What Is A Brand Audit?
A Brand Audit describes and evaluates the current state of a brand and its effectiveness in
achieving a company’s business objectives. This assessment is the first step in brand strategy development and is used as a diagnostic tool for determining where the brand strengths lie and for identifying its potential vulnerabilities or shortcomings. It is the foundation on which the other steps depend.
What Is A Brand Audit?
A Brand Audit describes and evaluates the current state of a brand and its effectiveness in
achieving a company’s business objectives. This assessment is the first step in brand strategy development and is used as a diagnostic tool for determining where the brand strengths lie and for identifying its potential vulnerabilities or shortcomings. It is the foundation on which the other steps depend.
What Is A Brand Audit?
A Brand Audit describes and evaluates the current state of a brand and its effectiveness in
achieving a company’s business objectives. This assessment is the first step in brand strategy development and is used as a diagnostic tool for determining where the brand strengths lie and for identifying its potential vulnerabilities or shortcomings. It is the foundation on which the other steps depend.
Brand Amplitude, LLC 2012 All Rights Reserved May not be reproduced without authors permission 2 "#$% &' ( )*$+, (-,.%/ A 8rand AudIt descrIbes and evaluates the current state of a brand and Its effectIveness In achieving a companys business objectives. This assessment is the first step in brand strategy development and Is used as a dIagnostIc tool for determInIng where the brand strengths lIe and for IdentIfyIng Its potentIal vulnerabIlItIes or shortcomIngs. t Is the foundatIon on whIch the other steps depend.
n thIs step you should use all avaIlable InformatIon sources, Internal and publIcly avaIlable. You may decIde to take the tIme to conduct new research to supplement what you know or fIll In the gaps.
A brand audIt: Assesses how well the brand is delivering against the companys objectives dentIfIes customer wants, needs, and trends at the category level nventorIes and categorIzes all exIstIng brand elements and assets (trademarks, subbrands, logos, taglInes) In the brand portfolIo Describes relevant competitive market trends and your brands strengths/weaknesses Evaluates the brands current Image (how It Is perceIved by customers and other key stakeholders) dentIfIes potentIal sources of dIfferentIatIon, tablestakes, vulnerabIlItIes
"#$% 01- 233, %1 4+15 The purpose of a brand audIt, just lIke a fInancIal audIt, Is to assess your current posItIon and IdentIfy key Issues. A brand audIt Incorporates InformatIon about the customer, the company, the market and the brand. (See graphIc to rIght) 8rand audIts take many forms there Is no sIngle magIc format. Fegardless of the form your audIt takes, the perspectIve Is always that of the company and how the brand supports Its overall objectIves. To complete a brand audIt, you wIll need to fIrst IdentIfy all the possIble sources of InformatIon at your dIsposal. ThIs Includes (but Is not lImIted to): Company mIssIon, vIsIon and values statements FInancIal performance and trends (e.g., revenue, profIts, margIns) ThIrd party research about your Industry (e.g., fInancIal analysts, syndIcated market research, government agencIes, Industry assocIatIons) ProprIetary research studIes (e.g., trackIng research, focus groups) Part 1: How To Conduct a Brand Audit
Brand Amplitude, LLC 2012 All Rights Reserved May not be reproduced without authors permission 3 Current and past advertIsIng and promotIonal collateral for your brand and competItIve alternatIves (wIthIn and beyond the specIfIc category) SocIal medIa reports and conversatIon analyses Customer servIce records Patents and other Intellectual property Dnce you have IdentIfIed the best InformatIon sources, the next step Is to organIze the most relevant InformatIon. The types of InformatIon ncluded In a 8rand AudIt can be classIfIed Into four categorIes: )*$+, (-,.% &+6-%'
Each category addresses a key Issue In brand strategy. You need the complete pIcture to make effectIve brand strategy decIsIons. The outlIne below Is just one example of how you mIght organIze the InformatIon. You wIll need to adapt It for your category and to fIt your InformatIon.
Part 1: How To Conduct a Brand Audit
Brand Amplitude, LLC 2012 All Rights Reserved May not be reproduced without authors permission 4 7$8693 )*$+, (-,.% :-%9.+3
1. Company or business units strategic direction a. Company / 8U growth objectIves b. 8usIness model, e.g. dIrect to consumer, channel partners c. Key allIances / cobrandIng partners d. StrategIc InItIatIves and ImplIcatIons for brand e. Core competencIes and personalIty
2. Consumer wants and needs a. Target market (category and brandspecIfIc): I. Category purchase or usage behavIor II. 0emographIc and psychographIc characterIstIcs III. CeographIc concentratIon b. AudIence sIze and segmentatIon I. How Is market typIcally segmented: e.g., by product type, qualIty tIerIng, etc. II. How bIg are these segments, where Is the volume: c. Target wants and needs relatIve to the category
J. |arket defInItIon and attractIveness a. 0efIne the Industry or category your brand Is In b. Show Industry or category sIze (revenues), growth over the past J years, and projected growth over the next J years c. Assess Industry/category competItIveness, e.g. Industry concentratIon, number of competItors d. dentIfy and profIle the relevant competItIve set, e.g., I. |ost current market share and recent trend II. SalIent brand attrIbutes or descrIptors III. PerceIved strengths and weaknesses Iv. mplIed posItIonIng and brand Imagery
4. Current brand Image a. What Is the brand known for: b. What brand elements are assocIated wIth the brand, e.g., trademarks, subbrands, logos, taglInes c. 8rand attrIbutes / customer assocIatIons d. PoInts of parIty / poInts of dIfferentIatIon vs. competItIon e. Current posItIonIng taglInes, brand vIsuals/symbols, current ad campaIgns
Part 1: How To Conduct a Brand Audit
Brand Amplitude, LLC 2012 All Rights Reserved May not be reproduced without authors permission 5 ;119' $+, <*$8351*=' ThIs tool Is deceptIvely sImple, but Is a powerful way to vIsually organIze a lot of dIsparate InformatIon and make brand strategy ImplIcatIons apparent. The goal of a brand strategy Is to IdentIfy the basIs for customer brand preference why should they buy your brand over the alternatIves: Yet most brand strategIes are Incomplete wIthout also reassurIng customers that the brand satIsfIes the prImary reasons for buyIng the product In the fIrst place. These are known as points of parity or tablestakes. They are the price of entry for the category. If you cant deliver on these and delIver well then your poInts of dIfference are Irrelevant. ThIs framework dIstInguIshes between what Is dIstInctIve and what Is shared. The InsIght derives from the overlaps, those ideas or traIts that are Important to customers and unIque to the brand. These are the potential differentiators. Just as important are ideas that are unIque to competitors and important to customers. These are potential vulnerabilities for your brand that wIll need to be neutralIzed or mItIgated through effectIve brand strategy and executIon. )*$+, (''3''83+% <*$8351*=
Part 1: How To Conduct a Brand Audit
Brand Amplitude, LLC 2012 All Rights Reserved May not be reproduced without authors permission 6 >?$8693' 1@ (669A.+B %#3 <*$8351*=
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The Y|CA serves more than 10,000 neIghborhoods across the country. ronIcally, Its greatest strength may also be Its greatest weakness everyone knows about It or at least thInks they do. ts 120year hIstory of servIng famIlIes In the |IchIganndIana area meant that many nonmembers thought of the |IchIana Y|CA as a place for learnIng how to swIm. A survey of people lIvIng wIthIn range of the Y|CA showed that most were not aware of Its comprehensIve health, fItness and famIlyorIented programs. The YMCAs slogan, Something for Everyone, lacked specificity. Consequently, prospectIve members didnt know Whats there for me? A brand audIt took a close look at the competItIve envIronment relatIve to the programs and facIlIty at the Y|CA and revealed many hIdden strengths. For example, the rIver locatIon, whIch some Internally saw as a negatIve, actually turned out to be a posItIve reason to vIsIt the Y|CA. n the two years sInce thIs audIt was completed, the |IchIana Y|CA grew Its new membershIp sIgnIfIcantly and enhanced member retentIon by rebrandIng and through cosmetIc facIlIty updates. The fresher look and refocused messagIng In conjunctIon wIth a natIonal rebrandIng effort Influenced many nonmembers to take a closer look at The Y.
Part 1: How To Conduct a Brand Audit
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Ace Hardware Is the largest retaIlerowned hardware cooperatIve wIth roughly 4,400 locally owned and operated hardware, home center and buIldIng materIals stores. The largest retaIler wIthIn the Ace Hardware franchIse, Westlake Ace Hardware, has some 90 stores spannIng fIve |Idwestern states. t has long been a local favorIte for purchasIng home maIntenance and garden supplIes. Fecent expansions by Home Depot and Lowes In key tradIng areas caused Westlake Ace to take a closer look at Its brand. The brand audIt revealed that many consumers define selection in terms of has what I need rather than has lots of choices, turnIng a potentIal vulnerabIlIty Into a strength. The smaller store sIze meant consumers could fInd what they needed more easIly an Important feature for quIck trIps when all you need Is one or two Items. The audIt also revealed that Westlake Ace Hardware consumers feel welcome there and apprecIate the stores frIendly and knowledgeable assocIates. SInce many homeowners do not feel lIke home repaIr pros, thIs was a potentIally meanIngful poInt of dIfference. Westlake Ace Hardware used these InsIghts to rebrand Its stores and web sIte usIng the tagline, Small Projects. Big Know How. Ask Away. Today, the store is holding its own against its larger competItors who have less credIbIlIty when It comes to offerIng expert advIce.
Part 1: How To Conduct a Brand Audit
Brand Amplitude, LLC 2012 All Rights Reserved May not be reproduced without authors permission 8 H*$D%.D3 (669A.+B %#3 ;119
Now its your turn. Here are some hints: Start wIth your customers wants and needs and move clockwIse to help focus on just what Is relevant. 8e sure to also look for unmet needs. What do customers want that no one Is delIverIng or delIverIng well: ConsIder IntangIble as well as functIonal characterIstIcs. Westlake Ace Hardware learned the empowerment Its customers felt whIle shoppIng theIr stores was a potentIal dIfferentIator. Challenge your defInItIon of your category to Include IndIrect competItIon or potentIal substItutes as well as other category brands. The Y|CA learned It competed wIth walkIng and home exercIse equIpment as much as It dId wIth other health clubs.
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The first job in brand analysis is to defIne precIsely all that the brand Injects Into the product (or servIce) and how the brand transforms It: What attrIbutes materIalIze: What advantages are created: What benefIts emerge: What ideals does it represent?
Jean Noel Kapferer, The New StrategIc 8rand |anagement
There Is no questIon In my mInd that there are bIg chunks of the busIness core that are sImply broken. The most obvIous manIfestatIon of thIs Is what descrIbe as a monolIthIc competItIve herd. The sIlver lInIng In thIs Is that there Is now a wIndow of opportunIty for outlIers to emerge. After all, in order for there to be a rebel, there must first be an establishment against which to rebel. Youngme |oon, 0Ifferent, pg. 10J
A brand audIt requIres understandIng the sources of brand equIty from the perspectIve of both the fIrm and the consumer. From the perspectIve of the fIrm, what products and servIces are currently beIng offered to consumers and how are they beIng marketed and branded: From the perspectIve of the consumer, what deeply held perceptIons and belIefs create the true meanIng of brands and products? KevIn Keller, StrategIc 8rand |anagement pg. 127
The objective of brand strategy is to create a business that resonates with customers, that avoids competItor strengths and exploIts theIr weaknesses, and that exploIts Its own strengths and neutralIzes Its weaknesses. To create such a busIness, It Is necessary to understand the vIewpoInts represented in these three sets of analyses. 0avId Aaker, 8uIldIng Strong 8rands, pg.190
No countrys industry is going to hold on to its customers if it cant continue to lead in offering the most value. And the answer has to be: better targeting, differentiation and branding. PhIlIp Kotler, QEA http://www.kotlermarketIng.com/phIl_questIons.shtml I3'1-*D3' %1 J1 K3363* There Is a vast lIterature on the Importance of brands and how to manage them effectIvely. Here are a few of our favorItes. We hope they InspIre you to thInk about your brand In new ways: 1. 0avIs, Scott, 8rand Asset |anagement: 0rIvIng ProfItable Crowth Through Your 8rands, Jossey8ass, 2002 ThIs book by a senIor partner at respected strategIc brand and marketIng consultancy, Prophet, was among the first to take a howto approach for thinking about brands as assets to be managed, not just as the outcome of good marketIng.
Part 1: How To Conduct a Brand Audit
Brand Amplitude, LLC 2012 All Rights Reserved May not be reproduced without authors permission 10 2. Keller, Kevin, The Brand Report Card (PDF), !"#$"#% '()*+,)) -,$*,., 2000 http://www.amazon.com/8randFeportCardKevInKeller/dp/800005FZ9F
ThIs classIc artIcle was wrItten by the 0artmouth professor who authored one of the most wIdely used 8school texts on strategIc brand management. t provIdes a sImple way to assess a brand based on the ten common attrIbutes of strong brands. J. |oon, Youngme, 0Ifferent: EscapIng the CompetItIve Herd, Crown 8usIness, 2010 0elIghtfully readable, thIs short book by a Harvard brand strategy professor challenges readers to thInk about what It means for a brand to be truly dIfferent, not just dIfferentIated. (L1-% %#.' 73*.3' The Ideas In thIs HowTo serIes are based on frameworks we use to teach the prIncIples of brand strategy to upper dIvIsIon undergraduates and |8A students. UnderstandIng the Ideas we dIscuss requIres basIc famIlIarIty wIth the prIncIples of marketIng, but does not requIre that you have years of marketIng experIence. We assume the reader knows that brands are more than logos and taglInes that they are IntangIble assets embodyIng a promIse and a relatIonshIp between the brand owner and brand users. |ost of the Ideas are not orIgInal. Father, they reflect the cumulatIve dIstIllatIon of what we thInk Is most valuable and useful from the vast lIterature on buIldIng great brands. n wrItIng thIs book we drew on close readIng and personal applIcatIon of the Ideas of many brand strategy practItIoners, professors and wrIters, partIcularly the work of 0avId Aaker, KevIn Keller, Jean NoelKapferer, Jack Trout, PhIlIp Kotler and others too numerous to name. We list some of the most relevant works for those who want to go deeper. FInally, thIs work represents our own Independent effort conducted on our own tIme, and neIther UC 8erkeley nor The UnIversIty of Notre 0ame paId us when we compIled It for use In our courses. We feel prIvIleged to be a part of these great InstItutIons but thIs serIes does not have theIr offIcIal endorsement. We hope you enjoy readIng It and most of all that you fInd It useful In developIng an effectIve brand strategy for your busIness or organIzatIon.
Carol PhIllIps (left) and Judy HopelaIn (rIght) For more, contact us at: carol@brandamplItude.com or judy@brandamplItude.com