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Brand Equity: Giep Franzen
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Brand Equity: Giep Franzen

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7 juni 2007 - Tijdens de SWOCC-bijeenkomst over Brand Equity presenteert Giep Franzen SWOCC-publicatie 41 'Brand Equity and Brand Value'.

7 juni 2007 - Tijdens de SWOCC-bijeenkomst over Brand Equity presenteert Giep Franzen SWOCC-publicatie 41 'Brand Equity and Brand Value'.


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  • 1. Brand Equity = ?• Brand knowledge• Brand strength• Brand power• Brand esteem• Brand perceived quality• Brand reputation• Brand preference• Brand attachment• Brand commitment• Brand price premium• Brand value• Brand future cash flow
  • 2. Brand Equity vs. Brand ValueBrand equity: A measure of the influence that a brand exerts on the buying behaviour of customers.Brand value: A measure of the financial value of a brand as a separable asset - when it is sold or included on a balance sheet.
  • 3. Brand OrientationIntegrated Branding Brand Equity Brand ValueShareholder Value
  • 4. BRAND EQUITY
  • 5. Brand EquityThe 5 components of BESee: Franzen, 2007, p.18
  • 6. Mental BE (1)
  • 7. Relationship BE (2)
  • 8. Behavioural BE (3)
  • 9. Market BE (4 & 5)
  • 10. BRAND VALUE
  • 11. Brand Value $ 1. Coca-Cola 67.000 2. Microsoft 56.926 3. IBM 56.201 4. GE 48.907 5. Intel 32.319 6. Nokia 30.131 7. Toyota 27.941 8. Disney 27.848 9. McDonalds 27.501 10. Mercedes 21.795 11. Citi 21.458 12. Marlboro 21.350$ in million US Dollars 2006 Source: Interbrand, see Franzen (2007, Chapter 10)
  • 12. 13. Hewlett-Packard 20.45814. American Express 19.64115. BMW 19.61716. Gillette 19.57917. Louis Vuitton 17.60618. Cisco 17.53219. Honda 17.04920. Samsung 16.16921. Merrillynch 13.00122. Pepsi 12.69023. Nescafé 12.50724. Google 12.37625. Dell 12.256……………………………………..48. Philips 6.73085. ING 3.474 Source: Interbrand, see Franzen (2007, Chapter 10)
  • 13. Industry role of brands Source: Interbrand’s Brand Value Added index (Franzen, 2007, p.101-102)
  • 14. Contribution to SE value McDonalds 71% Disney 68% Nokia 51% Coca-Cola 51% Mercedes-Benz 47% IBM 39% Intel 22% Microsoft 21% Marlboro 20% GE 14%SE = Stock Exchange value Source: Interbrand (2002)
  • 15. MEASUREMENT
  • 16. Most used metrics (UK) % Firms using % Rated Top for Measure Assessing performanceAwareness 78 2Market share (volume or value) 78 36Relative price 70 37Complaints (dissatisfaction level) 69 45Consumer satisfaction 68 46Distribution/availability 66 18Total number of customers 65 40Perceived quality/esteem 64 35Loyalty / retention 64 67Relative perceived quality 62 62 Source: Ambler (2000)
  • 17. Brand Equity metrics• See Chapter 8• Single item measurements• Multi item measurements (different components), e.g. Brand Performance Scorecard My key learning: “the strength of a brand is always relative” (p.67)
  • 18. Brand drivers and outcomes
  • 19. Brand Value metricsDifferent brand value approaches, e.g. market value,historic costs, replacement costs, economic use (=DCF) DCF-method (Interbrand, Brand Finance) = Discounted Future Cash-Flow Method = net present value of the forecasted brand earnings, discounted by the brand discount rate = 5 steps (p.100-102)
  • 20. The ‘problem’ with Brand Value estimates My key learning: need for standardizationin billion US $Source: Businessweek (Franzen, 2007, p.107)
  • 21. More key learnings A brand is an asset in the same way that a building is an asset or a machine is an assetBrand assets are those characteristics of a brand that have a positive effect on its competative position (p.19)
  • 22. More key learningsThe brand equity position is of decisive importance for the strategy of a brand. Ideally, an analysis of themental, relational, behavioural, and market brand equity position of the brand is the basis for the formulation of brand goals (p.83) See also p.83-84 for learnings from Millward Brown’s BE research