07.auditing the brand sphere

THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),

FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia),

MSLIM

“If you don’t have a competitive advantage” don’t compete.don’t compete.

-Jack Welch-

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Opportunities• Environmental opportunities

• Environmental ThreatsThreats

• Environmental Threats

Marketing capabilities

• Organizational Marketing capabilities


Situational analysis of the brand helps to understand the factors

that could enhance or hold back a brands success

Situational analysis of the brand is discussed under five key Forces

That has major impact towards the brand

Marketers could evaluate by scouring marks from 1-10, from favorable

- Unfavorable thus enabling to identify opportunities or protect the brand from

Possible threats


Corporation

DistributorsMacro

Environment

CompetitorsCustomers

Environment

BRAND


Employee values

Brands values

Orgn’svalues



Employees understanding &

commitment

• Champions: Brands will succeed if the organization has highly knowledgeable and committed employees.

Departments Culture

• Inter departmental behavior leads to some unique cultural characteristics. This will have an influence over the brand

Heritage

• Stability is brought upon through this

• Commitment of employees and customers are high for a rich heritage company

• During the brand audit marketers need to consider the heritage influence on the brand


Communication

• Organization communicates its brands benefits/values in different ways. Conduct a proper promotional mix is the key .

• Brands will be successful mainly due to distinct

Distinctive capabilities & Core

Competencies

• Brands will be successful mainly due to distinct capabilities and competencies that underpins the brand. Ex: Lux,Sunlight

Employee’s identification with the org;& its brand

• The common issue is that the problem of staff being half hearted about their work and undesirable attitude.


Brand citizenship behavior

• Living the brand, through their daily action, In a way it supports the brand

• In order to encourage the staff to act in a way to supports the brand

• Brand endorsement

• Self development – willingness to enhance brand related skills

(Zepling behavior)

• Self development – willingness to enhance brand related skills

• Helping behavior – Positive attitude, friendliness

• Sportsmanship – Lack of complaining

Relationship with

stakeholders

• Brands and organizations thrive & survive because of stake holder relationship.


Distributor network is vital for the success of all the FMCG

brands. There for in-depth analysis should be made on

distributors on following areas:

Alignment of goals – The concern for brand success should 1. Alignment of goals – The concern for brand success should

be the same with distributor as it is with the manufacturer

2. Power – This is a situation of which has a better bargaining

power



A B

Distributor

Attractiveness

H

C D

Attractiveness

Brand Strengths

H

L

L


A. The Ideal situation, both have an advantage,

partnership/joint marketing effort would be the strategy to

move forward(Ex: Abans, Singer, Sidhalepa)

B. Brand benefit from distributor. Distributor bargaining B. Brand benefit from distributor. Distributor bargaining

power is more

C. Brand bargaining power is higher than the distributor. Step

need to be taken to improve, or eliminate distributor.

D. Un healthy marketing climax to operate


� Customer is the king in any business

� Consumer is the person who uses the product

� A brand to succeed, organization needs to understand

the consumers and their motives and behaviors.

Understand end consumers of consumer marketing

� Are consumers “Time rich or money rich”?


Self Actualization

Self esteem

Socialization

Security

Basic


Citizen brands (Phd)

Status brands (BMW)

Social support brands (Levis)

Protective brands (Baywatch)

Generic products


B2B customers are been analyze by understanding the

concept of Perceived risk

1. Performance risk

2. Financial risk2. Financial risk

3. Time risk

4. Social risk

5. Psychological risk


Physique

PersonalityRelationship

Culture

Self image

Reflection


Physique

• Some brands differentiate the selves by their outer look that is been recognized easily.

Personality

• Some brands differentiate based on • Some brands differentiate based on personality association.

Relationship

• Some brands strive through relationship. Especially in service industry.


Reflection

• Brands carry emotional values along with them. A person who buys Benz wants to reflect prestige to their peers.

Self Image

• Reflects to the way a brand enables to make a • Reflects to the way a brand enables to make a private statement back to them selves. After a hard days work to have your favorite cup of tea.

Culture

• Embrace your own culture


What are the objectives of brand, and how does it effect on other brands?

How important is our market to the competitor, what is their commitment towards this market? How do we find it?

What is our strategic direction? By understanding strategic direction of the competitor, who is posing the greater challenge?

What are their strengths judged against their critical success factor?

What are the weaknesses of these brands and who is more vulnerable?

What is your and competitors position?


All Brands

Known Brands

Unknown Brands

Acceptable Brands

Unacceptable Brands

Indifferent Brands

Overlooked Brands

Known Brands

Unknown Brands

Inept SetRejected

Brands

Evoked

Set


• Foreign policies and business policiesPolitical

• Dollar fluctuations, recessionEconomical

• Lifestyle changesSocial

• R &D and AdvertisingTechnological

• Legislations on advertisingLegal


Corporation

• Coordination

Distributor Customer

• Basic

• Security

Competitor Macro Env

• Coordination

• Values

• Understanding & commitment

• Diverse culture

• Heritage

• Communication

Goal Align

Power

• Security

• Socialization

• Self esteem

• Self Actualization

Physique

Personality

Culture

Self image

Reflection

Relationship

Political

Economical

Social

Technological

Legal


Brand value is a dollar value of a brand , calculated as Brand value is a dollar value of a brand , calculated as Net Present Value(NPV) or today's value of the earnings the brand is expected to generate in the future


The purpose of these valuations is to demonstrate to the business community that brands are very important business assets and in many cases the single

The purpose of these valuations is to demonstrate to the business community that brands are very important business assets and in many cases the single assets and in many cases the single most valuable company asset. assets and in many cases the single most valuable company asset.


Historic Cost : sum of all investments from the research to launch

Current or replacement cost: it is the amount that would be paid for the brand

Future earring potential : it calculate the future earnings or the cash flow Future earring potential : it calculate the future earnings or the cash flow of a brand

Incremental value added: the price of the brand is compared with the price of a generic

The Inter brand Model: it is based on a combination of objective and subjective inputs.


• Markets where consumer preferences are more enduring would score higher in brandsMarket

• Establish brands score higher because of the customer loyalty Stability

• A market leader is more valuable, bring dominance and better market shareLeadership better market shareLeadership

• Long term profits trend of the brand is an important measure of its ability to remain relevant to consumerProfit Trend

• Brands that receive consistent investment and focused support usually have a much stronger franchiseSupport

• International brands are stronger than regional brandsGeographical spread

• Securing full protection for the brand under international trademark and copyright lawProtection


Published annual reports

Earning and balance sheets Earning and balance sheets

Analyst reports from JPMorgan


Thank you

Thank you

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Business

07.auditing the brand sphere