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A Practical Guide to Measuring Brand Equity LIEBERMAN RESEARCH WORLDWIDE 1900 Avenue of the Stars, 15th floor Los Angeles, CA 90067 Tel: (310) 553-0550 • Fax: (310) 553-4607 www.lrwonline.com

Introduction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What Is Brand Equity? ,[object Object],Components The Marketing Effect That Is Uniquely Attributable to the Brand Brand Equity A customer franchise/constituency of some determined size and quality --- Who have leverageable associations with, and attitudes toward, the brand --- Which result in a greater willingness to consider, and pay a premium price for, products and services with the brand name. BRAND EQUITY DEFINED

What’s The Motivations For Measuring Brand Equity ,[object Object],REASONS TO MEASURE EQUITY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Establish a Value for the Brand Provide Direction to Improve Productivity

Key Measures of Brand Equity ,[object Object],Key Measures Brand Equity Components ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customer franchise of some determined size and quality --- Who have leverageable associations with and attitudes toward the brand --- Which result in a greater willingness to consider, and pay a premium for, products and services with the brand name

Recommended Methodology ,[object Object],INTERVIEW CONTENT Marketing Leverage Attitude and Imagery Customer Franchise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Penetration -- Sizing the Franchise ,[object Object],Brand Penetration and Dynamics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Data Needs*

Profiling the Franchise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Data Needs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CHAID (Illustrative) Discriminant Function Analysis (Illustrative)

Profiling the Franchise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Data Needs Ever tried Current usage Primary usage Exclusive usage Overall Purchase Satisfaction Interest Loyalty Funnel Definitely Not Probably Not Might Probably Definitely Very Dissatisfied Somewhat Dissatisfied Neutral Somewhat Dissatisfied Very Satisfied

Brand Associations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Data Needs ,[object Object],[object Object],[object Object],[object Object],Special Techniques

Brand Imagery Performance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Data Needs Perceptual Brand Map Importance vs. Performance Brand A ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],High Low Importance High Low Performance ,[object Object]

Pricing Leverage -- Brand/Price Trade-Off ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Purchase Decision Trade-Off - Conjoint Analysis - Price Premium vs. Unbranded Product ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Brand I Brand II Brand III Brand IV

Brand Extendibility ,[object Object],Brand/Category Appropriateness Two Monadic Cells Appropriateness Map Cell #1: Cell #2: Close In Farther Out Product Competitors Competitors Category B 1 B 2 B 3 B 1 B 2 B 3 A 8 6 5 8 5 9 B 7 5 6 6 4 7 C 6 5 6 5 6 7 D 4 6 7 6 8 9 E 8 9 9 6 4 4 F 9 5 6 4 7 7 G 5 10 4 5 9 5 H 4 4 7 4 5 8 I 7 2 2 7 5 7 J 10 7 4 7 4 3 ,[object Object],[object Object],[object Object],[object Object],[object Object],IB Xerox ,[object Object],[object Object],[object Object],[object Object]

Typical Brand Equity Summary ,[object Object],Customer Franchise ,[object Object],[object Object],[object Object],[object Object],Associations, Imagery and Performance Marketing Leverage Executive Summary Equity Components ,[object Object],[object Object],[object Object],[object Object],Illustrative

Channel Equity ,[object Object],Key Measures Brand Equity Components ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Extent and quality of distribution network Attitudes and perceived performance Ability to command a premium price and sell-in new products

Why Select LRW for Brand Equity Research? ,[object Object],PARTIAL LIST OF CLIENTS ITT Hartford AT&T Kellogg’s Eli Lilly Eddie Bauer Turner Chicago Tribune Blue Cross Bank of America Barclays Macy’s Taco Bell Discovery Channel Callaway Golf Warner Bros. Microsoft Brooklyn Union Gas Sunbeam

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