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TRANSCRIPT
VISION ONE – THE DISCOVERY AGENCY
MEASURING
BRAND EQUITY Case Study
The UK Cereal Market There was a time when no breakfast was complete
without cereal. However, cereal sales are falling as
habits change, down by £78 million in the past year.
Not that there’s a lack of opportunity for a comeback.
There are 21 billion breakfasts eaten in the UK every
year and fewer people skip the meal now than in recent
times, but foods such as cereal bars and coffee shop
muffins are increasingly popular choices.
While cereal brands are innovating to try and claw back
some space on the table, the UK market is still
dominated by familiar names. Weetabix remains the
best-selling brand with sales worth almost £110 million,
while four Kellogg’s cereals, led by Crunchy Nut, follow
behind. As the competitions gets ever fiercer, brand
equity can play a crucial role in deciding which cereals
win a place in the shopping trolley
Measuring Brand Equity It’s no secret that there’s more to a brand than its logo. Each time we encounter a brand – by
seeing it, hearing about it or experiencing it – we build up a sense of what that brand is about.
Some brands make us feel good. Others… don’t. But our perception matters because it affects
our readiness to buy.
We call this brand equity.
At Vision One, we know that understanding brand equity is only half the story. The other half is
knowing how to improve it. But you can’t do one without the other, and that means measuring
brand equity in order to take the next step.
This case study looks at one of the most popular and well-known cereal brands, Weetabix, and
how its brand equity shapes up.
Cereal Brand Equities
There’s plenty of choice on the supermarket cereal aisle, but judged alongside these three other
leading brands, Weetabix has the tastiest brand equity score with 71 points. However,
competition for a place in the cereal bowl is strong, with Special K just behind on 68, and
Kellogg’s Corn Flakes catching up fast too.
1. The brand pyramid Brand awareness is just the start of a customer’s journey. This pyramid shows how many are taking the steps towards true loyalty. 2. Brand stature Is the brand perceived to be a leader or follower? Is it unique or a “me too”? 3.Brand delivery Promising much without delivering is a recipe for a sinking satisfaction score. 4. Brand utility Arguably the most important factor, this shows how well a brand meets market needs and its ability to
command a price premium.
Brand Pyramid
The brand pyramid is made up of 5 key metrics * Awareness * Consideration * Purchase * Satisfaction * Loyalty Every brand has a unique brand structure, and comparing these scores with key competitors helps to identify future opportunities. Overall, Weetabix has a strong brand pyramid, with a very high score for general brand awareness, and a respectable customer loyalty score too. The resulting brand loyalty metric of 63% is way above the average of 27%.
The Brand Equity Wheel Getting to the heart of brand equity means taking a spin round this wheel of fortune.
Meeting Rational & Emotional needs
Brand values vary considerably between the cereal brands providers, but convenience is an important factor for most. While Weetabix is the cereal that best meets wellness and health needs, Cornflakes and Special K are recognised for their convenience and speed.
£ Value
Although price will often be an important factor, it doesn’t exist in a vacuum, and £ value helps show which brands can command a price premium. Both Special K and Kellogg’s Krave score particularly highly in this category. However, while the other brands don’t hit the same heights, they still generally score well, indicating that they all have qualities that consumers appreciate.
Brand Delivery
Brands can promise plenty, but if they don’t deliver, consumers will soon feel dissatisfied and will be unlikely to recommend them. Word of mouth support can be very important to a brand, so delivery should be a major concern. In this category, Weetabix scores highest for the satisfaction and recommendation. However, all the brands perform well, suggesting that the sector has got delivery sussed.
Brand Stature
Brand stature is comprised of two key components. There’s brand differentiation – universally regarded as fundamental, reflecting the brand’s ability to stand out from the crowd. And there’s leadership – the extent to which the brand is seen to be ‘leading’ the market. Weetabix once again reigns supreme in this category, although as with many of the other scores, competition is tight right across the sector.
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