Brand Equity Measurement

Brand Equity Models

• Brand Asset Valuator• Conjoint Method• Aaker’s Brand Equity Ten• Interbrand• Brand Report Card

Brand Asset Valuator (BAV)

Differentiation

Relevance

Esteem

Know

ledge

Brand Equity

BAV Power Grid

iPod

XBOX

iPhone

Coca Cola

Kodak

Hindustan Motors

Conjoint Method

• Developed by Park and Srinivasan• Farquhar’s (1989) definition of brand equity

as the value added by the brand to the product.

• Traditional conjoint methods have drawbacks

• Survey based method: Self Explicated Conjoint

Concept

Brand Equity

• Brand Equity will thus be the: “difference between an individual consumer’s overall brand preference and his/her multi-attributed preference based on objectively measured attribute levels

• eij: Brand Equity

• u(o)ij: Consumer Preference based on objectively measured attribute levels

• Thus……

Define Brand Equity as

Assumptionsūi = 0ēi = 0

Aaker Model – Brand Equity Ten

Interbrand Method• There must be substantial publicly available

financial data• The brand must have at least one-third of

revenues outside of its country-of-origin• The brand must be a market-facing brand• The Economic Value Added (EVA ) must

be positive• The brand must not have a purely B2B

single audience with no wider public profile and awareness

The Steps

Benchmarking (Brand Strength Score)

LEADERSHIP (25%)Market ShareAwarenessPositioningCompetitor Profile

STABILITY (15%)LongevityCoherenceConsistencyBrand IdentityRisks

SUPPORT (10%)Consistency of messageConsistency of spendAbove vs. below lineBranch franchise

MARKET (10%)What is the market?Nature of the market (e.g., volatility)Size of marketMarket dynamicsBarriers to entry

PROTECTION (5%)Trademark registration & registrabilityCommon lawLitigation/disputes

TREND (10%)Long term market share performanceProjected brand performanceSensibility of brand plansCompetitive actions

INTERNATIONALITY (25%)Geographical spreadInternational positioningRelative market sharePrestigeAmbition

Brand Report Card (BRC)

• Consists of Dimensions with items on which a Brand needs to be evaluated

• More from a practitioners perspective• Answers to the questions can be recorded

in a scale of one to ten.• Specific actions can be taken to rectify

brands position/equity

Components of BRC

• The brand excels at delivering the benefits the customers truly desire

• The brand stays relevant• Pricing strategy is based on customers

perception of value• The brand is properly positioned• The brand is consistent• The brand portfolio and hierarchy makes

sense

Components of BRC contd.

• The brand makes use and coordinates a full repertoire of marketing activities

• The brand managers understand what the brand means to the consumers

• The brand is given proper support over long run

• The company monitors source of brand equity