Identity-Based Brand Equity Model A Conceptual Framework Essay

Identity-Based Brand Equity Model A Conceptual Framework - Essay Example The following paper aims to close this essential marketing research gap and presents a new integrated brand equity model based on the identity-based brand management approach. It explores the sources of brand equity from internal and external perspectives on behavioral and financial levels in order to achieve a higher level of brand equity measurement and management quality. Since the late 80's - with the rise of the value-based management philosophy - brand equity has developed as one of the key marketing concepts throughout management theory and practice (Srinivasan et al., 2005). The challenge of delivering comprehensible evidence of brand-based equity creation encouraged researchers to develop a wide range of different brand equity models. Today it can be assumed that more than 300 different models have been developed and implemented worldwide. (Amirkhizi, 2005) Majority of these models focuses on the consumer. (Aaker and Joachimsthaler, 2000) Supporters argue that the source of brand equity is based on the consumer's brand knowledge predominantly following an outside-in approach. (Keller, 2003) However, an integrated brand equity approach also reflecting on inside-out approach has yet not received any attention. Nevertheless, it would be highly relevant to also consider brand equity being already created inside the company, for instance through emp loyees. Not only do employees represent an important stakeholder group, but they also operate as the original source of brand equity. (Joachimsthaler, 2002; Jones, 2005) Such a brand equity model with an integrated brand equity definition implicates the following advantages: First, most established models are based on past information and they accordingly derived prognosis. Only the integration of an internal perspective enables an accurate assessment of the entire brand equity, since the employee's attachment to the company is captured. This useful information however is only accessible within the company. Employees are therefore capable of anticipating positive or negative tendencies of internal and external development at an earlier stage, which increases both timeliness and validity of brand equity measurement. Secondly, in majority of developed models, brand image represents the basis of evaluation. Unfortunately it cannot be directly controlled from the company's perspective. In this context, the expression of "brand image as a construct of acceptance" was defined. (Burmann and Meffert, 2005) Brand image results from decoding the brand-driven a nd interpreted signals. In contrast, brand identity represents a "concept of sender". (Kapferer, 1992b) It can be directly managed by the company. Thirdly, the consideration of brand potential and future brand options has received little attention in

General Motors and United Auto Workers Union Case Study

General Motors and United Auto Workers Union - Case Study Example However, there is more to be done if GM is to avoid bankruptcy, or emerge from a reorganization process as a financially sound company. This paper will examine the options that the UAW, GM, and their management have, and make recommendations in regards to managing the hourly pay issues at GM. The UAW's hourly pay is broken down into three main categories and several sub-categories. As of December 2008, the total compensation was comprised of the hourly pay of $30 per hour, premium payments of $10 per hour, and current and future benefits of $33 (Sherk). Premium payments include overtime pay, shift premiums, and vacation and holiday pay. Benefits include health and life insurance, disability, unemployment benefits, and pension payments. The health and retirement benefits paid to retirees is considered a current compensation expense, and according to Sherk, "Since there are more retired than active employees this makes it appear that GM employees earn far more than they actually do". Reducing the hourly compensation to the $50 goal will require that GM and the UAW look at all these areas in an effort to find cost saving opportunities. A central key to saving labor costs is reducing the size of the workforce. Currently GM has established a 'buyout' program that compensates the employee with up $45,000 cash immediately (Bunkley 2). In return, the employee severs all ties with GM, and the cost of current and future benefits is reduced to zero. While the recent round of buyouts resulted in 7500 workers leaving GM, 14000 remain at GM who are eligible for the program. However, GM terminated the program in early April 2009 and has made no plans to reinstate or continue it. The money saved through the buyout program is critical because it saves in the short term as well as the long-term future benefits such as health insurance and retirement pensions. Two thirds of the eligible workers declined the arrangement, but GM could increase the incentive in an effort to increase that number. Further voluntary reductions in the workforce will allow GM to restructure its product lines in an environment of higher productivity with fewer employees. The fact that the workforce reductions are voluntary maintains good employee relations as well as Union/Management cooperation. A GM that is reduced in size will allow them to focus on the product lines that have the most potential for sales growth. GM has made some pro-active moves in this direction by announcing the closing of 13 plants, phasing out the Pontiac brand, and cutting 21,000 hourly jobs (GM to Phase Out Pontiac Brand). Ford, who has reduced hourly compensation to about $55 per hour has pursued a similar strategy and said that "the figure would continue to decline as more workers took buyouts and as the new-vehicle market recovered, allowing increased production" (Bunkley 2). An extension of the buyout program by GM, an added incentive for taking advantage of it, and the increased productivity would put GM on par with Ford at $55 per hour. Further reduction in the hourly pay could be accomplished by more closely limiting the