top 10 Interbrand list.

The role played by the brand in consumer purchase decisions for different brands affected the 2019 listing. For instance, the wide media coverage of the accusations against Facebook and the proceedings of the case influenced negative opinions about the brand. This, in turn, affected consumer purchase decisions in favour of other alternative tech companies other than Facebook. Sales growth slowed down for Facebook, which impacted the value of the brand after the company had registered steady capital and market growth over the years. This was despite the technology sector being the fastest growing economic sector in 2019. Generally, the technology sector brand value grew by approximately $800,000 while other sectors grew by less than half of this rate. The role of the brand in growth and value for the technology sector increased from 30% in 2018 to approximately 80% in 2019, which contributed to Facebook’s fall out (Interbrand, 2019). For instance, the negative publicity that Facebook gained in 2019 played a great role in influencing the role of the brand in the rankings (Interbrand, 2019).

Note that the top 10 companies on the Interbrand list are also the US top 10 companies by market capitalization. To maintain this listing, companies have to continually and increasingly invest to increase market capitalization. For a long time, both Apple and Google have maintained the top two positions in the Interbrand Top 10 list. This is partially due to the company size, which reflects the size and value of the brand. Apple brand value was at $214,480 million, having grown by 16% from the previous year. The brand value of Google was at $155.506 million, having grown by 10% from2017. Both the large brand value and high brand growth by Google and Apple contribute to the top ranking positions worldwide. The reliance on financial results of these companies makes it possible to maintain an almost constant choice of brands on the top-10 list, given that financial growth of companies and brands takes time in most cases (Interbrand, 2019).

Disney profited from increased growth in brand value, increased role of the brand in the Interbrand ranking, and increased relevance of the Disney brand in 2019 to join the top10 list. The company was characterized as one of the fastest-growing brands, growing at approximately 11% in 2018. Disney became increasingly relevant in 2019 due to increased global recognition of the brand and its products. Disney now has a significant presence in the markets checked by Interbrand such as North America, Europe, and Asia. Disney’s marketing strategy involved increasing brand communication and brand awareness in emerging markets. By 2018, China was characterized as an emerging market and contributed to the increase in brand value of Disney greatly. Another aspect of the Interbrand list is that the company should obtain financial revenue of at least 30% outside the home region (Interbrand, 2018). Hence, by concentrating on emerging markets, Disney raised the amount of revenue obtained by its brand from other markets, and hence the ranking position of the brand on the Interbrand list. The new online streaming service offered by Disney increased the company’s relevance to current markets as more consumers focus on obtaining goods and services from online platforms. The collaboration of Disney with online transaction companies such as PayPal enabled the brand to tap revenue from a new stream of online users. This indicates a response to customer needs and expectations of the future of services provided by Disney. It also indicates a shift by brand building from static brand positioning to a more dynamic model that involves moving towards meeting changing consumer needs. The role that Disney plays in influencing consumer choices is very persuasive. The presence of an online streaming option for consumers, for instance, transfers the movie experience from the cinema to the home. Disney tapped into an opportunity of increasing its influence on consumer choice. Traditionally, Disney products have been associated with premium pricing strategies and having the cinema experience increased the difficulty of making a choice in favour of Disney. With the online streaming choice, consumers have access to an array of products while choosing the prices that they can afford. Lastly, the economic profit of the company has been positive over the years owing to increased brand awareness and strategic marketing that translates into sales. This is a classic example of a brand’s move to expand beyond what consumers expect of the brand to meeting client needs and laying foundations to exploit new realms of opportunities.

Amazon remained in the third position on the 2018 and 2019 lists. Notably, its brand value grew by 24% to 125.3 billion in 2019. Amazon is the brand that benefitted most from the increased relevance of the brand. Being a global online retailer, Amazon has increasingly benefitted from the tendency of most consumers to shop online as opposed to conventional store shopping. Over time, Amazon has expanded its business avenues to allow online trade of all types of goods and services, enabling confidentiality, and working with other businesses to facilitate home deliveries. Towards the end of 2019, the global COVID – 19 pandemics contributed to an increase in the use of online shopping services globally. Amazon was labelled as one of the key essential service providers in delivering groceries and other necessities to homes. As such, the company’s brand value grew exponentially in 2019. Brand value grew in terms of brand relevance, the role of the brand as a part-tech company, increased sales from online shopping across the globe, and the brand’s increased presence and participation in foreign markets outside of North America. Other than increased relevance, Amazon also benefitted from earlier investment in brand growth and expansion structures that facilitates quick growth in 2019.

References

Brexendorf, T. O., & Keller, K. L. (2017). Leveraging the corporate brand. European Journal of Marketing.

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