CHAPTER 8 DEVELOPING A BRAND EQUITY MEASUREMENT AND

CHAPTER 8: DEVELOPING A BRAND EQUITY MEASUREMENT AND MANAGEMENT SYSTEM Lecturer: Md Shahedur Rahman 1

The New Accountability 8. 2 Virtually every marketing dollar spent today must be justified as both effective and efficient in terms of “return of marketing investment” (ROMI).

Truth !! 8. 3 Hardly any marketing professional who is not worried about what return will a specific campaign bring about. Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and activities that cannot be linked to short-term incremental profits, but yet can be seen as improving brand equity.

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The Brand Value Chain 8. 5 Broader perspective than just the CBBE model The brand value chain is a structured approach to assessing the sources and outcomes of brand equity Which marketing activities create brand value?

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The Brand Value Chain 8. 7

Value Stages 8. 8 Marketing program investment Any marketing program that can be attributed to brand value development Customer mindset In what way have customers been changed as a result of the marketing program?

Value Stages 8. 9 Market performance How do customers respond in the marketplace? Shareholder value

Multipliers 8. 10 Program quality multiplier The ability of the marketing program to affect customer mindset Must be clear, relevant, distinct, and consistent

Program quality multiplier 8. 11 Clarity Relevance Is the marketing program meaningful to the consumer? Do consumers feel the brand is one they should seriously consider? Distinctiveness Did consumers understand the marketing program? Do consumers properly interpret and evaluate its meaning? How unique is the marketing program? How creative or differentiating it is? Consistency How well integrated is the marketing program? Is the brand evolving in the right direction?

Multipliers 8. 12 Customer multiplier The extent to which value created in the minds of customers affects market performance It depends on factors such as competitive superiority, channel support, and customer size and profile

8. 13 Competitive superiority How effective are the marketing investments of competing brands? (Jui vs Parachute) How strongly have competitors affected customer mindset? Are their brand equity stronger? Channel and other intermediary support How much selling effort is being put forth by various channel partners? Are retailers helping to sell your brand? Are distributors motivated to lift your product? Channel conflict? Customer size and profile How many and what types of customers are attracted to the brand? Are they profitable? (toothpaste being launched under magic when only 2% of the consumers every year shift from toothpowder category to toothpaste).

Multipliers 8. 14 Market multiplier The extent to which the value generated through brand market performance is manifested in shareholder value It depends on factors such as market dynamics, growth potential, risk profile, and brand contribution

8. 15 Market dynamics Growth potential Prospect of the brand, prospect of the industry, Analyze the micro/micro environment. (External Opportunities). Risk profile Dynamics of financial market (Investors sentiment) Risk profile for the brand? (External threats). Brand contribution How important is the brand as part of the firms brand portfolio?

Brand Equity Measurement System 8. 16 A set of research procedures that is designed To provide timely, accurate, and actionable information for marketers We need to make the best possible tactical decisions in the short run and strategic decisions in the long run

Brand Equity Measurement System 8. 17 Conducting brand audits Developing tracking procedures Designing a brand equity management system

Designing Brand Tracking Studies 8. 18 Tracking studies involve information collected from consumers on a routine basis over time Often done on a “continuous” basis Provide descriptive and diagnostic information

What to Track 8. 19 Customize tracking surveys to address the specific issues faced by the brand Product-brand tracking Corporate or family brand tracking Global tracking

How to Conduct Tracking Studies 8. 20 Who to track (target market) When and where to track (how frequently) How to interpret brand tracking

Brand Equity Management System 8. 21 A brand equity management system is a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm: Brand equity charter Brand equity report Brand equity responsibilities

Brand Equity Charter 8. 22 Provides general guidelines to marketing managers within the company as well as key marketing partners outside the company Company view of brand equity into a formal document. Should be updated annually

Brand Equity Charter Components 8. 23 Define the firm’s view of the brand equity Describe the scope of the key brands Specify actual and desired equity for the brand Explain how brand equity is measured Suggest how brand equity should be measured Outline how marketing programs should be devised Specify the proper treatment for the brand in terms of trademark usage, packaging, and communication

8. 24 Brand Equity Charter with Kool History of the brand/key events: how the brand has evolved; how it was repositioned, and key events? Shaving cream After shave range Body spray

8. 25 Brand Equity Charter with Kool • The brand vision • The “complete male grooming solution” that gives the leap to an “attractive man” and • Be a entry barrier for other companies in the male grooming category.

Brand Kool in next 3 years 8. 26 DNA Get Noticed Manly Fragrance Shaving line After Shave Line Hygiene Line Beard Softner Manly Fragrance • Kool Shaving Cream • Monsoon • Frosty • Saloon • Kool Shaving Foam • Ultra Glide • Extreme Comfort • Kool Shaving Gel • Kool After Shave Lotion • Antiseptic • Kool After Shave Moisture Gel • Moisture • Kool After Shave Fairness Cream • Fairness • Kool Deo Body Spray • Blue, Citrus, Saint, Original • Kool Deo Talc - Original • Kool Deo Soap • Blue, Citrus, Saint, Original

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Brand Equity Report 8. 28 Assembles the results of the tracking survey and other relevant performance measures To be developed monthly, quarterly, or annually Provides descriptive information as to what is happening with the brand as well as diagnostic information on why it is happening

Brand Equity Responsibilities 8. 29 Organizational responsibilities and processes that aim to maximize long-term brand equity Establish position of Director of Equity Management to oversee implementation of Brand Equity Charter and Reports Ensure that, as much as possible, marketing of the brand is done in a way that reflects the spirit of the charter and the substance of the report