leveraging the power of the brand for pricing using digital data
TRANSCRIPT
Leveraging the Power of Brand for
Pricing Using Digital Data
- Blueocean Market Intelligence
© 2016 Blueocean Market Intelligence 2
Relevance of Brand Value“A brand is the identity that your company, product, or service has over time. It incorporates both the visual and communicated aspects as defined by the enterprise, as well as the perceived identity from others outside the company..”
of people recommend a brand they like or follow on social media
38%
64%3x
of respondents will open an email if they trust the brand
Is the marketing exposure received by brands with higher emotional intensity
© 2016 Blueocean Market Intelligence 3
Relevance of Brand Value
“A brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed..”
77%of brand conversations on social media are people looking for advice, information, or help
increase in brand recall when a recognized brand appeared in search results16%
21%of consumers say they purchased a new product because it was from a brand they like
© 2016 Blueocean Market Intelligence 4
Brand Value – Influencing FactorsBRAND VALUE
Need stateWhat is the purpose of the product for the Customer?
General sentiment
What is the current perception of your
brand?TIMING!
Product differentiationWhat are the unique attributes?
Frame of referenceWhich category do the products belong to?
Market segmentsIs it Millennials or Gen Z?
Category ImpactHow important is the category to the Customer?
© 2016 Blueocean Market Intelligence 5
Brand Value & Price
Are you leveraging the power of your brand to price your products?
© 2016 Blueocean Market Intelligence 4
© 2016 Blueocean Market Intelligence 6
Typical Price Determination Process
Competition Market segment
Product lifecycle
stage
Product costs
Demand estimated
Desired Market Share
PRICE
© 2016 Blueocean Market Intelligence 7
Brand Value to the Mix!
Market segment
Demand estimated
Desired Market Share
PRICE
Brand ValueCompetition
Product lifecycle
stage
Product costs
© 2016 Blueocean Market Intelligence 8
Challenges faced - Brand Value & Price
© 2016 Blueocean Market Intelligence
How much can I charge for my brand
value?
There is so much data out
there, I am confused! How do I
start?
I do not have the teams in
place to support me on this initiative!
My competitor has just started off and they
are already commanding similar prices! How did this
happen?
I have a digital media team.
Could I leverage them?
My company has internal revenue goals I need to
meet. I am unsure if I
should indulge in this?
7
© 2016 Blueocean Market Intelligence 9
Brand Value – Digital Media Metrics
Amplification rate Applause rate Average engagement
rate Comment rate Conversation rate
Blog subscribers Bounce rate Click-throughs Email subscriptions Pageviews Traffic
Brand evangelists Customer retention
rate Customer
reviews/ratings Customer satisfaction Customer testimonials Net Promoter Score
Audience growth rate Average position Brand awareness Fans/followers Keyword frequency Post reach Potential impressions Potential reach Video views
© 2016 Blueocean Market Intelligence 10
Brand Value Measurement – Framework Objective
Expansion Opportunity
Premium Pricing power
Significant riskSignificant efforts required
Spread
Sentiment
Reach
Engagement
Influence Impact
Advocacy
Loyalty
© 2016 Blueocean Market Intelligence 11
Brand Value Measurement – FrameworkMinerva Solution Framework
Digital media properties Customer priorities Deployment & Measure
Brand value factored Product Pricing
SPREAD SENTIMENT
Distributed computing
ETL & Data processing
Statistical analytics
Infrastructure solution Visualizatio
ns
Discovery & Source
validations
Mining & Transformatio
nAlignment & Optimization
Solution & validationStage
Technology
Elements
Metrics
© 2016 Blueocean Market Intelligence 12
Case Study
A leading PC device manufacturerSituation: Significant investments & efforts made towards marketing & brand
building High volume of Customer interactions available in the digital media Information spread across multiple digital media properties
Problem: Challenges in factoring the brand value into product pricing models
© 2016 Blueocean Market Intelligence 13
Case Study – Framework Deployment
Ratings ReviewsSatisfaction InfluencersLikes/Dislikes
Data mining using Spark
Informatica for ETL &
ProcessingTableau
Visualizations
AWS Infrastructu
re
Statistical analytics using R
Segment Geography Category ChannelProduct
Discovery & Source
validations
Mining & Transformation
Alignment & Optimization
© 2016 Blueocean Market Intelligence 14
Case Study – Solution Deployment
Solution
© 2016 Blueocean Market Intelligence 15
Case Study – Solution Validation
• Utilized Customer systems to track changes in RUM (Revenue, Units, Margins) metrics
• Tracked impact of price changes on RUM
REVENUE
• Captured incremental digital data from same sources used to build the model
• Leveraged models to observe relevant volume changes
SPREAD
• Analysed incremental data using text analytics to mine sentiments for price changes
• Analysed data for sentiment on price changes
SENTIMENT
© 2016 Blueocean Market Intelligence 16
Conclusion
Brand value is very relevant & warrants monetization Digital media properties personify brand value Simplification of digital media metrics to measure
brand value is critical A working framework has been developed by Blueocean
to incorporate these metrics & monetize the brand value
THANK YOU
360 Discovery
For more information:
Nishchay [email protected] United States | United Kingdom | India | United Arab Emirates
www.blueoceanmi.com