Brand Equity Measurement

Session 13 Subhadip Roy

Brand Equity Measurement System

A brand equity measurement system is a set of research procedures that is designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and strategic decisions in the long-run. Leads to better ROMI

Understand ROI of Marketing Investments

VALUE STAGES

Marketing Program Investment

- Product - Communications - Trade - Employees - Others

Customer Mindset

Market Performance

Shareholder Value

- Awareness - Associations - Attitudes - Attachment - Activity

- Price premiums - Price elasticities - Market share - Expansion success - Cost savings - Profitability

- Stock price - P/E ratio - Market Cap

The Brand Value Chain

VALUE STAGES

Marketing Program Investment

- Product - Communications - Trade - Employee - Other

Customer Mindset
- Awareness - Associations - Attitudes - Attachment - Activity

Market Performance
- Price premiums - Price elasticities - Market share - Expansion success - Cost structure - Profitability

Shareholder Value
- Stock price - Price/Earnings ratio - Market capitalization

MULTIPLIERS

Program Multiplier
- Clarity - Relevance - Distinctiveness - Consistency

Consumer Multiplier
- Channel support - Consumer size & profile - Competitive reactions

Market Multiplier
- Market dynamics - Growth potential - Risk profile - Brand contribution

Brand Equity Measurement System

Implementing this system involves:
Developing tracking procedures. Conducting brand audits.
Brand Inventory Brand Exploratory

Designing a brand equity management system

Brand Equity Charters Brand Equity Reports Brand Equity Overseers

Developing Tracking Procedures

Tracking studies involve information collected from consumers on a routine basis over time
Often done on a continuous basis
Provide descriptive and diagnostic information Key decisions
What to track
Product Brand Corporate Brand Global Brand

Who to track When and where to track How to interpret tracking studies

Conducting the Brand Audit

A brand audit is a comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity and suggest ways to improve and leverage that equity. A brand audit requires understanding sources of brand equity from the perspective of both the firm and the consumer. Specifically, the brand audit consists of two activities: Brand Inventory Brand Exploratory

Brand Inventory
The purpose of the brand inventory is to provide a complete, up-to-date profile of how all the products and services sold by a company are marketed and branded. For each product, the relevant brand elements must be identified, as well as the supporting marketing program. This information should be summarized both visually and verbally. Although primarily a descriptive exercise, some useful analysis can be conducted.

Brand Exploratory
The brand exploratory is research activity designed to identify potential sources of brand equity. The brand exploratory provides detailed information as to what consumers think of and feel about the brand. Although reviewing past studies and interviewing relevant personnel provides some insights, additional research is often required. To allow a broad range of issues to be covered and also permit those issues to be pursued in-depth, qualitative research techniques are often employed first. To provide a more specific assessment of the sources of brand equity, a follow-up quantitative phase is often necessary.

Brand Equity Management System

A Brand equity management system is a set of organizational processes designed to improve the understanding and the use of the brand equity concept within the firm.

Brand Equity Management System: Step 1

Formalize company position and philosophy into a Brand Equity Charter to provide relevant guidelines to marketing managers. - Importance of brands and brand equity - History of brand - Brand positioning
- Core brand values - Core brand promise (brand mantra) - POP/POD

- Brand guidelines
- Strategic - Tactical

Brand Equity Management System: Step 2

Assemble results of tracking survey and other relevant outcome measures into a Brand Equity Report distributed to managers on regular basis Provides descriptive information as to what is happening with a brand as well as diagnostic information as to why

Brand Equity Management System: Step 3

Establish position of VP or Director of Equity Management to oversee implementation of Brand Equity Charter and Reports
Ensure that, as much as possible, marketing of the brand is done in way that reflects the spirit of the Charter and the substance of the Report

Thank You, Class