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Brand Equity Measurement

Session 13

Subhadip Roy

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Brand Equity Measurement System

A brand equity measurement systemis a set of research procedures that isdesigned to provide timely, accurate, and

actionable information for marketers sothat they can make the best possibletactical decisions in the short run and

strategic decisions in the long-run. Leads to better ROMI

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Understand ROI of

Marketing Investments

Marketing

Program

Investment

Customer

Mindset

Market

Performance

Shareholder

Value

VALUE

STAGES

- Product

- Communications

- Trade

- Employees

- Others

- Awareness

- Associations

- Attitudes

- Attachment

- Activity

- Price premiums

- Price elasticities

- Market share

- Expansion success

- Cost savings- Profitability

- Stock price

- P/E ratio

- Market Cap

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The Brand Value Chain

Program

Multiplier

Marketing

Program

Investment

CustomerMindset

MarketPerformance

ShareholderValueVALUE

STAGES

- Product

- Communications

- Trade- Employee

- Other

- Awareness

- Associations

- Attitudes- Attachment

- Activity

- Price premiums

- Price elasticities

- Market share

- Expansion success

- Cost structure

- Profitability

- Stock price

- Price/Earnings ratio

- Market capitalization

Consumer

MultiplierMULTIPLIERS

- Clarity

- Relevance

- Distinctiveness

- Consistency

- Channel support

- Consumer size & profile

- Competitive reactions

- Market dynamics

- Growth potential

- Risk profile

- Brand contribution

Market

Multiplier

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Brand Equity Measurement System

Implementing this system involves: Developing tracking procedures.

Conducting brand audits. Brand Inventory

Brand Exploratory

Designing a brand equity managementsystem Brand Equity Charters

Brand Equity Reports

Brand Equity Overseers

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Developing Tracking Procedures

Tracking studies involve information collected fromconsumers on a routine basis over time

Often done on acontinuousbasis

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

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Conducting the Brand Audit

Abrand audit is a comprehensive examinationof a brand involving activities to assess the healthof the brand, uncover its sources of equity andsuggest ways to improve and leverage that

equity. A brand audit requires understanding sources ofbrand equity from the perspective of both thefirm and the consumer.

Specifically, the brand audit consists of twoactivities:

Brand Inventory

Brand Exploratory

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Brand Inventory

The purpose of the brand inventory is toprovide a complete, up-to-date profile of how allthe 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 supportingmarketing program. This information should be

summarized both visually and verbally. Although primarily a descriptive exercise, some

useful analysis can be conducted.

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Brand Exploratory The brand exploratory is research activity

designed to identify potential sources of brandequity.

The brand exploratory provides detailed informationas to what consumers think of and feel about the

brand. Although reviewing past studies and interviewingrelevant personnel provides some insights, additionalresearch 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 employedfirst.

To provide a more specific assessment of the sourcesof brand equity, a follow-up quantitative phase isoften necessary.

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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.

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Brand Equity Management System:Step 1

Formalize company position and philosophy into a BrandEquity Charter to provide relevant guidelines tomarketing 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

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Brand Equity Management System:Step 2

Assemble results of tracking survey andother relevant outcome measures into aBrand Equity Report distributed tomanagers on regular basis

Provides descriptive information as to

what is happening with a brand as wellas diagnostic information as to why

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Brand Equity Management System:Step 3

Establish position of VP or Director of EquityManagement to oversee implementation ofBrand Equity Charter and Reports

Ensure that, as much as possible, marketingof the brand is done in way that reflects the

spirit of the Charter and the substance of theReport

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Thank You, Class