The Advertisement Analysis will be for Delta Airlines! Please watch the recording in which the Application Assignment 3 is explained. The Slides for the Assi
The Advertisement Analysis will be for Delta Airlines!
Please watch the recording in which the Application Assignment 3 is explained.
The Slides for the Assignment have been attached.
Please submit the Application Assignment.
I'll also be adding the CLV Calculation and Brand Equity Calculation for Delta to work off of.
Please submit the Advertisement Analysis for Delta Airlines.
I’ll also be adding the info for the first two assignments to work off of.
Application Assignment 3
1. Find a recent ad (or some social media/website content if you want) from a company of your choice (I recommend using the same company you did Assignments 1 and 2 on) and analyze the following:
Audience
Primary objective
Message
Theme(s) or appeal(s) used
Specific components used to convey the message (text, images, colors, music, etc.)
Effectiveness of the ad
2. What recommendations do you have to improve the effectiveness the ad? Provide support (theories, data, anecdotes, etc.) for your recommendations.
Objectives
Inform /create awareness
Remind
Immediate action
Appeals
3
Adventure
Bandwagon/Consensus
Brand
Endorsement
Fear
Humor
Aspiration/less-than perfect
Sex
Romance
Music
Nostalgia
Word play
Cognition
Scarcity
Luxury
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Evolving Strategies in Branding: The Role of Digital Personalization, Storytelling, and Sustainability in Consumer Loyalty
In a further digitized marketplace, branding has become a diversely strategic role beyond visual identity. Consumers today expect brands to represent their values, communicate authentically, and cultivate long-term emotional attachment. With shifting platforms and social conscience reframing expectations among consumers, companies have had to reposition how they build brand awareness and affinity. At its foundation are three new approaches to branding: digital personalization, sustainability-driven branding, and narrative-driven personal branding. All have revealed potential for building long-term customer relationships. However, few works have examined how these methods function synergistically within modern branding efforts. This proposal thus explores modern academic articles and offers an avenue for research examining the interaction between digital personalization and sustainability within Gen Z consumers' brand loyalty.
Concise Literature Review
Over the past five years, scholarly works have emphasized that personalized online marketing is significant in establishing relationships between brands and consumers. Saputra et al. (2024) applied a mixed-methods approach, studying consumers' behavior online and identified that personalization contributes to an emotional attachment towards brands. Quantitatively, evidence from their research depicted a strong association between personalized online initiatives and consumer loyalty, and qualitatively, interviews revealed that consumers value brands that listen and deliver on their preferences. If executed transparently and respectfully, personalized marketing was found to build strong brand trust and create higher advocacy rates.
Rochefort and Ndlovu (2024) also came to similar conclusions with their study on personalization marketing techniques in the online era. Through case studies and insights on consumer interaction, they found effectiveness in social media-driven personalization, text messaging, and email. Surprisingly, brands implementing personalization and catchy content improved brand awareness and customer retention. They further recognized through their study that being consistent on platforms is key to brand loyalty. Brands that exhibit consistency in messaging and personalize content for individual user predispositions build a more solid equity at an emotional level with their consumers.
Environmental and social issues have brought into sharp relief the significance of sustainability-minded branding. Loučanová et al. (2021) studied this connection through a Slovakian examination of how eco-innovation increases brand image. With the help of the Kano model and cluster analysis, they found that eco-innovation characteristics such as environment-sensitive production and clear sustainability communication significantly improve customer perceptions that a brand has value. Consumers are increasingly likely to associate green initiatives with authenticity on behalf of a brand if sustainability is framed as a founding principle and not a marketing afterthought.
Nascimento and Loureiro (2024) also conducted a thorough bibliometric review of sustainability branding articles, amounting to more than 1,500, and identified six dominant thematic clusters among them: brand equity, green marketing, and ethical consumption. Their work vindicates sustainability branding as no longer peripheral but core to mainstream brand strategy. They argue that brands must position themselves on broader societal goals such as climate action or social justice if they want to remain relevant among consumers today. Surprisingly enough, their research determined scant work was done on their convergence, despite growing interest in personalization and sustainability, and none specifically on younger demographics such as Gen Z.
Complementing work on corporate branding, scholars have also studied personal branding and its growing effect on influencer marketing. Tilaar et al. (2022) applied qualitative approaches to how people use online platforms for reinforcing personal branding. They found consistency, interaction-based engagement, and authenticity most influential towards personal brand building. They determined that influencers who build consumer influence through daily stories and authentic interactions at times can overcome large-scale but less personal celebrity sponsorship.
Storytelling also plays a vital role in the development of personal branding. Korzh and Estima (2022) analyzed how narrative techniques such as relatability, emotion, and purpose contribute to effective personal branding. Based on interviews with professionals across various fields, the authors concluded that storytelling helps create distinctive and memorable identities. These narratives increase visibility and reinforce perceived credibility and brand loyalty. When people relate to a story, they are more likely to invest emotionally in the person or product behind it.
These six studies illuminate the evolving branding landscape and suggest that personalization, sustainability, and narrative-based identity-building are crucial in fostering long-term consumer loyalty. However, while each trend has been examined individually, a significant gap exists in understanding how they interact. In particular, consumer loyalty research has not sufficiently explored the relationship between personalized digital branding and sustainability.
Proposed Research Question
Based on the literature reviewed, this proposal presents the following research question: How does integrating sustainability branding and personalized digital marketing influence consumer brand loyalty among Generation Z consumers in North America shopping for eco-friendly products online?
This question targets a gap identified in multiple studies and responds to the shifting expectations of a generation known for its environmental activism and digital nativity. While personalization and sustainability have been studied independently, their combined effect, especially in emerging digital trends, has not been systematically investigated.
Significance of the Proposed Study
This research is significant both theoretically and practically. Theoretically, it seeks to unify two powerful branding paradigms, sustainability and personalization, into one framework for analyzing consumer loyalty. Current research tends to treat them as parallel rather than intersecting phenomena. However, as Gen Z consumers increasingly prioritize authenticity and environmental ethics, understanding how these variables co-function may reveal deeper patterns in brand commitment (Nascimento & Loureiro, 2024).
From a practical perspective, marketers and brand managers can use the insights from this study to design more cohesive and effective branding strategies. Companies in highly competitive industries, such as fashion, health, and technology, must simultaneously appeal to emotional, ethical, and individualistic dimensions of consumer decision-making. If the study confirms that personalization amplifies the effectiveness of sustainability messaging, marketers can strategically link eco-initiatives to targeted content, thereby creating a holistic consumer experience. For example, using AI to tailor environmental impact reports or promote carbon-neutral products to users who already value eco-conscious living could enhance engagement and conversion rates (Saputra et al., 2024).
Further, small businesses and independent professionals can also benefit from this research. Personal branding strategies emphasizing storytelling and sustainability may resonate particularly well with niche audiences. Influencers and entrepreneurs who align personal narratives with environmental ethics may be better positioned to develop loyal followings and partnerships with value-driven brands.
Methodologically, this proposed study would employ a mixed-methods approach, integrating quantitative surveys with qualitative interviews. Surveys would uncover brand perception and loyalty patterns among a large sample of Gen Z consumers. Interviews would uncover deeper motivations, emotional responses, and ethical values driving brand choice. Through triangulation between these methods, the study would build a rich picture of how sustainability and digital personalization work together to build brand value.
In conclusion, this research proposal can ultimately enhance academic theory, inform marketing practice, and contribute to broader debate on ethical consumerism. It can be situated within contemporary branding's trajectory as an emotional and moral endeavor, particularly in a digitally overwhelmed, socially responsible marketplace.
References
Korzh, A., & Estima, A. (2022). The Power of Storytelling as a marketing tool in personal branding. International Journal of Business Innovation, e28957-e28957. https://doi.org/10.34624/ijbi.v1i2.28957
Loučanová, E., Šupín, M., Čorejová, T., Repková-Štofková, K., Šupínová, M., Štofková, Z., & Olšiaková, M. (2021). Sustainability and branding: An integrated perspective of eco-innovation and brand. Sustainability, 13(2), 732. https://doi.org/10.3390/su13020732
Nascimento, J., & Loureiro, S. M. C. (2024). Mapping the sustainability branding field: emerging trends and future directions. Journal of Product & Brand Management, 33(2), 234-257. https://doi.org/10.1108/JPBM-02-2023-4349
Rochefort, T., & Ndlovu, Z. (2024). Digital marketing strategies for building brand awareness and loyalty in the online era. Startupreneur Business Digital (SABDA Journal), 3(2), 107-114. https://doi.org/10.33050/sabda.v3i2.539
Saputra, A. H. D., Putra, S. N. W., & Bennet, D. (2024). Consumer behavior and brand loyalty: A study on digital marketing practices. Startupreneur Business Digital (SABDA Journal), 3(2), 160-170. https://doi.org/10.33050/sabda.v3i2.630
Tilaar, Y. Y. (2022). Qualitative study of enhanced personal branding through digital platform. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 10(2), 731-737. https://doi.org/10.35794/emba.v10i2.40551
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Marketing Assignment for Brand Equity Calculation
Student’s First Name, Middle Initial(s), Last Name
Institution Affiliation
Course Name and Number
Instructor’s Name and Title
Assignment Due Date
Marketing Assignment for Brand Equity Calculation
Brand equity refers to the value attributed to a brand based on consumer perception, loyalty, and market strength. It reflects the premium a company can charge and its ability to generate long-term profits. For Delta Airlines, brand equity is shaped by its strong customer loyalty, operational excellence, premium service offerings, and expansive global network. This paper calculates Delta's brand equity using three methods: Cost Approach, Market Approach, and Financial Approach, with support from Delta's 2024 Form 10-K report. Spirit Airlines' 2024 Form 10-K is used for comparative analysis in the market approach.
Cost Approach
The Cost Approach estimates brand equity by evaluating the costs incurred to create and build the brand. This includes expenditures on marketing, legal, operational, and customer loyalty program costs, among others. The total operating expenses are $44.5 billion, employee profit sharing is $1.4 billion, and it runs a loyalty program known as the Skymiles program and co-branded partnerships with American Express (Delta Air Lines, Inc., 2025). Delta spends heavily on brand development through marketing, partnerships, and employee engagement. Given the specific numbers available, we assume that approximately 5% of Delta's total operating expenses are directed at brand-building activities. This percentage considers advertising, customer loyalty programs, fleet upgrades, and legal costs.
Brand Building Expenditures = 0.05×44.5 billion = 2.225 billion.
Thus, the estimated cost-based brand equity is $2.225 billion.
Market Approach
The Market Approach estimates brand equity by evaluating the revenue difference between Delta’s branded offering and a comparable unbranded or generic offering. Here, we compare Delta's revenue with that of Spirit Airlines, a low-cost competitor in the airline industry. Delta’s Revenue is $54.4 billion, while Spirit’s is $4.9 billion (Delta Air Lines, Inc., 2025; Spirit Airlines, Inc., 2025). The primary factor contributing to the difference in revenue is brand strength. Delta commands higher ticket prices, especially in its premium offerings such as Delta® and Comfort+, which are supported by its strong customer loyalty and operational reliability.
Revenue Difference = 54.4 billion − 4.9 billion = 49.5 billion.
Delta’s brand allows it to generate $49.5 billion more in revenue than Spirit, reflecting the premium Delta can charge for its services due to its brand strength. While this comparison provides insights into Delta's premium pricing, we must also adjust for the cost of building Delta’s brand. Based on historical industry data, given that relatively high costs characterize the airline industry, we adjust this difference by factoring in a brand-building cost of approximately 5% of the revenue difference.
Adjusted Brand Premium = 0.05 × 49.5 billion = 2.475 billion.
Thus, the market-based brand equity is estimated at $2.475 billion.
Financial Approach
The Financial Approach calculates brand equity based on the Net Present Value (NPV) of future earnings attributable to the brand. We will use Delta's revenue from the SkyMiles program, as it directly reflects the brand's ability to generate future cash flows. SkyMiles Revenue is $7.4 billion. (Delta Air Lines, Inc., 2025) Given the significant role of customer loyalty programs in generating revenue, we assume that the brand's strength drives 50% of Delta’s future cash flows. Delta's premium services and brand-related earnings will be factored into the NPV.
This calculation assumes that the Growth Rate for SkyMiles revenue is at 5% per year, and the Discount Rate is 8%.
To estimate the NPV, it is assumed that Delta’s SkyMiles revenue will grow at a 5% rate for the next 5 years. Starting with $7.4 billion in 2024, we calculate the future values and apply the discount rate for each year.
NPV for 2024 to 2028 = 7.4 (1.08) ^1 + 7.74 (1.08) ^2 + 8.12 (1.08) ^3 + 8.52 (1.08) ^4 + 8.94 (1.08) ^5
NPV = 6.85 + 6.67 + 6.48 + 6.30 + 6.13 = 32.43 billion
Thus, the financial-based brand equity is approximately $32.43 billion.
Explanation of Differences
The results from the three approaches are different. The Cost Approach provides a more conservative estimate based on actual investments made to build the brand. This method only considers the costs involved in establishing and maintaining the brand, and does not consider the future financial returns the brand will generate.
Market Approach measures brand equity based on Delta's revenue premium over a competitor like Spirit. This approach reflects the direct impact of the brand on Delta’s ability to charge premium prices. Still, it may not capture long-term profitability and cash flows, so its estimated brand equity is slightly higher than the cost-based approach.
Financial Approach involves the Net Present Value (NPV) of future cash flows, which accounts for Delta’s expected revenue growth and its brand's long-term financial contributions. As this method incorporates the expected earnings from brand-driven revenue streams, it leads to the highest estimate of brand equity.
Assumptions
Market Approach Assumptions
The 5% revenue difference adjustment factor used for calculating the brand premium is based on industry averages. This adjustment assumes that a significant portion of the difference in revenue is directly attributed to Delta's brand strength.
Financial Approach Assumptions
A 5% growth rate for SkyMiles revenue was assumed based on Delta's consistent performance and expected growth in customer loyalty revenue. The 8% discount rate was used based on the typical risk profile of the airline industry.
Using CLV to Calculate Brand Equity
Customer Lifetime Value (CLV) is essential for calculating brand equity. CLV measures a customer's total revenue during their relationship with the company. Since Delta’s brand loyalty programs, especially SkyMiles, contribute significantly to repeat business, CLV is closely tied to brand equity. The stronger the brand, the higher the customer retention and lifetime value. Therefore, Delta’s ability to generate a substantial portion of its revenue from its customer loyalty programs, which is closely linked to its brand strength, makes CLV a valuable tool in estimating brand equity.
Conclusion
The three approaches to calculating Delta Air Lines' brand equity provide different but complementary perspectives. Using the Cost Approach, the brand equity is estimated at $2.225 billion. The Market Approach estimates a brand premium of $2.475 billion, reflecting the revenue difference between Delta and a lower-cost competitor. The Financial Approach, using NPV calculations of future earnings, estimates the brand equity to be $32.43 billion. These results differ because each method reflects a different aspect of brand value, from past investments to future financial returns.
References
Delta Air Lines, Inc. (2025). 2024 Annual Report and Form 10K. AnnualReports.com. https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_DAL_2024.pdf
Spirit Airlines, Inc. (2025). 2024 Annual Report and Form 10K. AnnualReports.com. https://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_SAVE_2024.pdf
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