What is value?

Brand Value Chain

“ is a structured approach to assessing the sources and

outcomes of brand equity and the manner by which

marketing activities create brand value”

The New Accountability Virtually every marketing dollar spent

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

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.

What it does?

Recognizes Numerous individuals within the organization that can affect brand equity.

Since different individuals make different brand related decisions BVC provides insights to help make better decisions.

Funda’s of BVC Value of the brand resides with the customers Brand value creation programme begins as firm

invests in marketing program This program affects the customer mind set with

respect to the brand. This mind set across broad customer base

results in certain outcomes for the brand in terms of how it performs in the market

Finally the investment community considers this performance and other factors to arrive at brand value

Value Stages 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?

Market performance How do customers respond in the

marketplace? Shareholder value

Multipliers Program quality multiplier

The ability of the marketing program to affect customer mindset

Must be clear, relevant, distinct, and consistent 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

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

Implications

Thus According to BVC marketers create value by

Shrewd investment in their marketing program

And then by maximizing the program, customer and market multiplier that translates that investments into bottom line financial benefits

Designing brand tracking studies.

Tracking studies involves information collected from consumers on routine basis.

Employ quantitative measures to provide marketers with current information about the performance about their brand and marketing programs

Considerations

What to track? Awareness and usage Brand judgments Brand performance Brand imagery Brand feelings Brand resonance

Corporate and family brand tracking

Will reflect the level and nature of experience that the particular group of respondents would be likely to have had with the company.

Infosys

How well managed is infosys? How easy is it to do business with

infosys? How concerned is infosys with its

customers? How approachable is infosys? How accessible is infosys? How much do you like doing business

with infosys?

Global tracking. Involves tracking in diverse geographic markets. Some Brand context measures. Economic indicators Retail Technology Personal attitudes and values Media indicators Demographic profile Other products and services Attitude to brand and shopping

How to conduct tracking studies?

Who to track?

When and where to track?

Establishing Brand equity management systems.

Internal structures and procedures within the organization to capitalize on the information collected.

“ is defined as set of organizational processes designed to improve the understanding and use of brand equity concept within the firm”

Brand equity charter

Formalizing company view of brand equity into document.

It provides relevant guidelines to people within the company as well as key outside partners.

It should do.. Define firms view of brand equity concept Describe the scope of key brands in terms of

associated products and the manner they have been branded and marketed.

Specify the actual and desired levels of equity

Explain how brand equity is measured Suggest how brand equity should be

managed in terms of strategic guidelines Specify proper treatment of brand in terms of

trademark usage etc

The Knicks

The Fans

The Knicks Brand Charter

Emotional Bond

•Uniquely authentic

•An incomparable event, scene and energy

•Relentless, resourceful, and tough

•Championship caliber

•A vital part of New York City

•Unlimited in its possibilities

•Sensory fulfillment

–Looks, feels, and sounds

•Visceral thrill

– Eager anticipation/excitement

– War: winning/losing

•Psychological benefits

– Personal identification (with heroes)

– Social currency/belonging

•Emotional awards

– Intense experience

– Childhood

– Sustaining

– Exceeds

An intensely passionate, professional, unparalleled New York City experience

Brand Equity Report 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 Responsibilities

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

Establish position of VP or 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

Measuring sources of brand equity

Qualitative research techniques: are relatively unstructured measurement approaches whereby a range of possible consumer responses is permitted

Quantities research techniques: are range of possible associations in terms of strength, favorability, uniqueness and a more definitive portrait of brand

Qualitative research techniques

Free associations Projective techniques Brand personality and values Experiential methods

Free associations

What comes to your mind when you think of Rolex?

The purpose of free association task is to identify the range of possible brand associations in consumers mind

Archetype Research ( is fundamental psychological association shared by the members of the culture, with a given cultural object)

Guidelines

Two main aspects. How to set up the questions? How to code and interpret the

resulting data?

Projective techniques

BSRB Projective techniques are

diagnostic tools to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters.

How is it done?

Rorschach test.

Cont…

Consumers are presented with incomplete stimulus and asked to complete it.

Or given ambiguous stimulus that may not make sense to them and asked to make sense out of it.

In doing so consumers will reveal some of their true beliefs.

Bubble exercises

Comparison tests

If ________ were a car which one would it be?

If ________ were a animal which one would it be?

If ________ were a vegetable which one would it be?

If ________ were a magazine which one would it be?

Brand personality and values

“ is the human characteristics or traits that can be attributed to a brand”

If Yamaha were to come alive as a person?

What would it be like? What would it do? Where would it live? Who would be its friends?

The big five

Conscientiousness. Agreeableness Neuroticism Openness Extroversion.

For brands

Sincerity Excitement Competence Sophistication Ruggedness

Experiential methods

Research consumers in their natural environment.

Listerine

Quantitative

Awareness Image Brand relationships Brand Responses

Awareness

Strength of brand in memory as reflected by consumers ability to identify various brand elements.

What's the implication of awareness in case of chocolates and television?

Relative importance of brand elements.

Consider this… Spot the brand. D_ _ _ NE_ KO_ _ K E_ _ _R _ _ _Y DE_ _ L G_ _ L L _ _ N_ K _ _ G KE_ _ I _ _T_ _ SA_ _ _ N _ N_ _ T_ E

Cont…

Recognition : ability to identify the brand under a variety of circumstances and can involve identification of any of the brand elements.

Recall

Ability to retrieve the actual brand element from memory when given some related probe or cue.

Unaided recall: based on all brands, provided a cue which brand is likely to be identified,

Phones

Aided recall

Phones Cell phones Touch screen phones With Windows With 3g Using possible sequence for

progressively narrower ques

Which one of the adhesives have you are most familiar?

Fevicol Vemicol Vermicol Fixit Fevistik

Spurious awareness

“ occurs when consumers erroneously claim that they recall something that really don’t and that may be does not exist”

Image

Strength Favorability Uniqueness

Scaling considerations

Free choice Scaling Ranking Multidimensional scaling

( perceptual mapping)

Brand relationships

Measuring: Behavioral loyalty:

Last purchase Next purchase

Attitudinal attachment Sense of community Active engagement

Brand Responses

Measuring Combination of brand feelings and judgments

Experiment

shopping list ½ kg Potatoes ½ kg Gram ½ liter milk Bunch of coriander leaves and green

chilies ½ kg Tea powder ½ kg cooking oil 2 kg Rice

shopping list ½ kg Potatoes ½ kg Gram ½ liter milk Bunch of coriander leaves and green

chilies Tea bags ½ kg cooking oil 2 kg Rice

Comparative Methods

“ involve experiments that examine consumer attitudes and behavior toward a brand to directly estimate the benefits arising from having a high level if awareness and string, favorable and unique brand associations”

Types of Comparative Methods

Brand based comparative approaches

Marketing based comparative approaches

Brand based comparative approaches

As means of measuring the outcomes of brand equity

Marketing element or activity under consideration is held fixed and examine consumer response based on changes in brand identification.

Blind test

Marketing based comparative approaches

Here the brand is held fixed and examine consumer responses based on changes in marketing program.

Consider this..

What's the first brand of chocolate comes to your mind when you buy one?

Dairy milk @10 Rs Dairy milk @14 Rs Dairy milk @18 Rs Dairy milk @25 Rs Dairy milk @40 Rs

Consider this…

If commercials of dairymilk were cut how long before the sales would drop?

1-3 months 3-6 months 6-12 months 1 year above

Conjoint analysis

Is survey based multivariate technique that enables marketers to profile the consumer decision process with respect to products and brand.

The value that consumers attach to each attribute level is call ‘part worth’.

Holistic methods

Attempts to place an overall value on the brand in either abstract utility terms or concrete financial terms.

Residual approach

Says “ Brand equity is what remains of the consumer preferences and choices after subtracting physical product effects”

Valuation approaches

Attempts to place a financial value on brand equity

Consider the following

Kitkat Fivestar Dairy milk Munch

Kitkat Fivestar Dairy milk munch

5 5 10 10

10 10 5 5

5 10 10 5

10 5 5 10

Assignment

Track the brand personality of the following.

Pulsar Fair and lovely Amul Airtel Thumsup Archies gallery