Question

1. Use all six criteria in the Corporate Reputation model to comment on the reputation of Tesla.

2. The Brand Consciousness Model presents the Functional, Intellectual, and Emotional components of making a purchase. Consider the purchase of a new Rolex Daytona watch. Explain how the three components work.

3. Consider a chocolate bar that is unbranded and identical to a “Snickers” in taste, size, nutritional facts and ingredients. Assume that you are given for free an unbranded bar and asked to pay to exchange it for a bar of Snickers.

a. How much would you be willing to pay to get the “Snickers” bar?

b. There are 400 million “Snickers” bars sold per year. Assuming that everybody has the exact same preference as you, what is Snicker's Brand Equity?

4. List the 10 Brands that had the highest Brand Equity in 2019 (provide source of your data). Any surprises?

5. How does Douglas Holt define Crowdculture in his article “Branding in the Age of Social Media” (Holt, HBR, March 2016)?

6. How does Kevin Lane Keller define Consumer-Based Brand Equity in his article “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity” (Journal of Marketing, Vol. 57, No. 1 (Jan., 1993), pp. 1-22)?

Answer 1

1. Corporate reputation is the overall estimation in which an organization is held by its internal and external stakeholders based on its past actions and probability of its future behavior.

The main benefits of having a solid reputation are trustworthiness and credibility. Corporate Reputation determines the levels of credibility, trustworthiness, responsibility and reliability that a stakeholder has with the organisation.

tesla mottors lost its position to its competitors due to worst reputation it gained in the industry.Tesla’s reputation is now primarily being driven by the actions of its CEO.An overly visible and outspoken CEO can be detrimental to the corporate reputation and remove a powerful weapon from communications’ arsenal. it really important to develop a brand identity separate to that of the CEO in order to plan for the long-term future and elivate potential reputational risk.

Many of Tesla’s recent problems extend from a modern yet ultimately flawed communications strategy. At Tesla, a combination of an overly visible CEO and one whose Twitter postings have led to questions around his attitude and has affected to the company’s reputation. Communications is a most useful strategic tools.

to have a positive reputation in the futureTesla should remind its stakeholders of what it stands for as a corporation, refocus media attention on the company itself, its fantastic product and vision, covering up all the negativity it claimed in the past.

2. The concept of Brand Conscious can be defined as the awareness of the brand and it's products offerings that are quite distinctive from the other brands in the market having a competitive advantage.

The Functional Factor – The functional factor is all about needs. It’s about logic, what makes sense and the best interest of the customer. among other watch brands rolex stands first . its unique features or characteristics or value makes the customer to purchase it.People associate the brand name with success and luxury and imagine Rolex wearers to live a lavish lifestyle. A Rolex watch can be used as a status symbol, showing people that the wearer has achieved a level of success and stability, which have allowed them the means to purchase a Rolex watch.

The Intellectual Factor:This is the foundation of a purchasing decision. People can’t buy what they can’t afford no matter how badly they need it or want it. Rolex comes under the premium range watches that is marketed in high price which makes it high premium customer product.

The Emotional Factor: All effective advertising appeals to emotion, or the psychological side of the sale. The psychological factor is all about what the customer wants.rolex watch customers is perceived to be high profile customers. The brand name Rolex as a symbol creates a positive attitude to the product and firm, guarantees for buyers the product quality,creates a high level of expectations about its properties,provides a high reputation of the goods,increases its value in the eyes of consumers.

3. snicker bar for an unbranded bar. i will be willing to pay the exact price of snickers bar. for its brand value.

Snickers uses a combination of traditional, promotional and digital marketing to build a strong consumer base. The campaign “You’re not you when you are hungry” worked perfect for snickers which was based on a universal assumption that hunger affects moods and abilities of a person. the comercials they developed has a positive vibe and was loved by the customers thus creating a brand image.

The brand has positioned itself as a nutritious bar that satisfies hunger.

4.Below are the top 10 global brands in 2019

1. Apple — brand value: $234.2 million
2. Google — brand value: $167.7 million

3. Amazon — brand value: $125 million

4. Microsoft — brand value: $108.8 million

5. Coca-Cola — brand value: $63.4 million

6. Samsung — brand value: $61 million

7. Toyota — brand value: $56.2 million

8. Mercedes-Benz — brand value: $50.8 million

9. McDonald's — brand value: $44.53 million

10. Disney — brand value: $44.3 million
    Read more at:
    https://www.businessinsider.in

5.Douglas Holt implicates the rise of “crowdculture” as the source of change in the social landscape. Crowdculture refers to the formation of online communities that connect around cultural ideologies, big issues, practices, art, and entertainment. The author explains that these communities form their own “subcultures” around these topics.
6. Customer based brand equity model: according to the model building a strong brand invoves 4 steps.

1. establishing the proper brand identity
2. creating the appropriate brand meaning through strong,favorable and unique brand association
3. eliciting positive, accessible brand responses
4. forging brand relationships with customers that are charecterised by intense, active loyalty.

The power of brand and its ultimate value to the firm resides with customers. the customer response is totally dependable on the brand knowledge that has been created in their minds.