CHAPTER II THEORITICAL FOUNDATION

Transcription

1 CHAPTER II THEORITICAL FOUNDATION In making this research paper, there are several theories that can be used as the foundation in making the questionnaire, such as the theory about brand, brand equity, and brand awareness. The further explanation about the theories will be explained in this chapter. 2.1 Brand Definition According to the expert, a brand is: 1. Philipp Klaus and Stan Maklan said that a brand is conceptualized to designate ownership and to confer product quality. (2007: n.d) 2. According to the American Marketing Association (AMA), a brand is a name, term, sign, symbol, or design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate then from those competitions. (Keller, 2008: 2) 3. Brand is the seller s promises to deliver the group of nature, benefits, and specific service to the customers consistently. (Kotler) 4. According to Dave Dolak, a brand is a company name, a product name, or a unique identifier such as logo or trademark. In other words, a brand is product identity that can differentiate one product with others. A brand is also the producer s promises or trust to give the good quality to the customers and the customers needs from a product. There some strategies to build business brand. To make the good brand, a company should define the vision first. After that, the company can build a brand worth believing in. Remember, when building a brand, never sacrifice the creativity. And the most important thing when a company wants to make a brand is listening to the customers. It is because what customers feel about the brand 5

2 can affect the entire brand. If the customers like with some brand, they can loyal to that brand for long time 1. When a company builds a brand, it has to choose the attractive logo, unforgettable name, unusual package design, or other specific characteristic that can identify the brand and make it different from the other brand. 2.2 Ways to Build a Strong Brand There is the customer-based brand equity (CBBE) model. This model incorporates theoretical advances and managerial practices in understanding and influencing consumer behavior. Although a number of useful perspectives concerning brand equity have put forth, the CBBE model provides a unique point of view as to what brand equity is and how it should best built, measured, and managed. (Keller, 2008) If a company wants to build a strong brand, it has to make a brand that exists in the customer memory. If the company success to do that, there are several benefits that they will get, such as 2 : By the strong brand, you can protect your market share while building mind share. Once you have mind share, the customers will think of your products in the first place. A strong brand means you want to build the customers loyalty. The customers loyalty is the most important thing when you build a brand. Branding builds name recognition for your company or products. Once people here about your brand, they must be remember what products that you sell. Branding can helps to make purchasing decision easier. Once people have to choose some brand, they will choose the brand that they familiar with. 1 ( article a m 6 sc 45 7_ways_to_build_brand_awareness i) 2 ( 6

3 2.3 Brand Equity Brand represents enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security if sustained future revenues to their owner. The value directly or indirectly accrued by these various benefits is often called brand equity (Kapferer, 2005; Keller, 2003) Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name. (Keller, 2008) According to David Aaker, brand equity is a set of assets (and liabilities) linked to a brand s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that the firm s customers. 2.4 Measuring Brand Equity Figure 2-1 Brand Equity Measurement 7

4 The picture in the previous page shows that there are many ways to measure the brand equity. Aaker mentioned that brand equity can be measured by using the brand awareness, brand association, brand loyalty, and other brand assets. While Keller said that to measure the brand equity we can use the brand knowledge. The brand knowledge consists of a brand node in memory with a variety of associations that linked to it. Brand knowledge has 2 (two) components such as brand awareness and brand image. MarkPlus Insight said that brand awareness and brand loyalty are the tools to measure the brand equity. In conclusion, brand awareness is one way to measure the brand equity. 2.5 Brand Awareness According to Aaker, brand awareness is an important component of brand equity. It refers to the ability of a potential buyer to recognize or recall a brand as a member of a certain product category. Brand awareness consists of brand recognition and brand recall performance. Brand recognitions is consumers ability to confirm prior exposure to the brand when given the brand as a cue, in other words, when they go to the store, will they able to recognize the brand as open to which they have already been exposed? (Keller, 2008) While the other said that brand recognition is the basic first step in the task of brand communication, whereby a firm communicates the product s attributes until a brand name is established with which to associate them. (Tong & Hawley, 2009) Therefore, the picture of logo or tagline can be used to measure the brand recognition of a brand. Just Do it is the tagline of what brand? is one example to get the recognition of a brand from the respondents. Brand recall is consumer s ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue. (Keller, 2008) 8

5 In other words, recall of Kellog s Corn Flakes will depend on consumers ability to retrieve the brand when they think of the cereal category or of what they should eat for breakfast or a snack, whether at the store when making a purchase or at home when deciding to eat. (Keller, 2008) To measure the brand recall, there are some questions that can be used. One of the examples is Do you know about the Toyota brand? Besides, the brand recall can be measured by taking the first answer from the respondent when they were being asked about the specific category, for example, when talking about car, what car that come first to your mind? MarkPlus Insight Observations In the early 2008, MarkPlus Insight did an observation to measure the brand equity about Hotel Panghegar. The respondents chosen for MarkPlus observation were: Table 2-1 Respondents of MarkPlus Observation Respondent Categories No. of Respondent MICE/event organizer 4 Travel Agent 6 Corporate 15 BUMN 10 Government 5 Total 40 All of the respondents are coming from Jakarta. The respondents were being chosen based on two categories. First categories are the people that usually use the hotel as a place to do some business activities, such as the corporate, BUMN, or government. The second categories are the people that usually have company agreement with the hotel. From the respondents, MarkPlus got some information, such as: 3 ( recall.htm) 9

6 1. From the event organizers, MarkPlus got: Table 2-2 Awareness towards the Hotels in Bandung among the EO Fias Hilton Savoy Homman Kaha Grand Aquila Grand Preanger Novotel Blesslink Horizon Pacto Grand Preanger Holiday Inn Novotel Aston From the table above, it can be seen that Hotel Hyatt Bandung is the hotel that widely known among the Event Organizer. While almost the respondents know the Hotel Panghegar although they did not put the Hotel Panghegar in their second best choice. 2. From the travel agencies Table 2-3 Awareness towards Four and Five Star Hotels in Bandung MG holiday Maestro travel Haryono travel Hilton Holiday Inn Luxton Kagum Group Preanger Malya Santika Aston Holiday Inn Novotel Malya Hilton Preanger 10

7 Table 2 3 Awareness toward Four and Five Star Hotel in Bandung (cont d) Smilling tour Bayu Buana travel Laenatour Hilton Novotel Malya Luxton My flower Banana inn Grand Aquila Santika Grand Preanger Grand Aquila From the table above, it can be seen that: Hotel Panghegar is not too popular among the travel agencies and sometimes they got confused between the Hotel Panghegar and the Grand Preanger. Hotel Panghegar perceived as a five star hotel that has existed since the first time it built and because of the age, the hotel cannot compete with the other hotel. 3. Perception towards the hotel in Bandung: Here are the perceptions towards the hotel in Bandung based on MarkPlus observation: Table 2-4 The Perception towards the Hotels in Bandung Hotel s Name Hotel Panghegar Hilton Horizon Savoy Homman Papandayan Holiday Inn Arion Novotel Aston Braga Perception Placed at the strategic place, old hotel, local chain, being renovated Closed to the market, station, five star hotel, nothing unique about this hotel. Does not located in the strategic location, old hotel Location, price, and quality are average Being renovated, far away from the downtown Located in Dago, always full-booked Three star hotel, has a good location Expensive, does not place in the strategic location Identical with the apartment 11

8 Table 2-4 The Perception towards the Hotel in Bandung (cont d) Hotel s Name Aston Cihampelas Hyatt Grand Aquilla Sheraton Perception Luxury hotel One of the high-class hotel in Bandung Located in the strategic location, close to the highway The capacity of the meeting room is small In conclusion, this paper will be focused on the brand awareness theory. It is because the research objective for this research paper is to measure the awareness of the people toward Grand Royal Panghegar. 12