130 likes | 696 Views
THE WORLD’S MOST VALUABLE BRANDS ( Interbrand ). THE WORLD’S MOST VALUABLE BRANDS ( Interbrand ). THE WORLD’S MOST VALUABLE BRANDS ( Interbrand ). PRODUCTS ARE CREATED IN A FACTORY, BUT BRANDS ARE CREATED IN THE MIND. …WALTER LANDOR. Reputation. Consumer Loyalty. Future Earnings/Cash Flow.
E N D
PRODUCTS ARE CREATED IN A FACTORY, BUT BRANDS ARE CREATED IN THE MIND. …WALTER LANDOR
Reputation Consumer Loyalty Future Earnings/Cash Flow Associations Awareness BRAND STRENGTH BRAND VALUE BRAND IMAGE Feelings Extension Potential Sales Volume Price Elasticity Price-Cost Margin Purchase Frequency Personality BRAND EQUITY DIMENSIONS
Price Premium (%) Dollar Sales Market Share for a Brand Unit Volume Market Share for a Brand Red Bull Price Premium = 43/30 -1 = +43% Monster Energy Price Premium = 16/27 -1 = -59% Full Throttle/Tab Energy = 10/10 -1 = 0% -1 = CALCULATING A PRICE PREMIUM (BRAND EQUITY) BASED ON DOLLAR AND UNIT VOLUME MARKET SHARE DATA
SOURCES AND OUTCOMES OF BRAND EQUITY • Sources of Brand Equity: • Equitrak: • recognition • regard • Keller Model: • Brand Salience • Brand Performance/Imagery • Consumer Judgments/Feelings • Brand Resonance • Young & Rubicam Brand Asset Valuator • Differentiation • Relevance • Esteem • Knowledge • Outcomes of Brand Equity: • Incremental Cash Flow… • Economic Value • Brand Loyalty • Price Premiums
Unaided Awareness Total Awareness RECOGNITION REGARD Quality Value Trust REPUTATION No Substitute Willing to Pay More DIFFERENTIATION Gaining Popularity Declining Popularity MOMENTUM Favorite Brand Proud to Use AFFILIATION EQUITRAK BRAND EQUITY MODEL
CUSTOMER-BASED BRAND EQUITY PYRAMID (Keller) 4.Relationships = What about you and me? Intense, active loyalty Consumer- brand resonance Positive, accessible reactions 3. Response = What about you? Consumer feelings Consumer judgments Strong, favorable and unique brand associations 2. Meaning = What are you? Brand performance Brand imagery Deep, broad brand awareness 1. Identity = Who are you? Brand salience
THE BAV Power Grid Power Leaders Niche/ Unrealized Potential D R E K Declining Leaders D R E K BRAND STRENGTH (Differentiation & Relevance) D R E K New Eroded Unfocused D R E K D R E K BRAND STATURE (Esteem & Knowledge) YOUNG & RUBICAM’S BRAND ASSET VALUATOR • Differentiation measures the degree to which a brand is seen as different from others. • Relevance measures the breadth of a brand’s appeal (the overall size of a brand’s franchise). • Esteem measures how well the brand is regarded and respected • Knowledge measures how familiar and intimate consumers are with brand.
SOME BRAND ACQUISITIONS: PRICES AND SALES MULTIPLE