Developing a Brand Equity

Measurement and
Management System
• How strong is my brand?
• How do I ensure my marketing activities
create value?
• How can I measure strength of my
brand?
Understanding Consumer Behavior
Who buys our product or service?
Who makes the decision to buy the product?
Who influences the decision to buy the product?
How is the purchase decision made? Who assumes what role?
What does the customer buy? What needs must be satisfied?
Why do customers buy a particular brand?
Where do they go or look to buy the product or service?
When do they buy? Any seasonality factors?
What are customers’ attitudes toward our product?
What social factors might influence the purchase decision?
Does the customers’ lifestyle influence their decisions?
How is our product perceived by customers?
How do demographic factors influence the purchase decision?
The New Accountability
• Virtually every marketing dollar spent today must be
justified as both effective and efficient in terms of
– Return on marketing investment (ROMI)
• Increased accountability
– Has forced marketers to address tough challenges
▪ Develop new measurement approaches
The New Accountability
• Conducting Brand Audits
– Brand Inventory
– Brand Exploratory
• Brand Positioning and the Supporting Marketing Program
Conducting Brand Audits
• Brand audit
– Comprehensive examination of a brand to discover its
sources of brand equity
– Consists of two steps
1. Brand inventory
2. Brand exploratory
Conducting Brand Audits
• Marketing audit
– Independent examination of a company’s marketing
environment, objectives, strategies, and activities
▪ Agreement on objectives, scope, and approach
▪ Data collection
▪ Report preparation and presentation
Brand Inventory
• First step in the brand audit
• Purpose of the brand inventory
– Provide a current, comprehensive profile of how all
products and services are marketed and branded
• Profiling each product or service requires marketers to
catalogue:
– Visual and written form for each product or service sold
– The inherent product attributes or characteristics of the
brand
– Pricing, communications, and distribution policies
Brand Inventory
• An inventory of brand assets may provide useful insights:
1. Outdated brand accounts that have fallen into disuse
2. Overlapping brand assets which can be merged or
deleted
3. Existing brand accounts with information that is either
inaccurate or not up-to-date
4. Particular digital and social media channels where the
brand does not have a presence
The outcome of the brand inventory should be an
accurate, comprehensive, and up-to-date profile of which
brand elements are employed and how, and the nature of
the supporting marketing program
Brand Exploratory
• Second step of the brand audit
• Provides detailed information about what consumers
actually think of a brand
– Research directed to understanding what consumers:
▪ Think and feel about a brand
▪ Act toward it
– Helps identify sources of brand equity and possible
barriers
Brand Exploratory
• Three criteria to judge qualitative research techniques
(according to Levy)
– Direction (is it related to the person or the brand)
– Depth (responses are superficial or in-depth)
– Diversity (way the information relates to information
gathered by other techniques)
Qualitative Techniques
Free association
Adjective ratings and checklists
Confessional interviews
Projective techniques
Photo sorts
Archetypal research
Bubble drawings
Story telling
Personification exercises
Role playing
Metaphor elicitation*
Day/Behavior reconstruction
Photo/Written journal
Participatory design
Consumer-led problem solving
Real-life experimenting
Collaging and drawing
Consumer shadowing
Consumer–product interaction
Video observation
 Brand Exploratory
1. Free Association method
• To explore the spontaneous thoughts, feelings,
and associations that individuals have with a
particular brand
• To uncover the underlying perceptions and
emotions that consumers may have about a brand
• Participants are presented with the name or logo
of a brand, and they are asked to respond with
the first words or phrases that come to mind
• Researchers analyze the collected responses to
identify common themes, patterns, and recurring
words associated with each brand
 Brand Exploratory
1. Free Association method
• The goal is to gain insights into how consumers
spontaneously perceive and emotionally connect
with a brand
• This method helps uncover both positive and
negative associations
 Brand Exploratory
1. Free Association method
"athletic"
"innovative"
"sports"
"quality"
"Air Jordan."
"expensive"
"exclusive."
 Brand Exploratory
1. Free Association method
• Rich qualitative data
• Depth of understanding
• Subjectivity
• Limited scalability
 Brand Exploratory
2. Adjective ratings and checklists method
• This method involves participants providing
ratings or selecting descriptors from a predefined
list of adjectives or characteristics associated with
a brand
• Researchers create a list of adjectives or
characteristics that are relevant to the brand
being studied
 Brand Exploratory
2. Adjective ratings and checklists method
• Participants are presented with the list of
adjectives and are asked to rate the brand on each
characteristic using a numerical scale (e.g., 1 to 5)
or to check off the descriptors that they feel apply
to the brand
• The responses are collected in a quantitative
format, allowing for statistical analysis and
comparisons across different brands or over time
 Brand Exploratory
2. Adjective ratings and checklists method
1 2 3 4 5
Innovative
Trustworthy
Exciting
Reliable
User-friendly
Stylish
Affordable
 Brand Exploratory
2. Adjective ratings and checklists method
• Quantifiable data
• Structural approach
• Comparative analysis
• Limited depth
• Response bias
 Brand Exploratory
3. Confessional Interview method
• Confessional interviews involve in-depth one-on-
one conversations with individuals, during which
participants share their personal and emotional
connections, experiences, and stories related to a
brand
• Aims to uncover deep-seated feelings,
motivations, and narratives that individuals have
about a brand
• Unlike traditional interviews, confessional
interviews provide a more open and exploratory
space for participants to share their thoughts
freely
 Brand Exploratory
3. Confessional Interview method
• Interviewers use open-ended questions that
encourage participants to share their personal
stories, experiences, and emotions related to the
brand.
• "Can you share a memorable experience you've
had with the brand?" or "How does the brand fit
into your life?"
• The focus is on exploring the emotional
connections and personal narratives individuals
have with the brand
• Participants are encouraged to express feelings,
memories, and perceptions
 Brand Exploratory
3. Confessional Interview method
 Brand Exploratory
3. Confessional Interview method
• Rich qualitative insights
• Unexplored aspects
• Time intensive
• Subjectivity
 Brand Exploratory
4. Projective Technique
• Projective techniques involve indirect and
unstructured methods to elicit responses from
participants, revealing their subconscious
thoughts, attitudes, and associations with a brand
• These techniques are designed to overcome
potential barriers to expressing true feelings or
opinions that may occur in more direct questioning
formats
• Word Association: Participants are presented with
a list of words or phrases related to the brand and
asked to respond with the first word or thought
that comes to mind
 Brand Exploratory
4. Projective Technique
• Sentence Completion: Participants are given
incomplete sentences related to the brand and
asked to complete them. For example, "When I
think about [Brand], I feel..."
• Thematic Apperception Test (TAT): Participants are
shown ambiguous images related to the brand and
are asked to create a story or describe what they
see. The stories provide insights into the
participant's perceptions and emotions
 Brand Exploratory
4. Projective Technique
• Brand Personifiction: Participants are asked to
attribute human characteristics, personalities, or
traits to the brand. For example, "If [Brand] were a
person, how would you describe its personality?"
• Brand Association Ranking: Participants are given
a set of cards with brand attributes or
characteristics and asked to sort or rank them in
order of relevance or importance to the brand. This
helps uncover the hierarchy of brand associations
 Brand Exploratory
4. Projective Technique
• Access to subconscious thought
• Creative expressions
• Time consuming
• Subjectivity
 Brand Exploratory
5. Archetypal Research Method
• Archetypal research involves exploring and
leveraging archetypes, which are universal symbols
or themes deeply embedded in human culture and
psychology, to understand and shape the identity
of a brand
• Researchers identify archetypes that align with the
brand's values, personality, and target audience
• The brand's attributes, values, and characteristics
are mapped onto specific archetypes
• For example, a brand emphasizing adventure, risk-
taking, and innovation may align with the Explorer
archetype
 Brand Exploratory
5. Archetypal Research Method
• Brands use archetypal themes in their storytelling,
messaging, and visual elements to create a
coherent and emotionally resonant narrative
• For example, a brand in the athletic apparel
industry aiming to convey a sense of
empowerment, resilience, and determination
• The Hero archetype might be identified, and the
brand's communication and visuals could then
center around empowering stories of individuals
overcoming challenges, aligning with the Hero's
journey narrative
The Rebel The Magician

The Creator
The Explorer
 The Citizen
The Regular Guy The Ruler

The Caregiver The Sage

 Brand Exploratory
5. Archetypal Research Method
• Emotional resonance
• Consistency
• Interpretation variability
• Stereotyping
 Brand Exploratory
6. Personification Exercise Method
• Personification exercises involve attributing human
characteristics, traits, and qualities to a brand as if
it were a person
• Aims to understand how individuals perceive and
relate to a brand by treating it as a personality with
distinct attributes
• Participants are asked to assign specific human
attributes, traits, and characteristics to the brand.
This could include personality traits, physical
characteristics, behaviors, and even emotions
 Brand Exploratory
6. Personification Exercise Method
• Participants are encouraged to explain their
choices and justify why they assigned particular
attributes to the brand. This provides researchers
with insights into the underlying perceptions and
feelings associated with the brand
• Participants might be asked to personify the brand
by assigning attributes such as "motivational,"
"energetic," "goal-oriented," or even physical traits
like "athletic" and "dynamic." They could provide
justifications based on their personal experiences
with the brand
Brand Personality and Values
• Brand personality
– Human characteristics or traits that consumers can attribute
to a brand
• The big five: factors (with underlying facets) of brand
personality:
– Sincerity
– Excitement
– Competence
– Sophistication
– Ruggedness
Brand Personality Scale Measures
 Brand Exploratory
6. Personification Exercise Method
• Symbolic meaning
• Creativity and Engagement
• Subjectivity
• Varied Response
 Brand Exploratory
7. Role Playing Method
• Participants are assigned specific roles within the
scenario
• These roles may include being a customer, a brand
representative, or even a competitor
• The roles are designed to elicit diverse perspectives
and responses
• Participants are asked to "act out" the scenario by
making decisions, engaging in conversations, or
responding to stimuli as if they were in the
assigned role
 Brand Exploratory
7. Role Playing Method
• After the role-playing exercise, participants reflect
on their experiences and discuss their thoughts,
motivations, and decision-making processes
 Brand Exploratory
7. Role Playing Method
• Behavioural Insights
• Realistic Scenario
• Subjectivity
• Artificial Nature
 Brand Exploratory
8. Zaltman Metaphor Elicitation Technique (ZMET)
• Used to explore and understand consumers' deep-
seated thoughts, feelings, and emotions related to
a brand
• Participants are individually interviewed in a semi-
structured format
• The interviews are designed to be open-ended and
exploratory, allowing participants to share their
thoughts and experiences freely
• Participants are asked to gather a set of images
that represent their thoughts and feelings about
the brand
 Brand Exploratory
8. Zaltman Metaphor Elicitation Technique (ZMET)
• These images can be cut out from magazines,
found online, or drawn by the participants
themselves
• Participants create a collage using the selected
images, arranging them on a board or paper
• The collage serves as a visual representation of
their mental and emotional associations with the
brand
• Researchers engage in a detailed discussion with
participants about the meaning behind each
chosen image and its relevance to their
perceptions
Brand Exploratory
 Brand Exploratory
8. Zaltman Metaphor Elicitation Technique (ZMET)
• Depth of Insights
• Visual Representation
• Unconscious Association
• Complexity in Interpretation
• Resource Intensive
 Brand Exploratory
9. Behaviour/Day Reconstruction Method
• Participants are asked to provide baseline
information about their daily routines, including
wake-up time, work hours, leisure activities, etc.
• Participants record their activities and experiences
throughout the day
• This can include details about the places they visit,
interactions with people, use of products or
services, and emotional states during different
activities
 Brand Exploratory
9. Behaviour/Day Reconstruction Method
• Participants describe their emotional states during
various activities. This can include positive or
negative emotions, stress levels, and satisfaction
• Researchers may conduct interviews or focus group
discussions to gather additional insights and
context
• Researchers analyze the collected data to identify
patterns, trends, and factors influencing
participants' behaviors and emotions
Brand Exploratory
 Brand Exploratory
9. Behaviour/Day Reconstruction Method
• Rich Qualitative Data
• Longitudinal Insights
• Reliance on Participant’s Recall
• Time Consuming
 Brand Exploratory
10. Consumer Shadowing Method
• Involves closely observing and documenting the
behaviors, activities, and experiences of consumers
in their natural environments
• Researchers immerse themselves in the
participants' natural environments (homes,
workplaces, retail spaces, etc.) to gain a contextual
understanding of their daily lives
• Conduct observation sessions where researchers
closely shadow participants as they engage with
the brand or product
 Brand Exploratory
10. Consumer Shadowing Method
• This involves observing shopping behaviors,
product usage, decision-making processes, and any
relevant interactions
• Researchers take detailed notes, capturing both
observable actions and participants' verbal
expressions
• Documentation includes timestamps,
environmental context, and any significant
observations related to the brand or product
 Brand Exploratory
10. Consumer Shadowing Method
• Contextual Insights
• Unarticulated Behaviour
• Time Consuming
• Observer’s Effect
 Brand Exploratory
11. Neural Research Methods
• Neuromarketing
– Study of how the brain responds to marketing stimuli,
including brands
• Research indicates that consumer buying decision is a
unconscious habitual process
• Some firms apply sophisticated techniques:
– EEG (electroencephalogram) technology
– Functional magnetic resonance imaging (fMRI)
Brand Exploratory
• Digital marketing review
• highlights how a brand’s digital efforts are received in online
channels, relative to competitors
• helps unlock important customer-level insights as well as
industry trends
• can be useful in developing a better picture of brand image
and brand personality, as it pertains to digital channels
• provides useful input to brand strategy development and, by
providing rich customer insights, the crafting or refinement
of the brand positioning
• can act as a health check of a brand’s digital marketing and
social media strategy, and allow introduction of course
correction measures, if the online strategy is seen as
inconsistent with the brand’s overall strategy
Classic MTV Mental Map
Sample Mayo Clinic Brand Concept Map
Brand Positioning and the Supporting
Marketing Program
• Ideal brand positioning aims to achieve congruence
between:
– What customers currently believe about the brand
– What customers will value in the brand
– What the firm is currently saying about the brand
– Where the firm would like to take the brand
John Roberts’s Brand Positioning
Considerations
Designing Brand Tracking Studies
• Brand tracking studies
– Collect information from consumers
▪ On a routine basis
▪ Usually quantitative
– On a number of key dimensions that marketers
can identify in the brand audit
– With brand extensions or additional communication
methods
▪ Becomes difficult and expensive to research
▪ Yet necessary
What to Track
• Product-Brand Tracking
– May want to first ask consumers what brands come to
mind
– Next ask for recall of brands
– Then tests of brand recognition
• Corporate or Family Brand Tracking
– May want to track corporation or family brand
separately or concurrently with individual products
• Global Tracking
– May need a broader set of background measure for
global tracking
Brand Context Measures
Economic Indicators Phones
Gross domestic product PDA (Personal Digital Assistant)
Interest rates Microwaves
Unemployment Television
Average wage Personal Attitudes and Values
Disposable income Confidence
Home ownership and housing debt Security
Exchange rates, share markets, and Family
balance of payments Environment
Retail Traditional values
Total spent in supermarkets Foreigners v s sovereignty
er us

Change year to year Media Indicators

Growth in house brand
Technology
Computer at home
DVR (Digital Video Recorders)
Access to and use of Internet
Media consumption: total time spent
watching TV, consuming other media
Advertising expenditure: total, by media
and by product category
Demographic Profile
Population profile: age, sex, income,
household size
Brand Context Measures
Geographic distribution
Ethnic and cultural profile
Other Products and Services
Transport: own car—how many
Best description of car Motorbike
Home ownership or renting
Domestic trips overnight in last year
International trips in last two years
Attitude to Brands and Shopping
Buy on price
Like to buy new things
Country of origin or manufacture
Prefer to buy things that have been
advertised
Importance of familiar brands
Brand Tracking:
Starbucks
 Brand Awareness and Usage
Unaided
• What brands of coffee chains are you aware of?
• At which coffee house chains would you consider visiting?
• Have you visited a coffeehouse chain in the last one week?
Which ones?
• If you were to visit a coffeehouse tomorrow, which one
would you go?
• What are your favourite coffeehouse chains?
Aided
• Have you heard of Starbucks?
• Have you ever visited a Starbucks coffeehouse?
• When it is said Starbucks, what are the first associations that
come to your mind? (List)
 Brand Judgements
We are interested in overall opinion of Starbucks
• How favourable is your attitude towards Starbucks?
• How well does Starbucks satisfy your needs?
• How likely would you be to recommend Starbucks to others?
• How good a value is Starbucks?
• Is Starbucks worth a premium price?
• What do you like most about Starbucks?
• What do you like least about Starbucks?
• What is the most unique about Starbucks?
• To what extent does Starbucks offer advantages that other similar
types of coffeehouse cannot?
• To what extent does Starbucks superior to other brands in the
coffeehouse category?
• Compared to other brands in the coffeehouse category, how well
does Starbucks satisfy your basic needs?
 Starbucks is…
• Innovative
• Knowledgeable
• Trustworthy
• Likable
• Concerned about their customer
• Concerned about society as a whole
• Admirable
 Brand performance
Starbucks…
• Is convenient to visit for coffee
• Provides quick, efficient service
• Has clean facilities
• Is ideal for the whole family
• Has delicious coffee
• Has tasty snacks
• Has a varied menu
• Has friendly, courteous staff
• Offer fun promotions
• Has a stylish and attractive look and design
• Has high quality food
 Brand Imagery
To what extent do people you admire and respect a visit to Starbucks?
How much do you like people visiting Starbucks?
• How well do each of the following describe Starbucks/
– Down-to-earth
– Honest
– Daring
– Up-to-date
– Reliable
– Successful
– Upper Class
– Charming
– Outdoorsy
• Is Starbucks coffeehouse chain a place that you can visit at a variety of
different times of the day?
• To what extent does thinking of Starbucks bring back pleasant
memories?
• To what extent do you think you grew up with Starbucks?
 Brand Feeling
Does Starbucks give you a feeling of…
• Warmth?
• Fun?
• Excitement?
• Security or Confidence?
• Social Approval?
• Self-respect?
 Brand resonance
• I consider myself loyal to Starbucks
• I buy Starbucks whenever I can
• I would go out of my way to visit Starbucks
• I really love Starbucks
• I would really miss Starbucks if it went away
• Starbucks is special to me
• Starbucks is more than a product to me
• I really identify with people who go to Starbucks
• I feel a deep connection with Starbucks as a company
• I really like to talk about Starbucks to others
• I would be interested in the merchandise with the Starbucks name on it
• I am proud to have others know that I eat at Starbucks
• I like to visit Starbucks website
• Compared to other people, I follow news about Starbucks closely
Big Data and Marketing Analytic
Dashboards
• Troves of data exist
– Can enable continuous tracking of customers
• Marketing analytic dashboard
– Systems and processes within an organization to
communicate important metrics and make them
available throughout an organization
Establishing a Brand Equity
Management System
• Brand Charter or Bible
• Brand Equity Report
• Brand Equity Responsibilities
Brand Charter or Bible
• First step in establishing a brand equity management
system
– Formalizes the company view of brand equity into a
document
• Brand charter (or brand bible as sometimes called)
– Provides relevant guidelines to marketing managers
and key marketing partners
– Should be updated annually
Brand Charter or Bible
• Explain how brand equity is measured in terms of the tracking
study and the resulting brand equity report
• Suggest how marketers should manage brands with some
general strategic guidelines, stressing clarity, consistency, and
innovation in marketing thinking over time.
• Outline how to devise marketing programs along specific tactical
guidelines, satisfying differentiation, relevance, integration,
value, and excellence criteria
• Guidelines for specific brand management tasks such as ad
campaign evaluation and brand name selection may also be
offered
• Specify the proper treatment of the brand in terms of trademark
usage, design considerations, packaging, and communications
• New products, changed brand programs, and other marketing
initiatives should reflect adequately in the brand charter
Brand Equity Report
• Second step in establishing a successful brand equity
management system
– Assemble results of the tracking survey and other relevant
performance measure for the brand
– Create a brand equity report or scorecard
▪ Distribute to management regularly
– Contents
▪ A brand equity report should describe:
– What is happening with the brand?
– Why is it happening?
– Should include more descriptive market-level information
Brand Equity Responsibilities
• Third step in establishing a successful brand equity
management system
– Clearly define organization responsibilities and
processes
▪ With respect to the brand
Brand Equity Responsibilities
• Overseeing Brand Equity
• Organizational Design and Structures
• Managing Marketing Partners
Quantitative Research Techniques
• Brand Awareness
• Brand Image
• Other Approaches
Brand Awareness
• Related to the strength of the brand in memory
– Reflected by consumers’ ability to identify various
brand elements
• Describes the likelihood that a brand will come to mind in
different situations
– Recognition
• Requires consumers to identify the brand under a
variety of circumstances
• Can rest on the identification of any of the brand
elements
• Specially important for packaging
Brand Awareness
• Recall
• Demonstrated when consumers are able to retrieve a
brand element from memory, when given some related
probe or cue
• Unaided recall
• Aided recall
• Measures of recall based on product attribute or
category cues and situational or usage cues give an
indication of breadth and depth of recall
• Corrections for guessing
– Spurious brand awareness
Brand Image
• Associations that consumers hold for a brand
• Useful for marketers to make a distinction between:
– Lower-level considerations (performance and
imagery)
– Higher-level considerations (judgments and feelings)
• Beliefs
– Descriptive thoughts that a person holds about
something
Other Approaches
• More complicated quantitative technique to assess overall
brand uniqueness
– Multidimensional scaling (MDS), or perceptual maps
▪ Procedure for determining the perceived relative
images of a set of objects, such as products or
brands
▪ Transforms consumer judgments of similarity or
preference into distances represented in perceptual
space
Restaurant Perceptual Map
Social Media Listening and Monitoring
• Social media monitoring
– Fast-growing and increasingly specialized area of
marketing research
• Dashboard
– Summary of key statistics associated with a brand
– May include:
▪ Number of engagements of brand messages
across various social media platforms
▪ Sentiment associated with social media messages
▪ Topics that are related to a brand
▪ Lists of keywords that are associated with a brand
Brand Responses
• Purchase Intentions
• Determined by brand attitudes and consideration.
• Predictive of actual purchase when there is
correspondence between any two of the following
factors:
• Action (buying for own use or to give as a gift)
• Target (specific type of product and brand)
• Context (in what type of store based on what prices
and other conditions)
• Time (within a week, month, or year)
• Likelihood to Recommend
– How likely is it that you would recommend this product
or service to a friend or colleague?
Brand Relationships
• Characterized in terms of brand resonance and measures
for following key dimensions
– Behavioral loyalty
– Attitudinal attachment
– Sense of community
– Active engagement
Brand Relationships
• Behavioral Loyalty
• To capture reported brand usage and behavioral loyalty
marketers can:
• Ask consumers past purchase history and future
purchase intentions
• Make their measures open ended
• Force consumers to choose one of two brands
• Offer multiple choice or rating scales
Brand Relationships
Attitudinal attachment
• Can be defined in the terms:
• Brand-self connections
• Connected
• Part of who you are
• Brand prominence
• Automatic
• Naturally
Brand Relationships
• Sense of community
• Social currency—The extent to which people share the
brand or information about the brand as part of their
everyday social lives at work or at home
• Active engagement
• Extent to which consumers are willing to invest their
resources of time, energy, and money on the brand
beyond those resources expended during purchase or
consumption of the brand
Summary of Qualitative and
Quantitative Measure
I. Qualitative Research Techniques B. Brand Image
Free association Open-ended and scale
Adjective ratings and checklists measures of specific brand
Projective techniques attributes and benefits
Photo sorts Strength
Bubble drawings Favorability
Story telling Uniqueness
Personification exercises Overall judgments and feelings
Role playing Overall relationship measures
Experiential methods Intensity
Activity
II. Quantitative Research Techniques
A. Brand Awareness
Direct and indirect measures of
brand recognition
Aided and unaided measures of
brand recall
Brand Equity of ABC Group
 Brand Equity
• Brand Equity can be calculated on the basis of various
aspects, however, the following are the broad aspects
which were considered for evaluation:
• Behavioral
• Financial
• Perceptual
 Behavioural Aspects of Brand Equity
• Questionnaires to understand the perception of the
consumers were circulated in 10 different cities and 980
correspondents were interviewed primarily to understand
the importance they give to various service parameters and
also brand awareness and Top of Mind brand recall
Criteria Average Best Perceived Brand in the Category
Rating
(Sample Size 980) Bij
ABC A B C D

Ai (Ji) (Ki) (Li) (Mi) (Ni)

Value For Money 8.32 358 62 27 22 510

Looks 7.4 209 100 154 26 471
Features 7.48 312 124 38 12 496
Ease of Service 7.92 390 52 25 8 475
Resale Value 6.95 430 30 10 10 480
Durability 7.02 388 65 17 13 477
Weighted Average 35.61% 7.29% 5.94% 0.8% 50.36%
 Behavioural Aspects of Brand Equity…
• Overall market of AVRs, Servo VRs, battery chargers and
electrical testing equipment is worth around Rs.3000
crores
• Quantifying the calculated behavioral aspect of brand
equity in monetary terms we use a corrective multiplier of
0.1 to accommodate for the errors of generalization and
comparatively smaller sample size
Brand Equity (behavioral aspect), BE1 =
Overall market size X Weighted Average X Corrective
Multiplier
 Financial Aspects of Brand Equity
• As per the financial statements of the year 2010-11, the ABC
group has following sub companies, whose PAT(profit after tax)
is :
• (A): Rs.
• (B): Rs.
• (C): Rs.

• Net Profit= A+B+C = Rs.

• For correlation between the net profit and brand equity, a multiplier of
20 has been formulated that is further normalized for calculation and
projection errors by a normalizing coefficient of 0.55

• Brand Equity (Financial aspect) BE2 =

Profit X brand equity multiplier X normalizing
coefficient
Perceptual Aspects of Brand Equity
• Related Category Brand Extension
– Batteries; Lead acid, Maintenance free
– Electric Cables
– Meters; Voltmeters, Ammeters etc.
– Relays and Potentiometers
– Capacitors, Connectors
– Power supplies
– Power transformers/ Distribution Sector
– UPS; Inverters, Off line UPS, On line UPS
– Solar PV modules; Lanterns, Jawahar solar mission
– Solar inverters; Off line UPS, On line UPS
– LED systems
Perceptual Aspects of Brand Equity..
• Semi-related Brand Extension
– Air conditioners; Window, Standing, Split
– Switches; Rotary, Sockets, MCBs
– Geysers; Storage/Home, Immersion heaters
– Pumps and Motors
– Vacuum Cleaners
– Food Processors, Mixers and Juicers, Hand Blenders
and Atta Makers
– Coffee maker, Electric Cooker, Electric Kettle, Rice
Cooker
– Toasters, Iron
– Room Heaters
– Ovens, OTG, Cooking Range
– Coolers; Air coolers, Water coolers, Dispensers
– Washing Machines; Manual, Semi-automatic,
Automatic
Perceptual Aspects of Brand Equity..
• Other Categories Brand Extensions
– Electric Fans, Solar Fans, Bulbs, Tube lights, CFLs
– Electric Chimneys

• Brand Equity (Perceptual aspect) =

Brand Equity (Related category brand extensions) (BEP1)
+
Brand Equity (Semi-related category brand extensions) (BEP2)
+
Brand Equity (Other category brand extensions) (BEP3)
Perceptual Aspects of Brand Equity..
• Brand Equity (Related category brand extensions) =
Brand Equity (financial aspect) X Number of related brand
extensions X Normalizing Coefficient X Coefficient of
correlation for related category brand extensions

= xxxxxx X 11 X 0.55 X 0.5

(where 0.5 is Coefficient of correlation for related category brand
extensions)
= Rs.
Perceptual Aspects of Brand Equity..
• Brand Equity (Semi-related category brand extensions) =
Brand Equity (financial aspect) X Number of Semi-related brand
extensions X Normalizing Coefficient X Coefficient of
correlation for semi- related category brand extensions
= xxxxxxx X 12 X 0.55 X 0.2
(where 0.2 is Coefficient of correlation for semi-related category
brand extensions)
= Rs.
Perceptual Aspects of Brand Equity..
• Brand Equity (Other category brand extensions)
=
Brand Equity (financial aspect) X Number of Other
brand extensions X Normalizing Coefficient X
Coefficient of correlation for Other category brand
extensions

= Rs. xxxxxx X 2 X 0.55 X 0.1

(where 0.1 is Coefficient of correlation for other
category brand extensions)
= Rs.

• Brand Equity (Perceptual aspect) BE3= BEP1 +

BEP2 + BEP3
 Net Brand Equity
Net Brand Equity =
Brand Equity (Financial aspect)
+
Brand Equity (Perceptual aspect)
+
Brand Equity (behavioral aspect)

• Net Brand Equity = BE1 + BE2 + BE3