Our innovative brand equity model and measurement tool BrandVision was used to measure some of the UK’s leading mobile phone network providers. The results were slightly surprising with Giffgaff leading the way.... (read more).

1. MEASURING
BRAND EQUITY
Case Study
Measuring Brand Equity – GiffGaff

2. The UK Network Provider Market
If the rise of the internet changed the world, the arrival of the
smartphone sped up the revolution. With 80% of the UK population
going online regularly in 2017, almost four out of every five
internet users do it via a smartphone.
These near-ubiquitous devices are the communications success story
of the last decade, with 42.7 million UK smartphone users this year.
Although the growth is likely to slow as penetration increases, it is
thought that over two-thirds of the population will be using a
smartphone by 2019.
But where there’s a smartphone, there’s a network, and the UK is
dominated by four network providers: market leader EE with a 30%
share, along with O2, Three and Vodafone.
Measuring Brand Equity – GiffGaff

3. 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.
The four main mobile network operators – EE, O2, Three and
Vodafone – dominate the UK market, but this case study looks at
Giffgaff, a ‘virtual’ operator that uses the O2 network. As a relative
newcomer, how does its brand equity compare to much bigger rivals?
Measuring Brand Equity – GiffGaff

4. The Equity Brand Wheel
Getting to the heart of brand equity means taking a spin round
this particular wheel of fortune.
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.
Measuring Brand Equity – GiffGaff

5. Network Provider Brand Equities
Looking at this set of brand equity scores, the message comes through loud and clear that Giffgaff is
the strongest performer in the sector with 58 points. Its customer satisfaction score, along with
people’s readiness to recommend the brand, both lift it above competitors. However, Giffgaff’s lack of
uniqueness gives O2 a chance to creep up close behind.
Measuring Brand Equity – GiffGaff

6. The brand pyramid is made up of five 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.
Giffgaff performs relatively well when it comes to
awareness, but this high score does not feed through to
loyalty and satisfaction, and consequently the overall
brand pyramid score is low. However, the below-
average brand loyalty metric does give plenty of scope
for identifying opportunities.
The Brand Pyramid
Measuring Brand Equity – GiffGaff

7. Brand values vary considerably
between the mobile providers,
but most are recognised for
their ease.
As all six providers have similar
values, consumers have taken a
functional view when rating
them as opposed to considering
emotional needs.
While O2 scores highest, with
the emphasis on quality,
Giffgaff’s top values are ease
and value for money.
Meeting Rational &
Emotional
Needs

8. £ 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. Giffgaff is perceived to be a brand that offers good value, but that means consumers
are much less willing to pay a price premium than they are with other brands. All its competitors score significantly
higher in the £ value category, with Vodafone achieving the highest rating.
Measuring Brand Equity – GiffGaff

9. Brand Stature
Brand Stature comprises of two key
components. Brand Differentiation which
is universally regarded by brands as a
fundamental component of any brand and
reflect the ability of the brand to standout
from the crowd.
Leadership is key and reflects the stature
of the brand - as many shoppers will tend
to follow conventional wisdom and buy
'big' brands.
Giffgaff’s strengths are clear in this
category, as it is regarded both as a leader
and as ‘unique’ in a competitive sector.

10. 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
Giffgaff’s case, things are going very
well, as the brand holds a leading
position in both the satisfaction and
recommendation stakes.
This means consumers are playing a
big part in promoting the brand and
helping it achieve success.

11. For more information, please contact:
Duncan Swan, Director Vision One Research
Duncan@visionone.co.uk
(+44)203 693 3150
www.visionone.co.uk
Measuring Brand Equity – GiffGaff