ESTABLISHING

A BRAND
SCORECARD

HOW-TO GUIDE
 Establishing a Brand Scorecard
HOW-TO GUIDE

This report has been designed to provide practical advice for benchmarking and improving your
branding capabilities.

Read this brief report to learn:

Brand Management Defined

Principles of a Strong Brand
What is Brand Equity?
Capabilities Required to Measure Brands
Establishing a Brand Scorecard

Read this report to learn how to prepare your organization for effective brand management. Use
our tools to develop a Brand Scorecard that demonstrates increased Customer-Base Value.

Brand Management Defined

Brand management is the application of marketing techniques to a specific product, product line,
or brand. It seeks to increase the product’s perceived value to the customer and thereby increase
brand franchise and brand equity.

Marketers see a brand as an implied promise that the level of quality people have come to
expect from a brand will continue with present and future purchases of the same product. This
may increase sales by making a comparison with competing products more favorable. It may
also enable the manufacturer to charge more for the product.

The value of the brand is determined by the amount of profit it generates for the manufacturer.
This results from a combination of increased sales and increased price.

2 ESTABLISHING A BRAND SCORECARD HOW-TO GUIDE

Principles of a Strong Brand
Proctor & Gamble PLC pioneered the concept of Brand Management as a result of a memo sent
by Neil H. McElroy.

Following are principles of a strong brand:

Distinguished - is your brand “premium” or “economy”? Does your brand express the brand type
adequately?

Enhance Image - does your brand accurately reflect and enhance the corporate/product image?

Benefit/Usage - does your brand describe the benefits of your product, or how it is used? (i.e. Mr.
Clean)

Simple - is your brand recognizable and memorable?

Protectable - can you legally protect your brand?

What is Brand Equity?

Brand Equity can be defined as the value measurement associated with expected future revenues
for the branded product. Many organizations use a Brand Scorecard in conjunction with a
Marketing Dashboard to measure their return on marketing investments. The metric that can be
used to measure overall Brand Equity is Customer-Base Value.

Customer-Base Value (CBV) - the total number of customers multiplied by the net present value
of those customers (gross profit contribution) over their average lifetime.

Factors that influence the Customer-Base Value metric include:

Customer Retention Rate

Net Present Value for Each Customer
Brand Awareness & Preference
Corporate/Product Image
Purchasing Intentions
Customer Satisfaction
Customer Referral Rates

3 ESTABLISHING A BRAND SCORECARD HOW-TO GUIDE

Capabilities Required to Measure Brands
1. Senior Management Commitment - it is critical that Branding is viewed as a strategic endeavor
and is driven top-down from the C-level. Otherwise, investments to strategically improve brand
equity will not be approved.

2. Internal Brand Alignment - have you conducted an internal brand survey? Since much of
branding takes place during conversations and via email, you need to know how your
employees view the organization. If there is a gap between senior management’s and front-
line customer service’s view, it needs to be resolved.

3. Market Research Data - do you have any empirical data that demonstrates customer/market
segment preferences, satisfaction, referral rates, purchasing intentions, and other important
market research data.

4. Data Management - you need to be able to collect and manipulate marketing metrics and find
causal links that connect them to high-level business metrics. For help in this area, read our
report on Marketing Dashboards.

5. Systems & Technology - once you have built the discipline to collect the relevant brand equity
data, consider housing your data in systems such as Customer Relationship Management
(CRM), Enterprise Resource Planning (ERP), or other enterprise applications. Next, use these
applications to generate reports such as “total number of customers”, “net present value of
current customer base”, or other brand equity reports.

6. Brand Goals, Objectives, & KPIs - once you have the information, systems, and skills required
to measure your brand effectively, take the time to strategically plan for brand improvements.
Take a Balanced Scorecard approach to brand measurement by selecting specific Object-
ives, Measures, Targets, and Initiatives.

Bottom Line
Brands are intangible assets that are difficult to measure. That being said, it is not impossible for
an organization to benchmark and demonstrate improvements to brand equity for a reasonable
cost. If you do not have much experience with Branding and have a strategic imperative to meas-
urably improve your brand, consider getting help from a consultant.

Based on the best practices described in this report, and tools provided, you should be able to
get started with a branding program. If you need more clarity, contact your Research Associate
who can provide you with more tailored advice.

4 ESTABLISHING A BRAND SCORECARD HOW-TO GUIDE

 Action Plan
STEP 1 - Consensus

1 Consensus
Achieve Brand Consensus

2 Existing Data Creating a simple Brand

Scorecard does not have to be
as intimidating as it may sound.
3 Research This section will outline the steps
required to build an effective tool
to measure your brand.

4 Objectives Have a meeting with key

brand stakeholders to ensure
you have alignment on your
corporate mission, vision,
5 Specific Targets
values, etc. Use our Brand
Selection Tool for assistance.

6 Define Success

7 Timeframe

8 Brand Scorecard Brand Selection Tool

VIEW RESOURCE

9 Benchmark

10 Compare

5 ESTABLISHING A BRAND SCORECARD HOW-TO GUIDE

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