B®ANDING™

Session 5 measuring brand value

& international branding

last week

• brand strategy & brand extensions

• brand architecture & brand hierarchy

• the perfect brand portfolio

• changing consumer & environment

• brand activation

• experience marketing

Unconscious

Brain

Processes

Conscious

Brain

Processes

Conscious

Buying

Behavior

don’t underestimate the power of the

brand!

strategic brand management process

1. identify and establish brand positioning and values

2. plan and implement brandmarketing programs

3. measure and interpret brandperformance

4. grow and sustain brand equity

Brand value & entertainment1.00 min

what is brand value?

known vs. unknown

strong vs. weak

valuable vs. worthless

Kevin Lane Keller onbrand value

brand measurement

“ I’m putting all this effort

into my brand, working on the image, giving it the right colors, the right look, the right communication-tools. But is it

working? Does this ‘brand building’- thing have any result at all?”

Measuring brand value:

the Interbrand methodology

best global brands

•Which dutch brands are in the top 100?•Which sector is most present in the top 100?•Which brand takes the biggest positive step?

Why measure brands?

• to measure how strong the brand is in comparison to competitors

• to review marketing campaigns (return on marketing investment)

• to value brands in order to put it in the annual financial overview

“ …what is not measured is not managed…”

(well-known saying)

brand equity

the monetary value of a brand

brand equity measurement system

“...a set of research procedures

designed to provide timely, accurate and actionable information for marketeers so that

they can make the best possible tactical decisions in the short run and the best

strategic decisions in the

long run...”

source: Kevin L. Keller

Building, measuring and managing brand equity

different ways to measure

1. Brand value chain

2. Brand following

3. Brand asset valuator (BAV)

1. brand value chain

Creating brand value starts with investing in marketing campaigns.

The value of a brand is determined by consumers.

So the success of a brand can be found looking at the stock value of the company.

1. brand value chain

Phases brand value chain

2. brand following

• Periodically

• Numeric

• A small amount of crucial dimensions– Brand image, awareness, strength of

associations, etc.

• Helping to predict future consumer behavior and reactions of consumer to brands

3. Brand asset valuator (BAV)

“…the Brand Asset Valuator (BAV) is the world’s largest research about brand

value and brand perception. This research has led tot the biggest

database when it comes to brands. The data is bases upon more than 400.000

respondents from over 40 countries…”

3. the brand asset valuator

Brand Asset (bezit)

Brand stature (reputatie) Brand strength

Esteem (waardering)

Knowledge

Relevance

Energized differentiation

3. the brand asset valuatorBAVconsulting.com explore your brand

Brand stature

Bra

nd s

tren

gth

Low

Hig

hL

ow

High

Fatigue

Leadership

Unfocused

Mass market

New

Curiosity

international branding

Regions (local) vs. The world (global)

• Increasing amount of niche markets

• Increasing amount of consumer data

• Increasing amount of 1-to-1 marketing

Why brands go abroad?

• Home market is saturated

• Heavy competition on the home market

• Extra growth possible abroad

• Overcapacity

• Spreading risk

•

Going abroad?

• Global marketing programor?

• Regionally fitting global marketing program

of?• Something in between

Advantages global marketing program

• Economies of scale

• Lower marketing costs– Packaging, advertising, promotion

• Power and reach– Increasing credibility

• More consistent brand image

• Fundamental differences:– Between countries– Between cultures

• Which leads to boring and ineffective strategies

Disadvantages global marketing program

example

• McDonald’s calls its hamburgers “big macs” that’s nice, especially in Canada where it means having big breasts.

example

• Mitsubishi Motors had to adjust the name of its model Pajero in Spain, this because Pajero means ‘wanker’ in Spanish.

example

• In The Netherlands a few decades ago Fiat introduced it’s new car: Fiat Croma

Hofstede’s 5 dimensions

• Social psychologist

• Cultural differences between countries are often more profound than expected

• Example: KLM – Alitalia, KLM - Airfrance

Hofstede’s 5 dimensions

• Power distance and acceptance

• Individualism

• Uncertainty avoidance

• Masculinity (emotional roleplaying)

• Long term orientation

• Indulgence vs. restraint (to control desires)

example

A company that sells babyfood, sold its product in cans picturing nice chubby baby’s. In African countries no one bought a box, this because the analphabetic population thought it contained pulverized baby..

Differences between countries & cultures:

• Consumer needs / usage

• Reactions on marketing mix elements

• Competitive environment

• Legal environment

• Marketing infrastructure

• Bureaucratic procedures

Consumer needs / usage

• Wine consumption

(Netherlands vs. Italia vs. Poland vs. Belarus)

• Garlic consumption

Reactions on marketing mix elements

• Use of colours (in Japan white is the color of mourning)

• Image (C&A, Heineken)

• Brand names (Croma, Pajero, Mist)

• Price perception (hamburgerindex)

Competitive environment

• Difference in phase of the product life cycle (mobile telephone in Europe, China and Africa)

• Level of competition

• Political situation

• Legislation on tobacco, alcohol, gambling, medicine etc.

Legal environment

Marketing infrastructureBureaucratic procedures

• Availability distribution channels

(flagstores versus retail, Erke)

• Availability of media

Think global, act local

Standardizing vs. marketing mix adjustment

• Mac Croquet

• Sauce

• Frites

• Mac Royal (Fr)

• Beer / wine

To go abroad!

• Country selection

• Distribution selection (b.v. Erke flagstore naar Nederland, G-sus naar China)

• Alternation of international marketing mix

Country selection

• Neighbor method (closest, little differences between cultures (?))

• Filter model (based upon all kinds of dimensions)

• AH voor beginners in België• Ter gelegenheid van zijn entree op de

Belgische markt heeft Albert Heijn een Vlaams-Nederlands boodschappenlijstje gemaakt. Wie 'sojascheuten' wil, zoeke 'taugé'.

• croque monsieur = tosti• dubbele room = crème fraîche• kotelet = karbonade• pompelmoes = grapefruit• pudding = vla• stoemp = stampot• tournedos = kogelbiefstuk• verse kaas = kwark• vol-au-vent = kippenragout• zwarte pensen = bloedworst

questions? /comments

thank you!