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Brand Value Creator Automotive

The ability to create strong brand desire within your

target audience

Brand Value Creator: A model that reflects how consumers make decisions

How well market effects are managed to enable this desire

to be fulfilled at the point of purchase

The outcome of desire and market factors

BVC is the strongest, most validated measure to reflect business outcomes

=

Effective Equity

Attitudinal Equity

Market Effects

+/-

What’s the point of making a number go up if nothing changes in the real world?

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Leverage the ability to understand how people feel about your brand and their experience in the market • A successful brand creates strong brand desire and manages market forces

effectively to convert this desire into a relationship • Attitudinal Equity is a purely attitudinal measure of equity that represents the

level of desire to be in a relationship with a brand. In Automotive it tells you the probability of purchase for each respondent

Attitudinal Equity is a measure that is: -Linked to real world business outcomes

- At respondent level – better profiling -Linked to purchase probability of a car

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10

9

9

9

8

6

5

5

Mercedes E Class

BMW 5 Series

Audi A6

Mercedes C Class

Jaguar XF

BMW 3 Series

Audi A4

Volvo V70

Lexus GS

Attitudinal Equity

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You can’t always get the marque or model car you want – sometimes market factors get in the way

-1

3

-1

1

-1

5

1

-2

-3

Depreciates quickly – 1.4 Expense to maintain – 0.3 Lack of dealerships –1.3

Enough dealer coverage +1.1 Expense of maintaining other vehicles +1.0 Quicker depreciation of other vehicles+0.9

We can also identify the detail of which market factors are at play

• Market effects are physical barriers to purchase, such as affordability, dealer network, model range, etc. (bespoke to Automotive)

• Good management of market effects will steal share from competitors even if your brand’s desire might be lower. We can tell to which competitors your

brands are most at risk and why.

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10

9

9

9

8

6

5

5

Mercedes E Class

BMW 5 Series

Audi A6

Mercedes C Class

Jaguar XF

BMW 3 Series

Audi A4

Volvo V70

Lexus GS

Attitudinal Equity Market Effects

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Taking into account attitudinal desire and the market effects give you a better understanding of what’s driving your brand

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13

8

10

8

13

7

4

2

The outcome of desire and market effects within price and body style owners/considerers – valid to what people actually buy

Attitudinal Equity Market Effects Effective Equity

-1

3

-1

1

-1

5

1

-2

-3

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10

9

9

9

8

6

5

5

Brand 1

Brand 2

Brand 3

Brand 4

Brand 5

Brand 6

Brand 7

Brand 8

Brand 9

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Measures that relate to business outcomes If you can successfully implement strategies that improve these numbers, real returns will follow

Competitive set self defined by the respondent They tell us what Marques or models interest them, not defined by segment

Respondent level modelling is crucial Better driver analysis, accurate profiling, better story telling

Rank matters – we look at the rating relative to the competitors in the market

Our behaviours may differ from our desire due to market effects increase desire or manage Market Effects

Why is BVC a better approach?

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BVC experience in Automotive

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BVC has been used over 800 times in the Automotive sector

R2 = 0.94 between Effective Equity and Market Share across 125 data

points in 9 countries*

Our experience in automotive

* Countries include Australia, China, Germany, India, Romania, South Africa, Thailand, UK, USA

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BVC in Action - Getting onto the shortlist

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10

Unaware Low AE Mid AE High AE Aware, but don’t

consider

The higher your ranking in the mind of the buyer, the higher the probability that your

model or marque gets bought

aware

consider

use

unaware

shortlist

Focus evaluation on key marketing issues.. Are you getting on shortlists? Then are you first in the ranking?

Before you can measure how much someone desires your models, you need to get included

in their consideration set…But it’s not easy!

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Your brand needs to get on a buyers ‘shortlist’ to stand a chance

• BVC questions are only asked for brands that respondents include in their ‘Consideration Set’ o Reduce questionnaire length and time o Collect information only relevant to the respondent

• Average number of marques or models owned: 1.33

• Average number of marques or models considered: 3.41

• Average number of marques or models in the Consideration Set: 4.74

Current vehicle plus 3 - 4 others are

typically mentioned

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BVC in Action - Understanding Market Effects

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• Identify the in-market factors that stop people from buying your brand when they want to.

• Your brand could also be gaining share when market factors stop people from buying competitor brands

• Identify and quantify which market factors are helping your brand and which are hurting your brand

• Build strategies that help your brand increase desire in the minds of buyers AND manage in-market factors to increase the likelihood that your brand gets bought

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So what is a true Market Effect…

Level of AE Average Gain due to ME

Average Loss due to ME

Net Impact on Market Share

0- 10 +1.22% -1.34% -0.12%

10 - 20 +3.91% -3.53% 1.11%

20 - 40 +7.39% -5.70% 1.69%

>40 +9.88% -6.12% 3.76%

Market Effects have a real and measurable impact on the Market Share a brand eventually gets.

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The more they desire your brand, the more willing they are to overcome potential Market Effects

Small brands tend to suffer from Market Effects while bigger

brands gain. Driving your brands desire leads to increased Market

Share gains.

Bigger brands typically gain share because: -They have more ‘committed’ users

- Increased marketing budget -Improved dealer/service centre network

- Larger model range

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What are the biggest Market Effects in Automotive

Price 44%

Accessibility 17%

Product Range 11%

Promotion 8%

Purchaser 3%

Not recommended 2%

Contracts 2%

Lack of information 1%

Price: - The vehicle is too expensive - The vehicle is expensive to maintain - The part are expensive - The lease payment is too high

Accessibility - Doesn’t have extensive dealer - network - Long waiting list - Parts are hard to come by - No service centre near my home/office

Product Range - Does not have the engine size I want - Doesn’t have an SUV model - Doesn’t come in a hatchback - Don’t have the colour I’m looking for Purchaser

- My spouse prefers another car - I drive a company car and this make isn’t on the supplier list

Price, Accessibility and Product Range Market Effects make up the top three in most product categories.

*For Market Effects experienced in the Automotive sector, Price accounts for 44%, Accessibility for 17% and Product Range for 11%

Small but

powerful

measures

Economy of Measurement Without Loss of Validity

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APPENDIX

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BVC requires a short list of questions, that get asked of the consideration set of each respondent. Here are the input questions per measure:

• Attitudinal Equity (AE): Meets Needs (1-10 scale), AND Personal Meaning (reported on 1-10 scale). (2 inputs)

• Market Effects (ME): ME question listing all possible ME in the category (12-15 statements usually, recommendations for standard categories exist on the intranet).

• Effective Equity (EE): Is calculated by adding up AE and ME, so no extra questions are required.

• In addition to the above, the Brand Usage and Brand consideration questions are also asked at the beginning, to define the brand consideration set per respondent (2 questions).

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BVC – Input Questions

• Below are some of the common Market Effects in Automotive

Accessibility It has a long waiting list Does not have an extensive dealer network Parts are difficult to come by Does not have service centres located conveniently close to me There is little information available about models

Price It is too expensive/The model is not within my budget The parts are expensive Vehicle is expensive to maintain The lease payment is too high

Product range Range does not contain a model that appeals to me

Purchaser My spouse/partner doesn’t like them I drive a company car and I don’t think this car is available to me

Regulation Complicated application procedure Need too many documents for application

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Market Effects Statements for Automotive

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BVC Case Study

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Automotive study in the USA A luxury car brand needed to get a better understanding of what motivated car choice amongst drivers in the US, and how the brand and its models were perceived in order to

ensure the success of a series of new model launches.

We developed a quantitative market study using BVC, with a revolutionary approach to understanding brand and model

perceptions across the market, rather than in traditional market segment silos

We identified that while the client brand / models had several image strengths, they were weak in some areas that are crucial to people’s

choice of car. We then used network analysis to identify how the client could improve these perceptions with credible messages building on the brand’s existing and well-established strengths

The client was able to fine-tune its communications for the subsequent new model launches to emphasise the aspects that combatted the existing imagery weaknesses in the context of a

communication that was still recognisably theirs

The challenge

What we discovered

What the client did as a result of

the research

What we did