BAPM Group Project

8/13/2019 BAPM Group Project

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A STUDY ON MEASURING

BRAND EQUITY OF

AND

An assignment on Brand And Product ManagementSubmission - I

C I M P

G R O U P 1

P A R A S H A R A M A R N A T H

P R E E T I P R I Y A

R A J S H E K H A R


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M E A S U R I N G B R A N D E Q U I T Y: A L I T E R A T U R ER E V I E W

OBJECTIVE

Brand equity is a concept born in 1980s. It has aroused intense interest among businessstrategists from a

wide variety of industries as brand equity is closely related with brand loyalty and brand extensions. Besides,

successful brands provide competitive advantages that are critical to the success of companies. However,

there is no common viewpointemerged on the content and measurement of brand equity. Brand equity has

been examined from financial and customer-based perspectives. Our research will primarily focus on

quantifying and measuring brand equity of Micromax which is in the mobile handset industry and airtel

which is India's leading telecom service provider. This literature review provide sufficient knowledge of

earlier and most prominent and widely used concepts of brand equity. All researches is widely being used inmany industries across the world. These researches are basis of many famous rankings and provides

valuable insights on use of brand equity models.

INTRODUCTION

The study of brand equity is increasingly popular as some researchers have concluded that brands are one of

the most valuable assets that a company has. High brand equity levels are known to lead to higher consumer

preferences and purchase intentions (Cobb-Walgren et al. 1995) as well as higher stock returns (Aaker and

Jacobson, 1994). Besides, high brand equity brings an opportunity for successful extensions, resilience

against competitors promotional pressures, and creation of barriers to competitive entry (Farquhar 1989).

The concept of brand equity began to be used widely in the 1980s by advertising practitioners (Barwise

1993). Important academic contributors throughout the 1990s were Aaker (1991), Srivastava and Shocker

(1991), Kapferer (1992), and Keller (1993, 1998). However, a universally accepted brand equity content and

meaning (Vazquez et al 2002, Keller 2003) as well as measure has not been forthcoming (Washburn 2002).

Almost all conceptualizations of brand equity agree today that the phenomena involve the value added to a

product by consumers associations and perceptions of a particular brand name (Winters 1991, Chaudhuri

1995).Early research centered on measuring a brand's equity with the use of a variety of financial techniques

(Farquhar et al. 1991, Simon & Sullivan 1990, Swait et al. 1993, Kapferer 1997). More recently, brand equity

has increasingly been defined in customer-based contexts (Keller 1993) and extended to include effects on

brand preferences, purchase intent (Cobb-Walgren et al. 1995, van Osselaer & Alba 2000), and brand

alliances (Rao et al. 1994).


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DEFINITIONS AND DIMENSIONS OF CUSTOMER-BASED BRAND EQUITY

There are two principal and distinct perspectives that have been taken by academics to study brand

equityfinancial and customer based. The first perspective of brand equity is from a financial

markets point of view where the asset value of a brand is appraised (Farquhar et al. 1991, Simon and

Sullivan 1990). Customer-based brand equity is evaluating the consumers response to a brand name

(Keller 1993, Shocker et al. 1994).

Reviewing the current literature on brand equity, there is a plethora of brand equity definitions and

dimensions of the same. The following table illustrates the diversity of existing definitions and

concept of brand equity.

STUDY DESCRIPTION OF THE CONCEPT

The Marketing

Science Institute(Leuthesser 1988)

The set of associations and behaviors on the part of the brands consumers,channel members, and parent corporation that permits the brand to earn greatervolume or greater margins than it would without the brand name and that givesthe brand a strong, sustainable, and differentiated advantage over competitors

Aaker (1991) The value consumers associate with a brand, as reflected in the dimensions ofbrand awareness, brand associations, perceived quality, brand loyalty and otherproprietary brand asset

Swait et al (1993) The consumers implicit valuation of the brand in a market with differentiatedbrands relative to a market with no brand differentiation. Brands act as a signal orcue regarding the nature of product and service quality and reliability andimage/status

Kamakura &

Russell 1993

(Lassar et al.1995)

Customer-based brand equity occurs when the consumer is familiar with the brand

and holds some favorable, strong, and unique brand associations in the memory

Keller 1993 The differential effect of brand knowledge on consumer response to the marketingof the brand. Brand knowledge is the full set of brand associations linked to thebrand in long-term consumer memory

Lassar et al.(1995) The consumers perception of the overall superiority of a product carrying thatbrand name when compared to other brands. Five perceptual dimension of brandequity includes performance, social image, value, trustworthiness and attachment

Aaker (1996) Brand equity is: (1) Loyalty (brands real or potential price premium), (2) loyalty

(customer satisfaction based), (3) perceived comparative quality, (4) perceivedbrand leadership, (5) perceived brand value (brands functional benefits), (6) brandpersonality, (7) consumers perception of organization (trusted, admired orcredible), (8) perceived differentiation to competing brands, (9) brand awareness(recognition & recall), (10) market position (market share), prices and distribution

coverage.


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A FRAMEWO RK FOR MEASURING CUSTO MER-BASED BRAND EQUITY

Brand equity is defined as the value that consumers associate with a brand (Aaker 1991). It is theconsumers perception of the overall superiority of a product carrying that brand name when compared toother brands. Brand equity refers to consumers perception rather than any objective indicators (Lassar et

al.1995). A conceptual framework for measuring customer-based brand equity is developed by using theconceptualization of Aakers fourdimensions of brand equity.

FOUR DIMENSIONS OF BRAND EQUITY

Brand Awareness

Awareness is a key determinant identified in almost all brand equity models (Aaker 1991, Kapferer 1991,

Keller 1992, Agarwal and Rao 1996, Krishnan 1996, Na, Marshall and Keller 1999, Mackay 2001). Keller

(2003, p.76) defines awareness as the customers ability to recall and recognize the brand as reflected by

their ability to identify the brand under different conditions and to link the brand name, logo, symbol, and

so forth to certain associations in memory. Aaker (1996) identifies other higher levels of awareness besides

recognition and recall (Aaker 1991). He includes top-of-mind, brand dominance, brand knowledge and

brand opinion. Brand knowledge is the full set of brand associations linked to the brand (Keller, 1993).


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Brand Associations

A brand association is the most accepted aspect of brand equity (Aaker 1992). Associations represent the

basis for purchase decision and for brand loyalty (Aaker 1991, p. 109). Brand associations consist of all

brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes (Kotler and Keller 2006,

p. 188) and is anything linked in memory to a brand.

Product Associations

Product associations include functional attribute associations and non-functional associations (Chen 2001).

Functional attributes are the tangible features of a product (Keller 1993, Hankinson and Cowking 1993, de

Chernatony and McWilliam, 1989). While evaluating a brand, consumers link the performance of the

functional attributes to the brand (Pitta and Katsanis 1995, Lassar et al. 1995). If a brand does not perform

the functions for which it is designed, the brand will has low level of brand equity. Performance is defined

as a consumers judgment about a brands fault-free and long-lasting physical operation and flawlessness in

the products physical construction (Lassar et al. 1995).

Non-functional attributes include symbolic attributes (Aaker 1991, Keller 1993, Farquhar & Herr 1993,

Chen 1996, Park et al. 1986) which are the intangible features that meet consumers needs for social

approval, personal expression or self-esteem (Keller 1993, Hankinson and Cowking 1993, de Chernatony

and McWilliam 1989, Pitta & Katsanis 1995). Consumers linked social image of a brand, trustworthiness,

perceived value, differentiation and country of origin to a brand.

Social Image

Lassar et al. (1995) limit the reference of the image dimension to the social dimension, calling it social image

as social image contributes more to brand equity. Social image is defined as the consumers perception of

the esteem in which the consumers social group holds the brand. It includes the attributions a consumer

makes and a consumer thinks that others make to the typical user of the brand.

Perceived Value

Value appeared in several brand equity models (Feldwick 1996, Martin and Brown 1991, Lassar et al. 1995).

Lassar et al. (1995) define perceived value as the perceived brand utility relative to its costs, assessed by the

consumer and based on simultaneous considerations of what is received and what is given up to receive it.

Consumer choice of a brand depends on a perceived balance between the price of a product and all its

utilities (Lassar et al. 1995). A consumer is willing to pay premium prices due to the higher brand equity.

Trustworthiness

Brand equity models (Martin and Brown 1991, Lassar et al. 1995) regard trustworthiness of a product as an

important attribute in assessing the strengths of a brand. Lassar et al. (1995) define trustworthiness as the

confidence a consumer places in the firm and the firms communications and as to whether the firms

actions would be in the consumers interest. Consumers place high value in the brands that they trust.


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Differentiation/Distinctiveness

The Marketing Science Institute (Leuthesser 1988) states that the underlying determinants of consumer-

based brand equity are that brands provide benefits to consumers by differentiating products, as they

facilitate the processing and retrieval of information (Hoyer and Brown 1990). Other marketing literatures

(Ries and Trout 1985; Kapferer 1991) also stress the importance of the distinctive character of brand

positioning in contributing to the success of a brand. Distinctiveness is defined as the degree to which theconsumer perceives that a brand is distinct from its competitors (Kapferer 1991). A brand can have a price

premium if it is perceived as being different from its competitors.

Perceived Quality

Perceived quality is viewed as a dimension of brand equity (Aaker 1991; Kapferer 1991; Kamakura and

Russell 1991; Martin and Brown 1991; Feldwick 1996) rather than as a part of the overall brand association

(Keller 1992; Gordon, di Benedetto and Calantone 1994). Perceived quality is the customers judgment

about a products overall excellence or superiority that is different from objective quality (Zeithaml 1988,

pp. 3 and 4). Objective quality refers to the technical, measurable and verifiable nature of products/services,

processes and quality controls. High objective quality does not necessarily contribute to brand equity(Anselmsson et al. 2007). Since its impossible for consumers to make complete and correct judgments of

the objective quality, they use quality attributes that they associate with quality (Olson and Jacoby 1972,

Zeithaml 1988, Ophuis and Van Trijp 1995, Richardson et al. 1994; Acebron and Dopico 2000). Perceived

quality is hence formed to judge the overall quality of a product/service. Boulding and other researchers

(1993) argued that quality is directly influenced by perceptions. Consumers use the quality attributes to

infer quality of an unfamiliar product. It is therefore important to understand the relevant quality attributes

are with regard to brand equity

Zeithaml (1988) and Steenkamp (1997) classify the concept of perceived quality in two groups of factors

that are intrinsic attributes and extrinsic attributes. The intrinsic attributes are related to the physical aspectsof a product (e.g. colour, flavour, form and appearance); on the other hand, extrinsic attributes are related to

the product, but not in the physical part of this one (e.g. brand name, stamp of quality, price, store,

packaging and production information (Bernues et al.2003). Its difficult to generalize attributes as they are

specific to product categories (Olson and Jacoby 1972, Anselmsson et al. 2007)

Brand Loyalty

Loyalty is a core dimension of brand equity. Aaker (1991, p. 39) defines brand loyalty as the attachment that

a customer has to a brand. Grembler and Brown (1996) describe different levels of loyalty. Behavioural

loyalty is linked to consumer behaviour in the marketplace that can be indicated by number of repeated

purchases (Keller 1998) or commitment to rebuy the brand as a primary choice (Oliver 1997, 1999).

Cognitive loyalty which means that a brand comes up first in a consumers mind, when the need to make a

purchase decision arises, that is the consumers first choice. The cognitive loyalty is closely linked to the

highest level of awareness (top-of-mind), where the matter of interest also is the brand, in a given category,

which the consumers recall first. Thus, a brand should be able to become the respondents first choices

(cognitive loyalty) and is therefore purchased repeatedly (behavioural loyalty) (Keller 1998).


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Chaudhuri & Holbrook (2001) mention that brand loyalty is directly related to brand price. Aaker (1996)

identify price premium as the basic indicator of loyalty. Price premium is defined as the amount a customer

will pay for the brand in comparison with another brand offering similar benefits and it may be high or low

and positive or negative depending on the two brands involved in the comparison.

CONSUMER-BASED BRAND EQUITY E VALUATION MODELDEVELOPMENT AND ITS INTERPRETATION

The model integrated both attributes important for consumer and attributes important for company that

respectively reflects perceptual and behavioral consumer-based brand equity dimensions discriminated in

literature (Myers, 2003; Keller et al., 1999). Brand awareness, brand image, product quality and product price

were discriminated as attributes important for consumer, loyalty for a brand was marked as attribute

important for company. According to this model, the overall consumer based brand equity (Q) can be

expressed by an authorial formula (1):

Q = 5(Awareness) + 4(Brand image) + 4(Product quality) + 5(Loyalty) (1)

1000 point system, i.e. one attribute can be assed with a maximum of 1000 points, was used in development

of this model for the purpose to make it clear and simple. Though final result of an attribute should be

assessed by multiplying estimated points and individual weight of an attribute, identified in a formula. In this

case maximum result of consumer-based brand equity, after assessment of every attribute, can reach 18 000

points (i.e., Q = 5 1000 + 4 1000 + 4 1000 + 5 1000 = 18000).


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Brand awareness

According to the interviewed experts and K. L. Keller (2003) recommendations, brand awareness is treated

here as a set of brand recall that is considered as unaided brand remembrance and brand recognition, that is

approached as aided mean, while showing or citing different brands. It is recommended to evaluate both

sub-components, beginning with brand recall. Both sub-components have the same weight in an overall

estimation of an attribute. That is why positive response of the respondent in both cases is worth 500points, negative response 0 points. The maximum result of brand awareness can reach 5000 points 5 x

(500+500). It is important to highlight that brand recognition acts the role of filtration here. If a respondent

cannot recognize the brand that is evaluated, he has to be eliminated from a survey.

Brand image

Brand image is related here with associations the consumer has about the brand. This attribute was

developed with the regard to Kellers (1998) brand image dimensions and the opin ion of interviewed

experts. They discriminated the importance of association uniqueness and its polarity (positive or negative

association). According to recommendations of the experts, not more than 2 - 4 associations, formulated by

the company owning the brand, suggested to evaluate. Associations are estimated in field of polarity anduniqueness. If evaluation is carried out on 2 associations, a positive respond of one association is worth 250

points, negative respond 0. Moreover, if association is unique, in other words typical just for certain

brand, the scored polarity points should be multiplied by 2, if it is not unique by 1. The maximum result

of this attribute can reach 4000 points4 (250 2) + (250 2) if two associations are evaluated.

Product quality

This model treats the attribute of product quality as consumer perception on product quality level. It is

recommended to use simple evaluation system that covers 3 possible answers: good quality, medium quality,

bad quality. 2 experts have mentioned that such scale is the most convenient for consumers, thus more

objective responds can be expected. The good quality is estimated by 1000 points, medium quality by 500

points and bad quality by 0 points. The maximum result of this attribute can reach 4000 points4 (1000).

Loyalty for a brand

The last attribute of the model is considered as an important factor for a company that seeks to evaluate

consumer-based brand equity. The loyalty attribute is treated here not only as repeated purchases, but as

multiplication of repeated purchases and consumer agreement on paying differential price for a product.

That is why it is recommended to begin with the identification of repeated purchase, while using simple

scale: regular buy 250 points, rare buy 125 points, accidental buy 0 points and no buy (none) 0

points. The 2 later tendencies have nothing in common with a true loyalty that is why it is recommendedestimate them by 0 points. Furthermore, the purchase regularity points should be multiplied by differential

price level, that have to be estimated by the organization owning the brand itself. If the price of a product is

very high compared with the products in the same category it is suggested the scored purchase regularity

points multiply by 4, if high by 3, if medium by two, if low by one. The maximum result of this

attribute can reach 5000 points5 (250 4).


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The suggested consumer-based brand equity evaluation methodology is recommendatory and not

obligatory, therefore organizations adapt it according to their activities particularity or individual needs.

However, authors recommend maintaining the principle of 1000 points and identified weights of individual

attribute. Moreover, rival brands evaluation, by the same methodology is also recommended. It would

enable a company to define its brand position in the market. Finally, consistent implementation of brand

evaluation would also be a benefit since it would allow following the trends of the managed brand.

SCOPE OF THE STUDY:-

1. This study brings out various sources of brand equity for both brands in limited area2. Applying model for quantifying the qualitative research3. This research can be used for further formulation of strategies on brand related issues like

customers' preferences, brand extension, pricing strategies etc

4. Brand equity is not an absolute measure which can be used to judge a brand, still this study revealscertain aspects of brand knowledge, relationship and preferences

5. It can act as a feedback for companies in order to take steps to build and manage brand value

Approach of the study

1. Identification of factors affecting brand equity,2. Collecting primary data regarding Brand awareness, quality, association and loyalty3. Analysing and tabulating the research into categories4. Coming out with interpretations for consumer product and service brands5. Bringing out points of differences/similarities between case of product and service


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Sources of brand equity of Micromax

1. It was launched in 2008 and within 3 years has become the No. 3 player in the Indian MobileHandset market (source) behind Nokia (39%) and Samsung (17%). It has a share of 8%.

2. It's sales turnover was around Rs. 350 crores in 2009-10 which skyrocketed to Rs. 1600 crores in2010-11.

3. It is exported to 12 countries already and gets 20% of its total sales from exports.4. In 2010, Micromax was the 4th most searched keyword on Google India.

Micromax Mobile is a young and profitable brand which targets the value conscious Indian consumer. Thebrand is growing at a rapid pace and is likely to challenge the leaders within a few years time. This makes uswonder, how? In a market flooded with brands how did Micromax manage to do so well. There are so manybrands in India; Nokia, Samsung, Blackberry, LG, Sony Ericsson, Karbonn, G'Five, Lava, Spice, the listgoes on. What did Micromax do which other challenger brands did not?

Micromax: Innovative Products, Value for Money (VFM) & Smart Strategy

Micromax has launched a range of innovative phones in the market. Most of these products were the firstof its kind. Take a look.

1. Phone with 30 day battery backup for rural India,cheap QWERTY phone,

2. Phone targeted only at women (Bling), phonewhich becomes a universal remote for allappliances,

3. Phone which switches sim cards by turning itupside down, GSM and CDMA in one phone,shake the phone and its sim card changes,

4. Phone whose Bluetooth gets charged along with the phone.5. It is developing a water-proof phone targeted at fishermen.

The list goes on.

Micromax has given what people wanted. Their 30 day battery backup phone succeeded because people in

rural India wanted it. While Micromax has been innovating, they have never lost sight of value. Indians arevalue conscious consumers and Micromax has thus kept the prices affordable. The average sale price of aMicromax phone is around Rs. 2300. Yet at this price they are selling phone loaded with features.

K V Sridhar of Leo Burnett talks about why Micromax has clicked. The essence of his point is - Indian'sdo not want cheap stuff. They want good quality at low prices. They want to see value in your offering.Micromax offers that value to consumers.

The Indian handset market is divided into three segments (data from Micromax IPO prospectus):


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As on Dec 2009, out of total market size of 1.51 crore handsets 68 lakh handsets were priced betweenRs. 2000 to Rs. 5000. This is the largest chunk of the market. This is the value for money segment which isbeing targeted by Micromax from the very start. Bloomberg Businessweek wrote this about the brand backin August 2010: "Micromax is gaining market share in India by making cheap phones with long battery lifeand offering other features local consumers want." Micromax has indeed been listening to its consumersand giving them what they want.

How they built their equity?

Micromax has also been good at strategy. They divided the Indian market into three groups; Rural, UrbanYouth, and High Profile Consumers (source). The rural consumers are simple and want a regular phone.The urban youth desired memory cards, music, camera, etc. The high profile user wanted the latest intechnology. The brand gave No. 1 priority to rural consumers, No. 2 to urban youth and No. 3 to highprofile consumers. In line with strategy, Micromax first went after the rural consumers. It did not look atmetros and built its business in rural India. It worked and today 60% of its sales comes from rural India.

They also approached distribution differently. When other companies were offering extended creditperiod, Micromax went with a cash and carry model. No credit. It gave it dealers better margin againstupfront payment. It also ensured regular supply to dealers so their investment in stock was low and they hadno pileup of unsold stocks. This was a tough move but clicked for them. Today the brand has healthy cashflows and zero risk of bad debts.

Brand Consultant Cajetan Vaz has nicely summarised the reasons why Micromax has done so well. "Themain reason for Micromax doing well in the handset business is because it focused on handsets with special


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features. Then the company kept a very sensible pricing strategy that also worked for it. Communicationstrategy and distribution rounded off a successful approach. Another factor which worked for the companyis that Nokia has lost its connect with the consumer."

Promotion

Micromax has used cricket to build its brand. Cricket is costly but gives instant reach among youngconsumers (especially male). Micromax also tied up wit MTV and launched a special phone. All this totarget its core TG (target group) youth.

Micromax has done well by being innovative, offering what the consumer wanted, by being affordable andby having good distribution. The last point, however is the most important. Nokia's failure to react is whatled Micromax snatch market share from it. Nokia came up with a dual sim phone long after dual simbecame a common feature in all phones. Nokia was late in launching affordable QWERTY phones and itwas also late in launching affordable touch phones. It was Nokia's failure to react which let Micromax (andSamsung) race through. This is a surprise because a smart market leader always reacts to competitor moves.A small example, when Horlicks Foodles was launched with four-grain, Maggi replied immediately with itsown version of 'Multigrainz'.

Brand Micromax Today

Micromax is a youth brand. The company in its IPO prospectus mentions about the brand attributes. Itcalls its brand - Innovative, Youthful, Real and Aspirational. The brand today is in the growth phase and isgaining acceptance extremely fast. The company is investing heavily in brand building. The brand has a 100crore annual marketing budget for financial year 2011-12 (around 4% of its sales turnover). The budget wasRs. 50 crores in 2010-11. The communication of the brand was earlier focused on its products but off latethe company has also started talking about brand Micromax. A good move.

The print advertising of the brand has been good. Look at this ad for Micromax A60 (its first Android

phone).


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http://4.bp.blogspot.com/-PxT8rZ2KtVs/TsadWLfmLLI/AAAAAAAACf4/oXDUt9V74f8/s1600/A60.pnghttp://4.bp.blogspot.com/-PxT8rZ2KtVs/TsadWLfmLLI/AAAAAAAACf4/oXDUt9V74f8/s1600/A60.png


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This advertising has surely clicked with the youth. Micromax has kept its Android phoneunder Rs. 10,000 and created a lot of buzz around the same. The brand has so far lived uptoits tagline; "Nothing like Anything."

Analysis of the Survey

1. Out of 20 respondents 15 were able to recall.

2. Out of 20 respondents 14 were able to recognise.

3. 81% of respondents considered Micromax as favourble brand.

75%

25%

Able to recall

Yes no

70%

30%

Able to recognise

Yes no

81%

19%

Brand Image

Favourable Non Favourable


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Respondents

1. Name mobile brands youcan think of most often

2. Can you identify this-ic-o-a-

Brand Awareness

score

1 500 500 1000

2 500 500 1000

3 500 0 500

4 500 500 1000

5 500 0 500

6 0 500 500

7 500 500 1000

8 0 0 0

9 500 500 1000

10 500 500 1000

11 0 0 0

12 500 500 1000

13 500 500 1000

14 500 500 1000

15 500 500 1000

16 500 0 500

17 500 500 1000

18 0 500 500

19 500 500 1000

20 500 0 500

3. What comes to your mind whenyou think of micromax

4. Is the brand good orbad

5. What is unique about thebrand

250 250 250

250 250 250

0 0 250

250 250 250

250 250 0

250 250 250

250 250 250

0 0 0

250 250 250

250 250 250

0 0 0

250 250 0

250 250 250

250 250 250

250 250 250


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250 250 250

250 250 250

250 250 250

250 250 250

0 0 250

6. If micromax is a personalitywhat would it like to be

Brand Image

score

7.What is the quality ofmicro max

Quality

Score

250 1000 1000 1000

250 1000 1000 1000

0 250 1000 1000

250 1000 1000 1000

250 750 1000 1000

250 1000 1000 1000

0 750 1000 1000

0 0 0 0

250 1000 1000 1000

250 1000 1000 1000

0 0 0 0

250 750 500 500

250 1000 500 500

250 1000 500 500

250 1000 500 500

250 1000 500 500

250 1000 500 500

250 1000 500 500

250 1000 500 500

250 500 500 500

8. Will you buymicromax

Resonance

score Final score

250 250 14250

125 125 13625

250 0 7500

250 250 14250

250 250 10750

125 125 11125

250 250 13250

0 0 0


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250 250 14250

250 250 14250

0 0 0

125 125 10625

250 250 12250

250 250 12250250 250 12250

125 125 9125

250 250 12250

125 125 9125

0 0 11000

250 250 7750


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Bharti Airtel Limited

commonly known asAirtel, is an India multinationaltelecommunications services company headquartered

inNew Delhi, India.It operates in 20 countries acrossSouth Asia,Africa,and theChannel Islands.Airtel istheworld's third largest mobile telecommunications company by subscribers, with over 275 millionsubscribers across 20 countries as of July 2013. It is thelargest cellular service provider in India, with 192.22million subscribers as of August 2013.[7]Airtel is the third largest in-country mobile operator by subscriberbase, behindChina Mobile andChina Unicom.Bharti Airtel Limited is a leading global telecommunicationscompany with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, thecompany ranks amongst the top 4 mobile service providers globally in terms of subscribers. In India, thecompany's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed lineservices, high speed DSL broadband, IPTV, DTH, enterprise services including national & internationallong distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services andmobile commerce. Airtel has aGSM network in all countries in which it operates,providing2G,3G and4G services depending upon the country of operation.

Airtel is the largest provider ofmobile telephony and second largest provider offixed telephony in India,and is also a provider ofbroadband andsubscription television services. It offers its telecom services underthe "airtel" brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service

provider to achieveCisco Gold Certification. It also acts as a carrier for national and international longdistance communication services. The company has a submarine cable landing station at Chennai, whichconnects the submarine cable connectingChennai and Singapore.

Airtel is credited with pioneering the business strategy ofoutsourcing all of its business operations exceptmarketing, sales and finance and building the 'minutes factory' model of low cost and high volumes. The

strategy has since been copied by several operators. Its networkbase stations, microwave links, etc.ismaintained byEricsson andNokia Siemens Network[10]whereas IT support is provided byIBM, andtransmission towers are maintained by another company (Bharti Infratel Ltd. in India). During the financialyear (200910), Bharti negotiated for its strategic partnerAlcatel-Lucent to manage the networkinfrastructure for the tele-media business. On 31 May 2012, Bharti Airtel awarded the three-year contracttoAlcatel-Lucent for setting up anInternet Protocol access network (mobile backhaul) across the country.This would help consumers access internet at faster speed and high quality internet browsing on mobilehandsets.

"In this journey, while our first 14 years of operations saw a 100 million customers joining the Bharti Airtelfamily, it is remarkable that our next 100 million came from the last three years alone," Bharti Airtel CEO

for India and South AsiaSanjay Kapoor said in a statement.The 200 million customer mark in India includes Bharti Airtel customers across categories of 2G, 3G and4G mobile; fixed line and DSL broadband, IPTV and DTH services, the statement added.

It further claimed that with this milestone Bharti Airtel has now become the fourth largest integratedtelecommunications service provider in the world in terms of customer base.Globally, the company had an aggregate of 260.7 million customers consisting of 250 million mobile, 3.3million Telemedia and 7.4 million Digital TV customers as on June 30, 2012.
http://en.wikipedia.org/wiki/Telecommunicationshttp://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-7http://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-7http://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-7http://en.wikipedia.org/wiki/China_Mobilehttp://en.wikipedia.org/wiki/China_Unicomhttp://en.wikipedia.org/wiki/GSM_networkhttp://en.wikipedia.org/wiki/2Ghttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/4Ghttp://en.wikipedia.org/wiki/Mobile_telephonyhttp://en.wikipedia.org/wiki/Fixed_telephonyhttp://en.wikipedia.org/wiki/Broadband_Internet_accesshttp://en.wikipedia.org/wiki/Pay_televisionhttp://en.wikipedia.org/wiki/Ciscohttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Alcatel-Lucenthttp://en.wikipedia.org/wiki/Alcatel-Lucenthttp://en.wikipedia.org/wiki/Internet_Protocolhttp://www.business-standard.com/search?type=news&q=Sanjay+Kapoorhttp://www.business-standard.com/search?type=news&q=Sanjay+Kapoorhttp://en.wikipedia.org/wiki/Internet_Protocolhttp://en.wikipedia.org/wiki/Alcatel-Lucenthttp://en.wikipedia.org/wiki/Alcatel-Lucenthttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Ciscohttp://en.wikipedia.org/wiki/Pay_televisionhttp://en.wikipedia.org/wiki/Broadband_Internet_accesshttp://en.wikipedia.org/wiki/Fixed_telephonyhttp://en.wikipedia.org/wiki/Mobile_telephonyhttp://en.wikipedia.org/wiki/4Ghttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/2Ghttp://en.wikipedia.org/wiki/GSM_networkhttp://en.wikipedia.org/wiki/China_Unicomhttp://en.wikipedia.org/wiki/China_Mobilehttp://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-7http://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/Telecommunications


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Bharti airtel highlights

Bharti Airtel becomes the fourth largest mobile operator in the world

Airtel launches Mobile Services in Lakshadweep

On 12th December 2012, enjoy a day of great shopping deals on www.airtel.in

Education is now available anytime, anywhere with airtel mEducation

Brand equity

brand equity is an element creating added value. It builds up only as a result of branding. Brand equity maybuild up and be build up by comprehensive sound activities or only by concentrating on certain areas of thebranding or business. Brand equity is a phrase used in the marketing industry which describes the value ofhaving a well-known brand name, based on the idea that the owner of a well-known brand name can

generate more money from products with that brand name than from products with a less well knownname, as consumers believe that a product with a well-known name is better than products with less wellknown names

our brand

Airtel was born free, a force unleashed into the market with a relentless and unwavering determination tosucceed. A spirit charged with energy, creativity and a team driven to seize the day with an ambition tobecome the most admired telecom service provider globally. airtel, in just ten years of operations, rose tothe pinnacle of achievement and continues to lead.As India's leading telecommunications company, airtel brand has played the role of a major catalyst inIndia's reforms, contributing to its economic resurgence.

Today we touch people's lives with our Mobile services, Telemedia services, to connecting India's leading1000+ corporates. We also connect Indians living in USA, UK and Canada with our callhome service.

Various sources of building and maintaining brand equity

Choosing brand elements to build brand equityBrands typically are made up of various elements, Logo and symbols provide visual trademark that identifies

the brand, Tagline or Catchphrase, Graphics, Customer relationship management and other elements.

Brand essence is the heart and soul of the brand, its timeless quality, expressed as adjective, adjective,

noun. Some people refer to the brand essence as the brand mantra, while for others, the brands mantra is

synonymous with the brands tagline or slogan.


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Brand naming

The brand name is quite often used interchangeably with "brand", although it is more correctly used tospecifically denote written or spoken linguistic elements of any product. In this context a "brand name"

constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercialsource of products or services. A brand owner may seek to protect proprietary rights in relation to a brand

name through trademark registration and such trademarks are called "Registered Trademarks". Advertisingspokespersons have also become part of some brands

Name is the word or words used to identify a company, product, service, or concept. Simplicity and ease ofpronunciation and spelling. It should be differentiated and unique. Airtel has chosen a very unique namewhich is easy and people can remember it easily.

Logos and symbols

Our unique symbol is an interpretation of the a in airtel. The curved shape & the gentle highlights on thered color make it warm & inviting, almost as if it were a living object. It represents a dynamic force ofunparalleled energy that brings us and our customers closer.Our specially designed logo type is modern, vibrant & friendly. It signals our resolve to be accessible, whilethe use of all lowercase is our recognition for the need for humanity.

Red is part of our heritage. It is the color of energy & passion that expresses the dynamism that has madeairtel the success it is today, in India, and now on the global stage.

Logo is the main event in communicating the essence of what a brand represents. Within our obsessivelycondensed attention spans, the logo is more important than ever.

Make no mistake, logos are ubiquitous and so are their creators. In an era of $100 logo design and crowdsourcing, one might conclude the discipline of logo creation has been reduced to automated assemblies ofdatabase centered type fonts, symbols, icons and pictograms. Seemingly, anyone with a flair for color andarrangement ought to be able to cobble together a decent logo.Many big name brands have recently tweaked their logos in a crowd-sourced craze to connect with theircustomers. Creating a logo that brings enduring value and differentiation to the business enterprise itrepresents requires deep insight and highly specialized talent and skill.As our world gets smaller through the technology advances in how humans interact and communicate,logos that are instantly recognized and clearly understood are more important and more valuable than ever.The logo must work so much harder todayespecially when compressed down to sixteen pixels favicons,

used as buttons, links, or embedded in content on a mobile screen. The space is getting smaller and thewhite noise in the slush pile of the marketplace is getting louder. Truly effective logo design is being pushedto new limits delivering instant recognition in ever-smaller digital footprints. Beyond the communicationidea, these are important design considerations many brand owners are just beginning to realize and evolvetheir identities with the times.


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Slogans

Slogans are short phrases that communicate descriptive or persuasive information about the brand. Theygenerally appear in advertisement and packaging and other marketing programs.it helps to build brandawareness by playing off the brand name in some way.it brings strong link between brand andcorresponding product category. Slogans are easiest brand element to change over time. It helps in

enhancing brand awareness and image.

Last year,Airtel launched 'Har friend zaroori hotaa hai' , advertising campaign that went on to become notjust a viral hit but also a chart topping ringtone beat. The campaign triggered a blitzkrieg of friendly fire,with Airtel being the brand that brings friends closer, network disruptions notwithstanding. Now they havedone it again with 'Jo mera hai woh tera hai,' tune that may make your feet go tap, tap, tap. Although thecraft of friendship has been deployed by all and sundry in their communication strategies, the difference isin the creative rendition of the theme.

Airtel slogan: express yourself

Designing marketing programs to build brand equityMarketing strategy adopted by bharti airtel

Bharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besides printadvertising, the company had put up large no of hoardings and kiosks in and around Delhi. The objectivebehind designing a promotion campaign for the Airtel services is to promote the brand awareness and tobuild brand preferences.It is trying to set up a thematic campaign to build a stronger brand equity for Airtel. Since the cellular phone

category itself is too restricted, also the fact that a Cellular phone is a high involvement product, pricedoesn't qualify as an effective differentiator. The image of the service provider counts a great deal. Giventhe Cell phone category, it is the network efficiency and the quality of service that becomes important. Whatnow the buyer is looking at is to get the optimum price-performance package. This also serves as aneffective differentiatorBrand awareness is spread through the' campaigns and brand preference through brand stature. Airtel'scampaign in the capital began with a series of 'teaser' hoardings across the city,' bearing just the company'sname and without explaining what Airtel was. In the next phase the campaign associated Airtel with Cellularonly thereafter was the Bharti Cellular connection .brought up. Vans with Airtel logos roamed the city, handing out brochures about the company and itsservices to all consumers. About 50,000 direct callers were sent out. When the name was well entrenched inthe Delhiitess mind, the Airtel campaign began to focus on the utility of Cellphone. In the first four

months alone Airtei's advertisement spend exceeded Rs. 4 crores.
http://economictimes.indiatimes.com/topic/Airtelhttp://economictimes.indiatimes.com/topic/Airtel


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leveraging secondary brand association and using cause marketing to build brand equityThe telecom major is leveraging the annual half-marathon to strengthen brand salience in its largest market

Ever since they were introduced in India in 2004, marathons have become something of an annual event onthe social calendar, not least because they provide a huge networking opportunity for anyone who isreasonably fitfrom common or garden executives to page three and corporate celebs.

ForBharti Airtel,Indias largest telecom company by subscriber numbers, the 21.09 kmDelhi half-marathon on Sunday provides a unique opportunity to build the brand in its largest and oldest market,Delhi.Thats because the Delhi half-marathon, for which Airtel has the title sponsorship for the second yearrunning taking over from its competitorVodafone (formerly Hutch), provides its brand focused exposureto hundreds of thousands of people from around the world, for several reasons.

First, with total prize money of $210,000men and women standing first will win $25,000 eachthis is one of the richest half-marathons in the world.

Second, because it has received the International Association of Athletics Federation (IAAF)GoldLabel Award, the highest rating the international organisation offers to road races, the Delhi half-marathon attracts runners from around the world. (IAAFs ratings take into account variousparameters such as participation rates, racing standards, TV coverage and organisation standards.)Consider the numbers: Sundays run, organised by sports management company ProcamInternational, will see over 30,000 people running, up from about 26,000 last yearand that doesntreflect the number of people who still want to register. The event draws participation from 30nationalities, not to speak of the lakhs of people who come to see and be seen. For Airtel, thesenumbers are only part of the attraction. As important is the opportunity for brand positioning thatthe event provides. All marathons, whether in Mumbai, New York, Boston or Delhi, have threebasic characteristics. One is breaking barriers by testing your endurance with all its connotations offitness and good health; the second is the coming together of people from different walks of life andnationalities;

Third is showcasing the characteristics of the city and its vibrant youth culture, saysChandrasekarRadhakrishnan,senior vice president-marketing, Bharti Airtel. All of these, he explains, offer aperfect fit with Airtels tag line Barriers break when people talk.The overall essence of thesponsorship, Radhakrishnan adds, is to suggest that together, good things happen. Likemarathons elsewhere, these good things are not just limited to values of health, endurance,togetherness and so on. The half-marathon also provides a unique opportunity to raise funds forcharity with participants raising contributions, including by the Bharti Foundation. Since 2005, over200 NGOs have registered for the event.The event also provides an opportunity for some internalbrand-building with HR initiatives such as a super loser contest that offers a prize to whoeverloses the most weight ahead of the contest and a medal of honour for whoever runs the fastest.

Last years event revealed that the brand return on investment were huge when measured on a rangeof parameters such as recall, intention to purchase and so on, though Radhakrishnan declines toshare specifics.

Managing brand over timeRebranding

airtel has got a new brand identity and new logo positioning.
http://www.business-standard.com/search?type=news&q=Bharti+Airtelhttp://www.business-standard.com/search?type=news&q=Bharti+Airtelhttp://www.business-standard.com/search?type=news&q=Delhi+Half-marathonhttp://www.business-standard.com/search?type=news&q=Delhi+Half-marathonhttp://www.business-standard.com/search?type=news&q=Vodafonehttp://www.business-standard.com/search?type=news&q=Iaafhttp://www.business-standard.com/search?type=news&q=Chandrasekar+Radhakrishnanhttp://www.business-standard.com/search?type=news&q=Chandrasekar+Radhakrishnanhttp://www.business-standard.com/search?type=news&q=Chandrasekar+Radhakrishnanhttp://www.business-standard.com/search?type=news&q=Chandrasekar+Radhakrishnanhttp://www.business-standard.com/search?type=news&q=Iaafhttp://www.business-standard.com/search?type=news&q=Vodafonehttp://www.business-standard.com/search?type=news&q=Delhi+Half-marathonhttp://www.business-standard.com/search?type=news&q=Delhi+Half-marathonhttp://www.business-standard.com/search?type=news&q=Bharti+Airtel


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"In India we recently witnessed a large mobile service provider,Airtelrebrand. The company acquired

another company from Africa and now has the 5th largest subscriber basearound 200 million.The

Indians are not at all happy with this rebranding exercise because of the strong attachment to the old logo

and the brandsjingle. Identity systems are designed to encode and decode brand information to and from

peoples brains. If you change the system, the associations may be lost and will take a long time to rebuild. I

assume Airtels management felt the need to change the brands identity because they acquired a brand fromanother continent. Perhaps their research showed that the original brand identity would not work for

customers of the acquired brand or perhaps altering the identity was part of the acquisition agreement.

The new Airtel campaign is not merely a rebranding. It's a relaunch. A new positioning . A new brand idea.A new voice. The brand has embarked on an exciting new journey. A journey that seeks to bring peoplecloser to what they love. In the new participation economy, customers are no longer happy being passiveviewers. They want to create, comment on and share all that is close to their hearts. Airtel seeks to enablethat in every way possible.

Other initiatives

As a part of its sustainability initiatives, Bharti Airtel has used innovative ideas to make its buildings moreenergy efficient and eco friendly.

Bharti has come up with new and innovative ideas for making its buildings sustainable and eco friendly-

Waste water recycling- Most of the new Airtel buildings recycle waste water for sanitary and cooling of

equipment purposes e.g. DG sets and AC systems. These buildings also have rain water harvesting systems

for ground water replenishment where appropriate.

Energy Efficient Lighting- All Airtel offices have energy efficient light fittings and automation to enableenergy savings in the buildings. Use of air curtains on major office exits and double glazing also results in

significant energy saving.

Building Management SystemIntelligent Building concept is being followed in all the new Airtelbuilding and campuses that are coming up. The BMS controls the Heating, Ventilation andAirconditioning (HVAC) system,, electricity load management, water management, parking management,

security and safety systems to ensure an efficiently run building on optimal resources.

Energy Efficient Cooling- New buildings also incorporate the concept of an Energy Wheel to optimiseenergy efficiency in buildings. In the process of adding this fresh air, the cool air within the building vents

out resulting in higher usage of energy to bring the cooling/ temperature back. The Energy Wheel concept

ensures that as we bring the fresh air in, it is pre-cooled thereby optimizing energy efficiency.

Efficient Waste Disposal- At the time of oil change in DG sets etc. the discarded oil for disposal is onlysent to companies/ vendors approved by the Central Pollution Control Board (CPCB) for proper disposal

as per CPCB approved processes. All Bharti Airtel offices follow the basic requirements specified by the

Pollution Control Board and ensure statutory compliance. Improved Videoconferencing Facilities: Bharti offices have facilities like videoconferencing and intranet

facilities to interact. This significantly reduces the need for transportation thereby lowering fuel

consumption. In addition, it saves on time and generally creates a much more efficient working

atmosphereThis enables investors and analysts world-wide to link in to the call and raise queries. Bharti

does not stop at providing these facilities for internal use though.
http://www.airtel.in/http://www.airtel.in/http://www.airtel.in/http://www.airtel.in/


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APPENDIX

Questionnaire to calculate Brand equity of micromax

1. Name mobile brands you can think of most often2. Can you identify this -ic-o-a-3. What comes to your mind when you think of micromax4. Is the brand good or bad5. What is unique about the brand6. If micromax is a personality what would it like to be7. What is the quality of micro max

a. Goodb. Mediumc. Bad

8. Will you buy micromaxa. repeat purchase- definitelyb. rare buy - probablyc. accidental - not your decisiond. no buy


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10. Knowles, J. (2005). In search of a reliable measure of brand equity. Marketing NPV, 1 & 2, 60-63.

11. Kotler, P., & Keller, K. L. (2007). Marketing management, 12th ed. New Jersey: Prentice Hall.

12. Myers, C. (2003). Managing brand equity: a look at the impact of attributes. Journal of Product & Brand

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empirical evidence. Journal of Product & Brand Management, 14 (3), 143-154.

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