University American College Skopje School of Business Economics and Management
Building brand equity in the wine industry – the case of Tikveš’s Tikveš’s brand “T’ga za jug” in acedonia aster thesis in Business !d"inistration !d"inistration
Candidate:
Mentor:
Anisija Mincikovska
Krum Efremov
h!
Abstract
Branding has emerged as a top management priority in the last decade due to the gro"ing reali#ation that $rands are one of the most valua$le intangi$le assets that companies have% Brands are considered to $e the valua$le assets of $usiness% Branding and $rand e&uity has $een the topic of interest for the researchers in the area of marketing% Because of the significant intangi$le value of $rands' $uilding and managing $rand e&uity had $ecome a priority for companies in a "ide variety of industries and markets% (o"adays a $rand reflects the &uality & uality and credi$ility of a firm)s products or services and it is a percep perceptio tion n of the consume consumers rs to"ard to"ardss the organi organi#at #ation ion%% *heref *herefore ore'' each each time time more more companies focus on creating strong and po"erful $rands and use them as a strategy to create value and differentiation in toda y)s competitive environment% *he thesis investigates the concept of $rand e&uity and its dimensions and provides the necessary depth and $readth of understanding of $rand e&uity and its importance% *he overall purpose of this thesis' "hich is of an e+ploratory nature' na ture' is to provide p rovide an overvie" of the $rand e&uity e&uity $uildi $uilding ng proces process' s' as "ell "ell as to reveal reveal the import importance ance of $rand $rand e&uity e&uity "ith "ith specia speciall emphasis emphasis on the "ine industry in Macedonia through the case of *ikve,) *ikve,)ss $rand T’ga za jug % -urthe -urthermo rmore' re' the thesis thesis aims aims to descri descri$e' $e' e+plain e+plain and unders understan tand d ho" Macedo Macedonia nian n "ine "ine producers create and sustain a strong $rand' "ith special emphasis on e+plaining and understanding its importance%
Keywords: $rand' Keywords: $rand' $rand e&uity' $rand e&uity determinants' customer.$ased $rand e&uity' $rand $uilding' "ine' "ine industry' "ine $rand
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Table of Contents A$stract%% A$stract%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%% i *a$le *a$le of Contents222222222222222222222222222222222%%2%1 3ist of ta$les ta$les and figures%%%%%%% figures%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%% %%%%%% 4 Chapter Chapter 0 5 6ntroducti 6ntroduction%%%%%%%% on%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%7 %%%%%%%%%%%%%%%7 0%0% 6ntroducti 6ntroduction%%%%%%% on%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%% %%%% 7 0%1% ro$lem ro$lem formulati formulation%%%%%%% on%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%% 8 0%9% $jective $jectivess of the research%%%%%%%%% research%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%8 %%%%%%%%%%%%%%%%8 0%4% Structure Structure of the thesis%%%%%%% thesis%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%% %%%%%%% ; Chapter 1 5
1%4%0% 1%4%0% Brand loyalty%%%%% loyalty%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %1> 1%4%1% 1%4%1% Brand a"areness% a"areness%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% 10 1%4%9% 1%4%9% erceived erceived &uality%%%% &uality%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 11 1%4%4% 1%4%4% Brand associati associations%% ons%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%% %%%14 %%% 14 1%4%7% 1%4%7% ther proprietary proprietary $rand assets%%%%%%%%%%%%%% assets%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 14 1%4%?% 1%4%?% Brand kno"ledg kno"ledge%%%%%%%%%%% e%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%% 17 1%4%8% 1%4%8% Brand image%%%%%%%%%%%% image%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%% 17 1%7% Marketing mi+ elements and $rand e&uity%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1? 1%?% Brand e&uity e&uity measuremen measurements%%%%%%%%%% ts%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%9> %%%%%%%%%%%%%%%%%%%%%%%%%9> 1%?%0% 1%?%0% -inancial -inancial measuremen measurement%%%%%%%%%%%%% t%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 9> 1%?%1% 1%?%1% Customer. Customer.$ased $ased measuremen measurement%%%%%%%%%%%%% t%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 91 1%8% *he value of $rand e&uity%%%%%%%%%%%%%%%%%%%%% e&uity%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 97 1%8%0% 1%8%0% @alue alue for the firm%%%%%%%%%%%%%%%%%% firm%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%97 %%%%%%%%%%%%%%%%%%%%%%%%%%97 1%8%1% @alue for the customers%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%98 1%;% Brand e&uity in "ine industry%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%9; Chapter 9 5 ine industry in the 9%0% eneral eneral informati information%%%%%%%%% on%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%% 4> 9%1% Sector Sector analysis%%%% analysis%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% %%%%%%%%%%%%%%%%%%%%%% 40 age / 9
9%9% !omestic market and e+ports%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%41 9%4% Competitive landscape%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 44 9%7% ine regions%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%47 9%?% *ypes of "ine%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%4? 9%8% *ikve, inery%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%4? 9%8%0% Market position of *ikve, inery%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%4; 9%;% *he $rand T’ga za jug %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 7> 9%;%0% istory%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 7> 9%=% Sales information%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 71 9%=%0% eneral information%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 71 9%=%1% T’ga za jug %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%71 Chapter 4 5 4%9% !iscussion%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 80 Chapter 7 5 Conclusions%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 87 7%0% Conclusion22222222222222222222222222222222%%%2%87 7%1% Contri$utions of the thesis22222222222222222222222222228= 7%9% 3imitations of the research22222222222222222222222222228= 7%4% Appendi+ 0: 6ntervie" guide%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ;4 Appendi+ 1: 6ntervie" guide%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ;7
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List of tables and gures
-igure 1%0%0 5 -rom a"areness to financial value -igure 1%9%0 5 Aaker)s $rand e&uity model -igure 1%9%1 5 Keller)s dimensions of $rand kno"ledge -igure 1%9%9 5 Keller)s customer.$ased $rand e&uity pyramid -igure 1%9%4 5 Su$ dimensions of $rand $uilding $locks -igure 1%7%0 5 Doo et al %)s model of $rand e&uity -igure 1%7%1 5 Chattopadhyay et al %)s conceptual frame"ork of $rand e&uity -igure 9%1%0 5 *otal "ine production in 0>.1>09F -igure 9%9%0 5 *otal "ine e+ports in 0>.1>09F -igure 9%7%0 5 ine regions in 01 and 1>09 -igure 4%1%0%0 5 *ikve,)s strategy for the $rand T’ga za jug -igure 4%1%9%0 5 *he ne" la$el of T’ga za jug
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Chapter 1 – Introduction *he first chapter provides a general overvie" of the contents of the thesis' including $rief introduction in the topic of the thesis' presents the pro$lem discussion' together "ith the aim and o$jectives of the research' and introduces the structure of the thesis%
1.1. Introduction *he role of $rands "ithin companies has changed over the last decades% Being no longer just any part of the corporate value chain they are today the key to a company)s success% *his development can $e e+plained $y the fact that the market value of a company does not mainly come from its tangi$le assets anymore' $ut its intangi$les and good"ill% Brands as intangi$le assets thus gain more and more importance for a company)s e+istence% *his rising position of $rands "ithin companies implicates the need to understand ho" to manage the $rand governance mechanisms effectively in order to ma+imi#e $rand value and there"ith also the company)s profit% ver the last decades much of the marketers) attention has $een devoted to the concept of $rand e&uity' "hich has $ecome one of the most popular and potentially important marketing concepts' discussed $y $oth academicians and practitioners% *he motivations for studying $rand e&uity "ere primarily financially $ased in order to estimate the value of a $rand more precisely for accounting purposes or for merger' ac&uisition or divestiture purposes% *he dynamic environment made it later o$vious that $rand e&uity "as important especially from a strategy $ased motivation to improve marketing activity' given higher costs' greater competition and flattering demand in many markets% o"ever' it is "idely recogni#ed that the $rand has developed into one of a company)s most important assets' "hich makes effective management of the $rand a key factor in corporate success% *he concept of $rand e&uity has $een de$ated $oth in the accounting and marketing literatures' and has highlighted the importance of having a long.term focus "ithin $rand management% 6n a general sense' $rand e&uity is defined in terms of the marketing effects uni&uely attri$uta$le to the $rand% *hat is' $rand e&uity relates to the fact that different outcomes
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result from the marketing of a product or service $ecause of its $rand element' as compared to outcomes if that same product or service did not have hat $rand identification% Although a num$er of different vie"s of $rand e&uity have $een e+pressed' they all are generally consistent "ith the $asic notion that $rand e&uity represents the Gadded valueG endo"ed to a product or a service as a result of past investments in the marketing for the $rand% Basically' $rand e&uity arises from the greater confidence that customers place in a $rand than they do in its competitors% *his confidence translates into customers) loyalty and their "illingness to pay a premium price for the $rand% Additionally' $rand e&uity is the driving force for incremental financial gains to the company% *herefore' $uilding a strong $rand "ith significant e&uity has $een seen as providing a host of possi$le $enefits to a company' including greater consumer loyalty and less vulnera$ility to competitive marketing actions' larger margins as "ell as more favora$le consumer responses to price increases and decrease' increased marketing communication effectiveness' and licensing
and $rand.e+tension opportunities
Keller' 1>>0F% 6t is not surprising that some marketing academics have studied "ine marketing and $uilding $rand e&uity (o"ak' et al%' 1>>?F% Building $rand e&uity in the "ine industry is particularly difficult yet necessary% By $uilding e&uity a $rand "ill stand out from its competitors% 6n making a $rand recogni#a$le' and developing relationships "ith consumers' the decision making process for "ine purchases $ecomes simpler and more direct to the consumers% 6t is "idely recogni#ed that e&uity can $e $uilt into $rands that "ill give them value and strength in the market "ell $eyond that "hich is provided $y the inherent characteristics of the products% *herefore' it is vital for the "ine $rands to ensure that they have the $rand e&uity re&uired to rise a$ove the competition and get their la$els off the shelf and into the homes of their target consumers% *his thesis has identified dimensions of $rand e&uity from academic literature and provides the necessary depth and $readth of understanding of $rand e&uity and its importance% -urther' there "ill $e outlined a detailed e+planation of the process of $rand $uilding through applicative e+ample of one of the most "ell.kno"n "ine $rands on the Macedonian market 5 *ikve,)s $rand T’ga za jug % *he aim of the thesis is to descri$e' e+plain and understand ho"
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Macedonian "ine producers create and sustain a strong $rand' "ith special emphasis on e+plaining and understanding its importance%
1.2. Problem formulation -ollo"ing the previous pro$lem outline' the research &uestion of the thesis 5 HBuilding $rand e&uity in the "ine industry 5 the case of *ikve,)s $rand T’ga za jug in MacedoniaG can $e distinguished in t"o parts and formulated as follo"s:
How brand equity can be built and maintained? How brand equity can provide value for the company?
*his main pro$lem is approached through a num$er of su$.&uestions that "ill $e addressed in the different chapters: • • • • • •
hat is $rand e&uityI o" can $rand e&uity $e measuredI hat are the determinants of $rand e&uityI hich steps does the $rand $uilding process includeI o" does $rand e&uity provide value for the firmsJcustomersI hat does strong $rand means to a "ineryI
1.3. b!ecti"es of the research *he aim of the thesis HBuilding $rand e&uity in the "ine industry 5 the case of *ikve,)s $rand T’ga za jug in MacedoniaG is to provide an overvie" of the $rand e&uity $uilding process' as "ell as to reveal the importance of $rand e&uity "ith special emphasis on the "ine industry in Macedonia through the case of *ikve,)s $rand T’ga za jug % -urthermore' the thesis aims to descri$e' e+plain and understand ho" Macedonian "ine producers create and sustain a strong $rand' "ith special emphasis on e+plaining and understanding its importance% *herefore' the thesis is e+pected: •
*o analy#e relevant academic literature on the issue of $uilding the $rand e&uity "ith
•
particular focus on the "ine industry *o descri$e' e+plain and analy#e the process of $rand $uilding through the case of a "ine $rand 5 *ikve,)s $rand T’ga za jug age / ;
•
*o suggest further improvements for the company%
*he e+pected results from this thesis are to get a picture of the overall $rand e&uity $uilding process through an e+ample of "ine $rand% *he importance of having a strong $rand' as "ell as' the $enefits that a company can enjoy are the priorities that the thesis "ill emphasi#e%
1.#. $tructure of the thesis *he first part of the thesis HBuilding $rand e&uity in the "ine industry 5 the case of *ikve,)s $rand T’ga za jug in MacedoniaG consists of an introduction chapter' "hich illustrates the relevance of the topic and defines the thesis) research &uestion% -urthermore' it outlines the research approach as "ell as its structure% *he second chapter gives an introduction to $rand e&uity in general $y defining the term L$rand e&uity)' descri$ing ho" it can $e $uilt and measured' and e+plaining its importance for the company)s e+istence and success' as "ell as for the customers) purchase decisions% *his chapter includes conceptuali#ation of $rand e&uity' analy#ing it in different perspectives' and presents its dimensions and determinants constructed in reference to different theories from the literature% *here$y' the models of $rand e&uity developed $y Aaker 0==0F and Keller 0==9 1>>0F are given particular consideration% -urther' this chapter analyses the $enefits of having strong $rand e&uity' $oth for companies and for the customers% Special attention is there$y paid to the importance of $rand e&uity for the company)s success' as "ell as to the advantages it can enjoy "hile having a strong $rand% Chapter 9 analy#es the "ine industry in the
Chapter 2 – %e"ie& of literature – The concept of brand e'uit( *he literature revie" chapter provides insight in the theoretical perspective on the topic of the thesis' analy#ing the academic literature relevant for ans"ering the previously defined research &uestions% *he chapter presents a conceptual frame"ork' regarding the concept of $rand e&uity' and it represents a $ase for further research%
2.1. )rand e'uit( conceptuali*ations So far' the $rand e&uity construct has $een vie"ed from t"o major perspectives in the literature% Some authors focused on the financial perspective of $rand e&uity -ar&uhar' et al%' 0==0 Simon Sullivan' 0==9 inters' 0==0F and others on the customer-based perspective Aaker' 0==0 Keller' 0==9 Shocker' et al%' 0==4 Chaudhuri' 0=== Doo !onthu' 1>>0F% *he first perspective discusses the financial value that $rand e&uity creates to the $usiness and is often referred to as firm.$ased $rand e&uity% o"ever' the financial value of $rand e&uity is only the outcome of consumer response to a $rand name% *he latter' is considered the driving force of increased market share and profita$ility of the $rand and it is $ased on the market)s perceptions customer.$ased $rand e&uityF% *he customer.$ased perspective focuses on Hcustomer mind.setG and is e+plained "ith such constructs as attitudes' a"areness' associations' attachments' and loyalties Keller 3ehmann' 1>>?F %*he firm.$ased perspective' ho"ever' uses Hproduct.market outcomesG such as price premium' market share' relative price' and Hfinancial.market outcomesG such as $rand)s purchase price and discounted cash flo" of license fees and royalties Aila"adi' et al %' 1>>9F% 6n sum' there are different approaches to the concept of $rand e&uity depending on the actors' measures' and the final purpose of using it% As inters 0==0F states' Hif you ask ten people to define $rand e&uity' you are likely to get ten may$e elevenF different ans"ers as to "hat it meansG p%8>F% Since then' many studies have $een pu$lished on $rand e&uity and it is o$vious that inters)s statement is even more relevant today than it "as in 0==0% Brand e&uity is such a comple+ concept' including diversity of its conceptuali#ations in the literature' and different studies descri$ing different aspects of this intangi$le asset% *he lack of an agreed definition of $rand e&uity has in turn caused various methodologies for measuring the construct%
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Doo et al. 1>>>F emphasi#e that $rand e&uity poses the difference in consumers) choice $et"een a focal $randed product or service and an un$randed product or service given the same level of product features or service attri$utes% inters 0==0F relates $rand e&uity to added value $y suggesting that $rand e&uity involves the value added to a product $y consumersN associations and perceptions of a particular $rand name% Bello and ol$rook 0==7F argue that $rand e&uity comes into the picture "hen consumer kno"ingly pay higher prices for the same level of &uality in products as "ell as services' $ecause of the charisma of the name emotionally involved in that particular product or service% Simon and Sullivan 0==9F take advantage of the financial approach and define $rand e&uity as the incremental cash flo"s "hich accrue to $randed products over and a$ove the cash flo"s "hich "ould result from the scale of un$randed products' "hile the incremental cash flo"s are $ased on the value consumers place on $randed products and on cost savings $rand e&uity generates through competitive advantages% -ar&uhar 0=;=F in turn' considers $rand e&uity as the Hadded valueG "ith "hich a given $rand endo"s a product' e+plaining that product is something that offers a functional $enefit' "hile $rand is a name' sym$ol' design or mark that enhances the value of a product $eyond its functional purpose% *he author further agrees that' depending on "hich perspective is considered' the $rand can have added value to the company' the trade or the consumer% Aaker 0==0F presents one of the most detailed and "idely accepted definitions of $rand e&uity as HA set of $rand assets and lia$ilities linked to a $rand' its name and sym$ol that add or su$tract from the value provided to a firm andJor to that firm)s customersG p%07F% Although the $rand assets on "hich $rand e&uity is $ased' can differ depending on the conte+t' they can $e usefully grouped into five categories: brand loyalty' brand awareness' perceived quality' brand associations and other proprietary assets% is model demonstrates that $rand e&uity is developed $ased on these five dimensions% o" the $rand performs on these dimensions is "hat leads consumers to develop an overall' intangi$le rating of $rand e&uity% *his e&uity then provides value to the consumer and the firm in different "ays% *he model $y Aaker "as one of the first seminal "orks in the field of $rand e&uity and led to future research in the area% Doo et al % 1>>>F e+tend Aaker)s 0==0F model $y placing $rand e&uity as a separate construct $et"een the dimensions of $rand e&uity and the value for the customer and the firm% age / 00
*hey also add price' store image' distri$ution intensity' advertising spending' and price deals as antecedents of $rand e&uity "ith their significant effects on the dimensions of $rand e&uity% 6n their model' $rand a"areness and $rand associations dimensions have emerged as a single dimension' "hereas perceived &uality and $rand loyalty are retained as separate dimensions% Doo and !onthu 1>>0F also developed and validated a cross.culturally invariant multidimensional consumer.$ased $rand e&uity scale containing these dimensions% ne of the first critical articles of $rand e&uity -eld"ick' 0==?F finds that the term $rand e&uity has three different meanings depending on its use% At any one time $rand e&uity can $e used to refer to $rand description consumer associations "ith the $rand nameF' $rand strength similar to Aaker as a measure of relative consumer demand for the $randF' and $rand value to set a price of the $rand for "hen it is soldF% -eld"ick 0==?F argues that $rand e&uity is a vague concept especially due to its lack of measura$ility and application in the $usiness environment% e concludes that $rand e&uity is too imprecise to $e used as the holistic measure of everything that a company should $e doing to improve its future performance% As accountants tend to define $rand e&uity differently from marketers' "ith the concept $eing defined $oth in terms of the relationship $et"een customer and $rand consumer.oriented definitionsF' or as something that accrues to the $rand o"ner company.oriented definitionsF' -eld"ick 0==?F simplifies the variety of approaches' $y providing a classification of the different meanings of $rand e&uity as: 0F the total value of a $rand as a separa$le asset 5 "hen it is sold' or included in a $alance sheet 1F a measure of the strength of the consumers) attachment to a $rand 9F a description of the associations and $eliefs the consumer has a$out the $rand% Kotler and Keller 1>>=F argue that the foundation of $rand e&uity is formed $y the $rand kno"ledge of the consumers% Brand kno"ledge ena$les the consumer to differentiate $rands and guides the mind and response to marketing activities as a result of this kno"ledge% 6n conceptuali#ing ho" customers evaluate $rand e&uity' Srivastava and Shocker 0==0F vie" it as consisting of t"o components 5 $rand strength and $rand value% Brand strength constitutes the $rand associations held $y customers' "hile $rand values are the gains that accrue "hen $rand strength is leveraged to o$tain superior current and future profits% Kapferer 1>>;F stands that $rand e&uity is the financial value of a $rand "hich provides capitalJvalue to products and services% Brand e&uity is related to future returns that customers age / 01
generate to the product or service% !eveloped $rand assets in the past' ena$le the $rand to leverage her strength and should deliver future value to the $rand% ence $rand e&uity fulfils a $ridging role "here it connects the past to the future% Kapferer 1>>;F distinguishes three levels 0F $rand assets' 1F $rand strength and 9F $rand value% *he se&uence from past to future is a conditional conse&uence "hich differs in time due to competitive and environmental changes% See -igure 1%0%0% -igure 1%0%0 5 -rom a"areness to financial value Brand assets Brand a"areness Brand reputation erceived $rand personality erceived $rand values
Brand strength Market share Market leadership Market penetration Share of re&uirements ro"th rate 3oyalty rate rice premium ercentage of products the
Brand value (et discounted cash flo" attri$uta$le to the $rand after paying the cost of capital invested to produce and run the $usiness and the cost of marketing
trade cannot delist
!ource" #apferer $ean %oel &'(()* The %ew !trategic +rand ,anagement" dvanced nsights and !trategic Thin/ing. 0th edition 1ondon 2+3" #ogan 4age 1td.
Although there is no universally accepted definition of $rand e&uity' and a num$er of different vie"s of $rand e&uity have $een e+pressed' they are all generally consistent "ith the $asic notion that $rand e&uity represents the Gadded valueG endo"ed to a product or a service as a result of past investments in the marketing for the $rand% Additionally' $rand e&uity can $e defined as the marketing effects or outcomes that accrue to a product given its $rand name compared "ith those that "ould accrue if the same product does not have the $rand name -eld"ick' 0==? Aaker' 0==0 -ar&uhar' 0=;=F%
2.2. Customer+based brand e'uit( As indicated a$ove' the literature sho"s that $rand e&uity can $e approached from the perspective of the individual consumer% o"ever' the customer.$ased perspective has $een
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proved as more conceptuali#ed and analy#ed as in the literature' as "ell as applied in practice% *he advantage of conceptuali#ing $rand e&uity from the consumer)s perspective is that it ena$les managers to consider specifically ho" their marketing program improves the value of their $rands% *hough the eventual goal of many marketing programs is to increase sales' it is first necessary to esta$lish kno"ledge structures for the $rand so that consumers respond favora$ly to marketing activity for the $rand Keller' 0==9F% Keller 0==9F as one of the most prominent authors considers $rand e&uity from a consumer perspective% *he author introduces the concept of customer-based brand equity CBBEF' "hich differs slightly from Aaker)s 0==0F% CBBE may $e either positive or negative "hen consumer react more lessF favora$ly to a $rand' compared to an unnamed version of the product or service' and it is related strongly to the kno"ledge memory and associationsF of the $rand% Keller 0==9F includes the company)s vie" and defines CBBE as the differential effect of $rand kno"ledge on consumer response to the marketing of the $rand% According to Keller 1>>9F' CBBE occurs "hen the consumer has a high level of a"areness and familiarity "ith the $rand and holds some strong' favora$le' and uni&ue $rand associations in memory% Keller)s model of $rand e&uity focusses on $rand kno"ledge' conceptuali#ed in terms of t"o components 5 $rand a"areness and $rand image% *hus' $rand a"areness relates consu mers) a$ility to identify the $rand under different conditions and consists of $rand recognition and $rand recall' "hile $rand image refers to the perception a$out the $rand as reflected $y a set of $rand associations held in consumers) memory% *he author classifies the associations in three major categories 5 attri$utes' $enefits and attitudes' "hich can vary according to their favora$ility' strength and uni&ueness% *he $asic premise of Keller)s 0==9F customer.$ased $rand e&uity model is that Hthe po"er of a $rand lies in "hat customers have learned' felt' seen' and heard a$out the $rand as a result of their e+periences over time% 6n other "ords' the po"er of a $rand lies in "hat customers have in their mindsG Keller' 1>>;F% is model is an insightful "ay to represent ho" $rand kno"ledge is the key to creating $rand e&uity% Keller 0==9F vie"ed customer.$ased $rand e&uity as Hthe differential effect of $rand kno"ledge on consumer response to the marketing of the $randG% e conceptuali#ed the sources of $rand kno"ledge as $rand a"areness and $rand image%
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According to Keller 0==9 0==;F $rand is said to have positive negativeF customer. $ased $rand e&uity "hen consumers react more lessF favora$ly to a product and the "ay it is marketed "hen the $rand is identified as compared to "hen it is not% *hus' a $rand "ith positive customer.$ased $rand e&uity might result in consumers $eing more accepting of a ne" $rand e+tension' less sensitive to price increases and "ithdra"al of advertising support' or more "illing to seek the $rand in a ne" distri$ution channel% Customer.$ased $rand e&uity occurs "hen the consumer is familiar "ith the $rand and holds some positive $rand associations in memory% -avora$le consumer response' in turn' can lead to enhanced revenues' lo"er costs' and greater profits for the firm% Customer.$ased $rand e&uity occurs "hen the customer is familiar "ith the $rand and holds some positive $rand associations in memory% A $rand "ith positive customer.$ased $rand e&uity might result in consumers $eing more accepting of a ne" $rand e+tension' less sensitive to price increases and "ithdra"al of advertising support' or more "illing to seek for the $rand in a ne" distri$ution channel% -avora$le consumer response' in turn' can lead to enhanced revenues' lo"er costs' and greater profits for the firm% Conceptuali#ing $rand e&uity from customer perspective is useful $ecause it suggests $oth specific guidelines for marketing strategies and tactics and areas "here research can $e useful in assisting managerial decision making 3assar' et al%' 0==7F%
2.3. )rand e'uit( models 6t is "idely recogni#ed that the $rand has developed into one of a company)s most important assets' "hich makes effective management of the $rand a key factor in corporate success% *he development and long term enhancement of $rand strength has $een identified as a target function of any company that "ishes to maintain a competitive position in the market' $eing it local' national' regional or international' allo"ing $rand e&uity and hence the company)s enterprise value to $e increased% *herefore' many perspectives and approaches regarding the concept of $rand e&uity has appeared and many models of $rand $uilding have $een developed' primarily descri$ing "hat $rand e&uity is and ho" it should $e $uilt' measured and managed% 6n addition' there "ill $e emphasi#ed and descri$ed some of the most popular models of $rand
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e&uity e+tracting the main issues of each: $rand e&uity dimensions' the $enefits of $rand e&uity and the $rand $uilding process implications% Aaker 0==0F considers that $rand e&uity is Ha set of $rand assets and lia$ilities linked to a $rand' its name and sym$ol that add to or su$tract from the value provided $y a product or service to a firmJor to that firm)s customersGp%07F% 6n his $rand e&uity model' the author identifies five $rand components: brand loyalty' brand awareness' perceived quality' brand associations and other proprietary assets% Aaker)s concept is summari#ed in -igure 1%9%0%' the figure illustrating ho" each $rand e&uity assetJlia$ility generates value for the customer or the firm in a variety of "ays% -igure 1%9%0 5 Aaker)s $rand e&uity model
!ource" a/er 5avid . &6776* ,anaging +rand 8quity" 9apitalizing on the :alue of a +rand %ame. ;ree 4ress" %ew
-urthermore' Keller 0==9 0==;F has approached $rand e&uity from more of a consumer $ehavior perspective% e defines Lcustomer.$ased $rand e&uity) as Hthe differential effect of
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$rand kno"ledge on consumer response to the marketing of the $randG p%1 p%47F% According to his model' a $rand is set to have positive negativeF customer.$ased $rand e&uity "hen customers react more lessF favora$ly to an element of the marketing mi+ "hen it is attri$uted to a fictitiously named of unnamed version of the product or service% Customer.$ased $rand e&uity occurs "hen the consumer is familiar "ith the $rand and holds some favora$le' strong' and uni&ue $rand associations in memory% *hree key elements of Keller)s definition must $e outlined: the Hdifferential effectG $rand e&uity arises from differences in consumer responseF' the H$rand kno"ledgeG the difference in consumer response is generated $y consumers) kno"ledge of the $rand and the Hconsumer response to marketingG the differential response is reflected in perceptions' preferences and $ehavior related the marketing of a $randF% *o understand ho" customer.$ased $rand e&uity can $e $uilt' measured' and managed' Keller descri$ed a detailed conceptuali#ation of brand /nowledge% According to Keller' $rand kno"ledge is defined in terms of t"o componentsJdimensions' brand awareness and brand image% Brand a"areness is the consumers) a$ility to identify the $rand under different conditions and consists of $rand recognition and $rand recall% Brand image is defined as perceptions a$out a $rand as reflected $y the $rand associations held in consumer)s memory% Considering these aspects' a $rand may have positive customer $ased $rand e&uity' "hen consumers are more accepting of a ne" $rand e+tension' less sensitive to price increases and "ithdra"al of advertising support or more "illing to seek the $rand in a ne" distri$ution channel etc%' "hich means they react favora$ly to marketing activity of the $rand as compared to an unnamed or fictitiously named version of the product' or a negative customer $ased $rand e&uity "hen consumers react less favora$ly to marketing activity for the $rand in the same comparison conte+t% -igure 1%9%1 illustrates the Keller)s model of $rand e&uity 5 the dimensions of $rand kno"ledge%
-igure 1%9%1 5 Keller)s dimensions of $rand kno"ledge
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!ource" #eller #evin 1ane &677>* 9onceptualizing measuring and managing customer-based brand equity $ournal of ,ar/eting 0@&6* p. @
Additionally' Keller 1>>0F considers that $uilding a strong $rand implies a series of four steps' "here each step is contingent upon the successful completion of the previous step: esta$lishing the proper brand identity' create the appropriate brand meaning ' elicit the right brand responses' and forge appropriate brand relationships "ith customers% All steps involve accomplishing certain o$jectives "ith customers' $oth e+isting and potential% *hese four steps represent a set of fundamental &uestions that customers invaria$ly ask a$out $rands 5 either implicitly or e+plicitly: 0F ho are youI brand identityF' 1F hat are youI brand meaning F' 9F hat a$out youI hat do 6 think or feel a$out youI brand responsesF' 4F hat a$out you and meI hat kind of association and ho" much of connection "ould 6 like to have "ith youI brand relationshipsF% *he first step is to ensure identification of the $rand "ith customers and an association of the $rand in customers) minds "ith a specific product class or customer need% *he second step is to firmly esta$lish the $rand meaning in the minds of customers $y strategically linking a host of tangi$le and intangi$le $rand associations% *he third step is to elicit the proper customer responses to this $rand identity and $rand meaning% *he fourth and final step is to
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convert $rand response to create an intense' active loyalty relationship $et"een customers and the $rand% Keller 1>>0F divides these four steps into si+ H$rand.$uilding $locksG: brand salience' brand performance' brand imagery' brand judgments' brand feelings and brand resonance% *o connote the se&uencing involved' these $uilding $locks can $e assem$led as a $rand pyramid% Creating significant $rand e&uity involves reaching the top of the pyramid and "ill only occur if the right $rand.$uilding $locks are in place% *he corresponding $rand steps represent different levels of the pyramid as illustrated in -igure 1%9%9% -igure 1%9%4 e+amines each of the $uilding $locks in detail% -igure 1%9%9 5 Keller)s Customer.$ased $rand e&uity pyramid
!ource" #eller #evin 1ane &'((6* +uilding 9ustomer-+ased +rand 8quity" +lueprint for 9reating !trong +rands ,ar/eting !cience nstitute p.@
-igure 1%9%4 5 Su$ dimensions of $rand $uilding $locks
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!ource" #eller #evin 1ane &'((6* +uilding 9ustomer-+ased +rand 8quity" +lueprint for 9reating !trong +rands ,ar/eting !cience nstitute p.)
Considering the dimensions of $rand e&uity descri$ed a$ove' $oth Aaker)s and Keller)s models are very customer.oriented and emphasi#e the importance of $rand a"areness and associations% !espite this commonality' some important differences e+ist% *he primary difference is that the customer.$ased $rand e&uity frame"ork of Keller is $ased on a more detailed conceptual foundation% A much stronger focus on consumers and their $rand kno"ledge structures can $e seen in his $rand e&uity model' compared to Aaker)s model% 6n spite of the differences Aaker)s model seems to complement customer.$ased $rand e&uity &uite "ell' $ecause it takes the perceived &uality aspect into account% Both Aaker and Keller suggest clear advices to $uild $rand e&uity% Aaker outlines general guidance for each dimension of $rand e&uity' "hile Keller suggests a four step process of $uilding strong $rands% Both authors outline the need to understand ho" customers respond to the $rands and their marketing activities so as $rand $uilding strategies can develop into the desired direction%
2.#. )rand e'uit( determinants
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2.#.1. )rand lo(alt( Aaker 0==0F defines $rand loyalty as Lthe attachment that a customer has to a $rand)% Brand loyalty generates value $y reducing marketing costs and leveraging trade% 3oyal customers e+pect the $rand to $e al"ays availa$le and entice others advising them to use it% Brand loyalty' "hich can reflect a range from the ha$itual $uyer to the satisfied $uyer to those that like the $rand to the truly committed' generates value mainly $y reducing marketing costs: retaining e+isting customers is much less costly than attracting ne" ones% 6t is also difficult for competitors to communicate to satisfied $rand users $ecause they have little motivation to learn a$out alternatives% *he $urden on the competitor $rand is su$stantial% A common mistake is to gro" sales $y enticing ne" customers to the $rand "hile neglecting e+isting ones% 3oyal customers' in some cases' can also entice others $y using the product or advising others to use it Aaker' 0==1F% Brand loyalty represents a favora$le attitude to"ard a $rand resulting in consistent purchase of the $rand over time% 6t is the result of consumers) learning that only the particular $rand can satisfy their needs% *"o approaches to the study of $rand loyalty have dominated marketing literature: behavioral and cognitive loyalty Keller' 0==;F% *he first' a $ehavioral approach to $rand loyalty' vie"s consistent purchasing of one $rand over time as an indication of $rand loyalty% Behavioral measures have defined lo yalty $y the se&uence of purchases andJor the proportion of purchases%
can create $rand a"areness and generate reassurance to ne" customers% 3oyal customers "ill also give a company time to respond to competitive threats Aaker' 0==0F% *raditionally' in marketing literature' it has $een considered that loyalty is a component of $rand e&uity e%g% Aaker' 0==0F' "hereas others argue that loyalty is an outcome of $rand e&uity e%g% @an >7 S"ait Erdem' 0==;FF' and that it could positively influence the customers) "illingness to stay' repurchase and recommend the $rand @ogel' et al %' 1>>;F%
2.#.2. )rand a&areness Brand a"areness is considered to $e a key determinant of $rand e&uity Aaker' 0==0 Keller' 0==9 Doo !onthu' 1>>0F% 6t is defined as an individualNs a$ility to recogni#e and recall a $rand Aaker' 0==0 Keller' 1>>9F' and it is related to the strength of the $ rand node in memory' as reflected $y consumers) a$ility to identify the $rand under different conditions% 6n particular' $rand name a"areness relates to the likelihood that a $rand name "ill come to mind and the ease "ith "hich it does to Keller' 0==9 0==;F% Aaker 0==?F defines three levels of $rand a"areness: brand recognition' brand recall and top of mind %
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commitment% A $rand that is familiar is pro$a$ly relia$le and of reasona$le &uality% A"areness at the recall level further affects choice $y influencing "hat $rands get considered and selected as the $rand must first enter the consideration set $efore $eing on the purchase list% Brand a"areness is the a$ility of a potential $uyer to recogni#e or recall that a $rand is a mem$er of a certain product category% A link $et"een product class and $rand is involved% Brand a"areness involves a continuum ranging from an uncertain feeling that the $rand is recogni#ed to a $elief that it is the only one in the product category Aaker' 0==0F% Brand a"areness creates value in different "ays% Brand a"areness provides the anchor to "hich other associations can $e linked% >;F% *he studies of Doo et al %' 1>>>F and Doo and !onthu 1>>0F incorporate this dimension into their empirical models $ut have not detected any direct effect on $rand e&uity% *herefore' in their studies' it is simply com$ined "ith $rand associations%
2.#.3. Percei"ed 'ualit( erceived &uality refers to the customer)s perception of the overall &uality or superiority of a product or service relative to alternatives% erceived &uality can $e defined as the customer)s judgment a$out a product)s overall e+cellence or superiority in comparison to alternativeNs $rand and overall superiority that ultimately motivates the customer to purchase the product% 6t cannot necessarily $e o$jectively determined' $ecause perceived &uality itself is a summary construct Aaker' 0==0F%
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erceived &uality provides a reason to $uy% A $rand "ill have associated "ith it a perception of overall &uality not necessarily $ased on a kno"ledge of detailed specifications% *he &uality associated "ith a $rand can also $e a strong factor of differentiation and positioning% Building a strong dura$le $rand implies nevertheless an a$ove average &uality positioning or at least a minimum perceived &uality "hen considering $rands positioned as lo" market competitors% erceived &uality can also attract channel mem$er interest' allo" e+tensions and support a higher price that provides resources to reinvest in the $rand% Keller 1>>;F defines perceived &uality as customerOs perceptions of the overall &uality or superiority of a product or service relative to another and "ith respect to its intended purpose% *hus' perceived &uality is an overall assessment $ased on customer perceptions of "hat constitutes &uality product and ho" "ell the $rand rates on those dimensions% According to Keller 1>>;F' achieving a satisfactory level of perceived &uality has $ecome more difficult as product improvements have led to higher customer e+pectations regarding the &uality of products% erceived &uality is valua$le in several "a ys% 6n many conte+ts' the perceived &uality of a $rand provides a crucial reason to $uy% 6t is influencing "hich $rands are included and e+cluded from the consideration set and "hich $rand is to $e selected% A principal positioning characteristic of a $rand is its location "ithin the dimension of perceived &uality% A perceived &uality advantage provides the option of charging a premium price% *he price premium can increase profits andJor provide resources "ith "hich to reinvest in the $rand% erceived &uality can also $e meaningful to retailers' distri$utors and other channel mem$ers and thus aid in gaining distri$ution% Channel mem$ers are motivated to carry $rands that are "ell regarded% 6n addition' the perceived &uality can $e e+ploited $y introducing $rand e+tensions' using the $rand name to enter ne" product categories% A strong $rand "ith respect to perceived &uality "ill $e a$le to e+tend further' and "ill find a higher success pro$a$ility than a "eak $rand Aaker' 0==0F%
2.#.#. )rand associations
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Brand associations are a key to $uilding strong $rands since they represent "hat the $rand stands for in the customer)s mind Aaker' 0==0F% 6n essence' $rand association helps process and retrieves information a$out the $rand and' in the ideal case' creates a positive attitude and feelings a$out the $rand% *he "ay consumers perceive $rands is a key determinant of long.term $usiness.consumer relationships% ence' $uilding strong $rand perceptions is a top priority for many firms today% Brand associations are important to marketers and to consumers% Marketers use $rand associations to differentiate' position' and e+tend $rands' to create positive attitudes and feelings to"ard $rands' and to suggest attri$utes or $enefits of purchasing or using a specific $rand% Consumers use $rand associations to help process' organi#e' and retrieve information in memory and to aid them in making purchase decisions Aaker' 0==0F% Brand associations may include' e%g%' product attri$utes' customer $enefits' uses' life. styles' product classes' competitors and countries of origins% *he association not only e+ists $ut also has a level of strength% *he $rand position is $ased upon associations and ho" they differ from the competition% An association can affect the processing and recall of information' provide a point of differentiation' provide a reason to $uy' create positive attitudes and feelings and serve as the $asis of e+tensions% *he associations that a "ell.esta$lished $rand name provides can influence purchase $ehavior and affect user satisfaction% Even "hen the associations are not important to $rand choices' they can reassure' reducing the incentive to try other $rands Aaker' 0==0 0==1F%
2.#.,. ther proprietar( brand assets ther proprietary $rand assets refer to patents' trademarks and channel relationships "hich can provide strong competitive advantage% A trademark "ill protect $rand e&uity from competitors "ho might "ant to confuse customers $y using a similar name' sym$ol or package% A patent can prevent direct competition if strong and relevant to the purchase decision process% -inally' a distri$ution channel can $e indirectly controlled $y a $rand as customers e+pect the $rand to $e availa$le Aaker' 0==0 0==?F%
2.#.-. )rand no&ledge age / 17
Considering the Keller)s $rand e&uity model' $rand kno"ledge is the key issue in creating customer.$ased $rand e&uity Keller' 0==9 0==;F% Brand kno"ledge is defined in terms of t"o dimensions: brand awareness and brand image% Brand a"areness relates to $rand recall and recognition performance $y consumers% Brand image refers to the set of associations linked to the $rand that consumers hold in memory% Consistent "ith an associative net"ork memory model' $rand kno"ledge is conceptuali#ed as consisting of a $rand node in memory to "hich a variety of associations are linked% Building $rand a"areness re&uires repeatedly e+posing consumers to the $rand as "ell as linking the $rand in consumer memory to its product category and to purchase' usage and consumption situations% Creating a positive $rand image re&uires esta$lishing strong' favora$le and uni&ue associations for the $rand% *he relevant dimensions that distinguish $rand kno"ledge and affect consumer response are the a"areness of the $rand in terms of recall and recognitionF and the favora$ility' strength and uni&ueness of the $rand associations in consumer memory% *hese dimensions are affected $y other characteristics of and relationships among the $rand associations Keller' 0==9F%
2.#./. )rand image According to Keller 0==9 0==;F' $rand image refers to consumer perceptions of a $rand as reflected $y the $rand associations held in consumers) memory% Brand associations are informational nodes linked to the $rand node in memory and contain the meaning of the $rand for consumers% 6n addition' Keller 0==9 0==;F states that $rand associations may take different forms% ne "ay to distinguish among $rand associations is the level of a$straction' that is' ho" much information is summari#ed or su$sumed in the association% ithin this dimension' the types of $rand associations can $e classified into three major types of increasing scope: attributes' benefits' and attitudes% Brand attri$utes are those descriptive features that characteri#e a product or service% *hey can $e further distinguished according to ho" directly they relate to product or service performance% Along these lines' attri$utes can $e classified into product-related and non product-related attri$utes Keller' 0==9F% Brand $enefits are the personal value and meaning that consumers attach to the product or service% Benefits can $e further distinguished into three categories according to the underlying motivations to "hich they relate: functional benefits' age / 1?
eAperiential benefits' and symbolic benefits% *he third and most a$stract types of $rand associations' $rand attitudes are defined in terms of consumers) overall evaluations of a $rand% Brand attitudes are important $ecause they often form the $asis for actions and $ehavior that consumers take "ith the $rand e%g%' $rand choiceF Consumers) $rand attitudes generally depend on specific considerations concerning the attri$utes and $enefits of the $rand% 6t is important to note that $rand attitudes can $e formed on the $asis of $enefits a$out product.related attri$utes and functional $enefits andJor $eliefs a$out non.product.related attri$utes and sym$olic and e+periential $enefits Keller' 0==9 0==;F% Considering the previously mentioned pyramid consisted of four steps for creating strong $rand' suggested $y Keller 1>>0F' each step is seen as a $rand e&uity determinant' and each step is a contingent upon the successful completion of the previous one% *he process of $rand $uilding' according to these steps includes: esta$lishing the proper 0F $rand identity' create the appropriate 1F $rand meaning' elicit the right 9F $rand responses' and $uild corresponding 4F $rand relationships "ith customers%
2.,. 0areting mi elements and brand e'uit( Marketing strategy is often considered the most important mean of esta$lishing $rand e&uity% ver the years' a large num$er of studies have e+plored ho" various marketing mi+ elements affect $rand e&uity% Brand e&uity is seen as the outcome of long term marketing efforts operated to $uild a sustaina$le' differential advantage relative to competitors Doo' 0==?F% According to Keller 0==9F a $rand is said to have a positive negativeF customer.$ased $rand e&uity if consumers react more or less favora$ly to the product' price' promotion' or distri$ution of the $rand than they do to same marketing mi+ element "hen it is attri$uted to a fictitiously names or unnamed version of the product or service% Doo 0==?F suggests' any marketing actions "ill affect on customers) $rand kno"ledge e%g%' psychological perception' "hich is result in a positive or negative impact on $rand e&uity% Based on Aaker)s concept' Doo et al %' 1>>>F created $rand e&uity creation process model to systematically e+amine the relationship among marketing efforts' $rand e&uity dimensions' age / 18
and $rand e&uity% *heir model "as an e+tension of Aaker)s proposal "hich indicated that marketing activities had significant effects on $rand e&uity dimensions' "hich in turn created and strengthened the e&uity% Doo et al %' 1>>>F' e+tend Aaker)s model $y placing $rand e&uity as a separate construct $et"een the dimensions of $rand e&uity and the value for the customer and the firm% *hey also add price' store image' distri$ution intensity' advertising spending' and price deals as antecedents of $rand e&uity "ith their significant effects on the dimensions of $rand e&uity% 6n their model' $rand a"areness and $rand associations dimensions have emerged as a single dimension' "hereas perceived &uality and $rand loyalty are retained as separate dimensions% As clarification' their study investigates the relationships $et"een selected marketing mi+ elements and the creation of $rand e&uity% *he authors e+plore ho" these marketing actions increase or decrease $rand e&uity% *he findings provide insights into ho" marketing activities may $e controlled to generate and manage $rand e&uity% -igure 1%7%0 e+hi$its their model of $rand e&uity% -igure 1%7%0 5 Doo et al %)s model of $rand e&uity
!ource"
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ith an increase in marketing efforts' there is an increase in the dimensions of $rand e&uity' "hich in turn positively influences $rand e&uity% 6ncrease in $rand e&uity leads to an increase in the value of the $rand to the customers and also to the firm' "hich means the firm has an increased $ottom line no" and can hence invest in more marketing activities% *he idea that $rand adds value to products or services is fundamental to marketing Doo' et al%' 1>>>F% Chattopadhyay et al %' 1>>=F investigate the consumers) perceptions on several factors that in turn affect $rand e&uity% *he study e+amines the relationship $et"een marketing mi+ elements' the factors that are not part of the marketing mi+' and $rand e&uity% *he authors divide the t"o groups into direct marketing mi+ varia$les and indirect marketing mi+ elements% *he first group contains price' store image' advertising fre&uency' price promotions and distri$ution intensity% *he indirect varia$les include peer recommendation' country of origin of the $rand and cele$rity endorsement% *he authors study the interaction effect of the direct and indirect marketing mi+ parameters that impact $rand e&uity% *he results of the study unam$iguously prove that $oth direct and indirect marketing mi+ varia$les have a significant impact on the dimensions of $rand e&uity and there$y on the $rand e&uity of the products% -igure 1%7%1 illustrates their conceptual frame"ork of $rand e&uity% -igure 1%7%1 . Chattopadhyay et al %)s conceptual frame"ork of $rand e&uity
!ource" 9hattopadhyay et al. &'((7* 5eterminants of brand equity - blue print for building strong brand" study of automobile segment in ndia frican $ournal of ,ar/eting ,anagement :ol. 6&E* p. 66( age / 1=
Advertising is considered as an o$vious varia$le that one "ould assume to have a relationship "ith $rand e&uity% 6t is seen as one of the most important means of esta$lishing $rand a"areness and educating consumers on the different attri$utes or dimensions of a $rand% Aaker 0==0F fre&uently indicated that advertising "as important to the $uilding of consumer perceptions in the five dimensions of $rand loyalty' name a"areness' perceived &uality' $rand associations' and other proprietary $rands assets% *he author further proposed that advertising may $e the key driver of $rand e&uity through the means of cumulative advertising and possessing a higher share of industry advertising% Simon and Sullivan 0==9F use advertising as a varia$le related to market share in the development of a financial.$ased measure of $rand e&uity% 6t has $een concluded that companies "ith higher advertising $udgets possessed higher levels of $rand e&uity "hen compared to companies "ith smaller advertising $udgets% -urthermore' Doo et al % 1>>>F found that fre&uent price promotions are related to lo" $rand e&uity "hile high advertising spending' high price' good store image' and high distri$ution intensity are related to high $rand e&uity% Kotler and Keller 1>>?F argued advertising could create long.term $rand image for a product or service and trigger &uick sales $y reacting a num$er of customers% A company invests a huge amount of fund in advertising of its product or service in order to create and increase $rand a"areness $y e+posing $rands to customers% As "ell as' advertising strengthens the $rand)s likelihood of $eing included in consumer)s mindset% *hus' enhance the market performance of a $rand% According to oeffler and Keller 1>>1F there are si+ means $y "hich marketing programs can $uild $rand e&uity: 0F $uilding $rand a"areness' 1F enhancing $rand image' 9F esta$lishing $rand credi$ility' 4F evoking $rand feelings' 7F creating a sense of $rand community' and ?F eliciting $rand engagement% 6t is of particular importance for one $rand to develop its marketing strategy in accordance "ith the company)s mission and vision% Shocker et al %' 0==4F $elieved that companies must pay more attention to develop a systematic sight of products and $rands in order to specify ho" intangi$le assets "hich are resulted from manager)s pricing' promotion' services and distri$ution decisions' contri$ute "ith self.product to form $rand e&uity and affect the $u yer decision.making%
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o"ever' there e+ist many studies that e+amine the effects of marketing mi+ elements' as "ell as marketing activities on $rand e&uity% Some of the mostly investigated marketing elements that has relationship "ith $rand e&uity include price' store image' distri$ution intensity' advertising fre&uency' cele$rity endorsement' price promotion' non.price promotions' event sponsorship' country.of.origin and "ord.of.mouth recommendation Chattopadhyay' et al%' 1>0> Ka$adayi' et al%' 1>>8 >7F%
2.-. )rand e'uit( measurements As the concept of $rand e&uity has gained much prominence $oth in academia and industry' along "ith it appeared different methods of measurement% Unlike the developments at a conceptual level' ho"ever' the e+isting literature does not provide a satisfactory measurement method for understanding the sources of $rand e&uity% Studies regarding the measurement of $rand e&uity can $e grouped mainly in t"o distinct categories% As "as the case "ith the definitions' some authors have studied the financial aspects of the $rand e&uity measurement' "hereas others have focused on the customer.$ased measurement issues% *he first perspective of $rand e&uity is from a financial market)s point of vie" "here the asset value of a $rand is appraised Simon Sullivan' 0==9 -ar&uhar' 0=;=F' "hile consumer.$ased $rand e&uity has attitudinal associations and refers to evaluating the consumer)s response to a $rand name Keller' 0==9 Shocker' et al%' 0==4 Chaudhuri' 0===F%
2.-.1. inancial measurement !eveloping a financial measure of $rand e&uity is crucial for effective $rand management% Puantifying the dollar value of a $rand "ould allo" firms to report $rand asset values in financial statements' and assign an o$jective value to a $rand during sale or ac&uisition% A standard measure of $rand e&uity that can $e tracked longitudinally "ould also allo" marketers to evaluate changes in a $rand)s value over time' helping to evaluate the effects of changes in marketing strategies or tactics' competitive factors' or managerial impact% !eveloping a financial measure of $rand e&uity "ould address MS6)s top priority of increasing accounta$ility and measuring <6 of marketing e+penditures MS6' 1>>;F% -irm.$ased measures' such as revenue premium' provide single o$jective num$er that is credi$le to senior management and the age / 90
financial community and acts as a useful guide to the value of a $rand in mergers and ac&uisitions% Among the financially.oriented studies' Simon and Sullivan 0==9F emphasi#ed macro and micro approaches as an estimation techni&ue e+tracting the value of $rand e&uity from the value of the firm)s other assets% *he authors first assign an o$jective value to a company)s $rands and relate this value to the determinants of $rand e&uity according to the macro approach% *hen' the micro approach isolates changes in $rand e&uity at the individual $rand level% 6n a similar manner' Motameni and Shahrokhi 0==;F proposed a glo$al $rand e&uity valuation model &uantifying all the components and applying the generally accepted financial techni&ues% 6nter$rand roup has used a su$jective multiplier of $rand profits $ased on the $rand)s performance along seven dimensions: leadership' sta$ility' market sta$ility' internationality' trend' support and protection Keller' 0==9F% Simon and Sullivan 0==9F present a financial techni&ue $ased on financial market estimates of $rand.related profits% *he method for the financial approach takes into consideration e+penditures on advertising and research and development' company market share' age of the firm' and market concentration in com$ination "ith tested dummy varia$les% *he results provide evidence that $rand e&uity comprises a large percentage of the total value of many firms and gives "eight to the $elief that $rands must $e managed effectively% -urthermore' -ar&uhar 0=;=F e+plains that' from the firm)s perspective' $rand e&uity can $e measured $y the incremental cash flo" from associating the $rand "ith the product% 6ncremental cash flo" also results from premium pricing and reduced e+penses% *he author' also' outlines three main elements that are essential in $uilding a strong $rand "ith the consumer: a positive $rand evaluation' an accessi$le $rand attitude' and a consistent $rand image% hereas the consumer.$ased method of measuring $rand e&uity is $ased on the feed$ack of consumers' the financial.$ased $rand e&uity methods are more focused on valuating $rand e&uity upon financial performance% *his methodology involves highlighting key financial measures and factoring these results into a formula for evaluating $rands% inters 0==0F provides three methods accountants use "hen determining the value of a $rand as:
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0% Market approach 5 present value of the future economic $enefits to $e derived $y the o"ner of a property% 1% Cost approach 5 amount of money re&uired to replace a $rand' including the costs of product development' test marketing' advertising' etc% 9% 6ncome approach 5 net income derived from the $rand divided $y the risks associated "ith the $rand achieving the prospective earnings% *he Hrevenue premiumG measure developed recently $y Aila"adi et al% 1>>9F and defined as the difference in revenue (et rice Q @olumeF $et"een a $randed good and a corresponding private la$el can also $e considered "ithin the firm.$ased perspective% ark and Srinivasan 0==4F proposed a survey.$ased method for measuring and understanding $rand e&uity at the individual consumer level in a specific product category' "hich offers $rand managers an indication of the sources of $rand e&uity% *his method measures $rand e&uity as the difference $et"een an individual consumer)s overall $rand preference and his or her $rand preference on the $asis of o$jectively measured product attri$ute levels% Brand valuation is a relatively ne" phenomenon% Many different methods have $een proposed $ecause financial accounting standards for valuing intangi$le assets vary across countries% o"ever' little consensus has emerged a$out ho" $rand performance should $e measured%
2.-.2. Customer+based measurement n the other hand' a consumer.$ased measure of $rand e&uity is $ased on the value consumers derive from the $rand name% Some researchers define this added value as the positive associations' a"areness' loyalty' and perceived &uality of the $rand Aaker' 0==0F' as the differential effect of $rand kno"ledge to the marketing of the firm Keller' 0==9F' or as the price premium that consumers are "illing to pay for the $rand ark Srinivasan' 0==4F% Consumer. $ased measures of $rand e&uity can provide valua$le insights and diagnostics for the marketing or $rand manager concerned a$out a $rand)s value to consumers% Such measures can effectively capture the e&uity of strongly positioned popular $rands and the e&uity of $rands that enjoy high consumer loyalty and command a significant price premium in niche markets%
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Aaker 0==0F "as the first to propose a means of assessing customer.$ased $rand e&uity measurements% e supports that $rand e&uity is measured $y ho" consumers perceive a $rand in regards to $rand loyalty' name a"areness' perceived &uality' $rand associations' and other proprietary $rands assets% *his measurement is to $e esta$lished $y surveying customers directly to determine satisfaction and perceptions regarding a $rand and its e&uity% Keller 0==9F carried the research of Aaker one step further $y defining and outlining customer.$ased $rand e&uity measurement methods and encouraging managers to think more strategically a$out $rand e&uity% Keller defines customer.$ased $rand e&uity as the differential effect of $rand kno"ledge on consumer response to the marketing of a $rand% e vie"s the measurement in a $road manner as a $rand has positive or negativeF customer.$ased $rand e&uity if consumers react more or lessF favora$ly to the product' price' promotion' or distri$ution of the $rand than they do to the same marketing mi+ "hen it is attri$uted to an un$randed version of the product or service% According to Keller 0==9 0==;F' there are t"o $asic complementary approaches to measuring customer.$ased $rand e&uity% *he indirect approach attempts to assess potential sources for customer.$ased $rand e&uity $y measuring $rand kno"ledge structures' that is' consumers) $rand a"areness and $rand image% *he indirect approach is useful for identifying "hat aspects of the $rand kno"ledge may potentially cause the differential response that creates customer.$ased $rand e&uity% *he direct approach to measuring customer.$ased $rand e&uity' on the other hand' attempts to more directly assess the impact of $rand kno"ledge on consumer response to different elements of the marketing program for the firm% *he direct approach is useful in appro+imating the possi$le outcomes and $enefits that arise from the differential response that creates customer.$ased $rand e&uity% *he indirect and direct approaches to measuring customer.$ased $rand e&uity are complementary and should $e used together% 6n order to apply these t"o different types of measures in a managerial setting' it is necessary to design and put into place a customer.$ased $rand e&uity measurement system% *here e+ists an e+tensive set of research procedures designed to provide timely' accurate and actiona$le information for marketers so that they can make the $est possi$le tactical decisions in the short run and strategic decisions in the long run%
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Doo and !onthu 1>>0F propose a multidimensional consumer.$ased $rand e&uity scale $ased on the research of Aaker and Keller' "here consumer.$ased means measurement of cognitive and $ehavioral $rand e&uity at the individual consumer level through a consumer survey% *he authors develop a scale utili#ing 11 items for assessment: five on $rand loyalty' four on $rand a"areness' seven on perceived &uality' and si+ on $rand associations% *hey developed a $rand e&uity measure "ith an etic approach' in "hich a universal measurement structure across cultures is sought using multiple cultures simultaneously% *he outcome measure that an etic approach produces is functionally' conceptually' linguistically' and metrically e&uivalent across cultures' "hich provides the $asis for generating valid cross.cultural comparisons% ark and Srinivasan 0==4F developed a survey.$ased method of measurement% *heir method is intended to gather different customer opinions and attitudes to determine possi$le factors in $uilding $rand e&uity' "hich "ill assist $rand managers in making informed decisions% By collecting data on the importance of attri$ute and non.attri$ute $ased factors' $rand managers can determine ho" the company)s $rand rates compared to the competition and plan for the future direction of the $rand% Silverman et al % ' 0===F e+plored the relationship $et"een customer.$ased and financialJmarket.$ased $rand e&uity measurements% *he overall implication of customer.$ased research suggests that measures of customer.$ased $rand perceptions are accurate reflections of $rand performance in the marketplace% Customer.$ased $rand e&uity' in this respect' is the driving force for incremental financial gains to the firm% *he challenge for many $rands is to develop credi$le and sensitive measures of $rand strength that supplement financial measures "ith $rand asset measures% hen $rand o$jectives and programs are guided $y $oth types of measures' the incentive structure $ecomes more $alanced' and it $ecomes more feasi$le to justify and defend $rand.$uilding activities Aaker' 0==?F% eneral progress in the measurement of $rand e&uity "ill help managers develop valid instruments for individual $rands%
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2./. The "alue of brand e'uit( *he importance of $rand e&uity has $een discussed in many "ritings% Brand e&uity can $e regarded as an indicator of the success of a $rand% 6t is "idely recogni#ed that the $rand has developed into one of a company)s most important assets' "hich makes effective management of the $rand a key factor in corporate success% ne of the reasons for its popularity is its strategic role and importance in gaining competitive advantage and in strategic management decisions Simon Sullivan' 0==9F% *here is no dou$t that if there is no o$vious difference $et"een the products or services of different companies and their prices are the same' customers "ill $e attracted to the stronger $rand% Aaker)s five assets model implicates that $rand e&uity provides value to the customer' as "ell as to the firm% *he resulting customer value $ecomes a $asis for providing value to the firm% *he implication is that in managing $rand e&uity' it is important to $e sensitive as to ho" value can $e created in order to manage $rand e&uity effectively and to make informed decisions a$out $rand.$uilding activities Aaker' 0==1F%
2./.1. alue for the rm A company)s $rand e&uity is of great importance in the increasingly competitive market today% aving strong $rand e&uity means keeping the valua$le customers' influencing the spreading of positive "ord.of.mouth as "ell as ensuring the company)s good reputation and there$y its market position% *oday' too many companies neglect or do"n.prioriti#e the $rand e&uity of the company' "hich means losing a great opportunity to $uild their competitive advantage% enerally' $rand e&uity is the driving force for incremental financial gains to the firm% Competitive advantage for firms may $e determined in terms of revenue' profit' added value or market share% -ar&uhar' 0=;=F early on' suggests the result of high $rand e&uity may $e the allo"ance of premium pricing for a product% A successful $rand "ith high e&uity is a$le to charge more for its products and thus receive a higher return or gross profit "hen compared to other companies% -ar&uhar 0=;=F additionally suggests a relationship $et"een high $rand e&uity and market po"er asserting that the competitive advantage of the firms that have $rands "ith high e&uity includes the opportunity for successful e+tensions 5 a strong $rand provides a platform for ne" products and for licensing resilience against competitors) promotional pressures 5 a strong $rand age / 9?
has the resiliency to endure crisis situations' periods of reduced corporate support' or shifts in consumer tastes and creation of $arriers to competitive entry 5 a dominant $rand name provides resistance from competitive attack% *his "as reinforced $y Aaker 0==0F "ho $elieves that a $rand possessing high ratings in the dimensions of name a"areness' perceived &uality' associations' and loyalty is a$le to charge more for its products% *he author suggests that a strong $rand "ill usually provide higher profit margins and $etter access to distri$ution channels' as "ell as providing a $road platform for product line e+tensions% Aaker 0==?F further points out that the most suita$le method for determining $rand e&uity may $e using conjoint analysis to esta$lish ho" much more a consumer is "illing to spend on one $rand product versus another% is model assumes si+ "ays that $rand assets create value for the firm% -irstly' $rand e&uity can enhance the efficiency and effectiveness of marketing programs% A promotion' for e+ample' "ill $e more effective if the $rand is familiar and if the promotion does not have to influence a skeptical consumer of $rand &uality% Secondly' $rand a"areness' perceived &uality and $rand associations can all strengthen $rand loyalty $y increasing customer satisfaction and providing reasons to $ uy the product% Even "hen these assets are not visi$ly pivotal to $rand choice' they can reassure the customer' reducing the incentive to try other $rands% Enhanced $rand loyalty is especially important in $uying time to respond to competitor innovations% *hirdly' $rand e&uity "ill usually provide higher margins for products' permitting premium pricing and reducing reliance on promotions% Brand e&uity can also provide a platform for gro"th $y $rand e+tensions and can provide leverage in the distri$ution channel as "ell% Channel mem$ers have less uncertainty dealing "ith a proven $rand name that has already achieved recognition and has esta$lished strong associations% -inally' a strong $rand represents a $arrier that prevents customers from s"itching to a competitor% Brand e&uity is a key marketing asset' "hich can engender a uni&ue and "elcomed relationship differentiating the $onds $et"een the firm and its stakeholders% Understanding the dimensions of $rand e&uity' then investing to gro" this intangi$le asset raises competitive $arriers and drives $rand "ealth Doo' et al%' 1>>>F% -or firms' gro"ing $rand e&uity is a key o$jective achieved through gaining more favora$le associations and feelings among target consumers% 6n paying very high prices for companies "ith $rands' $uyers are actually purchasing
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a position in the minds of potential customers% A"areness' trust and reputation are the $est guarantees of future earnings Kapferer' 0==1F% itta and Katsanis 0==7F suggest that $rand e&uity increase the profita$ility of $rand choice' leads to $rand loyalty and insulates the $rand from a measure of competitive threats% (eal and Strauss 1>>;F state that in the marketplace' the concept of $rand e&uity allo"s firms to charge a price premium over the ones "ith poor $rand e&uity' and that price differential allo"s firms to reinforce their $rand e&uity through improved product &uality' higher levels of customer service' investment in socially responsi$le programs' and more effective promotion% 6t also gives firms pricing po"er 5 the po"er to trade off margin against share% Brands also play an important role in determining the effectiveness of marketing efforts such as advertising and channel placement Keller 3ehmann' 1>>?F% Some researchers have identified $rands as central to company)s a$ility to earn profit and as firm)s most valua$le assets Erdem' 0==;F% 6t is also proved that high $rand e&uity help company attract ne" customers' esta$lish superior position and retain high customer loyalty 3ee' 1>00F% According to Keller 1>>0F' $uilding a strong $rand "ith significant e&uity has $een seen as providing a host of possi$le $enefits to a company' including greater consumer loyalty and less vulnera$ility to competitive marketing actions' larger margins as "ell as more favora$le consumer responses to price increases and decrease' increased marketing communication effectiveness' and licensing and $rand.e+tension opportunities% ositive customer.$ased $rand e&uity can lead to greater revenue' lo"er costs and higher profits' and it has direct implications for the firm)s a$ility to command higher prices' customer)s "illingness to seek out ne" distri$ution channels' the effectiveness of marketing communications' and the success of $rand e+tensions and licensing opportunities Keller' 1>>9F%
2./.2. alue for the customers o"erful $rands create meaningful images in the minds of customers' "ith $rand image and reputation enhancing differentiation and having a positive influence on $uying $ehavior% Brand e&uity from an individual consumer)s perspective is reflected $y the increase in the strength of associations an individual has for a product $y using the $rand% Successful $randing means lo"er uncertainty in purchasing% *here is also less need for an e+tensive decision making
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process on the part of the customer% Brands carry "ith them certain assurances of product &uality and relia$ility in use% Apart from this' there are also psychological $enefits to the customer using $rands% Aaker)s 0==0F $rand e&uity model lists three "ays of ho" $rand assets create value for the customer% -irstly' $rand e&uity can help a customer interpret' process' store' and retrieve a huge &uantity of information a$out products and $rands% Secondly' it can affect the customer)s confidence in the purchase decision a customer "ill usually $e more comforta$le "ith the $rand that "as last used' is considered to have high &uality' or is familiar% -inally' perceived &uality and $rand associations provide value to the customer $y enhancing the customer)s satisfaction% -or customers' strong $rands can simplify choice' promise a particular &uality level' reduce risk' andJor engender trust Keller 3ehmann' 1>>?F and also can motivate repeated $uying Aaker' 0==? Keller' 1>>0F% Brands thus reflect the complete e+perience that customers have "ith products% Brand e&uity' also creates value to customers $y enhancing efficient information processing and shopping' $uilding confidence in decision making' reinforcing $uying' and contri$uting to self.esteem%
2.4. )rand e'uit( in &ine industr( Building $rand e&uity in the "ine industry is particularly difficult yet necessary% By $uilding e&uity a $rand "ill stand out from its competitors% 6n making a $rand recogni#a$le' and developing relationships "ith consumers' the decision making process for "ine purchases $ecomes simpler and more direct to the consumers% 6t is "idely recogni#ed that e&uity can $e $uilt into $rands that "ill give them value and strength in the market "ell $eyond that "hich is provided $y the inherent characteristics of the products% *herefore' it is vital for the "ine $rands to ensure that they have the $rand e&uity re&uired to rise a$ove the competition and get their la$els off the shelf and into the homes of their target consumers% 6t is not surprising that some marketing academics have studied "ine marketing and $uilding $rand e&uity (o"ak' et al%' 1>>?F% *he authors e+amined the tasting room e+perience and its effect on $uilding loyal "ine drinkers "ho "ould continue to purchase the "inery)s $rand after the tasting room e+perience is over% *hey suggested that $y understanding their target age / 9=
customers' H"ineries can learn ho" to meet the customers) e+pectations for the type of tasting room e+perience that "ill lead to positive "ord of mouth' "ine clu$ mem$erships' and repeat purchases%G *here is a considera$le evidence that $rand names are associated to consumer perceptions of &uality and their purchase intentions e%g% !a"ar and arker' 0==4 anke et al ' 1>>8F% As "ith other product classes' the $rand name of a "ine can either help to $ring it success or cause it to struggle% A $oring name may $e easy to forget' "hilst a distinctive one can connect "ith the story or place $ehind the "ine% *oday' the "ine industry is making signiRcant efforts to develop processes and procedures in grape cultivation and "ine production% Macedonian "ine is seeking to $ecome more competitive' $oth in terms of &uality and price% 6n line "ith an international phenomenon that is occurring in the increasing homogeni#ation of goods and services' $randing has progressively $ecome more important to the "ine industry as a means of differentiation and competitive advantage% Branding is crucial in any industry' company or product% ineries and the "ine industry in general should appreciate and recogni#e that $randing is of paramount importance' as strong $rands "ill continue to enjoy ro$ust gro"th% *he success of a $rand is the "ork of everyone in the organi#ation% Building the $rand is very important in the "ine market "here the consumer can $e over"helmed $y too many choices% By having a strong $rand a company can enjoy cost effective marketing campaigns' greater trade leverage' higher margins' ease of e+tending lines' stands out of competition and defense against price competition% *hese $eneRts come as a result of the $rand $ecoming recogni#a$le and esta$lished in the minds of the consumers and thus triggering recognition of the $rand name andJor mark in a purchasing situation% Strong $rands lead to strong companies' consumer loyalty and to an overall strong industry%
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Chapter 3 – 5ine industr( in the %epublic of 0acedonia *he follo"ing chapter provides general information a$out the "ine industry in the
3.1. 6eneral information 3ocal tradition of "ine.making and consumption in the
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get to kno" a$out "ine in general' domestic "ine tourism is $ecoming a trend and "ine tasting classes are much desired $y "ine enthusiasts% 6n the last years it is evident that some of the Macedonian "ine producers join in local "ine associations to "ork together on various issues% E+amples include: ines of Macedonia' *ikve, ine
3.2. $ector anal(sis *he "ine sector in Macedonia has great macroeconomic significance% Around 8> of the total "ine production in Macedonia is e+ported to foreign countries' indicating the e+port oriented character of the sector% 6n terms of e+port value' "ine is the second most important agricultural product after to$acco !imitrievski Kotevska' 1>>;F% *herefore' the sector is very important for the national economy in terms of providing foreign capital% Moreover' the "ine sector together "ith the grape sector contri$utes to employment in the viticulture regions (A>8F% Because of its strategic importance for the national economy' as "ell as a result of the glo$al "ine hyper production' the saturation of the "ine market and the glo$al financial crisis' the Macedonian government seeks to support the finding of ne" trade partners !S@' 1>0>F% 6n addition' the financial support that the government provides to the "ine sector' among the other measures' includes measures to support scientific research projects' organi#ation and participation on a "ine fairs and manifestations as "ell as promotion and marketing% 6n the period from 1>0> to 1>09 average annual production of "ine is a$out =87%84> hl -igure 9%1%0F% Minimum annual production of "ine is noted in 1>00 and is 8;=%=4= hl% *he trend of the "ine production sho"s continued increases in the period from 1>00 to 1>09' "herein 1>09 is noted the greatest "ine production and it is 0%170%87= hl%
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-igure 9%1%0 5 *otal "ine production in 0>.1>09F
Total wine production in Republic of Macedonia (in hl)
!ource" !tate !tatistical Fffice of the 3epublic of ,acedonia
3.3. 7omestic maret and eports Based on an evaluation of the data from the State Statistical ffice' a$out ;7%7>> hl are consumed "ithin the 0>F% o"ever' in recent years the consumption of "ine per capita e+ceeds this figure taking into account the consumption of "ine in tourist facilities and restaurants' including the consumption of domestic produced "ine so.called unofficially production' consumption of "ine per capita is estimated at 07 l per capita per year% 6n 1>00 the domestic consumption of "ine is estimated at an average of ;%? l per household% Mi+ed households emerge as the largest consumers of "ine' or consume =%; liters per household A00F% *his relatively lo" consumption of "ine in comparison "ith European countries' MacedoniaNs "ine market is not attractive to major European manufacturers% -or these reasons' although the Macedonian market for "ine relatively open' there is a serious danger to the same as result of the importation of "ine in the coun try% After to$acco' "ine is the second most important e+ported agricultural product' and participates in the total e+ports of agricultural and food products "ith a$out 00 !S@' age / 49
1>0>F% E+port of "ine increases from year to year -igure 9%9%0%F' "hile only in 1>09 it is noticed a slight decline% 6n 1>00 compared "ith 1>0> e+ports increased $y 90%?' and in 1>01 compared to 1>00 increased $y 08%8% 6n 1>09 compared to 1>01' e+port of "ine has seen a reduction of 90%1% According to information o$tained from "ineries and initial analysis of MA-A Ministry of agriculture' forestry and "ater economyF' the increase is due to the &uantities of "ine that "ineries reserved for the production of high &uality "ine' "hich have a period to serve' and the other $ecame the glo$al financial crisis and drastically decreased demand for "ine in "orld markets% -igure 9%9%0 5 *otal "ine e+port in 0>.1>09F
Total wine export in Republic of Macedonia
!ource" !tate !tatistical Fffice of the 3epublic of ,acedonia 8dited by" ,istry of agriculture ;orestry and Gater 8conomy
Most of the e+ported "ine appro+imately ;7F is e+ported in $ulk' "hile a$out 07 of the e+ported "ine is e+ported as "ine $ottles% *he main e+port markets for Macedonian "ine are the European Union EUF countries and the mem$er countries of CE-*A Central European -ree *rade AgreementF' "here "ine is e+ported duty free !S@' 1>0>F% ine is mainly e+ported in $ulk &uantities in the EU market
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ranging from ?> to 81 of total e+ports of $ulk "ineF' "hile e+ports in CE-*A mem$er countries are dominated $y $ottled "ine accounting for 8> to ;7 of total e+ports of $ottled "ineF% ther markets "here Macedonian "ine is e+ported in smaller &uantities are: United States of America' Canada and Tapan%
3.#. Competiti"e landscape ine production in the officially registered "ineries "ith a total capacity of 1%111%?48 hl' "hich is t"o times the total production of "ine 7> utili#ation of total capacityF M' 1>>=F% *he total capacity for pouring in $ottles is around ?7>'>>> hl per year' "hich is insufficient to cover the entire production of "ine in the country% Although there is a lack of capacity' the capacity for pouring in "ine $ottles remains unused' $ecause most of the "ine is marketed in $ulk% Considering this num$ers' the "ine industry in Macedonia plays a significant role in the "hole economy' and it continues to e+pand rapidly' especially through e+port and placement on the foreign markets% ineries in the of the "ineries have a capacity $elo" 7>%>>> hl' "hile the rest are larger five have a capacity $et"een 70%>>> hl and 07>%>>> hl' and three $et"een 070%>>> hl and 7>>%>>> hlF% *hat makes only 0> of the "ineries to hold the greatest market share% *he capacity of the "ine cellars for the production of red "ine ?>F is higher than for "hite "ine 4>F due to the fact that varieties of "hite "ine "hich predominateF more commonly used for the production of $randy% *he total annual capacity for pouring "ine in $ottles is around ?7>%>>> hl' "hich is insufficient to cover the entire "ine production in the country% o"ever' even though the capacity for pouring "ine $ottles is lacking still it is not fully utili#ed% 6n recent years' the num$er of ne" "ineries mostly manufacturing plants "ith small and medium si#eF has increased almost three times compared "ith times in 1>>9 only 1; registered companiesF' an interesting trend given that the total vineyard records repeatedly decreasing% *hese "ineries tend to"ards concentration of production of "ine in $ottles filled and high. &uality "ines' through strict control of the selection of varieties' vineyard management and age / 47
harvesting' transportation and delivery practices% -urthermore' they invest in sophisticated e&uipment for finishing and processing' $ottling and marketing technologies and competitive domestic and foreign markets !S@' 1>0>F% Analy#ing the Macedonia)s "ine market' it is easy to conclude that just fe" of the "ineries control the "ine market in terms of capacity' production' as "ell as the e+port at the foreign markets%
3.,. 5ine regions *he > ha for "ine production% Based on environmental conditions and grape plantings' Macedonia is divided into three grape gro"ing regions: 0% ovardarie 5 @ardar valley region Central
!ource" 2roup of ,acedonian Gine 4roducers
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*he regions are characteri#ed $y specific production conditions' "hich determine the structure of the vine varieties and the formation of specific &u ality characteristics% Each has further esta$lished "ine districts "ith specific localities% *here are 0? "ine districts in total% *he largest and most famous grape gro"ing region is the ovardarie @ardar @alleyF region' "here ;7 of Macedonian "ine is produced%
3.-. T(pes of &ine Macedonia produces all styles of "ine . dry and s"eet' still and sparkling' red' "hite and ros% ell.kno"n international varieties such as Chardonnay and Ca$ernet Sauvignon' as "ell as indigenous grapes like @ranec' are used to produce "ines that are al"ays uni&uely Macedonian% hen e+perts are asked to descri$e the "ine style nurtured $y Macedonian "inemakers from their specific HterroirG' the most fre&uent ans"er received is Lfruit.for"ard styleN% Macedonian "ines are inviting' pleasant and delicate' "ith a flavor that lingers on the palate% *hey are a living proof of our "inemakersN progress to"ards $alance and a sense of moderation% Macedonian "ines a$ound in concentrated fruit and aroma% *he "onderful climate of "arm "eather and sunny days' and the e+cellent harvest conditions' allo" "ine producers year after year to have ripe and healthy grapes to make their "ines from%
3./. Ti"e8 5iner( *ikve, inery is one of the most important creators of Macedonia)s "ine tradition% (oting the e+istence of more than 017 years' *ikve, inery had $ecome the largest and the most contemporary "inery in Macedonia' "ith a total capacity of 77%>>>%>>> l% *ikve, inery ranks as the leading "ine company in Macedonia' according to tradition' meaning' production' num$er of people etc%' "ith a production of more than 0>%>>>%>>> $ottles of "ine per year% *he process of creating premium "ines does not only refer to good grapes and long "ine tradition% 6t is the largest and the most modern "inery in
All of these elements are converted into a perfect process in the *ikve, "inery% *ikve, "inery is proof that "ith a clear vision and true concept all dreams can $e achieved% ne of the greatest com$ine on the Balkan has $ecome a modern "inery' "hich has made a successful $lend among the tradition' no$le region and modern technology% *he development o$jective of *ikve, inery is to create an international $rand% 6t is a long.term process on "hich the "inery operates continuously' and therefore *ikve, is currently the most recogni#a$le $rand in Macedonia% ne of the *ikve,)s "ine $rands is T’ga za jug ' "hich is the most recogni#a$le $rand' not only on the domestic market' $ut also in the region% *he "ine and its name have their o"n story "hich corresponds "ith one of the most famous and most distinguished poetry events in the "orld%
Corporate Philosoph( Hithout mission there is no purpose' "ithout vision there is no destination' "ithout value there are no guiding principlesG
ision As a regional stronghold in the "ine market' *ikve, inery intend to gro" into an active participant in the glo$al "ine industry' creating ne" trends and standards in the production' sale and promotion of "ine%
0ission e create and promote authentic and &uality products that carry the distinctive stamp of *ikve, inery% e strive to fully meet the e+pectations of our customers and to continue to create moments of enjoyment and memories%
alues *hey determine our commitments' define $usiness processes' manage decision making' determining the "ay "e $ehave in the "orkplace: to colleagues' $usiness partners' customers' suppliers and the "ider community% ur values are the VsoulV of our company% *hey are essential and had not changed:
Puality Market orientation rofessionalism Cooperation !edication age / 4;
3oyalty Social responsi$ility !evelopment
*ikve, inery is located in the heart of @ardar valley "ine region 5 in the *ikvesh region' around the central part of the river @ardar' "hich represents the largest and most important "ine region in the
3./.1. 0aret position of Ti"e8 5iner( ine market remains fragmented "ith a large num$er of players of "hich only a fe" are present in all sales channels and in most retail facilities% o"ever' despite the numerous competitions' *ikve, inery remains the market leader' especially in the channel of hospitality' faced "ith gro"ing competition%
-igure 9%8%0%0 5 Market position of *ikve, inery
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Market position Ser$ia Market share: =%8 Sales: 4%=>>%>>> $ottles Croatia Market share: I Sales: 4=>%>>> $ottles Bi Market share: I Sales: 1=>%>>> $ottles Montenegro Market share: I Sales: 8=%>>> $ottles Kosovo Market share: I Sales: ?9%>>> $ottles
Bulgaria Market share: I Sales: 99%>>> $ottles Macedonia Market share: ?8%7 Sales: ?%1>>%>>> $ottles Al$ania Market share: I Sales: 84%>>> $ottles
!ource" nnual report - Ti/ve Ginery '(6(
According to internal analysis of *ikve, inery' on a representative sample of 0?8 facilities' hospitality participation of *ikve, inery is 88 of the total payment operations "ith "ine' "hile in the area of trade it is 77%
-igure 9%8%0%1 5 Market share of *ikve, in total turnover in hospitality and trade
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Market share in total turnover in hospitality
Market share in total turnover in trade
*ikve, Ainery
*ikve,
Sto$i ($
)$ &$ &$
Bovin @ila Marija Skovin
&'$ ##$ %$
Sopot :thers
($ ($ #$ )&$
6mako #$
@ila Marija (($
Skovin Sto$i :thers
!ource" nnual report - Ti/ve Ginery '(6'
3.4. The brand T’ga za jug 3.4.1. 9istor( 6f it is true that the "ine is $ottled poetry' then T’ga za jug is the most dignified e+ample of% *he "ine is sold "ith a good story $y "hich is $uilt its image% 6f there is at least one "ine $rand that is common to the area of the former Dugoslavia' it is certainly T’ga za jug % *his "ine is drunk "ith e&ual pleasure in Macedonia' Croatia' Bosnia' Ser$ia %%% T’ga za jug is not a ne" $rand' $ut the original name has a completely different meaning% *his "ine and its name have a story that corresponds to the $eginning of the creation of one of the largest and most elite poetry events in the "orld% 6t is the Struga oetry Evenings held since 0=?0 in Struga% *he very name of the "ine comes from the title of a song $y Konstantin Miladinov' a poet from Struga' "hich in the 0=th century resided in
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these Evenings' and very little in the regular sale% *hen T’ga za jug "as very similar to today)s' from the sort of grapes @ranec "hich is very successful in Macedonia% *ime passed' and T’ga za jug has $ecome synonymous for tradition and &uality% ver the years the "ine $ecame interesting also for the consumer market "here e+perienced an ongoing success% art of the popularity is due to the unusual name% -igure 9%;%0%0 5 Evolution of the la$el of T’ga za jug over the years
T’ga za jug is one of strongest $rands that continually succeeded on the Macedonian market% E+cept Macedonia' the "ine is popular in the region and is one of the $est.selling $rands of *ikve, inery% art of the story' "hich has $een going on four decades' represents more than 00 million $ottles ever produced% *oday' T’ga za jug is national pride' one of the most recogni#ed Macedonian $rands and the most commonly consumed "ine in Macedonia% Apart from the domestic market' T’ga za jug is present as "ell as in Ser$ia' "hich represents the most important e+ports destination for *ikve, inery ?> of the e+port end up thereF' Croatia' "here T’ga za jug is the top.selling imported "ine' and also the countries from the diaspora%
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3.:. $ales information 3.:.1. 6eneral information *he total volume of sales of *ikve, inery in 1>01 reached 097';>? hl' "hich represents an increase of 97 compared "ith 1>00% 6nto this value' $ottled "ine participates "ith ?7' $ulk "ine "ith 1;' $randy "ith 7 and "ine distillate "ith 1% -rom a total sales of 097';>? hl reali#ed in 1>01' 90 $elong to sales reali#ed on the domestic market and ?= $elong to the e+port markets' as compared "ith 1>00' "hich represents an increase of 00 of participation in volume sales in the e+port markets in the total conversion% *he total volume of sales of *ikve, inery in 1>09 reached =7'??> hl' "hich represents a decrease of 97 compared "ith 1>01% 6nto this value' $ottled "ine participates "ith ;0' $ulk "ine "ith ;' $randy "ith 8 and "ine distillate "ith 9% -rom a total sales of =7'??> hl reali#ed in 1>09' 47 $elong to sales reali#ed on the domestic market and 77 $elong to sales reali#ed on the e+port markets% enerated sales are classified under four sectors% Sector 0 includes the total sales of the domestic market% Sector 1 includes total sales of the market in Ser$ia% Sector 9 includes regional markets: Bosnia' Croatia' Montenegro' Kosovo' Al$ania and Bulgaria% Sector 4 includes international markets such as ermany' !enmark' America' China' 09 it accounts for 4? of the total sales volume of $ottled "ine and 79 in total revenue generated from sold $ottled "ine%
3.:.2. T;ga *a !ug 6n total sales of $ottled "ine sold in 1>01 and 1>09' the participation of the "ine T’ga za jug $ottle >%87 l is 7 in volume and = in value in the total $ottled "ine% *a$le 9%=%1%0 $elo" outlines the total sales of T’ga za jug in the last t"o years%
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reater percentage of the sales of T’ga za jug accounts in Lhoreca)' "hile in the overall "ine market in Macedonia' it participates "ith 0>% *a$le 9%=%1%0 5 *otal sales of T’ga za jug in 1>01 and 1>09 Sales information !"#!
ear %acka&e Market
!"#$
"'# l domestic market
e+port
"'* l domestic market
"'# l e+port
domestic market
"'* l
e+port
domestic market
e+port
+uantit y in liters ,mount in MK-
8;%91?
0>%9=>
10>%4;?
19=%877
87%9?7
8%;47
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98%84;%??0
0=%89>%=?=
0%8=7%>;7
41%787%84?
99%47>%>1?
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Chapter # – %esearch methodolog( and results *he follo"ing chapter presents the research methodology' as "ell as the results and findings from the research conducted% Basically' the chapter is divided in t"o sections: Section 4%0 5 !escri$es and e+plains the research aim and o$jectives of the thesis and presents the research methods adopted for the thesis' discussing the methods for collecting research data' as "ell as techni&ues used for data collection Section 4%1 5 resents the findings from the research conducted' analy#es and e+plains the data collected from the $oth primary and secondary sources' including information a$out *ikve, inery' as "ell as the $rand T’ga za jug ' corresponding to the e+pected o$jectives of the research%
#.1. %esearch methodolog( #.1.1. %esearch aim and ob!ecti"es As descri$ed in the first chapter of this thesis' the overall purpose of this thesis' "hich is of an e+ploratory nature' is to provide an overvie" of the $rand e&uity $uilding process' as "ell as to reveal the importance of $rand e&uity "ith special emphasis on the "ine industry in Macedonia through the case of *ikve,)s $rand T’ga za jug % -urthermore' the thesis aims to descri$e' e+plain and understand ho" Macedonian "ine producers create and sustain a strong $rand' "ith special emphasis on e+plaining and understanding its importance% Accordingly' the follo"ing research &uestions "ere formulated:
o" $rand e&uity can $e $uilt and maintainedI o" $rand e&uity can provide value for the companyI o"ever' the general o$jective of this research is to analy#e' descri$e and e+plain the
process of $rand $uilding through the case of *ikve,)s $rand T’ga za jug % 6t is e+pected from the research to sho" ho" *ikve, inery $uilt their $rand T’ga za jug ' "hich activities are re&uired in order to $uild and maintain a strong $rand on such a competitive market' as "ell as to emphasi#e the reasons "hy it is essential for any company to $uild $rand e&uity% -inally' it is
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e+pected from the thesis to indicate that T’ga za jug is one of the strongest $rands on the Macedonian market% Accordingly' the research "ill focus on t"o main o$jectives:
*o provide a deeper understanding of ho" T’ga za jug has gained $rand e&uity *o offer recommendations and suggest further improvements for the company -or that purpose the empirical material for the research "as o$tained $y using a mi+ture
of data collection techni&ues% o"ever $oth primary and secondary sources "ere used' and intervie"s have $een the primarily source%
#.1.2. %esearch design and method *he research methodology consisted of $oth primary and secondary data% rimary data included the use of &ualitative and &uantitative approaches% rimary research "as focused on t"o face.to.face intervie"s' carried one "ith representative from *ikve, inery' and other "ith representative from the Association of the Macedonian "ine producers' "hich is called Hines of MacedoniaG% *he person "ho "as intervie"ed from the association of the "ine producers has also $een former CE of *ikve, inery% *he researchers focused on a list of themes and &uestions% o"ever' there "as some variation in terms of the order and the &uestions "ere asked depending on the Wo" of the discussion% *aking notes "as used in order to keep a record of the information collected% -or the intervie"s' $oth &uantitative and &ualitative &uestions "ere used% *he &uestions "ere focused on gathering information a$out the company' such as the capacity of the "inery' the annual production of $ottles' market share' volume sales' as "ell as information a$out the $rand T’ga za jug ' "hich "as the su$ject of research' such as sales volume' domestic sales and e+port sales' prices and $udgetary information% Apart from the &uantitative analysis' some &ualitative analysis also took place% Pualitative &uestions provided further information and understanding a$out the company)s strategies' their mission' vision' values' as "ell as information a$out the $rand T’ga za jug ' such as history of the $rand' their marketing strategy through "hich the company $uilt their $rand T’ga za jug ' including target group and positioning'
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pricing' distri$ution net"orks' marketing activities used' communication "ith customers' $uilding relationships "ith them' "ays of collecting information a$out the customers etc% *aking into account the investigated phenomena' intervie"s "ere conducted "ith managers from *ikve, inery as most relevant sources of information as they are directly involved in the $rand $uilding process% *he intervie"s "ere conducted $et"een cto$er 0st and (ovem$er 0>th 1>04 in the companies) offices' located in Skopje% Each intervie" lasted appro+imately one hour and "as guided $y an intervie" guide prepared in advance "ith &uestions emerging from the theory composed in order to o$tain all the information needed for the research% *he intervie"s "ere semi.structured' mainly "ith open.ended &uestions% Semi.structured intervie"s are $ased on predetermined &uestions $ut are more fle+i$le than fully structured intervie"s $ecause they allo" for modification of the &uestions $ased on the responses' as "ell as researcher $eliefs of "hat is important for the study% Com$ined "ith the open.ended &uestions' "hich limits the discussion to the specific topic and provides no restrictions on the ans"ers' this techni&ue allo"ed the respondents to discuss other important issues related to the topic' of interest for the research% !uring each intervie"' notes "ere taken in order to preserve the data collected% -urther to this procedure' the results from the intervie"s "ere summari#es and analy#ed and descri$ed in details in the part 4%1% Sample of $oth intervie"s are enclosed in Appendi+ 0 and 1% >> Chattopadhyay' et al%' 1>>=F' the &uestions "ere mainly directed to e+plaining and descri$ing the marketing strategy of the $rand T’ga za jug ' especially the marketing efforts that the company continuously undertakes in order to reinforce the $rand' as "ell as to enhance its position on the market% *he literature indicates that marketing mi+ elements and marketing activities has significant effects on $rand e&uity dimensions' "hich in turn create and strengthen the $rand e&uity Aaker' 0==? Doo' 0==?F' therefore' the intervie"s &uestions "ere aimed to understand ho" these marketing efforts influence on $uilding and sustaining strong $rand e&uity%
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Conducting surveys did not really reveal the depth and volume of information that "ould generate kno"ledge and understanding regarding the customers) opinion' preferences and $ehavior a$out the $rand% 6n addition' due to the accuracy and credi$ility of the sample' surveys "ere not used as a method of research in this case% 6nstead' several reports from researches carried $y the company "ere used as a secondary data in order to o$tain such information% 6n addition to the intervie"s' secondary data "as collected $y revie"ing the e+isting $randing literature as discussed in $ooks' academic and trade journals' information data$ases' professional maga#ines' government pu$lications and speciali#ed internet sides%
#.2. %esearch results and ndings *he follo"ing part presents the results and findings from the research and analy#es the data collected from the $oth primary and secondary sources% 6n the previous chapter' there "ere analy#ed the "ine industry in
the intervie"s' including information a$out *ikve, inery' and the $rand T’ga za jug ' mainly focusing on the company)s strategies and activities that contri$ute to $uilding strong $rand e&uity% *he last part of this chapter discusses the results and findings from the research' indicating that T’ga za jug is one of the strongest $rands on the Macedonian market%
#.2.1. The brand building process Based on the results from the research' -igure 4%1%0%0 $elo" represents an illustrated outline of the T’ga za jug )s $rand $uilding strategy% 6n order to understand ho" *ikve, inery $uilt and managed their $rand T’ga za jug ' this process "ill $e descri$ed and e+plained in details $elo"%
-igure 4%1%0%0 5 *ikve,)s strategy for the $rand T’ga za jug
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#.2.2. Ti"e8;s strateg( for the brand T’ga za jug
ineries or "ine companies need to have a clear understanding of "hat e+actly the discipline of marketing encompasses in order to $e a$le to effectively compete in today)s saturated "ine market% nly "ith a clear understanding can a company can "ork seamlessly to"ard offering a product to customers that are $oth "illing and a$le to purchase them% (ot only sales' $ut all the other marketing elements are crucial to $uild a strong "ine $rand% *his includes the design of the la$el' packaging elements' store displays' case cards' tasting events and many other marketing activities% Accordingly' *ikve, inery had understood the need of defining clear and precise marketing strategy for their $rand T’ga za jug in order to $e competitive on the market' as "ell as to $e differentiated and recogni#a$le' "hich "ill at the end result "ith $uilding a strong $rand "ith significant e&uity% ere is a detailed e+planation of their marketing management process%
0% Marketing research and segmentation *his initial step is aimed at identifying the markets that e+ist for "ine or a specific niche' analy#ing the competitive situation and assessing the company)s strengths and "eaknesses% A market is any person or group "ith "hom an individual or organi#ation has an e+isting or potential e+change relationship% *his can $e further $roken do"n into niches or su$.categories% *he market analysis focuses on those markets that have a specific need or "ant they need fulfilled and are $oth "illing and a$le to purchase the "ine% nce potential markets have $een developed' factors such as market si#e' gro"th' and accessi$ility should $e assessed as "ell as market demographics' psychographics' cultural factors and technological aptness% o"ever' this initial step represents a $ase for further defining the target market' as "ell as for further positioning the $rand%
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1% *argeting and positioning *argeting markets offers an opportunity for the "inery to focus its $usiness competencies on the re&uirements on one or more specific groups of $uyers% 6ts purpose is to consider the differences $et"een markets and "hat those differences are $ased on% T’ga za jug is "ine "ith the "idest target consumers of all products from *ikve, inery% -urthermore' T’ga za jug is "ine "ith the greatest tradition produced $y 0=89F' consumed $y older generations that represents synonymous for red "ine' $ut at the same time perceived as a "ine to recruit ne" consumers of &uality "ine' that are not top "ine e+perts% Accordingly' in the case of *ikve,)s $rand T’ga za jug ' the target market includes: ,ale and female '6 years and older medium to high income want to drin/ good wine and not be satisfied with anything less traditionalists but if they are first trying quality red wine they should choose T’ga za jug. *his statement "ill guide
the
development of promotional activities: "here
advertisements are places' channels of distri$ution' pu$lic relation efforts' etc% A more complete e+planation of those elements is encompassed in the follo"ing section% nce the market is targeted it is up to the "inery to position their product% ositioning seeks to place the product in the mind of the consumers' as "ell as to distinguish the product' i%e% the $rand from the competition% 6n order to effectively position "ine in the minds of consumers' the marketing strategy needs to $e developed oriented to"ard the specific target market% *he consistency in the development of the marketing mi+ strategy is crucial' in order to have a sta$le $rand and not to destroy the "inery)s positioning% Accordingly' T’ga za jug has al"ays stood out of the range' differentiating firstly $y its specific name intended to connect the consumers "ith the tradition' and its taste' arising from the specific conditions the "ine is made under% Also' the $rand is differentiated $y its uni&ue outlook and design of the la$el' "hich represents an interesting $lend of the traditional and modern' created to correspond to the target consumers defined $y the "inery% *he name of the $rand T’ga za jug ' the story $ehind it' the long history and the connection "ith the Macedonian tradition' as "ith the Struga oetry Evenings is "hat makes the $rand recogni#a$le and emphasi#es the
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product)s greatest competitive advantage% Some recent researches indicate that it is e+actly the $rand name that creates consumers) perceptions relating to the &uality of the product' and also affects consumers) e+pectations of the &uality and value that the $rand supposed to deliver to them% 6n case of *ikve, inery' it al"ays aimed at developing a uni&ue and recogni#a$le $rand and al"ays emphasi#ed on putting some uni&ue value in the product in order to "in the trust of audience as "ell as to make a strong $rand% 9% *he marketing mi+ -rom a "inery)s perspective the marketing mi+ involves ho" a specific "ine or line of "ines "ill $e developed' priced' promoted and distri$uted% *he development of the marketing mi+ is dependent on the target market% *his market should al"ays $e the source of reason for choosing one element over another% 6t may help to look at the marketing mi+ from the consumer)s perspective' such as customer value instead of productF' cost to the customer instead of priceF' communication to the customer instead of promotionF' and convenience instead of distri$utionF Kotler' 0===F% roduct: *he $asis of "ine development from a marketing perspective is to differentiate the "ine in the mind of the target market from the competition% nly if the "ine is differentiated "ill the consumer choose it over another% Elements of the product that can $e taken into account in marketing "ine includes product variety' &uality of "ine' design' features' $rand name' packaging' si#es' services' return policies etc% *aking into consideration the case of *ikve,)s $rand T’ga za jug ' it has $een developed very accurately and precisely according to their target pu$lic% (ot only one element is used to differentiate the "ine from the competitors' $ut several of them% o"ever' the name of the $rand itself is "hat makes the crucial differential advantage and also "hat makes the $rand recogni#a$le' standing out of the others from the range% -urthermore' the distinctive taste of the "ine' as "ell as the specific conditions it is made under also participates in the product differentiation% rice: *he o$jective in pricing "ine is to give the customer a sense of value% Many companies in the "ine industry price products according to ho" much it costs the company to produce the "ine plus a markup cost.$ased pricingF% thers "ill price the "ine according to the age / ?1
estimated amount the consumer "ill pay for it% *hey don)t charge that amount $ut something less value.$ased pricingF% !iscounts' allo"ances' generous payment periods and credit terms are good methods of conveying value% hat is essential for a $rand is to adjust the price of the product according to the previously defined target market% *hus' *ikve, "inery has developed an afforda$le price for their $rand T’ga za jug ' corresponding to the a$ilities of their target consumers and "illingness to pa y%
Advertising . rint and outdoor advertisements . uter packaging . osters and leaflets . Brochures . Bill$oards . !isplay signs . oint.of.purchase displays shelf.talkersF . Audio.visual materials multimediaF . 6nternet $anners . Spam . Social net"orks Sales promotion . Sampling tasting eventsF . -airs and trade sho"s . ine festivals . !emonstrations "ine tastingF . Entertainment . Continuity programs "ine clu$sF . *ie.ins usually in Lhoreca)F u$lic relations . ress kits . Speeches age / ?9
. Seminars . Sponsorships . Annual reports . Charita$le donations . Events Sales force . Sales presentations . Sales meetings . 6ncentive programs . Samples . -airs and trade sho"s *ikve, inery highly concern a$out each of the elements regarding the promotional part
of the marketing strategy% !ue to the fact that in Macedonia $roadcasting advertisements of alcoholic drinks is for$idden' the company has to make greater efforts in promoting their product' in order to $e competitive on the market% Several e+amples of marketing activities that *ikve, inery continuously undertakes "ill $e descri$ed and e+plained further in this chapter% lace: ine is distri$uted either through a middleman for retail distri$ution or direct to the consumer% Elements to keep in mind "hen developing a distri$ution strategy are the channels in "hich company chooses' the coverage reached' the assortment distri$uted' and the retail esta$lishment distri$uted to' inventory management and transportation costs% ne of the greatest advantages of T’ga za jug is the fact that *ikve, inery has already $uilt an e+cellent and highly developed distri$ution system% *he &uality $lend of e+perience of their sales team' implemented through the prism of the specifics of the "ine market generates superior market position for the company% Additionally' *ikve, has developed special H
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As mentioned a$ove' apart from the domestic market' T’ga za jug is present also in Ser$ia' Croatia and other regional and international markets' "here the company has also developed great distri$ution net"ork% 4% 6mplementation hen implementing a specific marketing strategy it is important all functional areas of the $usiness communicate% Marketing needs to communicate to production' finance "ith accounting' accounting "ith marketing' etc% ne of the main o$jectives of marketing any product is to deliver a consistent message% 6f the sales force is delivering a different message than the message $eing advertised' the position "ill $e destroyed and sales "ill suffer% 3ike"ise' if the sales force is pre.selling more "ine than is availa$le for sale the reputation of the "inery "ill suffer% As in the case of *ikve, inery' the development of a system for cohesive and fre&uent communication $et"een functional departments is the key to successfully implementing a specific marketing campaign% 7% Control Controlling the marketing process is just as important as the other steps to developing a successful marketing plan% *his "ill lay the foundation for improving the marketing plan and making any changes to the current plan% Controlling may include marketing audits' collecting feed$ack from customers' intermediaries' etc% and marketing corrections% Also' attention should $e paid on the organi#ation)s income statement' financial ratios' market share' customer retention' customer ac&uisition and customer satisfaction% !eveloping a clear and precise marketing strategy is essential in creating strong $rand "ith significant e&uity% Several conceptual developments and e+perimental researches are implemented to found that "hich of the marketing activities create $rand e&uity% Some recent researches indicate positive effects of $rand e&uity dimensions $rand a"areness' image' loyalty' etc%F on $rand e&uity and strong effects of marketing mi+ components and marketing communication on these dimensions% *hus' the marketing activities that company undertakes have an indirect positive effect on creating strong $rand "ith significant e&uity%
#.2.3. 0areting acti"ities age / ?7
As stated in the literature' it is also sho"n in practice that continuous investments in marketing activities ends up resulting "ith $uilding $rand e&uity% *herefore' *ikve, inery does not cease to make efforts in modifying their marketing strategies and constantly developing marketing activities in order to have sta$le and dura$le $rand% Achieving the highest &uality of each $ottle of "ine' constant care for the entire production process' e+cellent distri$ution system' market developers' improvements in the outlook and design of the la$el etc% are just a fe" parts of T’ga za jug )s marketing strategy% Belo"' there are listed some e+amples of the marketing activities of *ikve, inery for the past years% •
Changes in distri$ution system !uring the 1>01 *ikve, inery changed its commercial policy distri$utors' "hich
effected a greater dedication and commitment to commercial targets and plans% *hey reali#ed a change in the distri$ution system of the domestic market and communication "ith the key accounts% 6n this sales channel' in 1>09' especially in the last &uarter of the year' there "as intensive presence of promo teams on the points of sale' "hich reali#ed many promotions% *his resulted in an increase in market share of 7% •
6mplementation of C
1>09 "as introduced C
Changes in product outlook and design 6n 1>09' for the 4>th anniversary of the creation of one of the most famous Macedonian
$rands' "e reali#ed the ne" visual solution of T’ga za jug % *he solution is done so that allo"s easy scala$ility at the launch of the innovations $rand of T’ga za jug that "ill follo" in the future% n the occasion of this important anniversary' good old T’ga za jug gained a ne"' modern esthetic appearance' "hich contains the Macedonian spirit and emotion' represented $y the elegy song of Konstantin Miladinov' "hich is registered to the $ackground of the ne" la$el%
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!ue to its uni&ueness' tradition and &uality' the "ine T’ga za jug deserves to $e visually differentiated from all the other "ines of the range of *ikve, inery% *he ne" outlook of T’ga za jug is follo"ing the glo$al design trends and also makes the $rand more competitive for penetrating out of the region% -igure 4%1%9%0 5 *he ne" la$el of T’ga za jug
*ikve, inery is constantly conducting researches in order to analy#e the effectiveness of the marketing activities implemented' as "ell as to understand the customers) opinion a$out certain issue% -ollo"ing the previous part' according to some internal researched conducted $y the company in 1>09' aiming to investigate the customers) opinion a$out the ne" outlook and design of T’ga za jug ' as "ell as to reveal the general attitude of the customers to"ards this $rand' it is founded that satisfactory percentage of the respondents have a positive opinion a$out the changes% *he o$tained results indicate that the ne" outlook and design of the $rand T’ga za jug fully satisfies the criteria of ?; of the customers for a "ine $ rand' as it is T’ga za jug % age / ?8
•
lacing educational ta$lets As a "inery' *ikve, constantly "orks on enhancement of domestic "ine culture' and in
this respect are the last implemented solutions 5 educational ta$lets' through "hich the company is trying to reach out to the customers in an innovative "ay' and also to $ring "ine as a $eneficial drink to as many consumers% *hrough the educational ta$lets' "hich "ere placed in some of the largest markets in Skopje and Bitola $y the end of 1>09' the company aimed to offer customers the opportunity to get educated a$out "ine and the $est com$inations "ith food at the very points of sale% *his technological solution allo"s customers to easily make the $est choice of "ine% n the information ta$lets' set on the "ine shelves' customers can $e informed a$out the characteristics of each "ine' as "ell as the food "hich the "ine ideally matches "ith% •
Enhancement of internet communications and social net"orks As a part of the marketing strategy of *ikve, inery' the company is actively present on
the internet through their "e$site and social net"orks' "hich contri$ute to interactive communication "ith the customers% Social net"orks used are -ace$ook' 6nstagram' *"itter' 3inked in' "ith emphasis on -ace$ook as the most attractive channel% 6n 1>09 the $ase of fans of *ikve, inery rose from 4>%8>> to 84%4=8 fans' "hich represents an increase of 47 thanks to the many -ace$ook applications and interactive nature of everyday corporate communication% Also' during 1>09 the lease "as made for Lgoogle ads) and Lface$ook ads) in order to directing visitors "ho are seeking certain key"ords Macedonia' Macedonian "ine etc%F to company)s -ace$ook page and corporate "e$site% All this contri$uted to greater esta$lishment of *ikve, inery as most present online "ine $rand in Macedonia and the region% 6n 1>09 there "ere fan pages on Macedonian and Ser$ian language% Average rate of interaction is ; from total of 98> different pu$lications%
#.2.#. ther acti"ities for brand reinforce @ery fre&uently' *ikve, inery is host of "orld)s famous "ine critics' "ho have assessed T’ga za jug positively' and the company has $een a"arded several times for maintaining constant &uality of the "ine% Also' the company consistently receives a"ards at many regional "ine
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competitions and "ine fairs% Apart from the &uality of their products' the company has $een also a"arded for having sta$le $rands at many international $rand fairs% Some of the e+amples include ranking of *ikve, among the 0>> most perspective $rands in 1>01' on the list formed $y the leading glo$al maga#ine for market and media research HMM lo$alG' as "ell as a"ards given to T’ga za jug $y several glo$al "ine competitions in 1>09' such as $ron#e medal on H6nternational ine Challenge 1>09G etc% -urthermore' *ikve, inery has $een continuously improving their lines of "ines $y hiring "orld reno"ned "ine consultants% *he company is espec ially proud of the fact that in their operating they use the $est "orld kno"ledge and e+perience% Since the $eginning of 1>0> the team of oenologists of *ikve, inery is $eing headed $y a person "ho actively cooperates "ith one of the leading consultants in the "orld of "ine% 6n addition' *ikve, inery for si+ years in a ro" organi#es "ine education trainings for the hospitality people' as "ell as educational "orkshops for the "inegro"ers% Each training is attended $y representatives of hotels' restaurants and cafes Lhoreca) segmentF' "ho are getting introduced "ith the techni&ues of tasting' "ays of serving and characteristics of the "ines% -or customer education a$out com$ining "ine and food' the company continuously organi#es real hedonistic e+periences' kno"n as H"ine dineG% *hese uni&ue evening e+periences "ere organi#ed for different target audiences from Macedonia' Ser$ia and the region% *ikve, inery participates on several "ine festivals for years $ack% Hine festivalG' H@inoskopG' [email protected] are just a fe" of the events that the company has taken place% *he "inery is present "ith its o"n stands "here customers can taste their "ines at promotional prices% Moreover' *ikve, inery is sponsoring different events' such as reno"ned music festivals and individual concerts' as "ell as other pu$lic events held in Macedonia% Some of the events that "ere sponsored $y *ikve, during 1>09 "ere Hhrid festG' H--estG' Hhrid s"imming marathonG' HSkopje !esign eekG' HSkopje ja## festivalG' 6nvestment Summit VMacedonia 1>17V etc% ithin HSkopje !esign eek 1>09G "as organi#ed a special e+hi$ition of *ikve, inery . V*he Best of the SouthV' "hich "as held perfectly and "hich' due to the age / ?=
e+cellent reception from the visitors' "ill $e part of other regional festivals and design e+hi$itions during the ne+t years% *raditionally' considering HSkopje ja## festivalG' *ikve, inery makes special la$els for their "ines' "hich are at the end given to the musicians from around the "orld that are performing on the festival% *ikve, inery already the 7th year in a ro" prepared &uarterly ne"sletter V@eritasV' "ith "hich the company informs customers a$out the innovations in the operation' organi#ed or supported events in the country and the region' the penetration of ne" markets' the participation on fairs' introducing ne" "ines in the portfolio' "ine lessons' etc% !uring 1>09 "ere sent four editions of their e.ne"sletter to all customers that re&uested for additional information on their "e$site and to all associates and friends of *ikve, inery% As part of the "inery' *ikve, has its o"n restaurant H*ikve, inery
#.2.,. )udgetar( information 3iterature suggests $rand e&uity is seen as the outcome of long.term marketing effect on consumers and argued $rand kno"ledge as psychological perceptions% *ikve, inery spends a$out 7 to ; from the sales of T’ga za jug on marketing activities such as promotion and pu$lic relations% -urthermore' Kotler and Keller 1>>?F argued advertising creates a long.term $rand image for a product that on the other hand trigger &uickly on sales% So' company invests in advertising and promotion of its product in order to create its $rand a"areness' and also the other dimension of $rand e&uity% *ikve, inery put a lot invest on its different promotional activities such as advertisements in maga#ines' electronics display $oards on the points of purchase in age / 8>
supermarkets' $randed promotional materials in restaurants and $ars' sampling and tasting events' presence on "ine festivals etc% Additionally' *ikve, inery continuously sho"s its involvement in sponsorship of different events' such as *@ sho"s' music events' a"ards events etc% *he company considers that event sponsorship such as music events' televisions sho"s etc% is an effective communication tool for $uilding or enhancing not only $rand a"areness' $rand image $ut also promotes corporate image and inspire customers loyalty% *herefore' the company allocates its $udget resources in sponsoring such events' thus the company $elieves is "ill hold sta$le $rand image' at the end resulting "ith $uilding $rand e&uity% -urthermore' customers) care is of particular importance for *ikve, inery' so part of the $udget the company allocates for $uilding and maintaining relationships "ith them% Being present on the social net"orks' organi#ing fan clu$s and loyalty programs are some of the activities that the company constantly undertakes in order to get close to the customers' hear their opinions and comments and gain information for future development%
#.3. 7iscussion As it "as mentioned in the research formulation' the general o$jective of this thesis is to provide an overvie" of the $rand e&uity $uilding process' as "ell as to reveal the importance of $rand e&uity% 6n addition' the thesis aims to sho" ho" effective $rand strategy and $rand communication contri$ute to $uild $rand e&uity and conse&uently create a strong $rand' "hich delivers value to $oth' customers and company% *herefore' after an in.depth analysis of the empirical data' $ased on the case study of the $rand T’ga za jug ' the follo"ing findings are seen as vital as a "ay to create strong $rands%
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Building $rand e&uity has sho"n as necessary for a "ine $rand% By $uilding $rand e&uity a $rand "ill stand out from its competition' and certainly' in today)s fragmented "ine industry it is of particular importance% 6n making a $rand recogni#a$le and developing relationships "ith customers' the decision making process for "ine purchase $ecomes simpler and more direct to the customers% (evertheless' it is o$vious that from the $eginning of T’ga za jug ' up until today the $rand has sho"n constant gro"th and it is due to a num$er of factors% According to the results and findings' it is evident that T’ga za jug did not $ecome successful over night' $ut it took time and efforts for the company to $uild and maintain such $rand% 6t is apparent that in a $rand $uilding process' it is crucial for a company to invest a lot of strength' kno"ledge and e+perience' as "ell as to $e completely dedicated to the "ork and the o$jectives and goals set% Additionally' the findings indicate that $rand $uilding is a comple+ process' "hich is not implemented only $y the managers or the marketing team in a company' $ut it is consisted of numerous activities' divided literally for every person in every functional department in the organi#ation' starting from the people "ho harvest the grapes' ending "ith the people "ho sell the "ine% -or *ikve, inery' one of the $est "ays to reach success is to understand and practice company)s values e&ually "ith their employees' partners and surely customers% *he dedication and trust are imprinted in every process leading to their final goals 5 making &uality "ine' and at the same time' $uilding strong $rand% As it "as verified in the case of T’ga za jug ' strong $rands are $uilt around high &uality products% 6t can $e said that it is more than o$vious that one of the most important conditions to create a strong $rand is companies to esta$lish $est &uality products and this "ay offer to their customers something that is uni&ue and e+ceptional% As conse&uence' once provided "ith such uni&ue product' "ith incompara$le characteristics' customers "ill trust it "ill $ecome unlikely to s"itch to other su$stitutes' even if they are comparatively cheaper% *hus' *ikve, inery emphasi#es the production process and the special conditions the "ine is made under as a key indicator for the &uality of the "ine T’ga za jug % o"ever' precisely defined strategy and continuous investments in marketing activities are the key factors for *ikve, inery in their $rand $uilding process% Segmentation and defining
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the target market for the $rand are initial steps and represents a guide for future developing the $rand% Clearly defined target customers represent a $ase to"ards "hich marketing efforts "ill $e oriented and carried in the future% *ikve, inery $elieves that kno"ing the consumer has the same importance as kno"ing the trade% All efforts at creating a "ine $rand should $e done "ith consumers in mind' "hich means kno"ing "ho the customers are and developing the $rand corresponding to the specific market% Also' it is important for the company to set goals' "hich provide future $asis for evaluating that $rand% hen considering goals' it means $randing goals' "hich may include achieving certain level of $rand a"areness' perceived &uality' getting specific $rand associations or gaining defined level of $rand loyalty% Accordingly' these goals "ill assist in future development of the $rand' as "ell as in developing the marketing strategies and communication "ith customers% o"ever' the $rand is a reflection of the "inery' and every effort that is taken to produce and promote it should $e done according to the vision' mission' goals and o$jectives of the "inery in mind% Also' the communication "ith the customers should $e consistent in order to $est deliver the message that the "inery "ants to communicate "ith the customers% ositioning the $rand has a significant importance in the $rand $uilding process' thus it places the $rand in the minds of consumers and distinguishes it from the competitors% o"ever' one of the strongest competitive advantages of a "ine $rand is differentiation% Besides producing high &uality "ine' it is of particular importance for the "inery to make efforts in differentiating the $rand from the competitors% As discussed previously' *ikve, inery differentiated their $rand T’ga za jug firstly $y its unusual name and the story $ehind it% Also' the $rand is differentiated $y its uni&ue outlook and design of the la$el' "hich represents an interesting $lend of the traditional and modern' created to correspond to the target consumers defined $y the "inery% *he company $elieves that this uni&ue concept is "hat the $rand is valued $y' and it represents the greatest competitive advantage for the $rand% iven that $rand e&uity is seen as the outcome of long term marketing efforts operated to $uild a sustaina$le' differential advantage relative to competitors' *ikve, inery considers marketing strategy as the most important tool in the $rand $uilding process% Many companies develop marketing strategies in order to improve their sales and to make their $rands stand out among competitive ones% o"ever' the ultimate goal of marketing success is to generate a $rand' age / 89
"hich can differentiate from others% Conse&uently' *ikve, inery strives to create' maintain and increase $rand e&uity $y optimally designed marketing mi+ strategies' and their challenge is to decide true com$ination of activities that "ould $e utili#ed% Moreover' the strategies are constantly improved and modified corresponding to the target market for the $rand' as "ell as in accordance "ith the company)s goals% Continuous investment in marketing activities is important for the $rand to reinforce the position it has% Accurately and precisely selected com$ination of marketing efforts' including different models of communication' such as advertising' promotional activities' sponsorships' pu$lic relations in accordance "ith the target consumers and their needs and "ants should $e implemented constantly in order to strengthen the $rand and to $e competitive on the market% ne of the main o$jectives of the "inery is to deliver a consistent message% hat "ill $e communicated through the marketing programs should $e corresponding to the previously defined $rand goals% By having standard message that is communicated in every customer contact that message and the position of the $rand "ill $e reinforced% Additionally' having "ell esta$lished distri$ution system is very important for a "ine $rand% *ikve, inery $elieves that strong $rands com$ined "ith strong distri$ution net"ork have a good chance at succeeding% *his concept is linked to the e+posure of the $rand% By having the product distri$uted to all the areas that the target market purchases the "ine' the $rand "ill get e+posure and the value of the $rand "ill increase% As it "as confirmed in the case study of T’ga za jug ' companies should implement Hrene"ingG and HrecoveringG strategies in order to sustain their successful $rands% As seen from the e+perience of the $rand T’ga za jug ' the o$jective therefore lies in the moderni#ation of the $rand' $y developing a ne" image' "hich offers updated and more appealing packaging and clear sense of the $rand)s distinctiveness% -urthermore' it is of particular importance to continually take care and control of each step and action taken in the process of $rand $uilding% Starting from the production process' through the channels of distri$ution' until the "ine is delivered to the final consumer' even after' controlling each step is crucial in the $rand $uilding process% -or *ikve, inery' controlling is one of the most important steps in the entire process' thus it assists to developing a successful
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$rand% *his "ay lays the foundation for future improving the marketing strategies' leading to strengthening the $rand% (evertheless' esta$lishing long.term relationships "ith the customers is in the foreground for *ikve, inery% Brand communication represents Hthe voiceG of the $rand and is a "ay to esta$lish relationships "ith customers' helping to enhance $rand e&uity% *herefore' *ikve, inery constantly strives to esta$lish relationships "ith the customers through different techni&ues' as "ell as to monitor customers) satisfaction level and to hear their opinions for the $rand% As it "as verified' the case study of T’ga za jug presented real evidences that effective $rand strategy and creative $rand communication programs influence on $rand e&uity determinants' "hich in turn $uild $rand e&uity% Moreover' from the results it is evident that having strong $rand provides value as for the company' as "ell as for the customers in different "ays% Effective marketing communications' higher level of customer loyalty' as "ell as greater revenue and lo"er costs are some of the $enefits that *ikve, inery emphasi#es as the most significant values that $rand e&uity provides to the company% Being the general o$jective of the undertaken research to analy#e the $rand $uilding process' as "ell as to sho" that $uilding $rand e&uity is essential for a "ine $rand' it can $e concluded that the aim of this study "as met due to the fact that the main concepts presented in the literature revie"' to $ig e+tent "ere verified in the empirical part of the thesis%
Chapter , – Conclusions
,.1. Conclusion Branding has emerged as a top management priority in the last decade due to the gro"ing reali#ation that $rands are one of the most valua$le intangi$le assets that companies have% Brands are considered to $e the valua$le assets of $usiness% Branding and $rand e&uity has $een the topic of interest for the researchers in the area of marketing% Because of the significant
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intangi$le value of $rands' $uilding and managing $rand e&uity had $ecome a priority for companies in a "ide variety of industries and markets% (o"adays a $rand reflects the &uality and credi$ility of a firm)s products or services and it is a perception of the consumers to"ards the organi#ation% *herefore' each time more companies focus on creating strong and po"erful $rands and use them as a strategy to create value and differentiation in toda y)s competitive environment% *he thesis has identified kno"ledge of $rand e&uity from academic literature and provides the necessary depth and $readth of understanding of $rand e&uity and its importance% As descri$ed in the first chapter of this thesis' the overall purpose of this thesis' "hich is of an e+ploratory nature' is to provide an overvie" of the $rand e&uity $uilding process' as "ell as to reveal the importance of $rand e&uity "ith special emphasis on the "ine industry in Macedonia through the case of *ikve,)s $rand T’ga za jug % o"ever' the general o$jective of this research "as to analy#e' descri$e and e+plain the process of $rand $uilding through the case of *ikve,)s $rand T’ga za jug % 6t can $e concluded that the thesis met the e+pected results sho"ing ho" a "ine $rand is $uilt' "hich activities are re&uired in order to $uild and maintain a strong $rand on such a competitive market' as "ell as to emphasi#e the reasons "hy it is essential for any company to $uild $rand e&uity% -inally' the thesis indicates that T’ga za jug is one of the strongest $rands on the Macedonian market% iven the results and findings from this thesis' it can $e concluded that
ine production in the officially registered "ineries' "hich fairly much differ $et"een si#es' product finali#ation' market orientation and innovation strategies% Analy#ing the Macedonia)s "ine market' it is easy to conclude that just fe" of the "ineries control the "ine market in terms of capacity' production' as "ell as the e+port at the foreign markets% (evertheless' *ikve, inery ranks as the leading "ine company in Macedonia' according to tradition' meaning' production' num$er of people etc%' "ith a production of more than 0>%>>>%>>> $ottles of "ine per year% Considering the $rand T’ga za jug ' "hich "as taken as a su$ject of research for this thesis' it is evident that it is one of strongest $rands that continually succeeded on the Macedonian market% 6t represents one of the most recogni#ed Macedonian $rands and the most commonly consumed "ine in Macedonia% o"ever' the success of T’ga za jug undou$tedly arises from the company investments in $uilding $rand e&uity% As already pointed out in the literature revie"' the $rand and "hat it represents is the most important asset for many companies and' as presented in the empirical part of the study' having a strong and recogni#a$le $rand $rings $enefits' as po"erful $rands deliver value to the customer and value to the company% iven these accumulation of kno"ledge of $rand e&uity' it can $e concluded that strong $rands provide significant value $oth for the company and the customers% -rom the case ela$orated in this thesis' the "ine $rand T’ga za jug ' it can $e seen that the $rand is very important' $ecause it represents an effective "ay to secure a sustaina$le' competitive advantage% *he $rand allo"s improved identification of the product' and the likelihood of a repeat purchase% 6t can increase the a$ility to differentiate the product' "ithin a line and apart from competitors% Also' $rand is a real "ay to $uild customer loyalty% A strong $rand makes people purchase it more often% 6t creates resistance to competitive marketing action% *his means that "hen the competitor comes up "ith a ne" campaign' lo"ers the price' etc%' a strong $rand "ill help the customer to stay "ith the $rand he trusts% Moreover' strong $rands have less elastic responses to price increases and more elastic responses to price decreases% *he $rand can positively impact all marketing tools' thus communication efficiency and effectiveness is higher
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for strong $rands% Marketing communications are read more' processed more deeply and understood $etter "hen they are coming from a strong $rand source% 6n addition' there is greater trade cooperation and support% eople are more "illing to support the ne" product coming from a strong $rand% hen a strong $rand makes a mistake' people treat it "ith more leniencies and "ith more kindness than they do if it is a mistake from a "eaker $rand% o"ever' several suggestions and recommendations can $e derived from the results and findings of this thesis% *he recommendations of the thesis are aimed for the "ineries that attempting to $uild strong "ine $rands%
,.2. Contributions of the thesis *he thesis has identified kno"ledge of $rand e&uity from academic literature and provides the necessary depth and $readth of understanding of $rand e&uity and its importance% o"ever' the thesis is considered to have contri$utions as for the science' as "ell as for the $usiness% Even though numerous of papers on "ine $randing e+ist and many authors have e+amined the $rand $uilding process of "ine $rands' yet' there is a lack of understanding ho" certain marketing activities influence on $uilding $rand e&uity% Additionally' many papers that e+amine the $rand e&uity of "ine $rands are mostly directed to"ards investigating the "hole age / 8;
"ine industry in a certain country or market' "hich may not $e necessary applica$le for every "ine $rand in general% *herefore' the thesis is considered to contri$ute in providing kno"ledge and understanding of ho" specific marketing activities influence on $uilding and sustaining strong "ine $rand' resulting "ith $rand e&uity% Moreover' the $rand taken as a su$ject of research represents a proven e+ample of "hat has $een pointed out in the literature' thus it indicates that $rand e&uity represents the most important asset for the company' and reveals the importance of $rand e&uity especially in terms of delivering value for the company% As the thesis indicates that *)ga #a jug is one of the strongest $rands on the Macedonian market' it can $e considered to have contri$utions aimed for the "ineries' suggesting that clear and precisely defined and implemented marketing strategy' as "ell as continuous investment in communications can lead to sustaining strong $rand' "hich in turn results "ith a range of $enefits for the companies%
,.3. Limitations of the research Considering the limitations of this thesis' it is important to notice that the su$ject of research is the "ine industry in
,.#. %ecommendations for further research (evertheless' the thesis allo"s opportunities for further additional researches oriented to"ards $rand e&uity in "ine industry% As pointed out in the previous part' the research "as age / 8=
focused on only one "ine $rand on the Macedonian market' therefore it can $e recommended to e+amine other "ine $rands' and also to make a comparative analysis of several competitive domestic "ine $rands% Additionally' considering the $rand T’ga za jug ' "hich represents a su$ject of research in this thesis' it is important to notice that the research included face.to.face intervie"s carried "ith representatives from the company' "hile there "as no investigation on revealing the customer)s opinion a$out the $rand% Conse&uently' the area of interest for further research focusing on the $rand T’ga za jug can $e additional investigation on the customers) opinion a$out the $rand' including measuring the customers) loyalty' satisfaction and attitudes to"ards the $rand and ho" they influence on $rand enhancement' as "ell as $rand e&uity%
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Aila"adi' K% 3%' 3ehmann' !% <% (eslin' S% A%' 1>>9F' V00F' nnual 1>00F' nnual 3eport for griculture griculture and 3ural 3ural 5evelopment Skopje' Macedonia: Ministry of Agriculture' -oresty and ater Economy% Balmer' T% M%' 1>>0F' VCorporate identity' corporate $randing and corporate marketing . Seeing through the fogV' 8urop fogV' 8uropean ean $ournal of ,ar/eting ,ar/eting 979J4F' pp% 14; . 1=0% Balmer' T% M% ra y' E% <%' 1>>9F' VCorporate $rands: hat are theyI hat of themIV' 8uropean 8uropean $ournal of ,ar/eting ,ar/eting 988J;F' pp% =81.==8% Bello' !% C% ol$rook' M% B%' 0==7F' V!oes an A$sence of Brand E&uity enerali#e Across Across roduct ClassesIV' $ournal ClassesIV' $ournal of +usiness +usiness 3esearch 3esearch 941F' pp% 017.090% Chattopadhyay' Chattopadhyay' *%' Shivani' S% Krishnan' M%' 1>0>F' VMarketing V Marketing Mi+ Elements 6nfluencing Brand E&uity and Brand ChoiceV' :i/alpa 979F' pp% ?8.;4% Chattopadhyay' Chattopadhyay' *%' Shivani' S% M%' K%' 1>>=F' V!eterminants of $rand e&uity . A $lue print for $uilding strong $rand: A study of automo$ile segment in 6ndiaV frican $ournal of ,ar/eting ,anagement ,anagement 04F' pp% 0>=.010% Chaudhuri' A%' 0===F' V!oes Brand 3oyalty Mediate Brand E&uity utcomesV' $ournal of ,ar/eting ,ar/eting Theory and 4ractice pp% 4ractice pp% 09?.04?% !avis' S%' 0==7F' VA @ision -or *he Dear 1>>>: Brand Asset ManagementV' $ournal of 9onsumer 9onsumer ,ar/eting 017F' pp% ?7.;1% !imitrievski' !% Kotevska' A%' 1>>;F' VChallenges faced $y the agro.food sector in the 0>F' 5raft 1>0>F' 5raft !trategy !trategy for :iniculture :iniculture and Gine Gine 4roduction 4roduction '(6(-'(60 Skopje: Ministry of Agriculture' -orestry and ater Economy% Erdem' T%' 0==;F' V*he 6mportance of Brand E&uity in Creating -irm @alueV @alueV 4rophet 4rophet pp% 0.=% -ar&uhar' % %' 0=;=F' VManaging Brand E&uityV ,ar/eting 3esearch 3esearch @olume 0 Septem$erF' pp% 14. 99% -ar&uhar' % %' an' T% D% 6jiri' D%' 0==0F' V4% M' 1>>=F Gines of ,acedonia - 2roup Ff ,acedonian Gine 4roducers. XnlineY Availa$le at: http:JJ"""%"inesofmacedonia%orgJenJvinarstvo%html XAccessed 1; kto$er 1>04Y%
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enseler' T%' ilson' B% est$erg' K%' 1>00F' VManagers) erception of the 6mpact of Sport Sponsorship on Brand E&uity: hich Aspect of Sponsorship Matter MostIV' !port ,ar/eting Iuarterly 010F' pp% 8.10% oeffler' S% Keller' K% 3%' 1>>1F' VBuilding Brand E&uity *hrough Corporate Societal MarketingV' $ournal of 4ublic 4ublic 4olicy J ,ar/eting ,ar/eting 100F' pp% 8;.;=% Tuntunen' M%' Tuntunen' T% Tuga' T%' 1>00F' VCorporate Brand E&uity and 3oyalty in B1B MarketsV $ournal od +rand ,anagement 0;4J7F' pp% 9>>.900% 9>>.900% Ka$adayi' E%' Aygun' Aygun' 6% Cipli' C%' 1>>8F' V*he Effects of Marketing Mi+ Strategies on Brand E&uity: Mo$ile hone SectorV' SectorV' $ournal $ournal of 2lobal 2lobal !trategies ,anagement ,anagement @olume 1' pp% 84.;0% Kapferer' T%.(%' 1>>;F' VThe VThe %ew !trategic +rand ,anagement" 9reating 9reating and !ustaining +rand 8quity 1ong Term Term 4th ed% 3ondon and hiladelphia: Kogan age% Kapferer' T% (%' 0==1F' V!trategic V !trategic +rand ,anagement. %ew pproaches to 9reating and 8valuating +rand 3ondon: Kogan age% Keller' K% 3%' 0==9F' VConceptuali#ing' Measuring And And Managing Customer.Based Brand E&uityV' $ournal of ,ar/eting ,ar/eting 780F' pp% 0.11% Keller' K% 3%' 0==;F' V!trategic V !trategic +rand ,anagement" +uilding ,easuring and ,anaging +rand 8quity (T: rentice all% Keller' K% 3%' 1>>>F' VBuilding and Managing Corporate Brand E&uityV 6n: The 8Apressive Frganization. 1in/ing dentity dentity 3eputation and and the 9orporate +rand.. +rand.. +ford' UK: +ford University ress' pp% 007. 098% Keller' K% 3%' 1>>0F' VBuilding Customer.Based Brand E&uityV' ,ar/eting ,anagement ,anagement 0>1F' pp% 07. 0=% Keller' K% 3%' 1>>0F' VBuilding Customer.Based Brand E&uity: A Blueprint for Creating Strong BrandsV' ,ar/eting ,anagement ,anagement 0>1F' pp% 0.90% Keller' K% 3%' 1>>9F' V!trategic V !trategic brand management" +uilding ,easuring and ,anaging +rand 8quity 1nd ed% (T: rentice all% Keller' K% 3%' 1>>;F' V!trategic V !trategic +rand ,anagement" +uilding ,easuring and ,anaging +rand 8quity 9rd ed% (T: rentice all% Keller' K% 3% 3ehmann' !% <%' 1>>9F' Vo" !o Brands Create @alueV' @alueV' ,ar/eting ,ar/eting ,anagement ,anagement 019F' pp% 18.90% Keller' K% 3% 3ehmann' !% <%' 1>>?F' VBrands and Branding: .87=% Kotler' %' 0==4F' V ,ar/eting ,anagement" ,anagement" nalysis nalysis 4lanning mplementation mplementation and 9ontrol 9ontrol s%l%:rentice all: Engle"ood Cliffs% age / ;1
Kotler' %' 0===F' V #otler on ,ar/eting ,ar/eting (e" (e" Dork Dork'' (D: *he -ree ress% Kotler' % Keller' K% 3%' 1>>?F' V ,ar/eting V ,ar/eting ,anagement ,anagement 01 ed% s%l%:earson rentice all% Kotler' % Keller' K% 3%' 1>>=F' V ,ar/eting V ,ar/eting management management 09 ed% s%l%:earson rentice all% 3assar' %' %' Mittal' B% Sharma' A%' 0==7F' VMeasuring customer.$ased $rand e&uityV' $ournal of 9onsumer ,ar/eting 400.0=F' 400.0=F' p% 01% 3ee' C%' 1>00F' VCustomer.Based Brand E&uity: A 3iterature % MS6' 1>>;F' 3esearch 1>>;F' 3esearch 4riorities" 4riorities" '(()K'(6( '(()K'(6( 2uide to ,! 3esearch 3esearch 4rograms 4rograms and 4rocedur 4rocedures es Cam$rigde' MA: MS6: Marketing Science 6nstitute% (A>8F' %ational 1>>8F' %ational griculture griculture and 3ural 5evelopment 5evelopment !trategy '((@-'(6> '((@-'(6> Skopje: Ministry of Agriculture' -orestry and ater Economy% (eal' % % Strauss' <%' 1>>;F' 1>>;F' VA -rame"ork for for Measuring and Managing Brand Brand E&uityV' ,ar/eting E&uityV' ,ar/eting 3easearch 3easearch pp% pp% ?.01% (o"ak' 3%' *hach' 3% lsen' lsen' T% E%' 1>>?F' Vo"ing Vo"ing *he Millennials: Millennials: Creating Brand E&uity 6n *he ine 6ndustryV' $ournal 6ndustryV' $ournal of 4roduct 4roduct and +rand +rand ,anagement 077F' p% 90?5919% ark' % Srinivasan' @%' 0==4F' VA Survey.Based Method for Measuring and Understanding Brand E&uity and 6ts E+tendi$ilityV' E+tendi$ilityV' $ournal of ,ar/eting ,ar/eting 3esearch 3esearch @olume 1' p% 18051;;% itta' !% A% Katsanis' 3% %' %' 0==7F' VUnderstandin V Understanding g Brand E&uity for Successful Brand E+tensionV' $ournal of 9onsumer 9onsumer ,ar/eting 014F' pp% 70 . ?4% >7F' V*he Effects of Marketing Mi+ Elements on Brand E&uityV' 8conomic Tren Trends ds and 8conomic 4olicy 4olicy 6ssue 0>1% Shocker' A% A% !%' Srivastava' <% K% %
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Srivastava' <% K% Shocker' A% A% !%' 0==0F' V +rand V +rand 8quity" 4erspective on ts ,eaning ,eaning and ,easurement ,easurement Cam$ridge' MA: Marketing Science 6nstitute% S"ait' T% Erdem' *%' *%' 0==;F' VBrand E&uity as a Signaling henomenonV' $ournal henomenonV' $ournal of 9onsumer 9onsumer 4sychology 4sychology 81F' pp% 090.078% @ogel' @%' Evanschit#ky' % >;F' VCustomer E&uity !rivers and -uture SalesV' $ournal of ,ar/eting ,ar/eting 81?F' pp% =;.0>;% inters' inters' 3% C%' 0==0F' VBrand E&uity Measures: Some . 89% Doo' Doo' B%' 0==?F' V*he effects of marketing efforts and culture on $rand e&uity formationV' 2eorgia !tate Lniversity. Doo' Doo' B% !onthu' (%' 1>>0F' V!eveloping and @alidating @alidating a Multidimensional Consumer.Based Brand E&uity ScaleV' $ournal ScaleV' $ournal of +usiness +usiness 3esearch 3esearch 710F' pp% 0.04% Doo' Doo' B%' !onthu' (% 3ee' S%' 1>>>F' VAn E+amination of Selected Marketing Mi+ Elements and Brand E&uityV' $ournal E&uityV' $ournal of the cademy cademy of ,ar/eting ,ar/eting !cience 1;1F' pp% 0=7.100% 0=7.100%
Appendi 1< Inter"ie& guide
+uestions for Tikve. /inery 0% Can you provide me "ith general information a$out your companyI 1% hat are the company)s corporate philosophy' mission mission and visionI 9% Can you descri$e the company)s market positionI
age / ;4
4% Can you $riefly descri$e the history of the $rand *)ga #a jugI 7% o" can you descri$e the company)s attitude to"ard the $rand *)ga #a jugI ?% Can you $riefly descri$e the marketing strategy of *)ga #a jugI 8% hat is the target group of the $randI ;% o" can you descri$e the $rand)s positioningI =% hat represents the greatest competitive advantage of the $randI 0>% Can you $riefly descri$e the $rand)s marketing mi+ elementsI 00% o" does the $rand sustain the sta$le position on the marketI 01% Can you provide me "ith some e+amples of recent marketing activities for the $ randI 09% o" do you esta$lish relationships "ith customersI 04% Can you provide me "ith some e+amples of other company)s activities that enhance the $randI 07% o" do you provide information a$out the customers) opinion of the $randI 0?% Can you provide me "ith information a$out the $udgetary percentage that you use in advertising and promotion for the $randI 08% Can you provide me "ith information a$out the annual sales volume of the $randI
Appendi 2< Inter"ie& guide
+uestions for the ,ssociation of the Macedonian wine producers 0% o" can you descri$e the "ine production in
