chapter 8: developing a brand equity measurement and management system

CHAPTER 8: DEVELOPING A BRAND EQUITY MEASUREMENT AND MANAGEMENT SYSTEM

Lecturer: Md Shahedur Rahman

1

The New Accountability 8.2

Virtually every marketing dollar spent today must be justified as both effective and efficient in terms of “return of marketing investment” (ROMI).

Truth !!8.3

Hardly any marketing professional who is not worried about what return will a specific campaign bring about.

Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and activities that cannot be linked to short-term incremental profits, but yet can be seen as improving brand equity.

8.4

The Brand Value Chain8.5

Broader perspective than just the CBBE model

The brand value chain is a structured approach to assessing the sources and outcomes of brand equity

Which marketing activities create brand value?

8.6

The Brand Value Chain8.7

Value Stages8.8

Marketing program investment Any marketing

program that can be attributed to brand value development

Customer mindset In what way have

customers been changed as a result of the marketing program?

Value Stages8.9

Market performance How do

customers respond in the marketplace?

Shareholder value

Multipliers8.10

Program quality multiplier The ability of the

marketing program to affect customer mindset

Must be clear, relevant, distinct, and consistent

Program quality multiplier8.11

Clarity Did consumers understand the marketing program? Do consumers properly interpret and evaluate its

meaning?

Relevance Is the marketing program meaningful to the consumer? Do consumers feel the brand is one they should

seriously consider?

Distinctiveness How unique is the marketing program? How creative or differentiating it is?

Consistency How well integrated is the marketing program? Is the

brand evolving in the right direction?

Multipliers8.12

Customer multiplier The extent to which

value created in the minds of customers affects market performance

It depends on factors such as competitive superiority, channel support, and customer size and profile

8.13

Competitive superiority How effective are the marketing investments of competing brands?

(Jui vs Parachute) How strongly have competitors affected customer mindset? Are their brand equity stronger?

Channel and other intermediary support How much selling effort is being put forth by various channel

partners? Are retailers helping to sell your brand? Are distributors motivated to lift your product? Channel conflict?

Customer size and profile How many and what types of customers are attracted to the brand? Are they profitable? (toothpaste being launched under magic when

only 2% of the consumers every year shift from toothpowder category to toothpaste).

Multipliers8.14

Market multiplier The extent to which

the value generated through brand market performance is manifested in shareholder value

It depends on factors such as market dynamics, growth potential, risk profile, and brand contribution

8.15

Market dynamics Dynamics of financial market (Investors sentiment)

Growth potential Prospect of the brand, prospect of the industry,

Analyze the micro/micro environment. (External Opportunities).

Risk profile Risk profile for the brand? (External threats).

Brand contribution How important is the brand as part of the firms brand

portfolio?

Brand Equity Measurement System

8.16

A set of research procedures that is designed

To provide timely, accurate, and actionable information for marketers

We need to make the best possible tactical decisions in the short run and strategic decisions in the long run

Brand Equity Measurement System8.

17

Conducting brand audits Developing tracking procedures Designing a brand equity

management system

Designing Brand Tracking Studies

8.18

Tracking studies involve information collected from consumers on a routine basis over time Often done on a “continuous” basis

Provide descriptive and diagnostic information

What to Track8.19

Customize tracking surveys to address the specific issues faced by the brand

Product-brand tracking Corporate or family brand tracking Global tracking

How to Conduct Tracking Studies

8.20

Who to track (target market) When and where to track (how frequently) How to interpret brand tracking

Brand Equity Management System8.

21

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

Brand Equity Charter8.22

Provides general guidelines to marketing managers within the company as well as key marketing partners outside the company

Company view of brand equity into a formal document.

Should be updated annually

Brand Equity Charter Components8.

23 Define the firm’s view of the brand equity Describe the scope of the key brands Specify actual and desired equity for the

brand Explain how brand equity is measured Suggest how brand equity should be measured Outline how marketing programs should be

devised Specify the proper treatment for the brand in

terms of trademark usage, packaging, and communication

Brand Equity Charter with Kool8.

24

History of the brand/key events: how the brand has evolved; how it was repositioned, and key events?

Brand Equity Charter with Kool8.

25

•The brand vision•The “complete male grooming solution” that gives the leap to an “attractive man” and •Be a entry barrier for other companies in the male grooming category.

Brand Kool in next 3 years8.26

DNA DNA Get NoticedGet Noticed

Shaving line After Shave Line Hygiene Line

• Kool Shaving Cream

• Monsoon

• Frosty

• Saloon

• Kool Shaving Foam

• Ultra Glide

• Extreme Comfort

• Kool Shaving Gel

• Kool After Shave Lotion

• Antiseptic

• Kool After Shave Moisture Gel

• Moisture

• Kool After Shave Fairness Cream

• Fairness

Beard Softner Manly Fragrance Manly Fragrance

Manly Fragrance

• Kool Deo Body Spray

• Blue, Citrus, Saint, Original

• Kool Deo Talc - Original

• Kool Deo Soap

• Blue, Citrus, Saint, Original

8.27

Brand Equity Report8.28

Assembles the results of the tracking survey and other relevant performance measures

To be developed monthly, quarterly, or annually

Provides descriptive information as to what is happening with the brand as well as diagnostic information on why it is happening

Brand Equity Responsibilities8.29

Organizational responsibilities and processes that aim to maximize long-term brand equity

Establish position of 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 a way that reflects the spirit of the charter and the substance of the report