VISION ONE – THE DISCOVERY AGENCY

MEASURING

BRAND EQUITY Case Study

The UK Cereal Market There was a time when no breakfast was complete

without cereal. However, cereal sales are falling as

habits change, down by £78 million in the past year.

Not that there’s a lack of opportunity for a comeback.

There are 21 billion breakfasts eaten in the UK every

year and fewer people skip the meal now than in recent

times, but foods such as cereal bars and coffee shop

muffins are increasingly popular choices.

While cereal brands are innovating to try and claw back

some space on the table, the UK market is still

dominated by familiar names. Weetabix remains the

best-selling brand with sales worth almost £110 million,

while four Kellogg’s cereals, led by Crunchy Nut, follow

behind. As the competitions gets ever fiercer, brand

equity can play a crucial role in deciding which cereals

win a place in the shopping trolley

Measuring Brand Equity It’s no secret that there’s more to a brand than its logo. Each time we encounter a brand – by

seeing it, hearing about it or experiencing it – we build up a sense of what that brand is about.

Some brands make us feel good. Others… don’t. But our perception matters because it affects

our readiness to buy.

We call this brand equity.

At Vision One, we know that understanding brand equity is only half the story. The other half is

knowing how to improve it. But you can’t do one without the other, and that means measuring

brand equity in order to take the next step.

This case study looks at one of the most popular and well-known cereal brands, Weetabix, and

how its brand equity shapes up.

Cereal Brand Equities

There’s plenty of choice on the supermarket cereal aisle, but judged alongside these three other

leading brands, Weetabix has the tastiest brand equity score with 71 points. However,

competition for a place in the cereal bowl is strong, with Special K just behind on 68, and

Kellogg’s Corn Flakes catching up fast too.

1. The brand pyramid Brand awareness is just the start of a customer’s journey. This pyramid shows how many are taking the steps towards true loyalty. 2. Brand stature Is the brand perceived to be a leader or follower? Is it unique or a “me too”? 3.Brand delivery Promising much without delivering is a recipe for a sinking satisfaction score. 4. Brand utility Arguably the most important factor, this shows how well a brand meets market needs and its ability to

command a price premium.

Brand Pyramid

The brand pyramid is made up of 5 key metrics * Awareness * Consideration * Purchase * Satisfaction * Loyalty Every brand has a unique brand structure, and comparing these scores with key competitors helps to identify future opportunities. Overall, Weetabix has a strong brand pyramid, with a very high score for general brand awareness, and a respectable customer loyalty score too. The resulting brand loyalty metric of 63% is way above the average of 27%.

The Brand Equity Wheel Getting to the heart of brand equity means taking a spin round this wheel of fortune.

Meeting Rational & Emotional needs

Brand values vary considerably between the cereal brands providers, but convenience is an important factor for most. While Weetabix is the cereal that best meets wellness and health needs, Cornflakes and Special K are recognised for their convenience and speed.

£ Value

Although price will often be an important factor, it doesn’t exist in a vacuum, and £ value helps show which brands can command a price premium. Both Special K and Kellogg’s Krave score particularly highly in this category. However, while the other brands don’t hit the same heights, they still generally score well, indicating that they all have qualities that consumers appreciate.

Brand Delivery

Brands can promise plenty, but if they don’t deliver, consumers will soon feel dissatisfied and will be unlikely to recommend them. Word of mouth support can be very important to a brand, so delivery should be a major concern. In this category, Weetabix scores highest for the satisfaction and recommendation. However, all the brands perform well, suggesting that the sector has got delivery sussed.

Brand Stature

Brand stature is comprised of two key components. There’s brand differentiation – universally regarded as fundamental, reflecting the brand’s ability to stand out from the crowd. And there’s leadership – the extent to which the brand is seen to be ‘leading’ the market. Weetabix once again reigns supreme in this category, although as with many of the other scores, competition is tight right across the sector.

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