Brand Equity Measurement

Subhadip Roy

Brand Equity Models

Brand Asset Valuator Conjoint Method Aakers Brand Equity Ten Interbrand Brand Report Card Kapferers Brand Prism

Energy

Brand Asset Valuator (BAV)

Knowledge

Brand Equity

Esteem

Relevance

Differentiation

BAV Power Grid

Coca Cola

Kodak

Galaxy Tab

Nano

Hindustan Motors

BAV Example

Conjoint Method
Developed by Park and Srinivasan Farquhars (1989) definition of brand equity as the value added by the brand to the product. Traditional conjoint methods have drawbacks Survey based method: Self Explicated Conjoint

Concept

Brand Equity
Brand Equity will thus be the: difference between an individual consumers overall brand preference and his/her multiattributed preference based on objectively measured attribute levels eij: Brand Equity u(o)ij: Consumer Preference based on objectively measured attribute levels Thus

Define Brand Equity as

Assumptions i = 0 i = 0

Aaker Model Brand Equity Ten

Interbrand Method
There must be substantial publicly available financial data The brand must have at least one-third of revenues outside of its country-of-origin The brand must be a market-facing brand The Economic Value Added (EVA ) must be positive The brand must not have a purely B2B single audience with no wider public profile and awareness

The Steps

Benchmarking (Brand Strength Score)

LEADERSHIP (25%) Market Share Awareness Positioning Competitor Profile STABILITY (15%) Longevity Coherence Consistency Brand Identity Risks SUPPORT (10%) Consistency of message Consistency of spend Above vs. below line Branch franchise MARKET (10%) What is the market? Nature of the market (e.g., volatility) Size of market Market dynamics Barriers to entry PROTECTION (5%) Trademark registration & registrability Common law Litigation/disputes TREND (10%) Long term market share performance Projected brand performance Sensibility of brand plans Competitive actions INTERNATIONALITY (25%) Geographical spread International positioning Relative market share Prestige Ambition

Brand Report Card (BRC)

Consists of Dimensions with items on which a Brand needs to be evaluated More from a practitioners perspective Answers to the questions can be recorded in a scale of one to ten. Specific actions can be taken to rectify brands position/equity

Components of BRC
The brand excels at delivering the benefits the customers truly desire The brand stays relevant Pricing strategy is based on customers perception of value The brand is properly positioned The brand is consistent The brand portfolio and hierarchy makes sense

Components of BRC contd.

The brand makes use and coordinates a full repertoire of marketing activities The brand managers understand what the brand means to the consumers The brand is given proper support over long run The company monitors source of brand equity

Brand Prism (Kapferer)

E x t e r n a l i s a t i o n Constructed Source/Sender I n t e r n a l i s a t i o n

Constructed Receiver

Facets of Brand Prism

Physique according to him is the basis of the brand. E.G. The physique of Sony is technology and reliability while for the brand Tata it is trust Personality is same as Aaker, it answers the question what happens to this brand when it becomes a person? E.G. Compare Titan and Fastrack. Culture symbolizes the organization, its country-of-origin and the values it stands for. E.G. Traditional brands like Dabur. Relationship is the handshake between consumer and the organization. E.G. The relationship with Safola is safety. Reflection is the consumers perception for what the brands stands for. E.G. Pepsis image relates to youth. Self-image is what the consumer thinks of himself. E.G. Bentley owner thinks that since he has bought the car he is treating himself to one of the best car in the world.

Thank You, Class