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OUR PERSPECTIVE
March, 2012
INTRODUCTIONS
Consulting
Accenture BCG Prophet Swander Pace & Co.
Agency
JWT Leo Burnett Mullen Y&R
Business Faculty
A strong brand is one of a companys most important assets. By growing brand equity, marketers help achieve the organizations business objectives.
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
1
INTRODUCTIONS
Brand audit
Market segmentation Target insights (motivations, culture and decision-making) Brand identity and rallying cry Brand positioning Brand architecture Brand activation Brand measurement
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
2
Customer Experience
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
Wireless
Brand owned/used Intention to Switch in next 3, 6, 12 months? What brands would I consider purchasing?
Packaged Food
Price and Quality perceptions Number of purchases of last 10 allocated to each brand Future intent to buy
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
$1.99
$4.18
$2.29
Loyal Behavior
Share of wallet Purchase frequency Vendor consolidation
Beliefs
Relative overall quality Perceived cost Preference Willingness to recommend Understands my needs
Intent
Future purchase intent Self-perceived trend (more or less of my business)
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
34.5%
37.4%
Sales contributed by loyal customers
Market Share
28.0%
56% Sales
Brand A
Brand B
Brand C
Size and vitality of the core varies by brand. Every brand could benefit from having the core group represent a larger share of its total franchise.
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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Loyal Behavior
Operationally define loyal behavior in a way that is specific to the category (e.g., 80% total category needs). Determine what percentage of Total Volume is Loyalty Volume* by brand.
Price Not a Barrier Price a Minor Barrier Price a Significant Barrier
Beliefs
Classify customers according to their brand beliefs. Determine Total Volume and Loyalty Volume* within each classification.
Superior Quality Advocates Good Quality Unconvinced Acceptable Quality Indifferents
Intent
Classify customers regarding how typical their recent purchasing has been and whether they expect a shift in the future.
Aspirers
Opportunists
Ignorers
Admirers
Skeptics
Rejectors
*Loyalty volume = brand volume contributed by customers who are classified as loyal
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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Leveragability Index
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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n=417 male and female primary grocery shoppers who purchased spaghetti sauce in past 3 months, 2005 Volume expressed in units of jars, cans, tubs.
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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Loyal Behavior
Share of wallet Purchase frequency Vendor consolidation
Beliefs
Relative overall quality Perceived cost Preference Willingness to recommend Understands my needs
Intent
Future purchase intent Self-perceived trend (more or less of my business)
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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P1 P2 P3
Share of Volume Q1 Q2 37.9% 11.4% 26.1% 13.0% 0.5% 1.4% Loyalty Share Q1 Q2 80.0% 65.8% 84.8% 15.2% 0.0% 0.0%
P1 P2 P3
Share of Volume Q1 Q2 15.0% 14.3% 32.3% 21.8% 2.3% 2.7% Loyalty Share Q1 Q2 57.0% 31.0% 51.5% 10.7% 0.0% 0.0%
Ragu derives nearly 38% of its volume from Advocates while Prego derives just 15% from its Advocates. A higher proportion of Ragu volume is Loyalty Volume, even among those with high future intent.
P1 P2 P3
P1 P2 P3
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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Market Share
(Share of category volume)
Equity Share
(Share of category loyal user volume)
(Contribution of top (Ratio of Aspirer volume (Loyal user volume box respondents to to Total Aspirer + as % total) volume) Unconvinced volume)
Advocate Contribution
Leveragability Index
Ragu Prego
46% 25%
51% 20%
30% 9%
70% 69%
Store
Other TOTAL
6%
23% 100%
4%
26% 100%
33%
66% 57%
23%
16% 21%
0%
60% 64%
Loyal users = 4 of last 5 purchases devoted to one brand. Advocates = those who rate brand superior on quality, price is no barrier to purchase
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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Publication
Leveraging the Corporate Brand The Loyalty Effect
Author
James R. Gregory
Definition
Reputation, communications & financial performance Difference between percentage of brand promoters and detractors Sum of the lifetime volues of current and future customers
Fred Reichfeld
Customer Equity
Roland Rust
John Gerzema and Palpable and measurable energy Ed Lebar that fosters irrational fidelity
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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Recommended Approach
The right way to measure brand equity involves a mix of measures and the ability to relate them to business results.
Market Performance
Financial Impact/Performance
2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
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Key Takeaways
Understand the difference between brand equity and brand value which is more important to you to know?
Be consistent
Movies work better than snapshots pick a method and stay with it to build knowledge over time
Prioritize measures
Dont confuse data with insight make it meaningful or it will be ignored Most companies suffer more from too much data than from too little
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2012 Brand Amplitude, LLC All Rights Reserved May not be reproduced without permission
CONTACT US
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