Faculty of Business Master of Business Administration Student Name: Sameer Shaikh Student ID: 0969891

Paper Name: Strategic Brand Management Paper No. 488985 Assessment: Individual Report Date: 04/08/2010 Lecturer Name: Dr. Noel Spanier Word Count 3450

Statement of Academic Honesty: 1. This assessment is entirely my own work and has not been submitted in any other course of study. 2. In this assessment, to the best of my ability, I have acknowledged: the source of direct quotes and diagrams from the work of others;

Group Name(s) and Signature(s):

Late Assessments:
Refer to the MBA handbook and your course materials handbook for policy and penalties. Lecturer approval must be gained before the original submission date. Extension granted?

YES / NO

Date handed in:

........./........./....... ..

Lecturer Signature: .................................................. .... Extension Granted Until: ......./......./....... Time: ...................

Received By: ........................................ (name) Date received: ......./......./.......

EXECUTIVE SUMMARY

The report below contains in-depth examination of Trade Me brand. It assesses and evaluates the source of brand equity for Trade Me in the current scenario. In the second section, Trade Me brand equity is measured through different research techniques such as Primary Research, where some consumers of Trade Me were interviewed in a Focus group interview and were asked open ended questions about the brand. The responses of consumers are put together and mentioned in this report related to Brand Image, Personality, Performance, Perception, Loyalty and Positioning. Secondary research such as newsletter information, internet information, articles, discussion boards on Trade Me have been used to capture consumer mindset and feeling about the Trade Me Brand. In the third section, there is a description of brand knowledge structure of Trade me and its impact on creating brand building brand equity. Trade Me marketing programs are assessed and evaluated and mentioned how it is creates value to its brand and manage its brand equity. Consumer Based Brand Equity Model (CBBE) is used to capture consumer perception and assessing the level of resonance with the Trade Me Brand in the current situation. Lastly, there are recommendations to be implemented to create strong resonance with the consumers. Implementation of these steps would help Trade Me to overcome some issues and problem and build a strong resonance with Trade Me users.

TABLE OF CONTENT

PAGE NO

1.0 -SOURCES OF BRAND EQUITY TRADE ME ..5-7 2.0 MEASURING SOURCES OF BRAND EQUITY. .8-14 3.0 BRAND KNOWLEDGE STRUCTURE MODEL..15 4.0 MARKETING PROGRAME IN MANAGING BRAND EQUITY FOR TRADE ME LTD15-16 5.0 RECOMMENDATION AND CONCLUSION.17-19 6.0 REFERENCES20

1.0 SOURCES OF BRAND EQUITY TRADE ME

Figure 1.0 Line Extension of Trade Me Ltd

Brand Awareness: Trade me Ltd has been successful in creating very high brand awareness amongst people, since the time it entered the market. Its a household name in New Zealand. The main ingredients for awareness program were through word of mouth. In a small country like New Zealand, which is isolated any new activity or success story spread fast. Trade Me believed in creating success stories and satisfying consumer needs, which resulted in creating high brand awareness (TradeIt, 2008). Brand Recognition: With advanced technology and consumer expectation, Trade me has updated its technology, bought new server, build new platform to meet increasing demand for its service. From an online classified advertisement website to leading online auction and shopping, it had been successful to a larger extent in creating brand recognition and connection with the general public (Kevin, 2008). Even after becoming so dynamic, it intended to inform its customers to use the new functions and technology such as advanced bidding, feedback, and other new applications on Trade Me (TradeIt, 2008).

Brand Recall: Trade Me made such a big impact on consumer mind that, people did not to switch to other competitors and even a giant company like ebay failed to create the same impression, to what Trade Me in New Zealand market. Today, if anyone thinks about online auction or search on the internet, the first thing comes up in the mind is Trade Me. It had constantly satisfied the needs and demands of people in New Zealand culture (TradeIt, 2008). Brand Image Trade Me word of mouth buzz marketing and referrals did wonders to their brand name, while satisfying customer demands and it created positive brand image in the minds of consumer (Kevin, 2008). Online marketing campaign and Social Marketing involved whole community and influence society in a positive way, however the recent advancement in technology and marketing tools to create resonance and brand loyalty, and below customer service had affected their brand image. Trade Me feedback mechanisms came in sharp criticism, where some people have provided false negative feedback, even though the transaction went on smoothly and customer service team could not rectify it in a given stipulated time. Also in some cases, on discussion boards, members writing provocative messages and criticism had resulted in their account being suspended followed by poor customer service, which did not rectify the escalation process. It somehow created negative image amongst some consumer, who left Trade Me permanently (Derrick, 2006). Also online fishing scams, hacking and members with fake profile who are time wasters in auction have left its users disappointed.

Figure 1.1 Category Extension of Trade Me Ltd and communities

Brand Extension Trade Me had used its brand name and engaged in brand extension in different categories such as Safe Trader, Find someone and Old friends, travel buy and holiday houses and it made acceptance of its extension easy, even there were some local competition for the above categories. It had successful maintained its brand extension and gained good success. Brand Elements Trade Me uses a kiwi symbol as a trademark device to serve on national basis. Also the name Trade me resembles the element of buying and selling old or new items. It is easy to use and can be remembered by anyone on the basis of its features and service. Also many companies in New Zealand uses kiwi symbol to distinguish as a real New Zealand company and not any foreign subsidiary, which can make an impact on consumer mind to separate it from other global brands from international market (Kevin, 2008)

2.0 MEASURING SOURCES OF BRAND EQUITY In this report, 25 people who are consumers or users of Trade Me were interviewed who are quite familiar with its service, mechanism and promotional campaign; we have interviewed them on below questions and noted their response together (Kevin, 2008). BRAND PERSONALITY AND RELATIONSHIP TRADE ME a) What about other similar brand names like Trade Me, you remember? b) Do you like the name Trade Me? If not then what other name you would want to see? c) What brand name could you remember when you think of an online auction and shopping website? d) Is Trade me brand name fit for the type of service Trade Me Ltd offers to customers? Trade me is a very popular brand name in New Zealand. Almost all the respondents interview knew about Trade Me, as there are not many competitors to Trade me, and when it comes to buying and selling used product, people only refer Trade me as the most potential source for doing the online transaction. However when it comes to Trade me community or its sister websites such as Old Friends, Travel Bug, and Holiday houses, some respondents were unaware about the brand as compared to Trade Me main website. The reason attributed can be because Trade Me competitors have failed miserably while competing with Trade Me in the online auction business category, whereas some of other services such as old friends, Travel bug and Holiday Houses have many competitors in the market. Around half of the respondent knew about the other similar brands such as sella.co.nz, zillion.co.nz and other online auctions which offer similar service, but they have found their service and listings limited and less dynamic. Rest of the respondents were familiar with Trade Me service only. Everyone like the name Trade Me, because it is easy to remember for consumers and there is an element of brand recall amongst consumers, while thinking about any online auction service. Majority of the respondents, who are coming from different background and country, remember ebay.com and amazon.com as premiere online auction and shopping websites, because it is globally accepted and being popular,

and on verge of expansion in new sectors, whereas Trade me dimension is limited till New Zealand. 100% respondents feel, Trade me brand name fits for the type of service it offers to customers, as people can relate to it, or through word of mouth marketing, it has increased the familiarity of the brand with its name (Derrick, 2006). BRAND IMAGERY- TRADE ME

Logo 1

Logo 2

Logo 3

Logo 4

Logo 5

a. Identify the logo of Trade me out of this b. Do you like the kiwi bird symbol on Trade Me logo? Is it appealing to you? c. What are best three attributes you like about Trade Me? d. What attributes differentiate Trade Me, from other online trading website in New Zealand? Surprisingly, half of the respondents or customers of trade me were not able to recognize the brand image of Trade Me, when given an option to choose the brand logo of Trade me out of the above 5 logo options. Brand Trade me uses kiwi bird Logo 2, but it does not completely distinct itself from the other kiwi brands which has similar kiwi logo such as Kiwi Media Service, Kiwi Communications Inc, Kiwi Green and many other brands in New Zealand which uses kiwi bird picture in it. Only few customers remembered the exact brand logo of Trade Me Ltd. It is said that good brand images are instantly revoked and are positive and almost unique among competitive brands.

Logo 1

Logo 2

Logo 3
9

At the same time, we showed three logos of multinational companies in the world to the same to the same respondents or customer of Trade Me, and all of them recognized the brand of name of all the three global brands which is Mc Donald, Microsoft and Vodafone. Some were of the opinion that, just seeing the M symbol of Mc Donald, people easily recognize Mc Donald brand. Positive brand image can be reinforced by brand communications such as attractive packaging, advertising, marketing, good customer service, and word of mouth (Kevin, 2008). 80% of the respondents interviewed felt that, the three attributes they like about Trade me brand and they are as follows Relevancy- A Strong brand is relevant and its meets people expectation. Maximum respondents have agreed that Trade Me has met consumer expectation which is buying and selling on online auction and buying. It did not deviate from its original mission statement. Proper Positioning: A key attribute of brand is its positioning amongst the target market. All the respondents were of the opinion that, Trade Me position its brand keeping in mind on the basis of competition because it mentions New Zealand leading online shopping website. A new entrant in New Zealand or internet would prefer Trade Me always, when it will see it as leading website in NZ for online shopping (Derrick, 2006). Uniqueness: Trade me website provides a unique service to its customers. Although inspired by eBay online shopping, Trade Me from just online classified advertisement has added various applications to make it user friendly, adding discussion boards to share ideas and updates. The feedback platform that allows both user and sellers to give ratings is unique and fair to both the parties. Almost 100% of the respondents felt that Trade me is different from other competing brands is because it is creative and original. Seeing the success of Trade Me in New Zealand, many competitive such as zillion and Lixtor provides similar services like Trade Me, but they have borrowed this idea from Trade Me, which is original and the reason being no 1 brand in online shopping in New Zealand.

10

BRAND LOYALTY - TRADE ME Are you a regular user of Trade Me Website? How often you use Trade Me website for commercial purpose? Which section or category interests you in the Trade Me Website? 70% of the respondents interviewed were regular users of Trade Me. Some of them were of the opinion that, Trade Me sends newsletter, direct marketing mail, and other latest news and events to update its users about the latest information. Since Trade Me maintains such vast portfolio and category sections, it appeals to a mass audiences with different hobbies, interest, professionals, housewives and kids, because they have items that cater to wide audience than a small target group. Recession and Financial Hardships: Some of the respondents told that, Trade Me is the most reliable source of shopping during recession and financial hardship, and in Trade me research study - facts and figures cites that, during recession 71% of the Trade Me users search products using price criteria. Some felt that Trade me Ltd can be a good service for new immigrants and international students in New Zealand who faces financial hardship in their early days trying to establish themselves here Commercial Purpose: Only few were aware that, Trade Me can be used for commercial purpose. It is a good way of promoting your business. Some who interviewed said that, they are aware that, some traders are running with their corporate profile on trade me. Trade me solely purpose for online shopping is providing goods and service at a very low price. Some traders, who are in import and export business, list their products at much cheaper prices than some local brands and its a good way of advertising, and even Trade me acknowledges the fact that, you can do a business transaction, but you need to pay taxes on sale of your product (Trade Me Message Board, 2010). Most popular Category: According to the respondents, they prefer to see Electronics and Cars and Motors on regular basis, and its their favourite section or category on Trade Me, trade analyst quote that that Mobile and baby gear are hot selling category on Trade Me.

11

BRAND PERCEPTION AND FEELINGS- TRADE ME What comes to your mind, when you think about Trade Me? Is there anything you relate to the brand name? How would you describe Trade Me If you want to relate it to a word, what would be that? Please describe it in your words

Online Auction Jobs Motor and Vehicles Bidding Rentals

Flatmate

Used Product Property Charity and Donation Advertisement Buying and Selling Bargain or cheap prices

Figure 1.3 showing consumer perception or feelings about Trade Me brand

More than 70% of the respondents referred Trade Me to used products. It can be anything from general items, Vehicles and electronic items. Rest perceive it as online auction, buying and selling, bidding, flatmate, bargain, rentals and all the elements mentioned in the Figure. Interestingly one or two respondent relate Trade Me as rude, moral police and unfair. Positive Perception: It is for variety of products and service offered, unique service, its access and connectivity to public throughout New Zealand Negative Perception: Its customer service, mechanism for unfair feedback process, trying to be moral police, understanding consumer sentiments and feelings (Trade Me Message Board, 2010).
12

Most newcomers complain that, on some instance Trade Me involves Police and legal issues, because some members had mistakenly bided for an auction and did not pay to the seller (Carney, 2010). BRAND POSITIONING AND PERFORMANCE TRADE ME How satisfied are you with the service of Trade Me? What do you think of Trade Me brand positioning in the market based on price, attributes or competition? When you search for Trade Me website online, below message appears on the browser? Trade Me - New Zealand's leading online shopping website, with thousands of online auctions plus jobs, property and motors classifieds According to respondents views, and online website information, Trade Me position itself based on competition and attributes, which reflects in its mission statement, where it says Leading and describe its attributes which states with thousands of online auctions. As far as price positioning is concerned, respondents feel that the price for listing and advertisement on Trade Me is on the higher side.

13

Medium Resonance -Service is excellent, but needs to understand customer feelings

Resonanance
Resona nce

Leading online shopping in NZ by far

Judgement

Feelings

Fully customer oriented and satisfied the needs of consumer

Performance is excellent but Customer Service is a concern

Positive/Negative

Performance

Imagery

Both positive and negative perception

High Awareness Salience

Figure 1.4-Customer Based Brand Equity Model for Trade Me for present situation

The above CBBE Model indicates that the resonance is not strong, and to build a strong Resonance, consumer expectation, reputation and feelings should be considered. It can be done by providing good customer service, and customer retention method to avoid consumer switching to competitor (Kevin, 2008). Also there are some negative perception in the minds of some consumer regarding unfairly treatment given to them by suspending their Trade Me account with hearing any explanation from both the parties, and feedback mechanism process where some members fall prey to time wasters and fishing.

14

3.0 BRAND KNOWLEDGE STRUCTURE MODEL - (Kevin, 2008)

Brand Recognition Brand Awareness Online Marketing Word of mouth Service Features High awareness amongst all group because.. Brand Recall Online auction Buying/Selling used product BRAND KNOWLEDGE Attitudes Types of Brand Association Brand Image Somewhat Positive Strength of brand Association Preference over Favorability of brand competitors like Sella, association eBay Uniqueness of brandVariety It list every item Many Categories Customer Value Chart 1.0 -Kevin Lane Kellers Brand Knowledge Model of Brand Building of Trade Me Ltd (Nikhil, nd) Cool service Customer Benefits Satisfaction Customer Value Symbolic Logo Cool service Customer satisfaction Good Customer service Usage Awareness Product Packaging User friendly functions and Discussion board to share knowledge Functional Easy to access Easy to operate Experiential Happy Traders

Attributes Easy Trading Unique service

4.0 MARKETING PROGRAME IN MANAGING BRAND EQUITY FOR TRADE ME LTD Online Marketing- (SEO and SEM):- Trade Me revolutionized Search Engine Optimization and Search Engine Marketing campaign for online shopping in New Zealand. With its increased marketing communication programs, through electronic newsletters and online listing upfront using Search Engine Optimization and keyword method had given it an edge
15

over its competitors. It had created positive brand awareness amongst its user and other consumer throughout New Zealand. Such is its impact, that it has been successful in creating brand recall for its brand name when online shopping or auction is mentioned or buying or selling used product. Its constant aggressive online marketing campaign has made it the leading and most preferred online auction website (TradeIt, 2008). Word of Mouth: Trade Me over the time had upgraded its service to satisfy the customer needs, to provide security to its users in bigger deals or transactions, it introduced Safe Trader. Also it allows its user to evaluate a traders reputation through feedback points thus creating more trust and loyalty and less vulnerability (Carney, 2010). Also with its variety of items in different categories, and success many successful traders and buyers have referred it to others through word of mouth. With no flashy advertisement on Trade Me website, it had made trading and access easy to its consumers giving more customer satisfaction and value to its service (Trade Me Message Board, 2010). Discussion Boards and Trade Me Charity: Trade Me uses its platform for charity auctions, raising funds, finding new donors and involving whole community and by doing Social Marketing, they are creating a positive brand image and awareness. 488,000 visitors wander the corridors of Trade Me every day (Trade Me Message Board, 2010).Trade Me discussion and Notice boards keeps discussion going and inform new customer creating attitude amongst its users and friendly and interactive website to share consumer view and ideas (Carney, 2010).

Somewhat Positive

16

5.0 RECOMMENDATION AND CONCLUSION Verification of Account users: Trade Me should verify its account holders details, so that there will be no fake profile and time wasters who bid and do not buy. There must be authentication and verification just like a credit card purchase, where each major transaction is confirmed through email or by phone to confirm its authenticity and genuineness. For that to happen, it should have more people in customer service team who are trained to provide excellent customer service (Trade Me Message Board, 2010). Customer Service Excellency:- Trade Me should provide excellent customer service to its members. Customer complaint should be answered promptly and measures should be taken where unnecessary suspension of account should be avoided unless there is a major concern. By providing good customer service, it will help Trade Me in Customer Retention Brand Loyalty Switching to competitors Positive Perception Brand Association

Marketing and Communications programs: Trade Me should find new ways to promote Traders and Corporate to list their items and product on Trade Me as a marketing tool. It should also spent cost on advertising its brand image, so that people can identify its brand seeing the logo to create brand association with the service. It is important Trade Me, do not overuse its marketing communication such as open ended discussions and message boards, because any undue criticism on discussion board can create a negative impact on brand image and it will result in brand dilution. Trade Me should have a moderator who should verify any message before getting it posted on Trade Me discussion board, than deleting it after posting it, which gives an impression that some members are not happy with the service. Any customer complains should be answered as soon as possible (Kevin, 2008).
17

Accessibility and Usage: Some features on Trade Me are difficult to understand and operate for new user. Although the information is provided on Trade Me website, a wrong click of button such as Buy now can have legal implications, so more security measures should be implemented to avoid it getting it escalated (Trade Me Message Board, 2010). Also the website should be more users friendly where people who are not familiar with computers can do transaction easily. The advertisement cost and commission should be revised, so that consumer will not switch to competitors who are offering it at much lower cost (Kevin, 2008).

Strong Resonance -Service is excellent and there will be strong brand loyalty

Resonanance
Resona nce

Leading online shopping in NZ by far

Fully customer oriented and satisfied the needs of consumer

Performance is excellent but Customer Service excellent

Positive/Negative Positive perception

Performance

Imagery High Awareness

Salience

Figure 1.5 Customer Based Brand Equity Model for Trade Me after implementing Recommendation

CONCLUSION After implementing the Recommendations, there would be strong Resonance, and positive perception in the minds of consumer Consumers would have strong brand association and recall of brand

18

There would be less customer switching to competitors More happy consumers and excellent customer service and performance of brand

19

REFERENCES TradeIt (2008) Trade Me New, history, community, lifestyle Retrieved from http://www.tradeit.co.nz/history.html Carney. M (August 2010) What does it make to sell stuff on Trade Me? Retrieved from http://trademesuccesssecrets.com/ Kevin K, (2008) Building, Measuring and Managing Brand Equity, Strategic Brand Management, Third Edition, Pearson International Edition Derrick. D (September, 2006) Measuring Brand Equity Retrieved from http://www.brandingstrategyinsider.com/2006/12/measuring_brand.html Trade Me Message Board (2010) Message Board Retrieved from http://www.trademe.co.nz/Community/Default.aspx Nikhil (nd) Kevin Lane Knowledge Model of Brand Building Retrieved from http://www.scribd.com/doc/18096827/KEVIN-LANE-KELLERS-KNOWLEDGE-MODEL-OFBRAND-BUILDIND

20