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CHAPTER 8: DEVELOPING A BRAND EQUITY
MEASUREMENT AND MANAGEMENT SYSTEM
Lecturer: Md Shahedur Rahman
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.
8.4
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?
8.6
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
Brand Equity Charter with Kool
8.24
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
Brand Equity Charter with Kool
8.25
•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
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
8.27
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