BRAND AUDIT

A presentation
By…..Rajesh Devasia
POSITIONING
 Positioning got its attention when in 1972
Jack Trout and Al Ries wrote a series of
articles entitled “The Positioning Era” for the
trade paper Advertising Age
 Positioning starts with a product .A piece of
merchandise ,a service ,a company ,an
institution or a person. Perhaps yourself.
CONTINUED…

 Positioning is not what you do to a

product. Positioning is what you do to
the mind of the prospect.
 i.e. you position the product in the
mind of the prospect.
BRAND
 A name, sign or symbol used to identify
items or services of the seller(s) and to
differentiate them from goods or
services of competitors
 Name 5 brands in product category and
5 in services that comes to your mind?
 Please name all the brands of
beverages/soft drinks/carbonated soft
drinks you can think of?
GOOGLE.
BMW.
SEARCH. INDIA.
DRIVING
DIVERSITY
POSITIONING
 When you listen word “Mercedes-Benz”
The first word that comes to your mind is
“prestige”
Here “Mercedes-Benz” is a brand which has
been positioned in our minds in such a way
that whenever we listen to it, we start
thinking of prestige (Naam,Rutva and status)
it is called Positioning.
CONTINUED…
 Mysore Sandal -Purity and natural
fragrance.
 Margo- Herbal (neem).
 Lifebuoy-Hygiene.
 Lux International – Beauty Soap by
Stars
How these companies
positioned themselves
 Mercedes-Benz ………………… prestige.
 BMW …………………………… driving.
 Volvo…………………………….. Safety.
 Starbucks………………………… high-end
coffee..
 Rolex………………………………high-end
watches.
 Google ……….……………………Search.
CONTINUED…
 Marlboro………………… the rugged male
 Virginia slims……..the independent female
 Camel ………… cool and sophisticated
 Benson & hedges ….. “intellectual”
 Red bull ………………………… energy drink.
 FedEx…………………………… overnight
(delivery)
Why positioning?
 The mind rejects much of the information
offered to it due to over-communication

 In today’s communication jungle out there,

the only hope to score big is to be selective,
to concentrate on narrow targets, to practice
segmentation. In a word “positioning”
CONTINUED…
 In positioning, you narrow the focus
 “Focus” is the key to successful brand
building in today's ultra-competitive
marketplace
 Today the best approach to take, in our over
communicated society is to simplify the
message
 E.g VOLVO…for “safety”
BRAND EQUITY(BE)
 A measure used in Brand Auditing process
 Is BE the price at which brand can be sold by

an Orgn to another?
 Is brand loyalty a straight measure of BE?

 Is it the price of brand under study when all

brands are forced to have equal share?

………Food for thought ?
BRAND EQUITY: Definition

 COST BASED

 PRICE BASED

 CONSUMER BASED
Cost Based BE
 Historical Cost
Money that has been spent on brand till date
 Replacement Cost= Launch cost+ Prod,
Admin cost+ brand premium due to loyalty,
distribution etc
 Market Value Method
Comparing it with value realized in
comparable current merger or acquisition
 Discounted Cash Flow Method
 = s1/(1+r) +s2/(1+r)2 +…
Continued…
 Brand Contribution
BE=k*(Profit from Brand – Profit from
unbranded)
 Inter-Brand Method(UK)
BE= Wt avg of brand profit*P/E*Brand
strength
Price Based BE
 Price Premium Method
Comparing retail price of brand and
retail price of an unbranded product
 Market Share Equilibrium Method
Price at which market share for each of
the brands is equal
Customer Based BE
 Brand Recall
“top of the mind” awareness
 Attribute related approach

 Blind Test

difference between subjective and

objective attributes
Exercise
 Case study

 15 minutes

 Group of 5