1. CHAPTER 8: DEVELOPING A BRAND EQUITY MEASUREMENT AND MANAGEMENT SYSTEM
Lecturer: Md Shahedur Rahman

2. The New Accountability
Virtually every marketing dollar spent today must be justified as both effective and efficient in terms of “return of marketing investment” (ROMI).

3. Truth !!
Hardly any marketing professional who is not worried about what return will a specific campaign bring about.
Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and activities that cannot be linked to short-term incremental profits, but yet can be seen as improving brand equity.

5. The Brand Value Chain Broader perspective than just the CBBE model
The brand value chain is a structured approach to assessing the sources and outcomes of brand equity
Which marketing activities create brand value?

7. The Brand Value Chain

8. Value Stages Marketing program investment Customer mindset
Any marketing program that can be attributed to brand value development
Customer mindset
In what way have customers been changed as a result of the marketing program? 47

9. Value Stages Market performance Shareholder value
How do customers respond in the marketplace?
Shareholder value 47

10. Multipliers Program quality multiplier
The ability of the marketing program to affect customer mindset
Must be clear, relevant, distinct, and consistent 47

11. Program quality multiplier
Clarity
Did consumers understand the marketing program?
Do consumers properly interpret and evaluate its meaning?
Relevance
Is the marketing program meaningful to the consumer?
Do consumers feel the brand is one they should seriously consider?
Distinctiveness
How unique is the marketing program?
How creative or differentiating it is?
Consistency
How well integrated is the marketing program? Is the brand evolving in the right direction?

12. Multipliers Customer multiplier
The extent to which value created in the minds of customers affects market performance
It depends on factors such as competitive superiority, channel support, and customer size and profile 47

13. Competitive superiority
How effective are the marketing investments of competing brands? (Jui vs Parachute)
How strongly have competitors affected customer mindset?
Are their brand equity stronger?
Channel and other intermediary support
How much selling effort is being put forth by various channel partners?
Are retailers helping to sell your brand?
Are distributors motivated to lift your product? Channel conflict?
Customer size and profile
How many and what types of customers are attracted to the brand?
Are they profitable? (toothpaste being launched under magic when only 2% of the consumers every year shift from toothpowder category to toothpaste).

14. Multipliers Market multiplier
The extent to which the value generated through brand market performance is manifested in shareholder value
It depends on factors such as market dynamics, growth potential, risk profile, and brand contribution 47

15. Market dynamics Growth potential Risk profile Brand contribution
Dynamics of financial market (Investors sentiment)
Growth potential
Prospect of the brand, prospect of the industry, Analyze the micro/micro environment. (External Opportunities).
Risk profile
Risk profile for the brand? (External threats).
Brand contribution
How important is the brand as part of the firms brand portfolio?

16. Brand Equity Measurement System
A set of research procedures that is designed
To provide timely, accurate, and actionable information for marketers
We need to make the best possible tactical decisions in the short run and strategic decisions in the long run 47

17. Brand Equity Measurement System
Conducting brand audits
Developing tracking procedures
Designing a brand equity management system 48

18. Designing Brand Tracking Studies
Tracking studies involve information collected from consumers on a routine basis over time
Often done on a “continuous” basis
Provide descriptive and diagnostic information 59

19. What to Track
Customize tracking surveys to address the specific issues faced by the brand
Product-brand tracking
Corporate or family brand tracking
Global tracking 59

20. How to Conduct Tracking Studies
Who to track (target market)
When and where to track (how frequently)
How to interpret brand tracking 59

21. Brand Equity Management System
A brand equity management system is a set of organizational processes designed to improve the understanding and use of the brand equity concept within a firm:
Brand equity charter
Brand equity report
Brand equity responsibilities 48

22. Brand Equity Charter
Provides general guidelines to marketing managers within the company as well as key marketing partners outside the company
Company view of brand equity into a formal document.
Should be updated annually 48

23. Brand Equity Charter Components
Define the firm’s view of the brand equity
Describe the scope of the key brands
Specify actual and desired equity for the brand
Explain how brand equity is measured
Suggest how brand equity should be measured
Outline how marketing programs should be devised
Specify the proper treatment for the brand in terms of trademark usage, packaging, and communication 48

24. Brand Equity Charter with Kool
History of the brand/key events: how the brand has evolved; how it was repositioned, and key events?
Shaving cream
After shave range
Body spray

25. Brand Equity Charter with Kool
The brand vision
The “complete male grooming solution” that gives the leap to an “attractive man” and
Be a entry barrier for other companies in the male grooming category.

26. Brand Kool in next 3 years
DNA
Get Noticed
Manly Fragrance
Shaving line
After Shave Line
Hygiene Line
Beard Softner
Manly Fragrance
Manly Fragrance
Kool Shaving Cream
Monsoon
Frosty
Saloon
Kool Shaving Foam
Ultra Glide
Extreme Comfort
Kool Shaving Gel
Kool After Shave Lotion
Antiseptic
Kool After Shave Moisture Gel
Moisture
Kool After Shave Fairness Cream
Fairness
Kool Deo Body Spray
Blue, Citrus, Saint, Original
Kool Deo Talc - Original
Kool Deo Soap

28. Brand Equity Report
Assembles the results of the tracking survey and other relevant performance measures
To be developed monthly, quarterly, or annually
Provides descriptive information as to what is happening with the brand as well as diagnostic information on why it is happening 48

29. Brand Equity Responsibilities
Organizational responsibilities and processes that aim to maximize long-term brand equity
Establish position of Director of Equity Management to oversee implementation of Brand Equity Charter and Reports
Ensure that, as much as possible, marketing of the brand is done in a way that reflects the spirit of the charter and the substance of the report 48