iim lucknow - brand management - january 05, 2012

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IIM Lucknow

Brand Management

January 05 2012

Charanpreet Singh

Associate Dean

Praxis Business School

[email protected]

Click to edit Master titlestyle



Today we will talkabout«.

Measuring BrandPerformance

Brand Tracking

Methods of Brand Tracking

± Quantitative

Young & Rubicam¶s BAV

J. Aaker¶s Brand Personality

Kapferer¶s Brand Prism

± Qualitative

Laddering method




Measuring Brand

Performance

The most obvious measure:

Sales - more importantly,

market share ± variations

thereof

Objective

Give a view of history

A good mind can

understand outcomes in

some detail




Brand Tracking

Drawbacks of using sales and

market share as the

measure:

1. May not be able to

accurately predict the

future

2. Will not be able to pinpointthe problem areas

3. May lead to Type II (and

Type I) errors




Brand Tracking

Three components:

Brand Knowledge

Brand Equity ± premium

chargeable/ higher

numbers

Brand Value ± rupee value

if the brand is sold or

franchised



Brand TrackingBrand Knowledge

Has two components:

1. Brand Awareness ± does the

consumer know about the

brand?

2. Brand Image ± what does theconsumer associate with the

brand?



Brand Tracking

Brand Knowledge

Keller¶s Pyramid

Level 1: Brand Awareness

Level 2: Brand ImageLevel 3: Brand Evaluation

Level 4: Brand Loyalty

Few brands reach Level 4



Salience

Performance Imagery

Judgements Feelings

Resonance

Deep

Brand

Awareness

Strong

brand

associations

Positive

reactions

Intense,

activeloyalty

1. Identity

= Who are

you?

2. Meaning

= What are

you?

3. Response

= What

about you?

4. Relationship

= What about

you and me?

Kellers Brand Pyramid



Brand TrackingBrand Knowledge

Brand Awareness has two

dimensions:

1. Depth (Top-of-mind,

unaided, aided recall)

2. Breadth (length of time)



Brand Tracking

Keller¶s Brand Pyramid

Brand image has two

dimensions:

1. Functional: Real tangible

attributes of the brand

(Performance)

2. Emotional: Intangible

attributes: images

associated with the brand

(Imagery)



Brand KnowledgeKeller¶s Brand Pyramid

Brand Evaluation has two

dimensions:

1. Functional: Brand Value

and Credibility (Judgement)

2. Emotional: Self concept,feelings, social approval

and empathy (Feeling)



Brand Knowledge

Keller¶s Brand Pyramid

Brand Loyalty also derives

from the same two

dimensions ± the desire to

continue with the same

brand for rational or

emotional (or a combination

of) reasons ± it¶s about

attachment , commitment

and engagement(Resonance)



Brand KnowledgeMeasuring Brand Awareness

Test for recall ± classify intotop-of-mind, aided, unaided

Test for familiarity ± length of

exposure



Brand Knowledge

Measuring Methods

Quantitative Methods:

Young & Rubicam¶s BAV

J. Aaker¶s Brand Personality


Qualitative Methods:

Projective Techniques

Laddering

Zaltman metaphor elicitation




Young & Rubicam¶s Brand

Asset Valuator

Attempts to measure:

Brand Stature

± The current strength of the brand

Brand Vitality ± The potential for growth





Asset Valuator

Brand stature measures thecurrent strength of thebrand and depends on:

Knowledge ± how wellconsumers know the brand

Esteem - how highlyconsumers regard thebrand.





Asset Valuator

Brand vitality measures thegrowth potential of a brandand depends on:

Differentiation ± howdistinct the brand is

Relevance - howappropriate the brand is tothe target consumer





Asset Valuator Methodology:

The Y&R method uses 48

image, personality andattribute questions

administered to

respondents ± a set of 12

measuring each of the four dimensions





Asset Valuator

Methodology

Once the responses along the

four dimensions are

measured, we have the

scores of the brand across

the four dimensions

The Stature and Vitality

measures translate into a2*2 matrix with 4 quadrants



Measuring Brand PerformanceY & R BAV Matrix

Brand Stature

B

r a n d V i t a l i t y

4Low, Low

2

Low, High1

High, High

3High, Low





Asset Valuator

Quadrant 1

High Stature, High Vitality

Hail Chief!

People want to buy, MBAs

want to manage

Example ± all the brands you

wish to manage





Asset Valuator

Quadrant 2

Low Stature, High Vitality

Interpretation:Emerging Brand

Comparative strength:

measured by knowledge and

esteem scores ± knowledgescore is more fundamental

Example ± Airtel some years

back; Virgin Mobile now?

Indigo «





Asset Valuator

Quadrant 3

High Stature, Low VitalityInterpretation:

Potentially Declining Brand

Scores for differentiation and

relevance will give further

insights

Example ± Volvo?





Asset Valuator

Understanding what the

scores tell you «.

Relevance:

High relevance means your need-identification is spot-on

« the first building block is in

place




Young & Rubicam¶s Brand Asset Valuator

Quadrant 4

Low Stature, Low Vitality

Next





Asset Valuator


scores tell you «.

Differentiation:

Given a need identification,

how well have youdifferentiated yourself from

the others with respect to the

offering





Asset Valuator


scores tell you «.

Implication of High

Relevance, Low

Differentiation

Your need identification is

strong, but competitor¶s

offerings are seen to be

similar





Asset Valuator


scores tell you «.

Implication of High

Relevance, Low

Differentiation

The Prescription:

Don¶t tinker with the

positioning - concentrate on

the clarity of communication





Asset Valuator

Clarity of communication

SAFFOLA

SURF EXCEL

ASIAN PAINTS ± APEX ULTIMA

HAPPYDENT

FEVICOL





Asset Valuator


scores tell you «.

Implication of Low Relevance,

High Differentiation

Consumers clearly see it as

different from competition,but do not relate to the

benefit or image portrayed

by it





Asset Valuator


scores tell you «.

Implication of Low Relevance,

High Differentiation

Prescription:

Reposition « or wait!





Asset Valuator

Milkmaid ± before

repositioning

Paloma ice tea by nestle

Ms. Cigarettes

Reva cars

Marks & Spencer¶s in India





Asset Valuator


scores tell you

The Knowledge score tellsyou how well the brand is

known

Function of:

Brand building efforts

Time





Asset Valuator


scores tell you

The Esteem score tells you

how well the brand isregarded and respected

Function of:The way the brand has

conducted itself on the value

attribute « reality and

perception




Young & Rubicam¶s Brand Asset Valuator


scores tell you

High knowledge, low esteem:

The brand personality is notreinforced, or has undesired

attributes





Asset Valuator

Weak/ Undesired Brand

Personality

Australian cricket team

Reliance industries

ITC ± before repositioning

Cola companies

IIPM (?)



Measuring BrandPerformance Young & Rubicam¶s Brand

Asset Valuator

A Survey based on the

Brand Asset Valuator isconducted annually

containing data about

20.000 brands, based on

the opinion of over 230.000

respondents in 44 countries.



Measuring Brand PerformanceY & R BAV Matrix

Brand Stature

B

r a n d V i t a l

i t y

Unfocussed

Levis-Strauss

Xerox

Untapped

potential

Budweiser

Heinz

Leadership

BMW

Starbucks

Guiness

Eroding

Kellog¶s

Reuters



Measuring BrandPerformance Young & Rubicam¶s Brand

Asset Valuator

The BAV model could throw

up results that lead us to the

softer aspect of the brand ±

the Brand Personality




Aaker¶s Model of BrandPersonality

Aaker¶s model has limitations:

personification of brands is

restrictive - a brand

possesses dimensions

which one may or may not

be able to personify




Kapferer¶s brand identity

prism

Kapferer outlined 6 facets of a

brand ± and these 6 facets

underline the dimensions of

the brand¶s identity




Kapferer¶s Brand Identity

Prism

Physical facet (External):

Packaging

Color

Product look & feel

May be prominent or

dormant

Is the first stage in brand

construction



Measuring BrandPerformance Kapferer¶s Brand Identity

Prism

Brand personality(Internal):

This is the link with Aaker¶s

concept of brandpersonality





Prism

Brand Relationship

(external):

More relevant to b2b and

services and deals with the

quality of transactions.

Trust, commitment, ethicsare the key variables.




Brand Relationship (contd.)

Key questions

How would Sales describe

the relationship attributes

for their customer

management process?

How would Customer

support describe their

approach to increasing

customer satisfaction?

How does the brand want to

be seen by customers in

marketing communication?





Prism

Brand Culture (internal):

Culture is a deep-seated

facet and implies a system

of values, a source of

inspiration, brand energy.

Cultural moorings: urban/

rural/ Indian/ global

Foster¶s, Rolex, Ceylon tea,Kitchen¶s of India, e-

choupal

The World¶s Local Bank





Prism

Reflected consumer

(external):

Whom is the brand seen as

targeted to and the image

of the target which the

brand offers to the public

Marlboro, Raymond¶s, Open

Source Software





Prism

Consumer Mentalisation(internal):

If reflection is the target¶s

outward mirror, the self-

image is the target¶s owninternal mirror

Through our attitude

towards certain brands, we

develop a certain type of inner relationship with

ourselves

Marlboro, Raymond¶s, Open

Source Software




Brand Identity PrismNIKE

Physique PersonalitySports & Fitness Roger Federer,

Rafael Nadal

Relationship CultureSponsorship, American,

Ethics Just do it

Reflection Self ImageAggressive, Comfort, Cool, I am an athlete

In your face

NIKE




Reflection:

true sportsman-ship, A good team

player, strong work

ethic

Se lf-Image:

Rel ates more tocompeting t han t o

winning

Re lationship:Quali ty and

heritage

Personal ity:Tradi tional , conserva-

tive, collective

Physique:Sports and

fitness

Culture:European,

Traditional

Picture of Sender

E

x t er n al i z a t i on

I n t e r n a l i z a t i o

n

Picture of Recipient

Adidas





Prism

The identity prism puts the

brand under the

microscope of each of its

facets

Comes up with diagnoses -

useful when brand identity

prisms are worked out for competitors




Qualitative Methods of measuring brand

performance

Laddering




Personal values research:

In-depth profiling of the

consumer and his or her

relationship to products:

Offers potential for

understanding the

"cognitive" positioning of

current products

Permits the development

of positioning strategies for

new products





Macro (sociology):

standard survey research

methodology combined

with a classification

scheme to categorize

respondents intopredetermined clusters or

groups

VALs ± Values, Attitudesand Lifestyles -

methodology of the

Stanford Research Institute



Measuring BrandPerformance VALs

Administer an interval

scaled instrument with a

series of questions onVALs

Cluster the respondents by

running a cluster analysis

and give names to eachcluster (belonger, emulator,

I am me, achiever)





Product neutral

gives the overall value

orientation of target

segments

Silent on the linkagesbetween the product and

the personally relevant role

it has in the life of the

consumer




Personal values research

Micro (psychology):Means-end theory

(Gutman ± 1982)

linkages between the

attributes that exist inproducts (the "means"),

the consequences for the

consumer provided by the

attributes,

and the personal values

(the ³ends´) the

consequences reinforce




Means-end theory

consumer actions produce

consequences

consumers learn to

associate particular

consequences with

particular product attributesthey have reinforced

through their buying

consumers learn to choose

products containingattributes which are

instrumental in achieving

their desired

consequences




Means-end theory

Means-EndT

heory simplyspecifies the rationale

underlying why

consequences are

important «.namely

«.personal values




Means-end theory

Attributes (A)

The Hero Honda Karizma is

launched on the platform of

power emerging from a 223

cc engine - the attribute




Means-end theory

Consequences (C)

The power of the bike could

lead to the consequences

of:

It goes faster (speed)

It is sturdier (power =

sturdiness) It goes long distances




Means-end theory

Consequences (C)

The consequence of ³itgoes faster´ could further

be:

You will zip past your

friends and classmates.




Means-end theory

Values (V)

The values of ³you will zip

past your friends andclassmates´ could be:

Self esteem among peers

and/ or

Attractiveness/fear(!)amongst the opposite sex




Means-end theory

Consequences

The consequences of ³it is

sturdier´ could further be:

It will last longer

It will have lower maintenance




Means-end theory

Values

The values of ³it will lastlonger and will have lower

maintenance´ could be:

Pride in being careful

about the money spent -vfm buyer




Means-end theory

Consequences

The consequence of ³itgoes long distances´ could

be that

As a sales executive, you

could cover more territoryand achieve higher sales.




Means-end theory

Values

The values of ³as a sales

executive, you could cover more territory and achieve

higher sales´ could be:

The pride from

professional achievement /likelihood of promotion and

hence better social status




Laddering

Laddering refers to an in-

depth, one-on-one

interviewing technique

used to develop an

understanding of how

consumers translate the

attributes of products into

meaningful associations

with respect to self,following the Means-End

Theory




Laddering

a tailored interviewing format

using primarily a series of

directed probes, typified by

the ³Why is that important toyou?´ question

goal of determining sets of

linkages between the key

perceptual elements acrossthe range of attributes (A),

consequences (C), and

values (V).




Laddering

provides a perspective on

how product information is

processed from amotivational perspective -

the underlying reasons why

an attribute or a

consequence is important

can be uncovered




Laddering

the following ladder, starting with a

basic dis-tinction between types

of snack chips, represents part of the data collection from a single

subject in a salty-snack study:

(V) self-esteem

I

(C) better figure

I

(C) don¶t get fat

I

(C) eat lessI

(A) strong taste

I

(A) flavored chip




Laddering

Data Collection

One-on-one interviews.

Typical question is: ³why is

that important to you´?

Let¶s go through an example

- the product class chosenis Wine Coolers

1 E oking the Sit ational Conte t



1. Evoking the Situational Context

Interviewer : You indicated that you would be more likely to drink a wine cooler at

a party on the weekend with friends, why is that?

Respondent: Well, wine coolers have less alcohol than a mixed drink and becausethey are so filling I tend to drink fewer and more slowly.

Interviewer: What is the benefit of having less alcohol when you are around your

friends?

Respondent: I never really have thought about it. I don¶t know.

Interviewer : Try to think about it in relation to the party situation. (*) When wasthe last time you had a wine cooler in this party with friends situation?

Respondent: Last weekend.

Interviewer: Okay, why coolers last weekend?

Respondent: Well, I knew I would be drinking a long time andI didn¶t want to get wasted.

Interviewer : Why was it important to not get wasted at the party?

Respondent: When I¶m at a party I like to socialize, talk to my friends, make some

new friends. If I get wasted I¶m afraid I¶d make an ass of myself and people won¶t

invite. It¶s important for me to be part of the group.




Laddering

Data Analysis

The summary ladder for (1)

is:

V: sense of belonging (part

of the group)

C: socialize

C: avoid getting drunk

(wasted) A: less alcohol/filling

2. P ostulating the Absence of an Object or a State of Being (*).



g j g ( )

Interviewer: You said you prefer a cooler when you get home after work because

of the full-bodied taste. What¶s so good about a full-bodied taste after work?

Respondent: I like it. I work hard and it feels good to drink something satisfying.

Interviewer : Why is a satisfying drink important to you after work?

Respondent: Because it is. I just enjoy it.

Interviewer : What would you drink if you didn¶t have a cooler available to you? (*)

Respondent: Probably a light beer.

Interviewer: What¶s better about a wine cooler as opposed to a light beer when

you get home after work?

Respondent: Well, if I start drinking beer, I have a hard time stopping. I just

continue on into the night. But with coolers I get filled up and it¶s easy to stop. Plus, I

tend to not eat as much dinner.

Interviewer : So why is continuing to drink into the evening something you don¶t

want to do?

Respondent: Well, if I keep drinking I generally fall asleep pretty early and I don¶t

get a chance to talk to my wife after the kids go to bed. She works hard with the

house and the kids all day²and it¶s really important that I talk to her so we can keep

our good relationship, our family life, going.




Laddering

Data AnalysisThe summary ladder for (2)

is:

V good family life

C able to talk to my wife

C don¶t fall asleep

C (consume less alcohol)

A filled up/easy to stop

A full-bodied taste/ less

alcohol

3 Negative Laddering (*)



3. Negative Laddering (*)

Interviewer : You indicated a distinction between 12 ounce and 16 ounce bottles.

What size bottle do you prefer?

Respondent: I always buy a 12 ounce bottle.

Interviewer : What¶s the benefit of buying a 12 ounce bottle?

Respondent: I just buy it out of habit.

Interviewer : Why wouldn¶t you buy a 16 ounce? (*)

Respondent: It¶s too much for me to drink and it gets warm before I can finish it all.

Then I have to throw it away.

Interviewer : So how do you feel when you have to throw it away?

Respondent: It makes me mad because I¶m wasting my money.

Interviewer : What¶s the importance of money to you?

Respondent: I¶m in charge of the family budget, so it¶s my responsibility to make

sure it¶s spent right.




Laddering

Data Analysis


is:

V responsibility to family

C waste money

C throw it away (don¶t

drink all of it)

C gets warm

C too much to drink

A larger size

4. Age-regression Contrast Probe (*)



4. Age regression Contrast Probe ( )

Interviewer : You said you most often drink coolers at the bar. Why is that?

Respondent: I¶ve never really thought about it. I just order them.

Interviewer : Is there a difference in your drinking habits compared to a couple of

years ago? (*)

Respondent: Yes, I drink different types of drinks now.

Interviewer : Why is that?

Respondent: Well, before I used to be in college, and the only thing around seemedto be beer.

Interviewer : So why do you drink coolers now?

Respondent: Well, now I have a career and when I do go out I go with coworkers.

Drinking a wine cooler looks better than drinking a beer.

Interviewer : Why is that?

Respondent: The bottle shape and the fancy label look more feminine

Interviewer : Why is that important to you?

Respondent: It¶s important to me to have a sophisticated image now that I¶m in the

work force. I want to be just like my coworkers.




Laddering

Data Analysis


is:

V like my coworkers

(belonging)

C sophisticated image

C more feminine A bottle shape

A fancy label



5. T hird-person P robe (*)

Interviewer : You mentioned you drink wine coolers at parties at your friend¶s

house. Why do you drink them there?

Respondent: Just because they have them.

Interviewer : Why not drink something else?

Respondent: I just like drinking coolers.

Interviewer : W hy do you think your friends have them at parties? (*)Respondent: I guess they want to impress us because wine coolers are

expensive. They relate quality to how expensive it is.

Interviewer : Why do they want to impress others?

Respondent: Since coolers are new, they are almost like a status symbol.

Interviewer So what is the value to them of having a status symbol?

Respondent: My friends always like to do one better than anyone else. It¶s

probably related to their self-esteem.

Laddering




Laddering

Data Analysis

The summary ladder for (5)is:

V self-esteem

C status symbol

C impress (others)

C quality

A expensive



6. Redirecting T echniques: Silence (*)/Communication Check (*)

Interviewer : You mentioned you like the carbonation in a cooler. What¶s the benefit

of it?

Respondent: I don¶t think there¶s any benefit to carbonation.

Interviewer : Why do you like it in a cooler?

Respondent: No particular reason.

Interviewer : (silence) (*)

Respondent: Come to think of it, carbonation makes it crisp and refreshing.

Interviewer : Why is that important?

Respondent: It makes it thirst quenching, especially after mowing the lawn and is

a pick-me-up.

Interviewer : Let me see if I understand what you¶re saying. (*) What do you meanby saying a pick-me-up?

Respondent: I mean after I finish it¶s like a reward for completing a chore I dislike.

Laddering




Laddering

Data Analysis

The summary ladder for (6)is:

V completing a chore

(accomplishment)

C reward

C thirst-quenching

C refreshing

A crisp

A carbonation




Laddering

Data Analysis

Code all the responses

Classify them into A/C/V

You may need to club

multiple responses under

the same heading: for

example, many of the

responses may be clubbedunder ³avoid the negatives

of alcohol´




Laddering

Data Analysis

Draw the tree diagram,

called Hierarchical ValueMap

Hypothetical Hierarchical Value Map of Wine Cooler Category



Self-esteem 23 Family Life 21 feel better maintain respect

about self of others

self Image better family ties

self worth

| Belonging 22 | \

| security | \

| camaraderie | \

| friendship | \

Accomplishment 20 | / \ | \

get most from life | / \ | \

| Impress Others 18 Socialize 19 \

| successful image (able to) \

| / \ easier to talk \| / \ open up \

| / \ more sociable \

Reward 16 So phist I cated Image 17 | \

satisfying personal status | \

compensation how others view me | \

/ \ / | Avoid Negatives \ / \ / More Feminine 13 of Alcohol 14 Avoid Waste 15

/ \ / socially not too drunk doesn¶t getThirst-quenching 12 \ / acceptable not too tired warm

relieves thirst \ / | \ | \

not too sour \ / | \ | \

/ \ / | \ | \

/ \ / | \ | \

Refreshing 10 Quality 8 | \ Consu me less 11 \

feel alert, superior product | \ | can¶t drink more

alive product quality | \ | can sip \

/ \ / \ | \ | | |

/ \ / \ | \ | | |

/ \ / \ | \ | | |

/ \ / \ Label Bottle Less | Smaller Size

Carbonation Crisp Expensive (fancy) (shape) Alcohol Fill ing (10 oz. )

(+) 1 2 (+) 3 4 5 6 9 7

T bl 1 S C t t C d f



Table 1: Summary Content Codes for

Hypothetical Wine Cooler Example

Values

(20) Accomplishment

(21) Family

(22) Belonging

(23) Self-esteem

Consequences

8) Quality9) Filling

(10) Refreshing

(11) Consume less

(12) Thirst-quenching

(13) More feminine

(14) Avoid negatives(15) Avoid waste

(16) Reward

(17) Sophisticated

(18) Impress others

(19) Socialize

Attributes1) Carbonation

2) Crisp

3) Expensive

4) Label

5) Bottle shape

6) Less alcohol7) Smaller




Laddering

Data Analysis

In terms of Values, there are

4 segments of this product

category:

Accomplishment

Family

Belonging

Self-esteem




Laddering

Positioning

We obtain the 4 segments

We also get cues on the

combinations of attributesand consequences leading

to these segments

We can position and

communicate our positioning accordingly




Laddering

Segment 1

Value : family

Attributes linked to thisvalue: less alcohol, filling,

smaller size

Consequences linked to this:

consume less, avoidnegatives of alcohol and

socialize better




Laddering

Segment 2

Value: sense of belonging

Attributes: crispness, bottleshape, expensive and fancy

label

Consequences: quality,

impress others,sophisticated image

Laddering




Laddering

Can be used for:

(1) segmenting consumers ²withrespect to their values

orientations for a product class

or brand;

(2) for assessing brands or

products in a fashion similar tothe use of more traditional

ratings;

(3) evaluating competitive

advertising; and

(4) as a basis for developing

advertising strategies




Thank you «

Have fun in the project!!

iim lucknow - brand management - january 05, 2012

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