Brand Value measures perceived quality, the value assigned by consumers to the brand, after

discounting for current price and recent advertising exposures.

Brand Value = what you get/ what you pay = Quality/ Price
Brand Intangible Value isolates the component of brand value which cannot be directly attributed
to the physical product, thus measuring the value created by such factors as brand name
associations and perceptual distortions.
For example; brand value of Toyota is Reliability, Mercedes is Luxury. Similarly for levis is
Ruff-n-tuff jeans. Hence every product comes with a valuable argument and thus needs proper
segmentation and positioning.
In the rapidly changing era of technological advancement and due to the increasing threats of
new entrants and prevailing competitors, organizations need to properly segment the market
according to its needs and demands.
For example, coke is conforming while pepsi is irreverent. Hence designing a brand that
caters to the needs of its consumers is the major goal of any organization, which thus leads to
enormous profits.

Taking the example of various brands, I would like to illustrate how we can perform brand value
segmentation so that after selecting a right target market, we can service the right segment.

Segmentation of brand value can be done on various criterias. Some are given below:

Usage Rate

For example, since Mexican families have lunch together at home, an average Mexican family
household drinks two and a half liter. While a two liter bottle was the maximum size available in
the region. Coca-Cola responded well to the needs and launched an exclusive 2 liter bottle in
Mexico, which became very much popular and generated enormous revenues.
Hence targeting the value proposition that Coca-Cola is an us brand

Preferences

In 2007, Toyota`s brand value was $3.2 billion while that of Ford was $9 billion. It increased by
32% in Israel while that of Ford dropped in real terms losing 2% in the five years. The question
is how this happened?
Toyota identified a rising demand for economic and environmentally friendly cars, while Ford
continued to make gas duzzles and SUVs. Hence the Detroit giant misread the future of the
market and lost miles to their rivals from Japan. Toyota recognized the market yearning for
green and adjusted its model, thus lead to the success of Prius.

Demographics

Since demographics nowadays are not much to be considered, but still they matter a lot while
segmenting a brands value and worth. For example, Mercedes-Benz creates different cars for
different class of people. Sports cars for youth and the elite S-class cars for those who require
luxury and comfort.
Also Toyota recognized that a major portion of the society are working females which require
low priced and small cars hence launched Cuore in corporation with Diahatsu Motors, hence
catering the needs of working class women and making Toyota affordable.

Culture

Culturally distinct segments can be prospects for the same brand but often are targeted more
efficiently with different promotional appeals. For example a bicycle may be promoted as an
efficient means of transportation in Asia and as a health and fitness product in the United
States.

Parameters for Brand Value Segmentation

Direct the appropriate amounts of promotional attention and money to the most
potentially profitable segments of the market.
Design a product line that truly parallels the demands of the market instead of one that
bulks in some areas and ignores or scants other potentially quite profitable segments
Determine the appeals that will be most effective in his company's advertising; and, where
several different appeals are significantly effective, quantify the segments of the
market responsive to each
Choose advertising media more wisely and determine the proportion of budget that should be
allocated to each brand ( in case of multi-brand segmentation)

Value Segmentation of Automobiles

1. People who buy cars primarily for economy. Many of these become owners of the
Falcon, Ford, Rambler, American, and Chevrolet. They are less loyal to any make than
the other segments, but go where the biggest savings are to be found.
2. People who want to buy the best product they can find for their money. These
prospects emphasize values such as body quality, reliability, durability, economy of
operation, and ease of upkeep. Rambler and Volkswagen have been successful because
so many people in this segment were dissatisfied.
3. People interested in "personal enhancement" (a more accurate description than
"prestige"). A handsomely styled Pontiac or Thunderbird does a great deal for the
owner's ego, even though the car may not serve as a status symbol. Although the
value of an automobile as a status symbol has declined, the personal satisfaction in
owning a fine car has not lessened for this segment of the market. It is interesting that
while both watches and cars have declined in status value, they have retained self
enhancement value for large portions of the market.
(Source; New Criteria for Market Segmentation Harvard Business Review 1964, By Daniel
Yankelovich)