LEVERAGING SECONDARY

BRAND KNOWLEDGE TO BUILD

BRAND EQUITY

Sonu Chowdhury
Faculty Sangam University

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 CONCEPT
Brands are linked to various entities that have their
own knowledge structures in the minds of consumers.
Brand equity can be built through the leverage of
related or secondary brand associations.

This indirect approach to building brand equity is

referred to as leveraging secondary brand knowledge

for the brand.

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 MEANS OF CREATING SECONDARY BRAND
KNOWLEDGE
Companies (through branding strategies)
Countries or other geographical areas (through
identification of product origin)
Channels of distribution (through channel strategy)
Other brands (through co- branding)
Characters (licensing)
Spokesperson (through endorsements)
Events (through sponsorship)
Other third party sources (through awards or reviews)
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 The first three entities reflect source factors: who
makes the product, where the product is made
where the product is purchased.

The remaining entities deal with related people,

places or things.

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 1. COMPANY
The branding strategies adopted by the company are
an important determinant of the strength of
association from the brand to the company & any
other existing brands.
Three main branding options exist for a new product:
a.Create a new brand
b.Adopt or modify an existing brand
c.Combine an existing & new brand
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 2. COUNTRY OF ORIGIN / OTHER
GEOGRAPHIC AREAS
Besides the company that makes the product, the country or
geographic location from which it is originating may also be
linked to the brand & generate secondary associations.
A number of brands are able to create a strong POD in part
because of consumers identification of & beliefs about country
of origin.
Consumers choose brands based on their beliefs about the
quality of certain types of products from certain countries or the
image that these brands communicate.

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 Examples:
Levis jeans United states
Nike athletic shoes united states
Coca cola united states
Gucci shoes & purses Italy
Chanel perfume- France

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 3. CHANNELS OF DISTRIBUTION
Channels of members directly affect the equity of the brands
they sell by the supporting actions they take.

Similarly retail stores can indirectly affect brand equity on the

basis of the associations linked to the retail stores in the minds of
consumers. Retail stores create their associations by their
product assortment, pricing & credit policy, quality of service
etc.

To more directly shape their image, many retailers aggressively

advertise & promote directly to customers.

For many high end brands, a natural growth strategy is to

expand their customer base by tapping new channels of
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 3. CO- BRANDING
Co- branding also called brand bundling or brand
alliances, occurs when two or more existing brands
are combined into a joint product .

Thus an existing brand can leverage associations

by linking itself to other existing brands from the
same or different company.

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 4. LICENSING

Licensing involves contractual arrangements whereby firms

can use the names, logos, characters of other brands to
market their own brands for some fixed fee.

For example: Designers such as Donna Karan, Calvin Klein,

Pierre Cardin, & others command large royalties for the
rights to use their name on a variety of merchandise such as
clothing, belts, ties, & luggage.

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 5. CELEBRITY ENDORSEMENT
It is a form of brand or advertising campaign that
involves a well known person using their fame to
help promote a product or service.

A celebrity endorser should have high level of

visibility & rich set of potentially useful associations,
judgments, & feelings.

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 6. SPORTING, CULTURAL OR
OTHER EVENTS
Events have their own set of associations that may
become linked to a sponsoring brand .
Sponsored events can contribute to brand equity
a.By becoming associated to the brand & improving
brand awareness.
b.Adding new associations
c.Improving the strength, favorability, & uniqueness
of existing associations
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 7. THIRD - PARTY SOURCES

Secondary associations can be created in a number

of different ways by linking the brand to various
third party sources.

Example: endorsements from leading magazines,

organizations & experts.

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 CONCLUSION
The extent to which any of these entities can be
leveraged depends on consumer knowledge of the
entity & how easily the appropriate associations to
the entity transfer to the brand.

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