Brand leverage & Performance

Module 4 Developing a BE measurement &

Management system

•Brand Tracking 347

•Establishing Brand equity Management 355
•Measuring sources of brand equity and customer mindset 375
•Qualitative research techniques
•Quantitative research techniques
Measuring
sources of
BE &
Customer
mindset
 Measuring sources of BE

Requires
Brand value chain measuring
sources of aspects of
BE arise from B. Awareness &
customer mindset B. Image
Measuring
sources of
BE &
Customer
mindset
Lead to
differential
customer
response that
creates BE
 Measuring sources of BE
Brand equity measurement system - BEMS
•Set of research procedures designed to provide
marketers with
– Timely, accurate, actionable info about brands
BEMS to make
• Tactical decisions in short run
• Strategic decisions in long run.

•Goal to achieve a full understanding of

– Sources and
– Outcomes of BE
– Relate the two as much as possible.
 Measuring sources of BE

Ideal BEMS
Provide complete, up-to-date, relevant info about
brand and its competitors
BEMS To right decision makers
At the right time within the org.

•Three steps

I.Conducting Brand Audits,

II.Designing Brand Tracking studies,

III.Establishing a BEMS
Finance audit
Marketing audit
I. Conducting brand audits Measuring sources of BE

• In accounting, an audit is a systematic

inspection by an outside firm of accounting
Accounting
audit records including analyses, tests, and
confirmations.

• The outcome is an assessment of the

firm’s financial health in the form of a report
I. Conducting brand audits Measuring sources of BE

• Comprehensive, systematic, independent, and

periodic examination of

Marketing – A company’s—or business unit’s—

audit
– Mktg environment, obj, strategies, activities

– for determining problem areas & Opp and

– recommending POA to improve company’s

marketing performance.”
I. Conducting brand audits Measuring sources of BE

• Three-step procedure in which the

1. first step is agreement on objectives, scope,
and approach;
Marketing
audit
2. second is data collection; and

3. third and final step is report preparation and

presentation.

• Internally, company-focused exercise to make

sure marketing operations are efficient and
effective.
I. Conducting brand audits Measuring sources of BE

• Comprehensive examination of a brand to

discover its sources of BE.

Brand
audit • More externally, consumer-focused exercise to

– assess the health of the brand,

– uncover its sources of BE and

– suggest ways to improve and leverage its

equity.
I. Conducting brand audits Measuring sources of BE

• It requires understanding the sources of BE from

perspective of both firm and the consumer.

Brand
audit • From the Perspective of the firm,
• What products and services are currently
being offered to consumers, and
• How they are being marketed & branded?

• From the Perspective of consumer,

– What deeply held perceptions and beliefs
create the true meaning of brands and
products?
I. Conducting brand audits Measuring sources of BE

DOMINO’S PIZZA
•In late 2009, it was a struggling business in a declining market.
Pizza sales were slumping as consumers defected to healthier
and fresher dining options at one end or to less expensive
burger or sandwich options at the other end.
•Caught in the middle, it also found its heritage in “speed” and
“best in delivery” becoming less important; even worse, it was
undermining consumer’s perceptions of the brand’s taste, the
number-one driver of choice in the pizza category.
•To address the problem, decided to conduct a detailed brand
audit with extensive qualitative and quantitative research.
•Surveys, focus groups, intercept interviews, social media
conversations, and ethnographic research generated a number
of key insights.
I. Conducting brand audits Measuring sources of BE

DOMINO’S PIZZA
•The taste problem was severe—some consumers bluntly said
that it tasted more like the box than the pizza.

•Research also revealed that consumers felt betrayed by a

company they felt they no longer knew.

•A focus on impersonal, efficient service meant that in

consumers’ minds, there was no Domino’s kitchens, no chefs,
not even ingredients.

•Consumers were skeptical of “new and improved” claims and

felt companies never admitted they were wrong.
What Approach?
I. Conducting brand audits Measuring sources of BE

DOMINO’S PIZZA
•Based on insights, it began its brand comeback.
•Step one—new recipes for crust, sauce, and cheese that
resulted in substantially better taste-test scores.
•Next, it decided not to run from criticism and launched the “Oh
Yes We Did” campaign.
•Using traditional TV and print media and extensive online
components, it made clear that it had listened and responded
by creating a better pizza.
•Documentary-type filming showed CEO & Ex observing the
original consumer res & describing how they took it to heart.
•Surprise visits were made to harsh critics from focus groups,
who tried the new pizza on camera and enthusiastically praised
it.
I. Conducting brand audits Measuring sources of BE

DOMINO’S PIZZA
•Domino’s authentic, genuine approach paid off.

•Consumer perceptions dramatically improved and growth in

sales in 2010 far exceeded the competitors’.
I. Conducting brand audits Measuring sources of BE

A thorough, insightful brand audit helped to

convince Domino’s they needed to
confront their perceived flaws head on.
Source: Domino’s Pizza LLC
I. Conducting brand audits Measuring sources of BE

The brand audit consists of two steps:

1.Brand inventory and

Brand
audit 2.Brand exploratory
I. Conducting brand audits Measuring sources of BE

1. Brand inventory Purpose

• Provide current, comprehensive profile of
Brand
how products and services sold by a company
audit
are marketed and branded.
I. Conducting brand audits Measuring sources of BE

1. Brand inventory
• Profiling each product or service requires
marketers to catalogue in both visual and written
Brand
form for each product or service sold:
audit
• the names, logos, symbols, characters, packaging,
slogans, or other trademarks used;

• the inherent product attributes or characteristics of

the brand;

• The pricing, communications, and distribution

policies; and any other relevant marketing activity
related to the brand.
I. Conducting brand audits Measuring sources of BE

2. Brand Exploratory
–Research directed to understanding
Brand • what consumers think, feel about the brand
audit
• act toward it in order to better understand
sources of BE

• as well as any possible barriers.

I. Conducting brand audits Measuring sources of BE

The brand audit consists of two steps:

2, Brand Exploratory - Preliminary Activities.
Brand First, prior research studies exist and relevant.
audit Co. archives contain insights & answers to imp que
or suggest new que need to be posed.

Second, to interview internal personnel to gain an

understanding of their beliefs about consumer
perceptions for brand & competitive brands.

Past & current marketing managers share some

wisdom not necessarily captured in prior research
reports.
I. Conducting brand audits Measuring sources of BE

Brand Brand
audit Tracking
II. Designing brand tracking studies

• It involves info collected from the consumers

routinely thru quantitative measures of how the
brands & marketing programs are performing on
key issues
Brand
Tracking • Components from brand value chain applied to
better understand
– where, how much, and in what ways brand value is
being created,

– offering invaluable info about how well the brand

has achieved its positioning.
II. Designing brand tracking studies

• A good tracking system helps marketer

– better understand CB,

– competitive threats & opportunities,

Brand
– marketing effectiveness & efficiency
Tracking
II. Designing brand tracking studies

Product Brand Tracking

•Involves measuring particular brand

•BA awareness (recall & recognition) & Brand image

Brand
Tracking •
Ask consumers what brands come to mind in
certain situations to
•next ask for recall of brands on the basis of various
categories cues &
•then to finish the test of brand recognition
II. Designing brand tracking studies

Corporate or family Brand Tracking

•Marketers track corporate or family brands
separately or together with individual products.

Brand •Measure of corporate brand association include

Tracking questions reflecting the level & nature of experience
respondents likely to have with the Co
– How well managed is GE?
– How easy to do business with Ge?
– How concerned is GE with its customers?
– How approachable is GE?
– How accessible is GE?
– How much do u like doing business with GE?
II. Designing brand tracking studies

Corporate or family Brand Tracking

•What product comes to mind when you think of
Nike brand?
( product associated with brand unaided basis )
Brand
Tracking •Are u aware of Nike Air Force basketball shoes?
( aided basis with sub brand )

•There are many diff products associated with Nike

which is most important for formulating ur opinion
about the brand
( understand dynamics between brand & its
corresponding products consumer relationship
between them )
II. Designing brand tracking studies

Whom to track
•Concentrates on current customers

•Marketers track those loyal to the brand against

Brand loyal to competitors brand & brand switchers
Tracking
•Frequency of tracking studies depends on the
frequency of product purchase

•When the brand has stable associations tracking on

a less frequent basis is enough
II. Designing brand tracking studies

When and Where to Track.

•How often should you collect tracking info?

•Continuous tracking studies, collect info from

Brand consumers continually over time.
Tracking
•The advantage of continuous tracking is that it
smoothes out aberrations or unusual marketing
activities or events

•The frequency of tracking studies, depends on the

frequency of product purchase
 Measuring sources of BE

Brand Brand Establishing

audit Tracking Brand Equity
Management
system
 III Establishing Brand Equity Measurement & Management system

Establishing
Brand Equity
Management
system
 III Establishing Brand Equity Measurement & Management system

Definition
•A BEMS is a set of org processes designed
to improve the understanding &use of the
brand equity concept within a firm
Establishing
Brand Equity The 3 major steps to implement a BEMS are
Management
system 1.Creating Brand equity charters

2.Assembling Brand equity reports

3.Defining Brand equity responsibilities

 III Establishing Brand Equity Measurement & Management system

1 Brand equity Charter

•First step formalize the Co view of BE

•Provides relevant guidelines to

Establishing – managers within the Co &
Brand Equity
Management – key marketing partners outside the Co –
system AD agency

•Parts of the charter do not change Y2Y but

updated Annually to provide BM with
– current brand profile,
– identify new opportunities & potential risk
 III Establishing Brand Equity Measurement & Management system

1. Brand equity Charter – contents

a) Def firms view of BE concept and
explaining it’s importance

Establishing b) Describe the scope of key brands in terms

Brand Equity of associated products and Manner by
Management
which they have been branded and
system
marketed

c) A range of relevant associations should be

defined, POP, POD, core brand values, &
core brand promise
 III Establishing Brand Equity Measurement & Management system

1. Brand equity Charter – contents

d) Explain how BE is measured in terms
of tracking study & resulting BE report

Establishing e) Outline how marketing programs

Brand Equity should be devised in terms of specific
Management
tactical guideline
system

f) Specify the proper treatment of the

brand in terms of trademark usage,
packaging, & communication
 III Establishing Brand Equity Measurement & Management system

• Skype’s brand bible, for example, outlines the branding

and image of its products and services.

• The document clearly states how Skype wants to be seen

by consumers, how the firm uses its branding to achieve
that, and why this is important.

• It also explains how Skype’s logo of clouds and the vivid

blue color are designed to make clean lines and foster a
creative and simple look.

• The brand bible explains the “do’s and don’ts” of marketing

Skype’s products and services and the dangers for the
company image of working outside the brand guidelines.
III Establishing Brand Equity Measurement & Management system
 III Establishing Brand Equity Measurement & Management system

2. Brand Equity Report – tracking surveys

Provides descriptive information as to
What is happening with the brand
as well as diagnostic info
Why it is happening
Section I of report Section II of report
Consumers perception Descriptive market level info
of key attributes or Product shipment & movement thru channel
Relevant cost breakdown
benefits association,
Price & discount schedules where appropriate
Preferences Sales & market share Information
Reported behavior Profit assessment

These provides insight into market performance component of brand value

chain
 III Establishing Brand Equity Measurement & Management system

3. Brand Equity Responsibility

• To develop a BEMS that will maximize the long term BE

organizational responsibilities & process w.r.t brand has to
be clearly defined

• Brands need constant & consistent nurturing to grow

• Weak brands generally suffer from a lack of discipline,

commitment, & investment in brand building
 III Establishing Brand Equity Measurement & Management system

3. Brand Equity Responsibility & duties assigning

Overseeing BE
To provide central coordination, VP or Dir to be established
Responsible for implementing BE charter & BE reports

IBM, Colgate, Coca cola, Pillsbury, Nestle have

gatekeepers
 III Establishing Brand Equity Measurement & Management system

3. Brand Equity Responsibility & duties assigning

Organizational design & structure

Marketing function should be organized within the firm in a
way that optimizes BE

Several org automobile, health care, Pharma, computer

software have recognized the importance and have brand
managers
 III Establishing Brand Equity Measurement & Management system

3. Brand Equity Responsibility & duties assigning

Managing Marketing partners

As performance of a brand depends on the action taken
outside suppliers & partners hence the relationship has to be
managed properly

Retailers & channel members play an important role in

enhancing the BE
 Measuring sources of BE
BEMS 3 STEPS
Conducting Brand Audits,
Perspective of Firm & Consumer
1.Brand inventory
2.Brand exploratory

Brand Tracking
1.Product Brand Tracking
2.Corporate or family Brand Tracking
3.Whom to track
4.When and Where to Track.

Establishing a BEMS
1.Creating Brand equity charters
2.Assembling Brand equity reports
3.Defining Brand equity responsibilities
 Measuring sources of BE

•Qualitative research techniques are often

employed to identify possible brand
Measuring associations and sources of brand equity
sources of
BE & •The technique is relative unstructured
Customer
mindset
 Measuring sources of BE

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?
 Measuring sources of BE

Qualitative Research Technique

Free association

• This is the simplest and most powerful way to profile brand

association whereby the subjects are asked what comes to mind
when they think of the brand without any specific probe or cue

• What does Rolex mean to you?

• The primary task is to identify the range of possible brand

association in consumers mind

• It also provides a rough Indication of strength Ex if the first response

to McDonalds restaurant is “fast & convenient” association is
relatively stronger
 Measuring sources of BE

Qualitative Research Technique

Free association
Consumers can be asked direct questions such as

• What do u like/dislike best about the brand?

• What are its positive aspect?
• What do you find unique about the brand?

To provide more structured and guidance consumers can be asked

• Who
• When
• Where
• Why
• How
 Measuring sources of BE

Qualitative Research Technique

Projective techniques

• These are diagnostics tools to uncover the true opinion and feelings
of consumers when they are unwilling or otherwise unable to
express their true feeling on why they like or dislike a brand

• Various projective techniques

Completion and interpretation tasks
Comparison task
Experiential techniques
 Measuring sources of BE

Projective techniques

Completion and interpretation tasks

Use incomplete or ambiguous stimuli to elicit customer thoughts & Feelings

Bubble exercise based on cartoons or photos are depicted buying a

product which customers are asked to fill indicating what is happening

Comparison task
Consumers are asked to convey their impressions by comparing brands to
people, countries, fabrics, occupations, car, magazines
It is used understand the psyche of the consumer w.r.t. brand and the
imagery association for the brand
 Measuring sources of BE

Qualitative Research Technique

Brand Personality & Values
Defined as the human characteristics or traits that can be
attributed to a brand

Can be assessed more definitely thru adjective checklists or

ratings
1. Sincerity – down to earth, honest, wholesome, cheerful
2. Excitement – daring, spirited, imaginative, up to date
3. Competence – reliable, intelligent, successful
4. Sophistication – upper class, charming
5. Ruggedness – outdoor, tough
 Measuring sources of BE

Qualitative Research Technique

 Measuring sources of BE

Qualitative Research Technique

Experiential Methods

To improve the effectiveness of the qualitative approach is to

research consumers in natural surroundings

By tapping more directly in to their actual home, work, or

shopping behaviors researchers might be able to elicit more
meaningful responses from consumers
 Measuring sources of BE

Quantitative Research Technique

It is employed to better assess

• The breadth and depth of brand awareness

• The strength ,favorability and uniqueness of brand

associations

• The valence of brand responses & feelings

• The extent and nature of brand relationships

 Measuring sources of BE

Quantitative Research Technique

Awareness
It relates to the likelihood that a brand will come to mind and the ease
with which it does so given different types of cues

Recognition
It is the ability to identify the brand under a variety of circumstances
and can involve identification of any of the brand elements

It is especially important in terms of packaging

The best case of visibility of package when a consumer with a
20-20 vision, face to face, at distance less than 5 feet, under ideal light
is able to identify the brand when one of the above elements is missing
 Measuring sources of BE

Quantitative Research Technique

Awareness

Recall
It relates to consumers ability to identify the brand under a variety of
circumstances

it is a more demanding task as Customers must be able to retrieve the

actual brand element from memory when given some related probe or
cue

When u think of chocolate which brands come to mind

 Measuring sources of BE

Quantitative Research Technique

Image
it is reflected by the associations that consumers hold regarding the
brand

Open ended questions are used

What are the strongest associations u have to the brand?
What comes to mind when u think of the brand? ( strength)

What is good about the brand? What do u like about the brand?
What do u dislike about the brand? ( favorability)

What is unique about the brand? (uniqueness)

 Measuring sources of BE

Quantitative Research Technique

Brand Responses

Purchase intentions
It is the likelihood of buying the brand or switching the brand

Consumers could indicate their intentions on a 11 point probability

scale that ranges from

0 ( definitely would not buy ) to 10 ( definitely would buy)

 Measuring sources of BE

Quantitative Research Technique

Brand Relationships
Behavioral loyalty questions asked on the history of purchases done

Brand substitutability
Which brand did u buy last time?
if the brand had not been available what would u have done
( waited, gone to another store, another brand, which one)
 Measuring sources of BE

Measuring sources of BE and Customer mindset

Quantitative Qualitative research technique

Free association
Awareness
– Recognition Direct question
– Recall
Structured direct question

Projective techniques
Image Completion and interpretation tasks
Brand response Comparison task
Brand relationship
Brand substitutability Brand Personality & value

Experiential techniques