最具价值和最强大的化妆品品牌年度报告

Increasing the Influence of Marketing in Top How do brands addvalue? An important additional benefit of strong brands istheir ability to transfer established consumerloyalty to new market areas and productcategories. In order for brand stretching to beeffective, it is necessary that the brand attributesare as appropriate to the new extension area as tothe original product or service category. For In financial terms a brand represents the pactbetween a consumer and a supplier, promising asecure flow of future revenues and profits to thesupplier. Ultimately, what gives a brand its value The supplier’s earnings are secure becausestrong brands create both functional andemotional barriers to competition for theconsumer’s loyalty. On the functional side,brands simplify recognition and selection; theyfacilitate split-second purchase decisions atpoint-of-purchase. Brands provide a guaranteeof origin and quality; reliable consumer choicescan be made in safety. On the emotional side,brands provide reassurance; ‘I am a good That strong ‘brand equity’ does translate intobetter financial performance can be seen in thecola market. In blind tests Pepsi Cola consistentlyoutperforms Coca-Cola in terms of consumertaste preference. But when Coke brandedpackaging is revealed stated preferencecompletely reverses. When otherwise identicalcars, made in the same factory, are branded Brand Economics Strong brands with high ‘brand equity’ possessthe ability to persuade people to make economicdecisions based on emotional rather than rationalcriteria. They consequently have a profoundeconomic impact and economic value. Brand Interestingly, it is sometimes argued that brandingis a way for companies to ‘rip off ‘ consumers,but the following simple example demonstratesthat in a free market brands create a virtuouscircle of lower prices, higher profits and higher Brands favorably affect both the revenue and costcurves of a business.Figure 1shows the averagerevenue and cost curves of a simple commoditybusiness.Figure 2demonstrates the absoluteamount of profit made in that commodity business As shown inFigure 3,if products are well branded,and have acquired strong ‘brand equity’, thedemand line moves out to the right, becauseconsumers are quite willing to pay more. There arevarious effects at work causing this phenomenon; Equally importantly strong ‘brand equity’ drivesdown the average cost curve. Strong brands aremore willingly distributed and stocked by the trade The net result, shown inFigure 4,is atransformation of the commodity economic modelto a branded one, with the revenue curve pushedupwards and the cost curve downwards.Average surplus consumer utility has doubledbecause preference for the brand expressed in Some brand owners would be happy to leave themodel at that, satisfied they had achieved highersales, profits and consumer utility at the originalprice point. However, a number of interesting Brand Economicsimpact on corporate strategy It reflects a growing recognition thatresponsibility for brands must be sharedbetween the finance and marketing functions.The marketing department will always haveresponsibility for the creative aspects of brand In a commodity business an increase in pricequite rationally leads to a proportionate decreasein demand, and vice versa. For every unit The demand curve in our simplified model is a However, in a branded business, demand variesin irrational ways. As price rises the volume ofdemand from brand loyal consumers oftendecreases less than proportionately with theincrease in price. As price falls, the volume of However, while ‘brand equity’ is often talkedabout it is seldom clearly defined. How it worksto impact on Brand Economics’ not clearlyunderstood. Tim Ambler, of the London BusinessSchool, defines ‘brand equity’ as a marketingasset ‘between the ears’ of consumers, tradecustomers, staff and other stakeholders, which In some instances brand demand curves vary inapparently irrational ways. For example, in luxurygoods, demand often rises rather than falls as If the ‘brand equity’ reservoir is depletedrevenues and cash flows may remain strong for aperiod, but eventually the reservoir empties andcash flows dry up. A great visual analogy, but we The shape of a brand’s demand curve need to becarefully investigated before deciding on theoptimal brand strategy. In the simplified exampleshown inFigure 4,demand increasesproportionately with price decreases. In the realworld this is unlikely to happen for the reasonsnoted above. If the brand is a strong one, then Paul Feldwick, planning Director of BMP, pointsout that the term ‘brand equity’ is often used Consumer images, associations and beliefs. These are high up the flow towards the source.A brand may be described as ‘young’, ‘green’ or‘exciting’. It is possible to measure and reporthow such brand images, associations and beliefsvary from consumer group to consumer group,how they change from time to time and how they This ill