Brand Equity of Maggi
The fact that brands are a part of the company equity is now a universal concept, however what this awareness implies has not yet been fully analyzed. As is often the case, phrases such as ‘brands are our equity’ become company leitmotivs. The truth is that, when taken at its word, this brand equity awareness has actually revolutionized operational marketing. The most salient aspects of this development are described below.
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Implications at the top:
The first noticeable change in the fact that top management itself is now in the habit of paying close attention to their brands. In the beginning, brands were considered as a mere communications issue, then the sole prerogative of the marketing managers, nowadays; CEOs themselves consider brands to be their responsibility. A former CEO of Nestle, Thailand, declared: ‘Brands can no longer be entrusted to the marketing people only’. They have thus disowned in a certain way, as they are no longer the only ones in charge of brand policy.
Nowadays, financial, accounting, technical and legal managers, and of course managing directors, are all participating in this task. The new situation has also led multi brand groups to redefine the position held by the communications managers. No longer serving the marketing departments, they now directly report to general management. This is the case at Whirlpool Europe, thanks to their new position, communications managers are now able to manage fund allocation for the creation of a new brand independently from market share constraints and from the relative power pressure exerted by the group’s various brands.
In terms of organization, companies have become aware that their structures are often too ephemeral for efficient brand management. A company must have people who ensure continuity in and respect
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__________________
____________________________________________________________
__________________
Implications at the top:
The first noticeable change in the fact that top management itself is now in the habit of paying close attention to their brands. In the beginning, brands were considered as a mere communications issue, then the sole prerogative of the marketing managers, nowadays; CEOs themselves consider brands to be their responsibility. A former CEO of Nestle, Thailand, declared: ‘Brands can no longer be entrusted to the marketing people only’. They have thus disowned in a certain way, as they are no longer the only ones in charge of brand policy.
Nowadays, financial, accounting, technical and legal managers, and of course managing directors, are all participating in this task. The new situation has also led multi brand groups to redefine the position held by the communications managers. No longer serving the marketing departments, they now directly report to general management. This is the case at Whirlpool Europe, thanks to their new position, communications managers are now able to manage fund allocation for the creation of a new brand independently from market share constraints and from the relative power pressure exerted by the group’s various brands.
In terms of organization, companies have become aware that their structures are often too ephemeral for efficient brand management. A company must have people who ensure continuity in and respect