PSU - 2006 - Global Brand Management - Alain Hutinel 1 Part II Defining and evaluating Brand Equity / Brand Strength Defining Brand Identity Value Structure

PSU - 2006 - Global Brand Management - Alain Hutinel

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Part IIPart II

Defining and evaluating Brand Equity / Brand Strength

Defining Brand IdentityValue Structure MapBrand experience


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EVALUATING THE EVALUATING THE BRAND STRENGTH BRAND STRENGTH

ON THE MARKETON THE MARKET

From Motivationist Marketing From Motivationist Marketing Models Models

toto

Brand Strength & Brand Brand Strength & Brand EquityEquity


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Motivationist models inputsMotivationist models inputs

Favorability of Attitudes with Favorability of Attitudes with the brand namethe brand name

Familiarity with the brand nameFamiliarity with the brand nameImage profile Image profile Perceptual mapsPerceptual mapsPreference Preference Behavorial models Behavorial models


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Favorability of Attitudes Favorability of Attitudes and Degree of Familiarityand Degree of Familiarity

Attitudes++ - -

Familiarity

++

--

Brand C

Brand B

Brand A

Brand D

Is this everpossible ????!!


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Image profile of the brandImage profile of the brand

Criteria 1

Criteria 2

Criteria 3

Criteria ... n

+++ - - -A B C

Brand+

Product


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Perceptual mapsPerceptual maps

A car prestigious to ownHigh

Low

A financiallyeffective car

Low High

* Mercedes

BMW*

* Jaguar

Toyota(Lexus)*

* Alfa

*Volvo

Honda(legend)*

* Audi*Saab

Prestige cars among managers


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Preference ModelsPreference Models

100 %

70%

25%

15%

0

Knowers 15% 0

NonKnowers

Preferers

Indifferents

Rejectors


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Behavorial modelsBehavorial modelsBrand A Brand B

Aware PositiveTriersSatisfied

Repurchase

Total market Which is strongest ???


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We are looking forWe are looking forBrand Strength &/or EquityBrand Strength &/or Equity

==Brand Capacity Brand Capacity

toto create Meanings and create Meanings and

Added ValueAdded Value


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EVALUATING BRAND EVALUATING BRAND STRENGTH &/or EQUITYSTRENGTH &/or EQUITY

1) What we must know1) What we must know2) On what criteria is Brand 2) On what criteria is Brand

strength measured ?strength measured ?3) Where do we stand in the 3) Where do we stand in the

brand building continuum ?brand building continuum ?


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2 approaches : 2 approaches : Keller & Aaker (+ Hutinel)Keller & Aaker (+ Hutinel)

Customer approach : KellerGeneral « Market » approach : Aaker +


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Customer Based Brand EquityCustomer Based Brand Equity

ACCORDING TO KELLER


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Rationale of Rationale of Customer-Based Brand Equity Customer-Based Brand Equity

ModelModel Basic premise: Power of a brand resides in

the minds of customers Challenge is to ensure customers have the

right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:– Thoughts– Feelings– Images– Perceptions– Attitudes


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Building Building Customer-Based Brand Customer-Based Brand

EquityEquity Building a strong brand involves a series of

steps as part of a “branding ladder” A strong brand is also characterized by a

logically constructed set of brand “building blocks.”

We need to :– Identifie areas of strength and weakness– Provide guidance to marketing activities


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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?


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Salience DimensionsSalience Dimensions

Depth of brand awareness– Ease of recognition & recall– Strength & clarity of category

membership

Breadth of brand awareness– Purchase consideration– Consumption consideration


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Performance DimensionsPerformance Dimensions

Primary characteristics & supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price


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Imagery DimensionsImagery Dimensions User profiles

– Demographic & psychographic characteristics– Actual or aspirational– Group perceptions -- popularity

Purchase & usage situations– Type of channel, specific stores, ease of purchase– Time (day, week, month, year, etc.), location, and context of

usage

Personality & values– Sincerity, excitement, competence, sophistication, &

ruggedness

History, heritage, & experiences– Nostalgia– Memories


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Judgment DimensionsJudgment Dimensions Brand quality

– Value– Satisfaction

Brand credibility– Expertise– Trustworthiness– Likability

Brand consideration– Relevance

Brand superiority– Differentiation


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Feelings DimensionsFeelings DimensionsWarmthFunExcitementSecuritySocial approvalSelf-respect


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Resonance Dimensions Resonance Dimensions Behavioral loyalty

– Frequency and amount of repeat purchases

Attitudinal attachment– Love brand (favorite possessions; “a little pleasure”)– Proud of brand

Sense of community– Kinship– Affiliation

Active engagement– Seek information– Join club– Visit web site, chat rooms

Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

DEEP, BROAD BRAND

AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTYATTACHMENTCOMMUNITYENGAGEMENT

QUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

WARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

CATEGORY IDENTIFICATIONNEEDS SATISFIED

PRIMARY CHARACTERISTICS &SECONDARY FEATURES

PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY

STYLE AND DESIGN PRICE

USER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES


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We are looking forWe are looking forBrand StrengthBrand Strength

==Brand Capacity Brand Capacity

toto create Meanings and create Meanings and

Added ValueAdded Value


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General « Market » ApproachGeneral « Market » Approach

ACCORDING TO AAKER … & HUTINEL


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LOYALTYLOYALTY

AWARENESAWARENESSS

QUALITYQUALITYIMAGE & IMAGE & ASS.ASS.

PROPERTYPROPERTY

BRANDBRANDSTRENGTHSTRENGTH

(EQUITY)(EQUITY)

VALUE VALUE FOR FOR THE THE

CUSTOMECUSTOMERR

VALUEVALUEFOR THEFOR THEFIRMFIRM

PREFERENCE


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BrandBrand preference preference If a customer / prospect is interested If a customer / prospect is interested

by the product price, or it’s by the product price, or it’s caracteristics or usage etc... and is not caracteristics or usage etc... and is not convinced in the convinced in the Brand’sBrand’s advantage, advantage, then the then the Brand preferenceBrand preference is weak and is weak and the Brand added value also weakthe Brand added value also weak.

IntensityIntensity of Brand Preference of Brand Preference Probably the best measurement of Probably the best measurement of attitudinal «strength» towards the attitudinal «strength» towards the brand, of brand loyalty and of brand brand, of brand loyalty and of brand value to the individual costumer as value to the individual costumer as well as to the firm.well as to the firm.


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RATE OF LOYALTYCAPACITY T O BUILD IT

LEVEL AND SCOPE OFAW ARENESS

LEVEL & DIST INCT IVENESSOF PERCEIVED QUALITY

M EASURED ST RENGT H OFIM AGE AND IDENT ITY

UNIQUENESS OF PERCEIVEDPOSIT IONNING

PREFERENCE POW EROF PERCEIVED BENEFITS

BRAND EQUIT Y & MARKETING ASSETS


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McDo

5F ( 70 cents) - Hamburger at any time


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Awareness +Awareness +

What is it ?What is it ? - T.O.M- T.O.M - Spontaneous- Spontaneous - Aided- Aided

+ ..... ? + ..... ?

+ Saliency+ Saliency - connotations- connotations - familiarity- familiarity - perceived value- perceived value - activeness- activeness - esteem- esteem - powerpower - notoriousness/- notoriousness/ - reputation- reputation


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The Image of the Brand The Image of the Brand

ItselfItself Definition :Definition :

« All « All associations associations suggested by the suggested by the Brand »Brand »

++ respectrespect trustworthinesstrustworthiness innovativenessinnovativeness creativitycreativity

meanings meanings ascribed, values ascribed, values

attachment attachment affective affective

measuresmeasures wantibility wantibility personalitypersonality affectivityaffectivity powerpower .... ....


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Levels of brand LoyaltyLevels of brand Loyaltyor Strength of Brand or Strength of Brand

LinkLink

Indifference to the brand

Conservative to the Brand, butnot really satisfied

Satisfied, but still could change

Trustfull, likesthe Brand

Promotes the Brand


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Presence

Relevance

Performance

Advantage

Bond + Affinity

Brand Strength Building ContinuumBrand Strength Building Continuum

?


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Brand StrengthBrand Strength

Level & depth of loyalty Level & depth of loyalty (Intensity of) Preference(Intensity of) PreferenceAwareness + saliency Awareness + saliency QualityQualityImage, positionning, Image, positionning,

associations associations selling valueselling valueprice premium potentialityprice premium potentialityhow much bonding ?how much bonding ?


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Towards Brand IdentityTowards Brand Identity


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The Brand Mental MapThe Brand Mental Map

Your Brand

funfriendly

store

flashlights

Brand ZBrand Y


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The Brand Chinese The Brand Chinese PicturePicture

An Object An animal A celebrity A country A location An atmosphere A painting …

Synonymous Brands

Antonymous Brands


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Nature & activenessof Relationestablished by Brand

Brand Non-Adepts’Set of mind of Brand & of Brand Adepts

Brand Adepts’ set of mind of Brand & ofthemselves

Most typical/active apects of Brand Culture &Ligitimacy

Most typical/salient aspects of Brand « Persona »

Most typical Physical offer and salient aspects Of Brand

BRANDIDENTITY


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Brand Personality Factors and Brand Personality Factors and facetsfacets

Sincerity : down-to-earth, Honest, Wholesome, Cheerful

Excitement : Daring, Spirited, Imaginative, Up-to-date

Competence : Relaible, Intelligent, successful Sophisitication : upper-class, charming,

brilliant Ruggedness : outdorsy, tough ……


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-0,4

-0,3

-0,2

-0,1

0

0,1

0,2

0,3

0,4

ATTRACTIVE

CHARMING

CLASSIC

CREATIVEELEGANT

ENTHUSIAST

RELIABLE

Nike Adidas

Figure 1: Personality Profiles of the Sportswear Brands


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-0,3

-0,2

-0,1

0

0,1

0,2

0,3

ATTRACTIVE

CHARMING

CLASSIC

CREATIVEELEGANT

ENTHUSIAST

RELIABLE

Coca Pepsi

Figure 2: Personality Profiles of the Cola Brands


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Attitude towardsthe Brand

Brand Personality

Commitment

InvolvementFigure 3: Conceptual framework

The modelBehind theprofile


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The Brand Value Structure Map The Brand Value Structure Map


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ValuesExpressions of cultures

Heroes

Rituals

Signs : icons, indexes & Symbols

A value is a broadTendency to prefer a certain state of affairs over others

Lifestyles are expressionsof sub-cultures

BRAND ?


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Brand experienceBrand experience

A brand is essentially a container for a costumer’s complete experience with the offer and the company. (Sergio Zyman)


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Total Brand ExperienceTotal Brand Experience

Individual experienceShared experienceIndividual/shared experienceHybrid experience = more than one of the 5

basic experiential modules :Sense, Feel, Think, Relate & Act.


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The Experiential GridThe Experiential GridExperien-tial modules

Mkt

Com

Identi-ties

Pro-ducts

Cobran-ding

Environment

Web People

Sense

Feel

Think

Relate

Act


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16 types of Consumption 16 types of Consumption emotions & « experience »emotions & « experience »

AngerFrustrated, Angry, Irritated

DiscontentUnfulfilled, Discontented,

WorryNervous, worried, tense

SadnessDepressed, sad, miserable

FearScared, afraid, panicky

ShameEmbarrassed,ashamed,humiliated

EnvyEnvious, jealous

LonelinessLonely, homesick

RomanticSexy, romantic, passionate

LoveLoving, sentimenta, warmhearted

PeacefulnessCalm, peaceful

ContentmentContented, fulfilled

OptimismOptimistic, encouraged, hopeful

JoyHappy, pleased, joyful

ExcitementExcited, Thrilled, Enthusiastic

OtherGuilty, Proud, eager ….


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Related ExperiencesRelated Experiences

Social Identities Social Categorization Social Influence Social roles Kin relations Cultural Values Group membership Brand communities


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Brand Equity MeasurementBrand Equity MeasurementBasic brand « audit » surveys.


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Brand Tracking StudiesBrand Tracking Studies

Structure1. Brand Awareness and usage2. Brand Judgments3. Brand Performance4. Brand Imagery5. Brand Feelings6. Brand Resonance7. Preference8. ….


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Brand Awareness & Brand Awareness & Usage/Experience Usage/Experience

Spontaneous, aided awareness

Usage state Established trial Next purchase ? Competition

awareness

Spontaneous associations

Competitive set (usage, trial)

Level of familiarity


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Brand JudgmentsBrand Judgments

Relative to Brand Offer Attitudes Satisfaction level,

compared Recommend to others ? Value for money ? What is best sold by

the brand ? What you like best ? What is different ?

Superior, most satisfying vs others ?

……

Relative to Brand « Business Entity »

Innovative ? Knowledgeable ? Trustworthy ? Likable ? Concern about

customers ? Concerned about society

? Admirable ? Quality of management ? …….


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Brand Performance Convenience Efficiency Quality All aspects of

brand offer specific features, benefits, promises, positionnings …..

Brand Imagery Admiration Respect Down-to-earth Daring Up-to-date Reliable Successful Upper class Charming Out-doorsy …….


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Brand Feelings Warmth ? Fun ? Excitement ? Security ? Social

Approval/enhancement ?

Self-respect ? …….

Brand Resonance Do you consider yourself as

loyal ? Occasionaly ….. To would do

anything to buy ? Love ? Identification with users ? Connected to the Brand ? Recommend the Brand ? Interest in Brand

achievments ? Proudness of using ? Follow news ? Go to website ? Own Stock ?

Documents

PSU - 2006 - Global Brand Management - Alain Hutinel 1 Part II Defining and evaluating Brand Equity / Brand Strength Defining Brand Identity Value Structure