This document discusses segmentation, brand equity, and methods for measuring brand equity. It provides: 1. Definitions and examples of segmentation based on geographic, demographic, psychographic, and behavioral variables. 2. A definition of brand equity as the attraction and attachment consumers feel to a brand based on past experiences, and its impact on sales and pricing. 3. Reasons for measuring brand equity including supporting strategic decisions, evaluating brand management performance, and assessing brand value. 4. Five models for measuring brand equity - financial metrics, strength metrics, consumer metrics, the ten metrics model, and sharing tiering metrics.

1. ASSIGNMENT 8.1 – SEGMENTATION & BRAND EQUITY
Tuan Duong
Vo Thi

2. SEGMENTATION
Dividing the total market into smaller groups of buyers with
distinct needs, characteristics, or behavior who might require
separate products or marketing mixes
Definition
Segmentation
Divide the total market
into smaller segments
Targeting
Select the segment or
segments to enter
Differentiation
Differentiate the market offering to
create superior customer value
Positioning
Position the market offering in the
minds of target customers
Select customers to serve Decide on a value proposition
Create value
for targeted
customers

3. SEGMENTATION Variables used for segmentation
Geographic
segmentation
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
Divides the market
into different
geographical units
such as nations,
regions, states,
counties, or cities
Divides the market into
groups based on variables
such as age, gender,
family size, income,
occupation and
education
Divides buyers into
groups based on their
knowledge, attitudes,
uses, or responses to a
product
Divides buyers into
different groups
based on social
class, lifestyle, or
personality traits

4. Mid-high
Income
Office
Workers
Central
Business
district
Small-
Medium
Business
District
Standalone
Offices
Brought in
themselves
Eat
in
Intense
workload
Occasionally
intense
workload
Quick
dinning
Fine
Dining
Eat in
Eat
out
Controlable
workload
Brought
in maids
Fine
Dinning
Brought in
maids
Brought in
themselves
Eat
in
Quick
dinning
Eat
out
Brought in
maids
From nearly
shops
From home
SEGMENTATION Example
From nearly
shops
From home
Fine
Dining
Eat
out
Brought in
maids
From nearly
shops
From home
From nearly
shops
From home
Demographic
(Base on income)
Geographic (rough
market size & degree
of competition)
Behavioral (amounts of their workload which can identify
how they spend their time during lunch break)
Dining behaviors office workers

5. SEGMENTATION Example Tourism behaviors in travel agent
High mobility
Low mobility
Commercial Touristic
Adventurers
High mobility
Spotted on Rural
Area cells
Extreme Tourists
Very high mobility
Spotted on Various
city cells
Multi Purposes
High Mobility
Spotted on Com
& Tourists cells
Mobile Businessman
Medium to High Mobility
Spotted on Variety
Commercial Area cells
Standing Businessman
Low Mobility
Spotted on
Commercial/hotel cells
Tourists based on Resort
Limited Mobility
Spotted on resort/all-in-
package cells
Segments base on high/low mobility (life style – psychology segmentation)
purposes of touristic/commercial (uses of product – behavioral segmentation)

6. Share of budget
Purchase frequency
Retail coverage
Quality
Perceived cost
Level of recommendation
Understand my needs
Preference
Differentiator
Future purchase intent
+ +
For the consumer: The attraction & attachment to a brand from the results of
their past experiences with the value proposition represented by brand itself.
For the company: The incremental sales contribution per year obtained by the
brand in comparison to the product or services with no brand-building efforts.
Nike charged premium prices for its sneakers as the consequences of a high
brand preference or attachment. Apple charger very premium prices for its
phone & laptop just because of its innovation promises.
BRAND EQUITY Definition
Example
BRAND EQUITY Component

7. 1. To understand drivers of Brand’s strength in order to
support strategic decision making.
2. To evaluate Brand Management’s performance in
increasing equity over time.
3. To evaluate efficacy of brand building programs.
4. To assess the value of the brand for purposes of M&A.
Measuring brand equity is the research about consumers’ mindset, thoughts or feelings either positive
or negative about a specific brand. There are 5 models for measuring brand equity:
1. Financial metrics: Market share, price sensitivity, Profitability, Revenues, Marketing Investments,
Grow rate, Cost to acquire new customers, Cost to retain customers.
2. Strength metrics: Accessibility, Awareness and knowledge of the brand, Loyalty, Licensing
potential, Retention, Aided & unaided recall, Buzz.
3. Consumer metrics: Relevance, Emotional connection, Differentiators, Value, Perceptions.
4. Ten metrics: Differentiation, Satisfaction, Perceived Quality, Leadership, Perceived value, Brand
personality, Organizational Associations, Brand awareness, Market share, Distribution coverage.
5. Sharing tiering metrics: Market share, Top box contribution, Loyalty contribution, Equity share,
Leveragability index.
BRAND EQUITY

8. Brand Awareness: HP’s score is only 15% above average &
take position 3rd.
Technological leadership: HP is higher than the base 24% but
still take 3rd position.
Worldwide presence: HP has 40% higher score than the base
to take 2nd position.
Willingness to pay a premium: Due to the strength of Apple,
HP and the rest take the score under the base.
Willingness to recommend: This parameter is for testing the
consumer satisfaction toward the brand, HP fails significantly as
it compares with Dell & Apple.
Reliability of the brand: HP gets the reliable level lower than
the industry average.
Value for money: In this parameter, once again, HP has the
lowest score and take 4th position.
Innovative: HP fails significantly compare to Dell & Apple. It just
only has higher score than IBM.
Quality: In this pillar for determining brand equity, HP continues
to fails directly to Apple & Dell.
Customer services Quality: In this pillar, Dell is the clear winner with
43% higher than the base. HP is the 3rd one.
Differentiated: For this parameter, HP has a positive variance about
15% higher than the base to take 2nd position.
Overall experience: Consolidated those experiences above, HP fails
completely while gain negative variance about 8% from the base.
Source: Brand tracker HP, 2012
BRAND EQUITY Example
TEN metrics method
HP BRAND equity measurement

9. Consumer believes that Ragu & Prego are similar but why share of Ragu is dominant the
market over others.
 Share tiering showed that Ragu takes more volume sales from its core customers who
think it is superior & worth the price
BRAND EQUITY Example
Sharing tiering method
Spaghetti sauce

10. Key findings & direction:
1. Share of Prego is mostly come from non-loyal consumer which make the brand become
vulnerable.
2. Prego should focus on Loyal consumer to drive volume by using the claim toward Quality
worth the price.
BRAND EQUITY Example
Sharing tiering method
Spaghetti sauce