Brand Equity Measurement

Brand Equity Models

Brand Asset Valuator

Conjoint Method
Aakers Brand Equity Ten
Interbrand
Brand Report Card

Brand Asset Valuator (BAV)

Brand Equity

Knowledge

Esteem

Relevance

Differentiation

BAV Power Grid

Coca Cola

Kodak

iPod
XBOX

iPhone

Hindustan Motors

Conjoint Method
Developed by Park and Srinivasan
Farquhars (1989) definition of brand equity
as the value added by the brand to the
product.
Traditional conjoint methods have
drawbacks
Survey based method: Self Explicated
Conjoint

Concept

Brand Equity
Brand Equity will thus be the: difference
between an individual consumers overall
brand preference and his/her multiattributed preference based on objectively
measured attribute levels
eij: Brand Equity
u(o)ij: Consumer Preference based on
objectively measured attribute levels
Thus

Define Brand Equity as

Assumptions
i = 0
i = 0

Aaker Model Brand Equity Ten

Interbrand Method
There must be substantial publicly available
financial data
The brand must have at least one-third of
revenues outside of its country-of-origin
The brand must be a market-facing brand
The Economic Value Added (EVA ) must
be positive
The brand must not have a purely B2B
single audience with no wider public profile
and awareness

The Steps

Benchmarking (Brand Strength Score)

LEADERSHIP (25%)
Market Share
Awareness
Positioning
Competitor Profile
STABILITY (15%)
Longevity
Coherence
Consistency
Brand Identity
Risks
SUPPORT (10%)
Consistency of message
Consistency of spend
Above vs. below line
Branch franchise

MARKET (10%)
What is the market?
Nature of the market
(e.g., volatility)
Size of market
Market dynamics
Barriers to entry
PROTECTION (5%)
Trademark registration
& registrability
Common law
Litigation/disputes

TREND (10%)
Long term market share performance
Projected brand performance
Sensibility of brand plans
Competitive actions
INTERNATIONALITY (25%)
Geographical spread
International positioning
Relative market share
Prestige
Ambition

Brand Report Card (BRC)

Consists of Dimensions with items on
which a Brand needs to be evaluated
More from a practitioners perspective
Answers to the questions can be recorded
in a scale of one to ten.
Specific actions can be taken to rectify
brands position/equity

Components of BRC
The brand excels at delivering the benefits
the customers truly desire
The brand stays relevant
Pricing strategy is based on customers
perception of value
The brand is properly positioned
The brand is consistent
The brand portfolio and hierarchy makes
sense

Components of BRC contd.

The brand makes use and coordinates a
full repertoire of marketing activities
The brand managers understand what the
brand means to the consumers
The brand is given proper support over
long run
The company monitors source of brand
equity