brandy equity of united colors of ucb

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PRODUCT AND BRAND MANAGEMENT

Mohit Almal

Pankaj Agarwal

Saurav Jalan

Vineet Sekhani

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Index

Serial No. Content

1 Introduction

2 Brand Equity Model 1 (David Aaker)

3 Brand Equity Model 2

4 Recommendations

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Executive Summary – MODEL I

Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. In this model, used to measure brand equity, two components that need to be considered are:

1. Resilience: It is the ability of a brand to protect itself and generate consistent volume and revenue, year after year.

2. Leveragability: Leveragability is the potential energy to extend a brand successfully into related, or even unrelated, product categories.

We have measured these two factors individually apart from David Aaker’s Brand Equity Model and 4*4 grid model which we have followed.

Research Methodology The research methodology used to collect data and develop a model was:

Research design Descriptive

Sampling technique Simple random sampling

Sample size 30 respondents

Method of data collection Primary and Secondary data collection method

Instrument of data collection Questionnaire

Findings of Model 1

a) Brand Loyalty: In our findings UCB emerged out as the most loyal brand. Price attacks and non-availability did not deter the respondents from buying UCB.

b) Brand Awareness: In the identification of the logo question UCB did not fare well and it stood fourth. This shows that visibility is less and it is not properly communicated to the consumers. In the recall question, UCB did well in some segments like t-shirt and casual shirts but fared poorly in jeans. This shows that awareness about all the product line of UCB is not so high.

c) Perceived Quality: UCB and Levis competed neck to neck on this parameter. When all the respondents were asked to rate the brand on the basis of quality (Superior, Good, Acceptable and Poor). The total score was 99 for both Levis and UCB after assigning weight age. In another question on the recall factor which was quality oriented Levis was the leader.

d) Brand Association: In association with the brand Levis came out as a leader. The reason why people want to be associated with Levis is because of the comfort factor. UCB finished a close second and the reason was variety in offerings.

Conclusion:

UCB needs to work in the advertisement segment and the way they want to communicate with the potential customers. This would help it to bring in new consumers. It needs to increase its visibility as it fared poorly on that parameter. The people who know about the

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brand and are using it are very loyal to the brand. They have trust in the quality of the product and they want to be associated with it. They should focus more on creating awareness and try to bring in new set of consumers who could then be converted into loyal ones. Perhaps, their advertising strategy is too sophisticated for the Indian consumers and in order to connect with the masses they need to give second thought on it.

Model- II Introduction Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. In this model, used to measure brand equity, two components that need to be considered are:

3. Resilience: It is the ability of a brand to protect itself and generate consistent volume and revenue, year after year.

4. Leveragability: Leveragability is the potential energy to extend a brand successfully into related, or even unrelated, product categories.

The above-mentioned components in turn can be measured using Customer Loyalty. This is because the more the loyal customers of a particular brand, the more the chances of its survival in the market. Three components can be used to define loyalty. These are:

1. Belief- the perception of the consumers about the brand based on certain factors. 2. Behavior- whether this perception culminates into purchase behavior. 3. Trend- whether the customers are willing to persist with the brand.

To measure these three components, two parameters have been taken:

1. Marketing support: refers to marketing aids that facilitate the projection of the right brand image and induce a purchase.

2. Relevance: refers to the importance of the brand to a consumer i.e. how closely can it satiate the needs of the consumer.

Research Methodology The research methodology used to collect data and develop a model was:

Research design Descriptive

Sampling technique Simple random sampling

Sample size 30 respondents

Method of data collection Primary data collection method

Instrument of data collection Questionnaire

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Measuring Brand Equity

To measure brand equity through this model, 4x4 grids were prepared for the following: 1) Belief grid: The parameters taken are relevance and marketing support. A loyal customer

is one who thinks that her brand is very relevant for his/her, and this relevance is so high that no importance is given to marketing support. The customers in the 2x2 quadrant were considered most loyal.

2) Behavior grid: Behavior is more objectively measured than beliefs. In behavior grid, it is

depicted how one brand is chosen over another. One cannot be loyal to a brand that is never bought, no matter how much admiration is expressed. In the behavior matrices, each cell shows the number of respondents.

3) Future trend: It can be assessed by asking consumers to project future purchase behaviour. In this model, an existing customer is a loyalist if, out of the next 4 purchases, 3 would be of the brand presently used. This metric reflects the percent of brand sales contributed by all loyal customers to the apparel brands.

The Leveragability and Resilience indices were prepared from the findings of these grids.

Findings: The findings for each shampoo brand from the grids are: 1) Belief grid:

1. For UCB, 1 out of 30 is in “top box”. In the upper, right hand 2*2 matrix, UCB has 28 out of 30 respondents. Thus, UCB has a very high number of customers which are loyal due to the marketing support provided.

2. Spykar has a relatively number of respondents in the upper, left hand 2*2matrix, which is 7 out of 30 respondents in this region. Thus, Spykar has a good number of loyal respondents.

3. Levi’s has a relatively high number of respondents in the top box, 2 out of 30

respondents are in the upper hand left corner box. In the upper, left hand 2*2

matrix, Levi’s has 14 out of 30 respondents. Thus, Levi’s has a relatively high number

of loyal respondents.

4. Reebok has a relatively number of respondents in the upper, left hand 2*2 matrix;

Spykar has 7 out of 30 respondents in this region. Thus, Reebok has a good number

of loyal respondents.

5. Pepe Jeans has a relatively number of respondents in the upper, left hand 2*2

matrix; Pepe Jeans has 14 out of 30 respondents in this region. Thus, Reebok has

relatively high number of loyal respondents.

2) Behavior grid: 1. In UCB, it was seen in the belief matrix that 1 is in most relevance – no influence

zone. In behavior matrix, it is seen that 0 out of those 1 have purchased the brand, thus consumers perceive it to be high in relevance but buy it only if there is some marketing activity from the brand.

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2. For Spykar, even though Belief Matrix showed some amount of loyalty from consumers but behavior matrix defies this as none among them go ahead and purchase.

3. For Levi’s, Belief Matrix showed that 2 were in “top box”. In behavior matrix, it is seen that 2 of this 2 have purchased the brand thereby showing loyalty contribution.

4. For Reebok, 7 were in upper left hand 2*2matrix in belief matrix which is seen at 0 in behavior matrix until there is some marketing support thereby signifying that loyalty contribution is zero.

5. For Pepe Jeans: 14 were in upper left hand 2*2 matrix in belief matrix which is seen at 1 in behavior matrix thereby we can infer conversion of loyalty to sales is abysmal.

3) Future trend: The loyalty percentage for UCB is the highest (60%), followed by that of Levi’s (40%). But

this high loyalty % of UCB is due to the marketing effort which leads to addition to new customers as well when compared to that of other brands.

4) Resilience: UCB when compared to other brands surveyed is not resilient to adverse market forces but has the ability to use promotional activities at the optimal levels in luring customers. Therefore we can infer that UCB’s Equity Share is due to promotional equity i.e. value gained out of promotional activity. Thus, UCB enjoys the ability to generate consistent volume and revenue year after year.

5) Leveragability index: UCB offers equity disproportionate to its market share. It’s more

likely to responsive to marketing efforts. Here UCB’s index of 100% can be interpreted to mean 100% of sales are sourced from the marketing efforts keeping in sync with the previous findings of the model. UCB also enjoys brand leveragability the most at 38%.

Conclusion United Colors of Benetton as a brand is one which depends heavily on its marketing activities. It is very aggressive in marketing support thereby influencing customers to purchase its products. The brand does not enjoy loyalty if these promotional activities are stopped even though the brand relevance is high. UCB enjoys leveragability hence can extend itself to other product categories.

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Introduction:

A brand is a name, symbol, logo which helps to identify and recognise a particular product or a service. The brand can add a significant value when it has positive associations in the mind of the customer. This concept is referred to as Brand Equity. Brand Equity is a set of positive associations which helps in earning greater margins which otherwise wouldn’t have been possible. Apart from that it also gives a strong competitive advantage to the company.

A brand doesn’t get build in a short period of time. It takes a lot of activities over a period of time for a brand to establish itself in the minds of the customers. However, Brand Equity is not always positive. Some brands acquire a bad reputation which results in Negative Brand Equity.

Brand Equity Model:

We have chosen David Aaker’s model on Brand Equity. Model is explained as follows:

In his Brand Equity Model, David A. Aaker identifies five brand equity components:

Brand loyalty

Brand awareness

Perceived quality

Brand associations and

Other proprietary assets

Aaker defines brand equity as the set of brand assets and liabilities linked to the brand - its name and symbols - that add value to, or subtract value from, a product or service. These assets include brand loyalty, name awareness, perceived quality and associations.

However, his model does not make a strict distinction between added value for the customer/consumer and added value for the brand owner/ company.

We will discuss each of the components of the Aaker’s Brand Equity Model.

Brand Loyalty: It refers to the degree to which a consumer consistently purchases the same brand within a product class or otherwise. It also shows how much of your sales are assured sales.

To check the brand loyalty of UCB, we asked a question pertaining to the discounts given by other brands i.e. if other brands, apart from UCB, Levis, Pepe Jeans, Reebok and Spykar are giving discounts which of the above mentioned brands would you still buy? The results were as follows:

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The objective of this question was to know how a consumer would react to the changes in prices, i.e. is he/she price sensitive. In this case, the respondents’ view was that even if the other brands lower their prices, they would still stick to UCB (12 out of 30). The second was Levis with 9 respondents out of 30 supporting it.

The second question to check the Brand Loyalty was with regards to Availability. Here, we asked the respondents whether they would delay their purchase in case of unavailability. If yes, then by how long? The results were as follows:

The results show that maximum no. of respondents were willing to delay their purchase in case of UCB (17 out of 30; 57%). Levis stood second with 13 out of 30 respondents (43%).

0

5

10

15

20

UCB Spykar Levis Reebok Pepe Jeans

17

0

13

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Delaying the purchase, in case of Non-Availability

Delaying the purchase, in case of Non-Availability

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The average delay that a respondent would undertake is approx 15.2 days. The performance of the individual brands is as follows:

Levis here is the clear leader in terms of loyalty pertaining to the Availability factor. All the other brands have scored below the average delay period with very low variance. None of the respondents are likely to delay their purchase for Spykar. (It seems that Spykar is the Joker in the pack!!!).

Brand Loyalty is a function of trust. So, we asked the respondents as to which is the brand they trust the most. The results are as follows:

Most of the respondents’ considered Levis as the most trusted brand (27%). UCB stood second with 17% respondents supporting it. Others category included all the other brands which scored approx 33%.

If we summarize the Loyalty factor, UCB is the leader in the 2 out of 3 questions. Thus, we can infer that UCB is the most loyal brand among all the 5 brands.

Brands No of days

UCB 14.11

Spykar NA

Levis 19

Reebok 14.66

Pepe Jeans 15

Average delay

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Brand Awareness:

Brand Awareness is the extent to which a brand is known among the public. One of the components of Branding is Visibility and Brand Awareness is a factor of visibility and recall. Brand Awareness helps in knowing the familiarity & liking towards a brand by means of logo, name, advertisement, etc. Consumers with a positive attitude towards a brand will talk about it more and spread brand awareness. It also helps to know which brand to be considered during the purchasing process (i.e. to what extent does the brand form a part of the evoked set of brands in a consumers’ mind)

To know the brand awareness the respondents were asked to identify the logo/picture of the brands. The following were the results:

The awareness was the highest in case of Pepe Jeans (almost 87% of the respondents were able to identify the Pepe Jeans logo). Levis & Reebok stood a close second. The awareness of UCB is a bit less (almost 67%) when compared to other brands probably because of the visibility factor.

The other question was related to the recall factor. The respondents were asked to name a brand which comes to their mind when we talk of Jeans, T-shirts and Casual Shirts.

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The results were as follows:

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From the above graphs we can infer that UCB has high brand recall in the T-shirts and casual shirts as compared to other brands but in the jeans category, Levis is the clear leader with 60% of the respondents recalling it. UCB has denim line also but none of the respondents were able to recall this. This shows that they are not equally competent in all the segments and knowledge about its complete product line is low.

Perceived Quality:

The extent to which a brand is considered to provide good quality products is known as Perceived Quality. Perceived quality is high when the quality offered by the product/ brand is a reason to buy it. Level of differentiation, pricing & availability are the functions of Perceived Quality. Perceived Quality is also a function of the Line/Brand extensions which are discussed while studying the Leveragability.

We asked the respondents - “Name five brands that come to your mind when you think of clothes that have – Comfort, Style, Excellent Fit, Variety (Product Range)?” Top three brands in each response were calculated and arrived in a table, which are as follows:

This table is read as – Majority of the Response 1 is Levis followed by Lifestyle & UCB.

On the basis of this table we can say that the top of the mind brand in terms quality (Comfort, style, excellent fit, variety) is Levis and UCB.

Response 1 Response 2 Response 3 Response 4 Response 5

Rank 1 Levis UCB Levis Provogue Wrangler

Rank 2 Lifestyle Levis Nike Wrangler Reebok

Rank 3 UCB Adidas Wrangler Nike Pepe

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We also asked the respondents to rate the brands on a four point scale – Superior, Good, Acceptable and Poor. These four criteria were given the weightage of 4, 3, 2 &1 respectively. Thus, a total quality score was arrived at. The following graph shows the results:

This graph shows that UCB & Levis scored the highest in terms of Perceived Quality (Score – 99). This was followed by Reebok with a score of 93 and then Pepe Jeans and Spykar with scores of 89 and 78 respectively.

Our next question was to understand – “what is the premium that a consumer is willing to pay for any of these five brands.” We fixed the price at Rs 1000 and asked them which brand they will buy. If a respondent says a particular brand then we raised the price of that particular brand by incremental amount of Rs 200. Keeping the respondents ceiling in mind we will keep repeating the process till he switch back to some other brand once again. This incremental difference is the premium amount that the respondent is willing to pay for brand of his choice. The respondents who chose UCB were willing to pay Rs. 100 on an average as a premium. This also shows that the Perceived Quality is higher as the customers are willing to pay a premium.

Brand Associations:

Brand Association can be measured in terms of

The extent to which brand associations play a role in the buying process. The extent to which association contribute to brand differentiation in relation to the

competition. The number of brand extensions in the market. The extent to which a brand name is able to “retrieve” associations from the

customers’ mind.

0102030405060708090

100

United Colors of Benetton

Spykar Levis Reebok Pepe Jeans

99

78

9993 89

Total Score - On the basis of Quality

Total Score -On the basis of Quality

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The extent to which Brand Association can create a positive attitude/feeling.

To know the Brand Association we asked the respondents’ that which brand would they prefer to be associated with. The results were as follows:

From the above graph we can see that 40% of the respondents want to be associated with Levis. UCB stood second with 37% respondents wanting to be associated with it. This was followed by Reebok, Pepe Jeans and Spykar with 13%, 7% & 3% respectively.

When asked about the reason for such association, the respondents replied as:

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The reasons the respondents chose UCB was majorly because it had Variety and was perceived to be classy. On the other hand Levis was chosen because of Comfort and variety as the top two reasons.

Variety 37%

Classy 27%

Comfort 18%

Premium Segment9% Trust

9%

Reasons for being associated with UCB

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We also asked the respondents as to which was the brand they would recommend to their family and friends. This also shows the level of association with the Brand. The results were as follows:

Here Levis again was the leader with 11 out of 30 respondents willing to recommend the brand to family and friends. UCB stands second here (8 out of 30).

The reasons for recommending the brands were as follows:

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The most sought after reason for recommending a brand was Variety. When looking at both the above questions in conjunction, we find that the main reason for a person willing to associate himself/herself with UCB is Variety and the reason for recommendation to friends and family is also Variety. Thus, we can say that Brand Association of a consumer is high in case of UCB.

Other Proprietary Assets:

The examples of these are Patents, Intellectual Property Rights, Trade Marks, relation with the trade partners, etc. Higher the number of Intellectual Property Rights a brand has accumulated, higher is the competitive advantage. Given below is the brief list of Proprietary Assets which each Brand owns.

UCB SPYKAR Levi's Reebok PEPE JEANS

BENETTON SPYKAR Levi's Reebok Logo

UNITED COLORS OF BENETTON Spykar.com Trade Names Graphlite Pepe jeans

SISLEY logo Service Marks Hexalite

UNDERCOLORS Deisgn Marks Logo The Pump

THE HIP SITE Slogans ABOVE THE RIM

PLAYLIFE ATR

KILLER LOOP DYNAMAX

FABRICA AEROSTEPS

LOGO Logo

VENTILATOR

TRADEMARKS

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LEVERAGIBILITY & RESILIENCE

These are two other parameters of Brand Equity which weren’t captured in David Aaker’s Brand Equity Model.

Leveragability:

It shows how versatile a brand is and how it could leverage the brand to get into other businesses (line extension). In our questions we identified eight products or services and asked the respondents to say which brand they would like to see in the above eight segments. The findings are as follows:

The sample size was 30 respondents and 100% of the people would like to see UCB as a paint brand. More than 50% of the respondents preferred UCB as an airline brand also. Very few (3.3%) of the respondents would like to see UCB as a biscuit brand.

From the above table we can infer that people perceive UCB as the most versatile brand. Surprisingly, Spykar (the joker) has fared well in the versatility factor and is the second most versatile brand as perceived by the respondents.

Resilience:

It is the ability of a brand to survive competition based on price attacks, margin attacks and other moves by the competitors. The magnitude of resilience is related to the degree of loyalty for a particular brand. Our question on the purchase delay due to the availability factor conveys that UCB is the most resilient brand because 57% of the respondents were willing to delay their purchase if UCB is not available.

Airline 16

Laptop 7

Mobile Phone 9

Paint 30

Car 4

Sanitary Pads 2

Biscuits 1

Beverages 10

Results (UCB)

United Colors of Benetton 77

Spykar 62

Levis 49

Reebok 24

Pepe Jeans 28

TOTAL 240

Brands

Frequency of

appearance in

segments

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Other question which was related to resilience and loyalty was related to consumer stickiness to a particular brand if other were offering discount. In this parameter UCB was again the leader with 40% of the respondents were willing to stick to UCB even though other brands were coming out with promotional schemes in the form of discount.

Recommendations:

UCB needs to work in the advertisement segment and the way they want to communicate with the potential customers. This would help it to bring in new consumers. It needs to increase its visibility as it fared poorly on that parameter. The people who know about the brand and are using it are very loyal to the brand. They have trust in the quality of the product and they want to be associated with it. They should focus more on creating awareness and try to bring in new set of consumers who could then be converted into loyal ones. Perhaps, their advertising strategy is too sophisticated for the Indian consumers and in order to connect with the masses they need to give second thought on it.

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Model II

In model 2, the survey was conducted among 30 respondents.

In order to measure brand equity, there are two components that need to be considered. These components are Resilience and Leveragability. Resilience is the ability of a brand to protect itself and generate consistent volume and revenue, year after year whereas, Leveragability is the potential energy to extend a brand successfully into related, or even unrelated, product categories. The above-mentioned components in turn can be measured using Customer Loyalty as a barometer.

Three components can be used to define loyalty. These are:

1) Belief- the perception of the consumers about the brand based on certain factors.

2) Behavior- whether this perception culminates into purchase behavior.

3) Trends- if the customers are willing to persist with the brand.

Apparel industry has a relatively medium level of involvement attached to it. This is because this sector does not have much differentiation and also price attached is not much of a barrier. Consumers connect quality apparel with self-confidence and success.

In order to measure loyalty, two parameters have been taken. These are:

1) Marketing support

Marketing support refers to marketing aids that facilitate the projection of the right brand image and induce a purchase. The various marketing support include advertising, a brand ambassador, short-term sales promotion etc. These form the perception that a consumer has about the brand. Marketing support also enables a trial purchase by ensuring a regency factor i.e. how easily can a brand be recalled by the consumers. If the marketing support is successful in shaping a benign perception of a brand in the minds of the consumer then it may lead to a long-term association between the two i.e. loyalty.

2) Relevance

Relevance refers to the importance of the brand to a consumer i.e. how closely can it satiate the needs of the consumer. In this case, relevancy is defined by the ingredients and the fragrance of the shampoo brand. Ingredients and fragrance are the two most important features that consumers look for in a shampoo. The more relevant a brand is to a consumer, the more the probability of a conversion to a purchase of the brand/product.

Both marketing support and relevance are apt parameters for measuring loyalty. This is because the higher the relevancy of an apparel brand (in terms of quality and style quotient) to a consumer the more loyal would be the consumer. At the same time, marketing support may ensure a short-term purchase of the apparel brand but a repeat purchase may not

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occur if it is stopped. Hence, the lower the importance of marketing supports to a consumer and higher the relevance of the brand, the more the chances that the customer will be loyal.

As per our model, a consumer buys apparel because he/she finds it very relevant for him/her and is not much influenced by marketing support activities. What matters is the relevance of the product. Even if the brand does not have very good advertisements or brand ambassadors, customer continues to buy the product. What is actually driving the consumer is the relevance of the product.

Questionnaire for Brand Equity measurement

1. To what extent does marketing support influence your purchase decision?

(Scale: No influence, Low influence. Medium influence, High influence)

Brand Response

Spykar


Pepe Jeans

Levi’s

Reebok

2. How relevant (Quality & Style Quotient) are each of these brands to you?

(Scale: Most relevant, Medium relevance, Low relevance, Not relevant)

Brand Response

Spykar


Pepe Jeans

Levi’s

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Reebok

3.

Which of these brands has been your last purchase?

Spykar


Levi’s

Reebok

Pepe Jeans

4. For 3 of the next four purchases, which of the following brand would you prefer?

Spykar


Levi’s

Reebok

Pepe Jeans

5. Would you buy other products ( like Footwear, Belts, Wallets, etc.) of the following brands ( Multiple responses can be given)

Spykar


Levi’s

Reebok

Pepe Jeans

The grid would be:

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Measurement of Brand Equity

Measurement of brand equity from model 2

Three components- beliefs, behaviour, and trend (which would show loyalty) have been analysed. Our survey involves 30 respondents.

A) Belief grid

The parameters taken are relevance and marketing support. A loyal customer would be one who thinks that their brand is very relevant for them, and this relevance is so high that they do not give much importance to the marketing support. In other words, the consumer finds the product so relevant that it does not matter to him whether the brand is highly advertised; it has good brand ambassadors etc.

In the top box, meaning those customers who believe the brand is of most relevance and marketing support has no influence, we find that maximum percentage of consumers are from Levi’s. Thus, our brand United Colors of Benetton, as would be seen from the belief matrix, enjoys a loyal group of customers lesser than that of all other brands evaluated. We can also infer from the matrix that marketing support plays a big role in choice of brands in the minds of customer especially for our brand UCB which is a little over 90%.

Belief Matrix of all the brands


M1 M2 M3 M4

No influence Low

influence Medium influence

High influence

R1 Most relevance 3.33% 0.00% 30.00% 30.00%

R2 Medium relevance 3.33% 0.00% 13.33% 20.00%

R3 Low relevance 0.00% 0.00% 0.00% 0.00%

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R4 No relevance 0.00% 0.00% 0.00% 0.00%

United Colors of Benetton:

Have a relatively less number of respondents in the “top box” which meaning this customers who believe the brand is of high relevance and marketing support has no influence. This would reflect the most loyal group of customers those most insulated from competitive marketing activities. It is expected that customers in this segment would contribute disproportionately to category volume.

For UCB, 1 out of 30 is in “top box”. In the upper, right hand 2*2 matrix, UCB has 28 out of 30 respondents. Thus, UCB has a very high number of customers which are loyal due to the marketing support provided.

Spykar M1 M2 M3 M4

No influence Low


High influence

R1 Most relevance 3.33% 13.33% 0.00% 0.00%


R3 Low relevance 6.67% 0.00% 26.67% 0.00%

R4 No relevance 20.00% 3.33% 3.33% 0.00%

Spykar:

Has a relatively number of respondents in the upper, left hand 2*2 matrix, Spykar has 7 out of 30 respondents in this region. Thus, Spykar has a good number of loyal respondents.

Levi’s M1 M2 M3 M4

No influence Low


High influence

R1 Most relevance 6.67% 3.33% 26.67% 0.00%


R3 Low relevance 0.00% 0.00% 0.00% 0.00%

R4 No relevance 0.00% 0.00% 0.00% 0.00%

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Levi’s:

Has a relatively high number of respondents in the top box, 2 out of 30 respondents are in the upper hand left corner box. In the upper, left hand 2*2 matrix, Levi’s has 14 out of 30 respondents.

Thus, Levi’s has a relatively high number of loyal respondents.

Reebok M1 M2 M3 M4

No influence Low


High influence

R1 Most relevance 0.00% 0.00% 0.00% 0.00%


R3 Low relevance 3.33% 0.00% 20.00% 0.00%

R4 No relevance 3.33% 0.00% 0.00% 0.00%

Reebok:

Has a relatively number of respondents in the upper, left hand 2*2 matrix, Spykar has 7 out of 30 respondents in this region. Thus, Reebok has a good number of loyal respondents.

Pepe Jeans M1 M2 M3 M4

No influence Low


High influence

R1 Most relevance 3.33% 0.00% 0.00% 0.00%


R3 Low relevance 0.00% 6.67% 16.67% 16.67%

R4 No relevance 6.67% 0.00% 0.00% 0.00%

Pepe Jeans:

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Has a relatively number of respondents in the upper, left hand 2*2 matrix, Pepe Jeans has 14 out of 30 respondents in this region. Thus, Reebok has relatively high number of loyal respondents.

Consolidated belief matrix

Most relevantUCB 3.33% 0.00% 30.00% 30.00%

Spykar 3.33% 13.33% 0.00% 0.00%

Levis 6.67% 3.33% 26.67% 0.00%

Reebok

Pepe Jeans 3.33% 0.00% 0.00% 0.00%

Medium relevanceUCB 3.33% 0.00% 13.33% 20.00%

Spykar 3.33% 3.33% 16.67% 0.00%

Levis 13.33% 23.33% 23.33% 3.33%

Reebok

Pepe Jeans 43.33% 0.00% 6.67% 0.00%

Low relevanceUCB 0.00% 0.00% 0.00% 0.00%

Spykar 6.67% 0.00% 26.67% 0.00%

Levis 0.00% 0.00% 0.00% 0.00%

Reebok

Pepe Jeans 0.00% 6.67% 16.67% 16.67%

No relevanceUCB 0.00% 0.00% 0.00% 0.00%

Spykar 20.00% 3.33% 3.33% 0.00%

Levis 0.00% 0.00% 0.00% 0.00%

Reebok

Pepe Jeans 6.67% 0.00% 0.00% 0.00%

3.33% 0.00% 0.00% 0.00%

16.67% 6.67% 50.00% 0.00%

3.33% 0.00% 20.00% 0.00%

BELIEF MATRIX

No influence Low influence Medium influence High influence

0.00% 0.00% 0.00% 0.00%

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B) Behaviour

Behaviour is more objectively measured than beliefs. In behaviour, we see how one brand is chosen over another. One cannot be loyal to a brand that is never bought, no matter how much admiration is expressed thereby making “Loyalty Contribution” an important factor.

In the behaviour matrices, each cell shows the number of respondents. For example, 1 in the most relevance-no influence zone of UCB turns out to be zero when comes to buying it. In this, figures show the absolute number.


M1 M2 M3 M4

No influence Low


High influence

R1 Most relevance 0 0 5 0

R2 Medium relevance 0 0 0 0

R3 Low relevance 0 0 0 3

R4 No relevance 0 0 0 2

UCB: In UCB, it was seen in the belief matrix that 1 is in most relevance – no influence zone. In behaviour matrix, it is seen that 0 out of those 1 have purchased the brand, thus consumers perceive it to be high in relevance but buy it only if there is some marketing activity from the brand.

Looking at the marginal statistics, it is seen that marketing support is a bigger driver for our brand UCB. When we see the lower two grids, even though there was low or no relevance attached 5 out of 10 which lie here purchased the product because of high influence due to marketing support.

Spykar M1 M2 M3 M4

No influence Low


High influence





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Spykar: Even though Belief Matrix showed some amount of loyalty from consumers but behaviour matrix defies this as none among them go ahead and purchase.

Levi’s M1 M2 M3 M4

No influence Low


High influence





Levi’s: Belief Matrix showed that 2 were in “top box”. In behaviour matrix, it is seen that 2 of this 2 have purchased the brand thereby showing loyalty contribution.

Reebok M1 M2 M3 M4

No influence Low


High influence





Reebok: 7 were in upper left hand 2*2 matrix in belief matrix which is seen at 0 in behaviour matrix until there is some marketing support thereby signifying that loyalty contribution is zero.

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Pepe Jeans M1 M2 M3 M4

No influence Low


High influence





Pepe Jeans: 14 were in upper left hand 2*2 matrix in belief matrix which is seen at 1 in behaviour matrix thereby we can infer conversion of loyalty to sales is abysmal.

Consolidated behaviour matrix

Most relevanceUCB 0.00% 0.00% 50.00% 0.00%

Spykar 0.00% 0.00% 0.00% 0.00%

Levis 16.67% 0.00% 41.67% 8.33%

Reebok

Pepe Jeans 0.00% 0.00% 0.00% 0.00%

Medium relevanceUCB 0.00% 0.00% 0.00% 0.00%

Spykar 0.00% 0.00% 0.00% 0.00%

Levis 16.67% 16.67% 0.00% 0.00%

Reebok

Pepe Jeans 100.00% 0.00% 0.00% 0.00%

Low relevanceUCB 0.00% 0.00% 0.00% 30.00%

Spykar 0.00% 0.00% 50.00% 0.00%

Levis 0.00% 0.00% 0.00% 0.00%

Reebok

Pepe Jeans 0.00% 0.00% 0.00% 0.00%

No relevanceUCB 0.00% 0.00% 0.00% 20.00%

Spykar 50.00% 0.00% 0.00% 0.00%

Levis 0.00% 0.00% 0.00% 0.00%

Reebok

Pepe Jeans 0.00% 0.00% 0.00% 0.00%

No influence Low influence Medium influence High influence

BEHAVIOUR MATRIX

0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 80.00% 0.00%

0.00% 0.00% 20.00% 0.00%

0.00% 0.00% 0.00% 0.00%

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Future Trend

Future trend can be assessed by simply asking consumers to project future purchase behaviour. An existing customer of apparel, in our analysis, would be a loyalist if, out of the next 4 purchases, 3 of them would be of his/her existing brand. This metric reflects the percent of brand sales contributed by all loyal customers to the apparel brands. The ‘Trend’ column in the loyalty contribution grid shows the number of respondents who will prefer particular apparel brand at least thrice out of the next four purchases. The “New Customer” column shows the potential customers which would be added in future.

In our questionnaire, we first asked –

Which brand has been your last purchase?

Then we asked,

Of the next four purchases, at least three would be for which brand

Brands Behaviour Trend New Customers Added Market share % Loyalty %

UCB 10 6 11 33.33 60.00

Spykar 2 0 7 6.67 0.00

Levis 12 4 1 40.00 33.33

Reebok 5 1 0 16.67 20.00

Pepe Jeans 1 0 0 3.33 0.00

Total 30 100.00

Inference:

6 out of 10 respondents currently using UCB would prefer to continue using it in future, thereby showing a loyalty % of 60%. But keeping in mind the previous findings of loyalty for UCB we can infer that loyalty of 60% is mainly due to marketing efforts which will also lead to addition of 11 new customers in future. Though UCB does not enjoy high loyalty but is second in market share with 33.33% next to that of Levi’s which is at 40%.

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Brand Resiliency

Resiliency is a brand’s ability to protect itself and generate consistent volume and revenue, year after year. Resiliency also describes a brand’s ability to gain more than its fair share of category revenue and profits in the future.

Market Share: If 10 out of 30 respondents use UCB then market share is 10/30.

Equity Share: When a respondent says that out of the next 4, he/she would use the current brand at least thrice, it reflects the equity of the brand.

Thus, it can be said that UCB, when compared to other brands surveyed is not resilient to adverse market forces but has the ability to use promotional activities at the optimal levels in luring customers. Therefore we can infer that UCB’s Equity Share is due to promotional equity i.e. value gained out of promotional activity. Thus, UCB enjoys the ability to generate consistent volume and revenue year after year.

Market share vs. Equity share

Market Share Future Trends

UCB 33.33 170.00%

Spykar 6.67 350.00%

Levis 40.00 41.67%

Reebok 16.67 20.00%

Pepe Jeans 3.33 0.00%

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Leveragability index for UCB

This metric attempt to measure the relative importance of product relevance with respect to marketing support and suggesting that if the degree of relevance is much stronger than marketing support, there is a potential to leverage that perception into other areas beyond the immediate market. Leveragability Index here is belief defined. The leveragability index is derived in the following way:

Most Relevance M1 , Low influence(R2)

Most Relevance M1 , Low influence R2 + Medium relevance M2 , No Influence(R1)

The summary of metrics suggests that brand UCB offers equity disproportionate to its market share. It’s more likely to responsive to marketing efforts. Here UCB’s index of 100% can be interpreted to mean 100% of sales are sourced from the marketing efforts keeping in sync with the previous findings of the model.

To understand the leveragability power of UCB brand, our questionnaire included the following question –

Would you buy other products (like footwear, wallet, watch, etc.) of the following brands (Multiple responses can be given)

The responses were favourable for UCB. The following graph shows that UCB enjoys the power of leveragability.

Leveragability Index

Products M1R2 M2R1 L-index

United Colors of Benetton(UCB) 1 0 100.00%

Spykar 1 4 20.00%

Levis 4 1 80.00%

Reebok 5 0 100.00%

Pepe Jeans 13 1 92.86%

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Value of a brand’s loyal customers relative to other brands

It has been established that the loyal customers in R1M1 are the most valuable, so they should be weighted most heavily. The loyal customers in the adjacent cells, particularly in R1M2(those who find the product most relevant and marketing support is of no influence the next most valuable, which leads to the following order of importance with respect to the brand franchise: R1M1- R1M2- R2M1-R2M2.

Weights can then be assigned, in this case by decreasing integers from 5 to 1. Therefore we multiply the number of respondents in RIM1 in the behaviour grid and multiply with 4, and so on. This way, we arrive at a score for each brand.

Brands

Brand Equity Index Share Quality

Index Market share %

UCB 9 3.00 200.00

Spykar 25 1.67 0.00

Levis 30 12.00 111.11

Reebok 20 3.33 66.67

Pepe Jeans 57 1.90 0.00

Thus in conclusion, brand UCB enjoys Leveragability but not resilience but its marketing efforts are very effective. UCB has set of customers which will continue to be loyal (60%) due to its continued marketing efforts. The leveragability factor is also enjoyed by UCB the most.

brandy equity of united colors of ucb

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