BRAND

MANAGEMENT
End Of Course Report

QUESTION 1

PICK A BRAND OUT OF THE BEST GLOBAL BRAND IN 2013 RANKED BY INTERBRAND

1994
1995

US Based Multinational

Started as a Bookstore

Electronic commerce company

Now selling everything

Headquartered in Seattle

Revenue 74.45 Billion US $

Worlds largest online retailer

Net Income 274 Million US $ (2013)

Founded in 1994
Site online since 1995

Amazon, its also all these brands

Companies with Mother Brand Names

QUESTION 2

DEVELOPING A BRAND STRATEGY : HOW DID THEY POSITION BRAND (USING BRAND
POSITIONING MODEL)

How did they position brand

Aakers brand identity planning model

Brand as
Product

Wide Range
Lowest Price
High Service
Reliability
Value for
money

Brand as
Organization

Innovative
Customer
Friendly
Global
Trustworthy

Brand as
Person

Honest
Reliable
Timely
Energetic
Friend

Brand as
Symbol

Symbol for
reliability
!

Functional
appeal
!

Modern/With
less heritage

Brand Resonance
Brand Personality

Lets charge customers less !

Values

Technological Image
Next Generation Outlook

Emotional

Reliability & Trust

Secure transaction

Functional

Lowest Prices
Ease of Purchase and Delivery

Attributes

Quality Products at Affordable Prices

DRAW THE BRAND RESONANCE MODEL AND FILL IN THE BRAND ASSOCIATIONS YOU DISCOVERED
OR DISCOVERED IN THE APPROPRIATE BRAND BUILDING BLOCK.

Brand!
Personality

Value of user
Emotional Rewards

Functional Benefits

Attributes

QUESTION 3

DESIGNING AND IMPLEMENTING BRAND MARKETING PROGRAM (collect the

relevant information of the brand in the last 5 years in a chosen country to
accomplish this part)

Collect information relevant to brand elements

Collect information relevant to marketing programs during the

last 5 years.

Collect information relevant to the secondary associations the

brand has used.

BRAND ELEMENTS

Memorability

Meaningfulness

Likability

Orange arrow

High Quality

(From A to Z)

Customer Service

Large range
of products

Amazons font

Lowest Prices
Ease of
purchase
& delivery

amazon.com,
and youre done

Safety &
Performance
Efficient Visual

Transferability

Name related
to the worlds
largest river
Arrow link A to Z
means that they
cover all products

Adaptability

Protectability

Amazon is
adaptable
because they
can sell
everything

The brand use

a copyright for
its logo, design
& products

COLLECT INFORMATION RELEVANT TO MARKETING PROGRAMS DURING THE LAST 5 YEARS.

Amazon has worked especially on :

Page
Speed

Breeze
Searching

Personalized
Shopping Experience

Users Need
Reviews

Recommend
Similar Products

To make a simple & efficient customers experience

Create a feeling of safety, reliability & trust

Last minute gifts

Efficient Mailing

99$
/Year

Sales for Amazons products (Kindle etc)

FREE Two-Day shipping
Unlimited movies and TV shows with Prime Instant Video
Unlimited music streaming & photo storage
Access to 500,000 free ebooks

Amazon keep innovating in Marketing

https://www.youtube.com/watch?v=98BIu9dpwHU

COLLECT INFORMATION RELEVANT TO THE SECONDARY ASSOCIATIONS THE BRAND HAS USED.

With its name, Amazon.com is related to

one of the largest river of the world

In reference of the large range

of products that amazon sell

QUESTION 4
1. Measuring and Interpreting brand performance.

a. Measuring sources of brand equity: Capturing the customer mindset: What specific methods do you think the brand has used to capture the
customer mindset.

Capturing customer mindset

SINCERITY

Down to
earth

Honest

Cheerful

Brand Personality
Wholesome
SOPHISTICATION

EXCITEMENT

Daring

Spirited

Imaginative

Upper
class

Charming

Up to date
RUGGEDNESS

COMPETENCE
Outdoor
Reliable

Intelligent

Successful

Tough

AMAZON brand evaluation

More Convenient

Lower Price

Higher Price

Less Convenient
Perceptual Map of
the Online Retailer
Market in USA

Amazon
Walmart
eBay

Horizontal Attribute Vertical Attribute

1 = Lower price
1 = Less convenient
5 = Equal mix of both 5 = Equal mix of both
9 = Higher price
9 = More convenient
5
7
3
2.5
4.5
5.5

Market performance
COMPUTATION OF AMAZON BRAND VALUE (BASED ON INTERBRAND METHODOLOGY)
(in Million of $)

Actual data

Projective data

2009

2010

2011

2012

2013

FINANCIAL ANALYSIS

2014

2015

2016

2017

Total

2018

Net income

Net Income growth rate

902

$ 1,152

631

39

-26%

Cost of capital
Total assets
Total assets growth rate

31%

WACC (cost of capital) rate

10%

274

203

151

112

83

62

13,813

18,797

25,278

32,555

40,159

52,439

68,475

89,414

116,756

152,458

WACC (cost of capital)

5,244

6,847

8,941

11,676

15,246

Intangible earnings (IE)

(5,041)

(6,696)

(8,829)

(11,592)

(15,184)

DEMAND (BRAND STRENGTH) ANALYSIS

RBI (Brand Earnings) = % of IE

65%

Brand Earnings

COMPETITIVE BENCHMARKING

Discount rate

17%

BRAND VALUE CALCULATION

(4,353)

(5,739)

(7,535)

(9,870)

Year 1

Year 2

1.17

Year 3

1.37

Year 4

1.60

Year 5

1.87

2.19

$ (2,800)

$ (3,180)

$ (3,583)

$ (4,021)

Terminal value

(4,502)

-$18,086

Net discount rate

43%

(10,528)

Terminal Value

$ (28,614)

Total Brand Value (estimated)

Total Brand value at 2014 (Interbrand)

Discount factor

Discounted Earnings (NPV)

(3,276)

$ 29,478

QUESTION 5

GROWING AND SUSTAINING BRAND EQUITY. WHAT ARE THE BRAND LINE EXTENSIONS?

BRAND LINE EXTENSIONS ?!

Not only books anymore as in the beginning, also:

Film, Music, Games

Electronics
Computers & Office
Home, Garden, Pets
Toys, Children & Baby
Clothes, Shoes & Watches
Hobbies, Sports & Leisure
Grocery, Health & Beauty
DIY, Tools & Car

WHAT ARE THE BRAND EXTENSIONS?

BRAND EXTENSIONS ?!
Instead of being just the retailer where you could
buy cheap stuff they changed to be a lot more
digital instead of being just a shop.
!

Instant video
MP3 store
Cloud Player
Kindle
Cloud Drive
Appstore for Android
Game & Software Downloads
Audible Audiobooks

Thanks for Listening