6. What is
a brand?
A set of associations (ideas,
memories and feelings) in
the mind of a consumer
7. What makes a brand valuable?
I N C R E A S I N G
T H E L I K E L I H O O D
that a consumer
wi l l buy/consider
I N C R E A S I N G
H OW MU C H
consumers
wi l l pay
Successful brands build associations that
deliver these commercial benefits
8. 8
MEANINGFUL
Consumers feel an
affinity for the brand
or think it meets their
needs
DIFFERENT
Feels different from
other brands or sets
the trends for the
category
SALIENT
Comes to mind
quickly and readily
when activated by
ideas relating to
category purchase
9. Apple: unique personality and
tangible product innovation =
differentiation worth paying for
137 248 131
137 158 272
Avr =
100
$185b
MEANINGFUL DIFFERENT SALIENT
Avr =
100
$78b
Coca-Cola: first to mind for
billions of thirsty people =
dominant volume share for
impulse category
10. Salient
The five key inputs…
Meets
Needs
Meaningful Different
Affinity
Unique
Dynamic
Awareness
Intensity
The new approach has inputs which shorter,
quicker, easier to administer
Please drag each brand onto the scale to indicate how
different they seem to others in the market. You can
place more than one brand in each box or leave a box
empty. Please place all brands on the scale before
continuing.
This type of questioning improve the model fit by 16%
Further development work through BrandZ:
>40 countries, >5000 brands, >300,000 consumers
11. MDS derives three key summary metrics of brand equity
related specifically to core business objectives
Our headline measures of equity recognise that your portfolio can
deliver a financial return in two ways and provides a predictive
measure of future potential.
11
Delivering more share
P OWE R is a prediction of the brand’s
share based purely on brand perceptions.
Are consumers predisposed to
choose the brand over others?
Justifying a price premium
P R E M I U M is a prediction of the price
index a brand can charge based purely on
perceptions.
Are consumers predisposed to pay
more for the brand?
P O T E N T I A L is the probability that the brand will
grow share based purely on brand perceptions.
Are consumers predisposed to stick with the
brand in future or try it?
FUTURE NOW
12. Meaningful, different and salient brands…
Each of these metrics are created from measures of
how meaningful, different and salient brands are.
12
… Have the POWER to
capture significantly
MORE VOLUME
POWER
… Can command a price
PREMIUM PREMIUM
… Have much greater
POTENTIAL to gain
value share in the future
POTENTIAL
13. Our Framework of consumer decision making
Predisposition and in-market activation allow us to determine what
drives your financial performance and the best way for you to leverage
share and/or to justify your price point now and in the future.
13
15. We are 90% electronic DC today, PAPI is going because….
15
Busy consumers
Less accessible
Poorer quality data
Slow study timelines
BUT WHAT’S NEXT?
17. Why consider mobile surveys?
ACTUALLY THE REAL QUESTION SHOULD BE WHY NOT?
17
1.76
BILLION
37%
GROWTH
15%
OF WEB
smartphones users by the end of 2014 – overtaking
laptops and PCs*
in the number of global 3G subscribers in the past year**
traffic comes via mobile – more than double last year;
Mobile traffic share already over 50% in India and China***
*Source: e.Marketer Global report June 2014 **Source: InformaWCIS;
***Source: StatCounter Global Stats, 9/12
18. Nearly 51% of web traffic in KSA comes from a
mobile phone device and not from a desktop (49%)
18
19. This is not surprising since KSA has the 3rd highest
smart phone penetration in the world.
53
48
47
47
44
43
42
33
25
18
15
40
Russia
Mexico
Thailand
South Africa
Argentina
Philippines
Japan
Turkey
Brazil
Vietnam
Indonesia
India
19
81
81
76
75
72
68
65
65
62
85
UK
Australia
Spain
Saudi Arabia
Canada
USA
China
Germany
France
Italy
Source – Google Our Mobile Planet 2014.
20. 20
MOBILE SURVEYS GIVE YOU GREAT
SHORT TERM ADVANTAGES
Consumers are connected to
their mobile phones all the time
and find it comfortable and
engaging as a communication
medium better interview
context
Pilot studies have shown that without
interviewers (over)prompting, mobile
data is more discriminating between
brands and reflect market reality better
better data quality
Speed of data access and deliverables
increases significantly.
21. 21
MOBILE SURVEYS WILL HELP YOU
FUTURE PROOF YOUR INSIGHTS
Door to door access will get increasingly difficult and expensive due to
rising trend of gated communities where higher income respondents reside
better representativeness of the sample
Can integrate exciting possibilities offered by the smartphone platform:
multimedia, geo-location (GPS), passive behaviour monitoring (once the
smartphone penetration is sufficiently high).
24. ACCESS TO
HIGHER
INCOME
HOUSEHOLDS
MOBILE GIVES US BETTER ACCESS TO HIGHER INCOME HOUSEHOLDS (MORE
VALUABLE 24
CUSTOMERS) THAN TRADITIONAL DOOR-TO-DOOR INTERVIEWING CAN
25. 25
MOBILE DATA
MATCHES UP
TO MARKET
SHARE
OVER TIME, MOBILE DATA MATCHES UP TO MARKET REALITY EVEN MORE
DUE TO THE ABILITY TO COVER WIDER GEOGRAPHIES NATIONALLY
26. 26
MORE HONEST
FEEDBACK
SELF-COMPLETION MODE MEANS THAT RESPONDENTS
ARE MORE DISCRIMINATING TOWARDS BRANDS,
GIVING US MORE HONEST AND USEFUL FEEDBACK
27. 27
NOT AN ISSUE CAPTURING
OPEN ENDED RESPONSES
28. 28
SCREEN SIZE
DOESN’T MATTER –
RESPONSES ARE
CONSISTENT
29. TWO KSA STUDIES IN FIGURES
29
8 mins
to complete
on average
for Banking
83%
answered
the surveys
using a
smartphone
65%
answered
the surveys
using an Apple
iOSdevice
11 mins
to complete on
average for
Auto
9 days
get 1000
completes
34. Take a Guess–
Which Brands have higher Power?
34
Power
12
35. What is driving Toyota’s Power?
Salient
156
Salient
156
Power
19.3
Salient
156
People consider the brands that are most
salient – the ones that come to mind
quickest when the need arises.
Different
88
Power
19.3
Meaningful
128
Because people are predisposed to consider
brands when they believe them to be
meaningful. They meet their needs better
than other brands and they appeal to them
more than others.
If a brand seeks to charge a premium, people
will only do so if they believe the brand is
meaningfully different in some way.
Very Salient and Strongly Meaningful overall. Weak perceived difference
is its main weakness as it is the most popular make in the country.
37. Power can transform quickly…
25%
20%
15%
10%
5%
0%
Over the last couple of years, the brand equity scores of Toyota has come down at the
expense of growth of brands like Ford and Hyundai.
37
Toyota Ford Hyundai Mercedes-Benz BMW
2011
2013
38. Changing demographics also impacting power shift:
Younger Saudis lean towards Hyundai and BMW
38
POWER SCORES
IN 2013
TOTAL
SAMPLE
20-29 YRS 30-50 YRS
Toyota 19.3%
Ford 12.1%
Hyundai 12%
Mercedes-Benz 11.8% Average Average
BMW 11.1%
Chevrolet 9%
Honda 9%
Nissan 8% Average Average
GMC 7% Average Average
Base: (400) (236) (164)
Lower than the average Higher than the average
40. What is driving Meaningful & Difference for cars in
KSA?
20.9%
40
Contribution to Meaningful Contribution to Difference
3.1%
0.4%
- 12.4%
17.0%
16.3%
26.6%
24.2%
Proud to drive
Better to drive
Stylish design
Acceptable price
Costs more
Too cheap
Doesn't meet needs
- 1.3%
- 15.6%
29.9%
1.7%
14.0%
16.7%
Proud to drive
Better to drive
Stylish design
Acceptable price
Costs more
Too cheap
Doesn't meet needs
Premium
pricing
Driving
experience
41. Power differences across mid-range car brands
Average
Endorsement
across category
Toyota Ford Hyundai
Better to drive than others in their
class 33%
More stylish and better designed
than others in their class 34%
Would be proud to use 34%
Acceptable price 13%
Does not meet my needs 22%
Costs more than you're prepared
to pay 12%
-8%
Too cheap 6% -1%
1%
-5%
13%
-4%
1%
41
9%
2%
-10%
-6%
9%
-15%
-1%
1%
-2%
-2%
-3%
4%
-6%
1%
42. Power differences across prestige brands
Average
Endorsement across
category
Mercedes Benz BMW
Better to drive than others in
their class 33%
More stylish and better designed
than others in their class 34%
Would be proud to use 34%
Acceptable price 13%
Does not meet my needs 22%
Costs more than you're prepared
to pay 12%
-10%
-11%
31%
29%
Too cheap 6% -1%
22%
13%
-2%
36%
33%
42
-5%
16%
-13%
38%
43. TO SUM UP….
43
The MDS framework:
- Helps you build meaningful brands & grown brand value
- Holistic in approach, yet can diagnose in detail the barriers &
facilitators to brand growth
- Validated, forward looking and linked to brands’ financial
performance.
Digital data-collection is already a reality
- Consumers are spending more time on digital devices
- Gives us better access to different consumer profiles
- Better quality data
- Realistically shorter questionnaires are the future
44. Any Questions?
Get in touch with Charles Foster
charles.foster@millwardbrown.com
Editor's Notes
But first of all I would like to introduce you to our brand philosophy and what we know about brands…
So as we know brands aren’t very tangible…the product or the service we sell is, but not the brand and it is all made up in consumers minds…so how de we equate that to financial value
A brands value lies in whether people will buy the service above all others and whether they will be willing to pay more…and the associations that a brand builds needs to deliver on these two elements to ensure commercial benefits
What do all strong brands have in common in terms of their assocations…they are meaningful in consumers minds both on an emotional and rational level, the are unique in some way setting them apart from the competition and they come readily to mind when consumers consider the category
As an example…2 very strong brands…and how they perform on driving MDS…firstly you will notice that they over index on all 3 areas…which means strong brands need all 3, but the headline strength can be different…
There are three “flavors” of predisposition that we measure in our research. Each one relates to a different behavioural outcome but ,importantly, each one of these measures is created based on different combinations of the three basic ingredients: meaning, difference and salience.
Power, the ability to command volume sales, depends on meaning and salience more than difference.
Premium, the ability to command a price premium, depends on meaning and difference far more than salience. Marketing strategies and tactics that only focus on creating salience potentially undermine a brand’s ability to command a price premium.
Potential, the likelihood that the brand will gain future value share, is similarly reliant on meaning and difference, less so salience.
Successful brands are meaningful, different and salient. The ideal balance for a specific brand is a function of both the category and the primary mode of financial return—sales volume or premium pricing.
There are three types of consumer predisposition to brands. We have a measure for each one:
Consumers are predisposed to choose the brand over others. This will drive brand volume, so Power predicts volume share based entirely on perceptions, absent of activation factors. We report Power as a percentage share because we want to reflect the relationship it has with Volume Share.
Consumers are predisposed to pay more for the brand. This will allow the brand to charge more, so Premium predicts the price index your brand can command, based purely on perceptions, absent of activation factors. We report the Premium score as an index because we want to reflect the relationship it has with in-market Price Index
Consumers are predisposed to stick with the brand in the future, or try it. This will prime the brand for future value share growth and is predicted by Potential, similar to what Voltage2.0 did, but improved. We express Potential as a % representing probability of growth.
All three predisposition metrics are based on the same foundations (Meaningful, Different and Salient) combined differently. All three (Power, Premium and Potential) are validated to in-market results.
Predisposition and in-market barriers and facilitators allow us to determine what drives your financial performance and the best way for you to leverage volume share and/or to justify your price point now and in the future.
World where smartphone are common-place , but still some big and important where smart-phone consumers are still a niche; but still represent a large number of people.
Our survey covers only smart-phone usage as we wanted a homogenous and comparable sample across markets, and with decreasing costs of devices and data, smartphone penetration will be growing considerably in low-penetration markets, so in some markets these results are more future-facing
Difference for Auto is interesting. In KSA, Difference seems to be driven by status and premium (I might read ‘costs more than prepared to pay’ in the more positive sense of premium)...and from a product perspective, more than drive quality it is design (sort of linked to status and premium – design can be a head turner). While Mercedes has a higher Power score compared to BMW, BMW is stronger on design and amongst Youth.
The reason why Power is similar for Ford and Hyundai is because on the biggest component driving POWER (MEANINGFUL), their scores are actually quite similar.
Where the gap between the two is the biggest is Difference but that only accounts for ~25% contribution. Refer to the angle of each slice of the pie.
So Ford and Hyundai are close on what matters more to drive volume share (MEANINGFUL).
Further, if we look at Power over time, we do see BMW holding while Mercedes weakens; pointing to BMW arguably having longer term strengths compared to Mercedes…
The drive experience is immensely important to the general car consumers if they are to be relevant (or meaningful). When it comes to establishing a sense of difference though, the sense of design and premium pricing contributes more.
