Professional Documents
Culture Documents
Brand Equity
Nov. 10, 2008
BrandAmplitude, LLC
All Rights Reserved
Positioning recommendation
For __________________________
is the only_____________________
that_________________________
because ______________________.
Mantra
2
http://www.ilovegain.com/home.do
Brand Audit
Target & Insight
Competitive
Assessment
Brand
Inventory
Equity
Pyramid
Positioning
Personality
Brand Execution
Brand
Elements
Communications
Strategy
CRM &
Community
Building
Why
WhyMeasure
MeasureBrand
BrandHealth??
Equity?
Understand drivers of
brand value in order to
support strategic decision
making.
If you dont know where you are, its
hard to decide how to get there.
To evaluate efficacy of
building
Ifbrand
you dontvalue
know where
youre going,
programs
--get
ROMI.
any road will
you there.
81%
79%
73%
59%
Return on objective
36%
23%
20%
Psychological Preference
$5
$50
$500
$5,000
$1.89
$2.49
$2.29
Premium
Brand?
Price
Brand?
Every brand could benefit from having the core group represent a
larger share of its total franchise.
Dr. Tom Reynolds
16
Associations
Awareness
Keller
Y&R
Differentiatio
n
x
x
x
Esteem
International
Knowledge
Leadership
Legal
Protectn
Interbrand
Brand Trend
Dist.
Coverage
EquiTrend
Aaker
Keller
EquiTrend
Interbrand
Market Trend
Mktng Support
Org.
Associations
Perceived
Quality
Perceived
Value
Personality
Price Premium
xx
x
x
Salience
User
Sat./Loyalty
xx
Relevance
xx
Y&R
xx
Market
Share D. Aaker, x
Stability
Sources:
Building Strong Brands, 1996; K.
Keller, Strategic Brand Management, 2003 x
Activity &
Program Metrics
Customer Perceptions
& Behavior
Market
Performance
ROMI
Financial Value
Customer Perceptions
& Behavior
Market
Performance
Brand awareness
Brand familiarity/associations
Brand evaluations/attitudes
Customer acquisition/
conversion
Customer retention
Attachment/Loyalty
Sales
Market share
Price premium
Profitability
Price elasticity
Expansion success
Customer Perceptions
& Behavior
Market
Performance
ROMI
Financial Value
Stock price
P/E ratio
Market capitalization
Brand contribution (i.e.,
CoreBrand index)
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21
Equity Measure
Examples
Examples
Soft Drink
Which brand of soft-drink do I consume most often?
Which is my first preference of soft drink brands
Top two boxes purchase intent or which brand do I expect to
consume on my next consumption occasion?
Wireless
Brand owned/used
Intention to Switch in next 3, 6, 12 months?
What brands would I consider purchasing?
Packaged Food
Price and Quality perceptions
Number of purchases of last 10 allocated to each brand
Future intent to buy
Brand
Valuation
and
Measurement Firms
Measurement Firms
Financial
Value
Strategic
Value
See also: The Best Global Brands, Businessweek, August 4, 2004; Microsoft, GE top brand equity
study, BtoB, 1.19.04. and Dont Waste Time with Brand Valuation, MarketingNPV.com, October
2004.
New
Measure
Ideas
New Equity
Ideas in
Measurement
Net Promoter Score
Fred Reichfeld, The Loyalty Effect
Customer Equity
Roland Rust
Sum of the lifetime values of current and future customers
Customer Income Flows
Don Schultz
Royalty Rate
Share Tiering
Share Tiering
Objective:
Relate changes in consumer behavior and
perceptions to changes in financial
performance.
Consumer Measures:
1)Relative barrier of price
2)Brand Quality perceptions
3)Brand purchase loyalty
4)Self-report future brand purchase trend
In Search of True Brand Equity Metrics: All Market Share Aint Created Equal,
Journal of Advertising Research, June 2005, Tom Reynolds and Carol Phillips
26
Other
Brands
Now that The Brand Bubble has spelled out that most brands--and
their companies--are greatly overvalued by the financial markets,
we find out that those on the inside do not have a clear idea of
what their brands are worth, either.
More than half (55%) of senior marketing executives lack a
quantitative understanding of brand value within their
organizations, according to a recent survey by the Association of
National Advertisers and global branding consultancy Interbrand.
Further, because brand value's effect on corporate value is not
clearly quantified, it isn't being incorporated in decision-making:
64% of the 118 marketing officers and senior marketing executives
polled said that brands do not influence decisions made at their
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organizations.
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Key Takeaways
There Is No Silver Bullet
Each firm requires unique measures
MSI Report Tim Ambler
Consistency is Key
Movies work better than snapshots
Build knowledge over time
Prioritize
More likely to suffer from too much data than from too little
Recommended Resources
Brand Vitals: Essential Principles for Monitoring Brand Health, Carol Phillips and Judy
Hopelain, 2008 http://www.brandamplitude.com/whitepapers/Brand%20Vitals%20vF.pdf
In Search of True Brand Equity Metrics: All Market Share Aint Created Equal, Tom
Reynolds and Carol Phillips, Journal of Advertising Research, 2005
http://www.brandamplitude.com/whitepapers/all_market_share_aint_created_equal.pdf
On Track: The Next Generation of Brand Tracking, Judy Hopelain, AMAs Marketing
Management, October, 2005
http://www.brandamplitude.com/whitepapers/on_track.pdf
Measuring Brand Value, Don E. Schultz and Heidi F. Schultz, Kellogg on Branding, 2005,
Ch 13
Make a Case for Your Brand, Susan Fournier, Advertising Age, November 26, 2007
Brand Metrics: good, bad and dont bother, Scott Davis, Strategy, January, 26, 2004
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