Tabiiy gaz nima

Brand Equity of Gazprom

Brand equity reflects the overall value of the brand. The customers' experiences and perceptions determine the brand value. Positive perceptions reflect the high brand value and positive brand equity, while negative perceptions reflect the low brand value and negative brand equity. Gazprom should continuously evaluate its brand equity to ensure the long-term survival in an increasingly complex and competitive customer market. It can be done by evaluating the following brand equity components:

7.1 Brand equity components

7.1.1 Brand awareness

Brand awareness provides the basis for brand equity development process. High brand awareness shows that the customers know that the Gazprom brand exists and can recall the important brand-related information. The company can measure brand awareness by conducting brand recall surveys. The high brand awareness acts as an anchor to other associations. It increases brand visibility that can help Gazprom gain consideration in the competitive market.

7.1.2 Brand association

Brand association reflects the customers’ associations with Gazprom based on their memories, previous experiences, interaction with Gazprom’s employees, price points, advertisements, WOM, celebrity associations and publicity in different media channels. It is important for Gazprom to carefully plan each interaction with internal and external environmental actors (such as government, employees, shareholders and media), as customers develop brand association not only due to direct interaction with the brand, but also the indirect interaction with different environmental factors.

7.1.3 Perceived quality

Gazprom should carefully evaluate the customers’ perceptions of product quality as these perceptions influence their pricing decisions.

7.1.4 Brand loyalty

Brand loyalty is among the most important element of Gazprom’s brand equity. It can be attitudinal (customers’ feelings towards the brand) and/or behavioural brand loyalty (repeat purchase). Higher brand loyalty can decrease the marketing expenditure, increase Gazprom's ability to introduce new products successfully, erect the barriers to new players and strengthen the company's bargaining power against other channel members.

Gazprom can increase brand loyalty by rewarding the customers' repeat purchase behaviour. Although the loyalty programs are expensive, it will benefit Gazprom be reducing the costs of acquiring new customers.

7.1.5 Proprietary brand assets

Lastly, Gazprom should evaluate its proprietary assets (like channel relationships, trademarks and patents). These intangible assets prevent the competitive advantage erosion and develop brand loyalty.

7.2 Brand equity development

In light of Keller brand equity model (shared above), the Gazprom can take the following steps to develop the brand equity:

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  Develop the brand identity by building brand salience/awareness.
  
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  Identify and communicate the meaning of Gazprom brand. How it serves the customers’ tangible needs (performance) and emotional/psychological needs (imagery).
  
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  Evaluate the customers’ feelings and judgments of Gazprom brand to assess their response.
  
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  Lastly, focus on building- behavioural loyalty, sense of community, attitudinal attachment and active engagement to develop brand resonance that sits on pyramid top.
  

7.3 Brand equity measurement

Gazprom can measure its brand equity by evaluating the:

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  Difference between the price charged by Gazprom due to its brand name and price charged by similar unbranded products.
  
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  Amount of extra sales volume generated compared to other branded and non-branded competitors.
  
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  The company’s share price.
  
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  Brand’s potential to make future earnings.
  
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  Return to shareholders.
  

The company can also combine the above methods and formulate a multiplier to accurately assess the esteem and strength of the brand that reflects the brand equity.