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MEASUREMENT
OF
BRAND EQUITY
Presented By:-
Group 5
HOW TO MEASURE?
1. By its ability to generate future cash
flow.
2. By the value can only be created by
changes in customer behavior.
3. By the source and scale of this
emotional augmentation that the brand
provides to the underlying functionality
of the product or service.
There are two promising approach by which equity can be measured:
1. The first type of approach measures equity in terms of "outcomes,"
such as the extent to which customers are prepared to stake their
personal or professional reputation behind a brand by
recommending it to others or the price premium they are prepared to
pay.
2. The second type of approach measures equity in terms of the scale
and nature of the utility that the brand delivers to customers.
BRAND DYNAMICS
BY MILLWARD BROWN
BRAND DYNAMICS
BRAND DYNAMICS
1) Presence - Does the customer know about the brand.
- Brand must develop a presence.
2) Relevance - The features of the brands which gives an
appropriate benefit which meets the needs of the
consumers.
3) Performance - Brands needs to live up to the customer’s expectations
of product performance within the category.
4) Advantage - Developing distinctive personality gives the brand
a perceived consumer advantage.
5) Bond - Strong relationship with the brand due to reliance
on product performance.
- reliability, trustworthiness => true loyal consumer.
CBBE MODEL
Kevin lane Keller
CBBE MODEL
BRAND SALIENCE
• ‘Who are you?’
• Creating awareness for the brand
• As a marketer at this stage, you also have to know who your
customers are and how they decide between purchasing your product
versus that of your competitor’s.
• Make sure your target segment knows your USP and that the way
they perceive your brand is aligned with the way you want them to
see it.
• Example – ‘Thanda matlab COCA COLA’
BRAND PERFORMANCE AND IMAGERY
• ‘What are you?’
• Identify and communicate what your brand means
• Imagery
• focuses on how well your brand satisfies the functional needs of the consumers – namely
utilitarian, aesthetic and economic.
• influenced by intangible aspects of the brand that stem from the consumer’s experience
with it, word of mouth or advertising
• Example - Dove ‘Real Beauty’ campaign
• Brand performance
• Service and satisfaction with product
• Focuses on primary ingredients, supplementary features, product reliability and
durability, service effectiveness, style and design and the price.
BRAND JUDGEMENT AND FEELINGS
• ‘What about you?’
• Focuses on consumer responses to your brand
• Judgments
• Opinions of consumers that stem from their knowledge of the brand’s performance and
imagery.
• They can be divided into – brand credibility, brand consideration, quality and superiority.
• Feelings
• Customers’ emotional responses and reactions to the brand and can be divided into – warmth,
fun, excitement, security, social approval and self-respect.
• Emotional branding gains attention and sympathy that could potentially make them loyal to
your brand.
• Example - Cadbury Dairy Milk ‘Who will you make happy this Diwali?’
BRAND RESONANCE
• Customer’s ultimate relationship with the brand and the level of identification
associated with the same.
• This aspect can be broken down into –
• Behavioural loyalty
• attitudinal attachment
• sense of community
• active engagement.
• Example - Apple
IPSOS GROUP
EQUITY BUILDER
MODEL
COMPANY PROFILE
• Founded in 1975 by DIDIER TRUCHOT
• Global Market Research and a consulting firm
• Headquarter in Paris, France
• Paris Stock Exchange since 1 July 1999.
• Ipsos has offices in 88 countries, employing 16,530 people
EQUITY BUILDER MODEL
HEALTHY BRANDS:
•Are less vulnerable to a
competitor's activities
•Show increased
responsiveness to their own
marketing activities
•Can justify higher prices
•Have more loyal customers
•Have higher shares
•Are more profitable
From Research International
EQUITY ENGINE
• Most elegantly parsimonious
measure of Brand Equity.
• It expresses brand equity as a
combination of the functional
benefits delivered by the
brand (performance) and the
emotional benefits (affinity).
BRAND ASSET VALUATOR MODEL
(BAV MODEL) TO MEASURE BRAND
EQUITY
Differentiation
•Has your brand attracted consumers attention more than your competitors?
Relevance
•Is your product relevant to consumers in regards to price, convenience, and fulfilling their needs?
Esteem
•It is the perceived quality and customer perceptions about growing/declining popularity of a brand
Knowledge
•It measures the extent of the customer’s awareness of the brand and understanding of its identity
FOUR KEY PILLARS OF BRAND EQUITY
Relevance
Differentiation
Brand
Strength
• Brand Strength is an important
indicator of future potential &
performance.
• Relevant Differentiation is the major
challenge for brands and an important
indicator of brand health.
• These two pillars point to the brand’s
future value, rather than just reflecting
its past
Esteem
Knowledge
Brand
Stature
• Esteem and Knowledge together
create Brand Stature,
which is more of a report on past
performance.
BAV Model Dynamics
Differentiation>Relevance
Attract more trials to induce relevance
Relevance>Differentiation
You are in a mass segment competing
on price/convenience
Esteem>Knowledge
Well regarded,desire to purchase
Knowledge>Esteem
Pre conceived notions can be detrimental
incase of negative
WOM
BAV Model Power Grid
Brand Stature
Brand Strength
Brand Asset Valuator Model-Example
AC NIELSEN
WHAT PEOPLE WATCH, LISTEN TO AND
BUY
ACNielsen Corporation is the world's leading provider of market research,
information and analysis to the consumer products and services industries.
More than 9,000 clients in more than 100 countries rely on ACNielsen's
dedicated professionals to measure competitive marketplace dynamics, to
understand consumer attitudes and behavior, and to develop advanced
analytical insights that generate increased sales and profits.
WHAT THEY DO ?
• Nielsen creates link between how your brand impacts purchase intent
and sales performance by directly correlating its proprietary measure
of brand equity with market share and customer loyalty.
• Neilson give companies a clear portrait of who is doing what, and why
and show you which category attributes your consumers value most,
how your brand compares with competitors’, and which tactics will
cultivate stronger brand equity to realize revenue growth.
WHAT ALL THEY MEASURE
• Forecasting
• Advertising Expenditure
• Assortment Analytics
• Brand Building
• Concept Screening
• Consumer Decision Hierarchies
• Consumer Neuroscience
• Consumer Panels
• Demographics
• Media Planning
• Merchandising Services
• Neuro Ad Testing
• Portfolio Management
• Reach
• Retail Measurements
• Revenue Management Optimization
• Risk Assessment
• Resonance
• Reaction
• Store Observations
• Shopper Lab (Shopper Testing Environment)
• Behavioural
• Customer Satisfaction
THANK YOU

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BRAND EQUITY MEASUREMENT

  • 2. HOW TO MEASURE? 1. By its ability to generate future cash flow. 2. By the value can only be created by changes in customer behavior. 3. By the source and scale of this emotional augmentation that the brand provides to the underlying functionality of the product or service.
  • 3. There are two promising approach by which equity can be measured: 1. The first type of approach measures equity in terms of "outcomes," such as the extent to which customers are prepared to stake their personal or professional reputation behind a brand by recommending it to others or the price premium they are prepared to pay. 2. The second type of approach measures equity in terms of the scale and nature of the utility that the brand delivers to customers.
  • 6. BRAND DYNAMICS 1) Presence - Does the customer know about the brand. - Brand must develop a presence. 2) Relevance - The features of the brands which gives an appropriate benefit which meets the needs of the consumers. 3) Performance - Brands needs to live up to the customer’s expectations of product performance within the category. 4) Advantage - Developing distinctive personality gives the brand a perceived consumer advantage. 5) Bond - Strong relationship with the brand due to reliance on product performance. - reliability, trustworthiness => true loyal consumer.
  • 9. BRAND SALIENCE • ‘Who are you?’ • Creating awareness for the brand • As a marketer at this stage, you also have to know who your customers are and how they decide between purchasing your product versus that of your competitor’s. • Make sure your target segment knows your USP and that the way they perceive your brand is aligned with the way you want them to see it. • Example – ‘Thanda matlab COCA COLA’
  • 10. BRAND PERFORMANCE AND IMAGERY • ‘What are you?’ • Identify and communicate what your brand means • Imagery • focuses on how well your brand satisfies the functional needs of the consumers – namely utilitarian, aesthetic and economic. • influenced by intangible aspects of the brand that stem from the consumer’s experience with it, word of mouth or advertising • Example - Dove ‘Real Beauty’ campaign • Brand performance • Service and satisfaction with product • Focuses on primary ingredients, supplementary features, product reliability and durability, service effectiveness, style and design and the price.
  • 11. BRAND JUDGEMENT AND FEELINGS • ‘What about you?’ • Focuses on consumer responses to your brand • Judgments • Opinions of consumers that stem from their knowledge of the brand’s performance and imagery. • They can be divided into – brand credibility, brand consideration, quality and superiority. • Feelings • Customers’ emotional responses and reactions to the brand and can be divided into – warmth, fun, excitement, security, social approval and self-respect. • Emotional branding gains attention and sympathy that could potentially make them loyal to your brand. • Example - Cadbury Dairy Milk ‘Who will you make happy this Diwali?’
  • 12. BRAND RESONANCE • Customer’s ultimate relationship with the brand and the level of identification associated with the same. • This aspect can be broken down into – • Behavioural loyalty • attitudinal attachment • sense of community • active engagement. • Example - Apple
  • 14. COMPANY PROFILE • Founded in 1975 by DIDIER TRUCHOT • Global Market Research and a consulting firm • Headquarter in Paris, France • Paris Stock Exchange since 1 July 1999. • Ipsos has offices in 88 countries, employing 16,530 people
  • 15. EQUITY BUILDER MODEL HEALTHY BRANDS: •Are less vulnerable to a competitor's activities •Show increased responsiveness to their own marketing activities •Can justify higher prices •Have more loyal customers •Have higher shares •Are more profitable
  • 17. • Most elegantly parsimonious measure of Brand Equity. • It expresses brand equity as a combination of the functional benefits delivered by the brand (performance) and the emotional benefits (affinity).
  • 18. BRAND ASSET VALUATOR MODEL (BAV MODEL) TO MEASURE BRAND EQUITY
  • 19.
  • 20. Differentiation •Has your brand attracted consumers attention more than your competitors? Relevance •Is your product relevant to consumers in regards to price, convenience, and fulfilling their needs? Esteem •It is the perceived quality and customer perceptions about growing/declining popularity of a brand Knowledge •It measures the extent of the customer’s awareness of the brand and understanding of its identity FOUR KEY PILLARS OF BRAND EQUITY
  • 21. Relevance Differentiation Brand Strength • Brand Strength is an important indicator of future potential & performance. • Relevant Differentiation is the major challenge for brands and an important indicator of brand health. • These two pillars point to the brand’s future value, rather than just reflecting its past
  • 22. Esteem Knowledge Brand Stature • Esteem and Knowledge together create Brand Stature, which is more of a report on past performance.
  • 23. BAV Model Dynamics Differentiation>Relevance Attract more trials to induce relevance Relevance>Differentiation You are in a mass segment competing on price/convenience Esteem>Knowledge Well regarded,desire to purchase Knowledge>Esteem Pre conceived notions can be detrimental incase of negative WOM
  • 24. BAV Model Power Grid Brand Stature Brand Strength
  • 25. Brand Asset Valuator Model-Example
  • 27. WHAT PEOPLE WATCH, LISTEN TO AND BUY ACNielsen Corporation is the world's leading provider of market research, information and analysis to the consumer products and services industries. More than 9,000 clients in more than 100 countries rely on ACNielsen's dedicated professionals to measure competitive marketplace dynamics, to understand consumer attitudes and behavior, and to develop advanced analytical insights that generate increased sales and profits.
  • 28. WHAT THEY DO ? • Nielsen creates link between how your brand impacts purchase intent and sales performance by directly correlating its proprietary measure of brand equity with market share and customer loyalty. • Neilson give companies a clear portrait of who is doing what, and why and show you which category attributes your consumers value most, how your brand compares with competitors’, and which tactics will cultivate stronger brand equity to realize revenue growth.
  • 29. WHAT ALL THEY MEASURE • Forecasting • Advertising Expenditure • Assortment Analytics • Brand Building • Concept Screening • Consumer Decision Hierarchies • Consumer Neuroscience • Consumer Panels • Demographics • Media Planning • Merchandising Services • Neuro Ad Testing • Portfolio Management • Reach • Retail Measurements • Revenue Management Optimization • Risk Assessment • Resonance • Reaction • Store Observations • Shopper Lab (Shopper Testing Environment) • Behavioural • Customer Satisfaction