NAME: TIMON MOGIRE MAYAKA CP: CP12/60645/10 BCOM 220 Y2S2 EGERTON TOWN CAMPUS LECTURER: DANIEL AUKA

1.) Discuss the importance of the following in brand management strategy

(i) Brand Equity (ii) Brand Loyalty (iii) Brand Positioning

2.) Explain the Importance of Various Packaging Strategies that can be used by

a medium size bank in Kenya

BRAND LOYALTY Def.

1. This is where the customers or buyers purchase the same brand of a product now and then. In particular brand or store loyalty will mean that a person will: a) Fell positively disposed to the brand, based upon brand attitude b) Utilize the store more than utter stores or buy the brand more frequently this will be based upon store or brand preferences. c) Continue to utilize the store or brand over time. 2. The extent of the faithfulness of consumers to a particular brands, expressed through their repeat purchases irrespective of its marketing pressure generated by the competing brands. 3. It is a consumers pretense to buy a particular brand in a product category. This occurs mainly because consumers perceive that the brand offers the right price. This perception becomes its major influence on consumer buying behavior.

Importance of Brand Loyalty

1. Brand loyalty tries to retain rather than seek. Brand loyalty are willing to seek for their favorite brand and are less sensitive to competitive promotions. The result is lower costs for advertising marketing and distribution. It costs more to attain at new customers than to retain old ones.

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Higher sales Volume reducing customers loss can be dramatically improve business growth and brand loyalty which leads to consistent and even greater scales since the same brand is purchased repeatedly.

3. Studies show that as brand loyalty increases consumers are less sensitive to price changes
generally they are willing to pay more for their preferred brand because they perceive some unique value in the brand that other alternatives do not provide.

4. Greater loyalty levels leads to less marketing expenditure because the brand loyal customers
promote the brand positively

5. Increased market share Due to increase in % of loyal customers 6. It leads to cost cutting down and high profit margin as a loyal customer is indifferent to
competitive promotions

BRAND EQUITY Def:

Brand Equity is the added value a given brand name gives to a product beyond the functional benefits provided Because it is different and expensive to build brand recognition some firms refer to buy established brands rather than try to build their own. The value counts to buy it is something called brand equity.

Importances of Brand Equity

1. Brand Equity provides a competitive advantage For example. A sunkist brand improves quality fruit and the Disney name defines children's entertainment 2. Consumers are often willing to pay a lusher price for a product with Brand Equity Brand Equity in the instance is represented by the premium consumer will pay for one brand over another when the functional benefits provided are identified. 3. Provide a financial advantage for brand owner successful: established brand names have an economic in the sense that they are intangible assets 4. It enables an objective choice to be made between alternative options for the investment of limited resources 5. It helps management to place a value on potential licensing and merchandising deal

6. It focuses managements orientation away from short-term financial goals towards the development of a true suitable competitive advantage

Brand Positioning Def

1. It is an act of seeking, placing and optimizing something in relation to the competition in surrounding environment and is based on customer relationship 2. Refers to the creation of a position of the brand in the customers mind in terms of attributes and feelings, beliefs and values

Importances of Brand Positioning

1. It enables the company or a business to join powerful source of competitive advantage 2. It enables the company or business to obtain greater power in the supply and demand chain 3. It enables the business to build customer loyalty and impact the bottom line by developing a brand culture in their organization 4. It enables it company/business to create value for their business and companies 5. Brand positioning enables its business to manage consumers perceptions

PACKAGING
Packaging involves promoting and protecting of the product. Packaging can be important to both sellers and customers.

Importances of Packaging
1. Can make the product to be more convenient to use or store 2. It can also prevent spoiling or damage 3. Packaging can make a product easier to be identified and promotes the brand at the point of purchase and even in use

Packaging Strategies Which Can Be Used By A Medium Size Bank In Kenya

(A) Family Packaging Strategy

 Its a packaging option in which packages of the entire product line close resembles one another or its a kind of strategy where the major features of the packages in respect of the entire product line look alike. Medium size bank in Kenya use this strategy by altering many similar accounts which are the same but on different closes The new accounts given by the bank enjoys the same advantage as the old account since because they are packaged to seller. E.g. The Boresha Biashara a/c, Bankika Business a/c Entrepreneur a/c and e.t.c Also the bank use this package strategy by classifying the accounts into non-business ok and business a/c so as to attract customers to come and open an a/c with them e.g. Boresha Biashara, Cub, Simba Savings e.t.c (B) Its a kind of strategy wherein number of closely related but heterogeneous products used by one customer are placed in a single packaging such a package conveys the idea of an idea matching set that one should posses This type of package it facilitates acceptance of a new product idea bu a consumer who may normally not liking to venture into buying it. This type of strategy is used by a bank when opening an ATM center where the bank tries hard to see that the service is accepted by the customers (C) Banks in Kenya accept to offer help to students who have finished Standard eight and form four and their family back ground is very poor. I.e for those who have finished standard eight and they have scored high marks e.g. above 350 marks they are given a chance to go to school to realize their target, and also for those who have finished form four they are given a chance to join universities Banks use this strategy to show the society that the money they are getting from them they are not the only people who do take. They share with them and through this they motivate the society to open more accounts with them

(D)Banks they have decided to open ATM center every where in Kenya so that their client can
reach them easily and also in the odd hours because the ATM operates throughout the night and day time.

Reuse Packaging Strategy

It is a type of strategy wherein it manufactures other products in such packages which can be
reused after consumption of the contents of it

medium size bank can use this type of reuse packaging in making the color of the building
which can attract their customers and also the shapes of their building and the size of their building

Reuse packaging stimulates repeat purchases as it offers the added benefits for the same price

REFERENCE
1. Retain Marketing Management

by David Gilbert
2. Marketing Strategy & Management

by Michael Baker