BrandValuationTechniquesGeminiConsultingAugust1995cmpmIN8235.04bvtAug95-2-©1995GeminiConsulting,Inc.ObjectiveToprovideasummaryofthemostrelevantacademicresearcharticleswhichdescribethebenefitsandvaluationof“BrandEquity”Toprovideasummaryofthemostrelevantacademicresearcharticleswhichdescribethebenefitsandvaluationof“BrandEquity”cmpmIN8235.04bvtAug95-3-©1995GeminiConsulting,Inc.BrandEquityOverviewcmpmIN8235.04bvtAug95-4-©1995GeminiConsulting,Inc.“TheLightsAreonandNobody’sHome—Again”—DavidFredricks(1991)•Characteristicsthatmakebrandsassets:–Brandscanbepurchased,sold,developed,orterminated.–Ownersofbrandshavelegalrightsregardingtheuseoftheirbrands.–Brandshaveaconsumerfranchise—theyhavemeaningtothepublic.•Identifyingtraitsofbrandassets:–Aspecifictradename.–Uniquebutconsistentpackaging.–Marketplaceeducation:•Mediaadvertising,•Pointofsaledisplays.•Trademarketing.–Effectivedistribution.–Consumerswhoarewillingtopayapremiumtopurchaseabrandedassetversusagenericasset.Source:ManagingBrandEquity,MarketingScienceInstitute,April1991.cmpmIN8235.04bvtAug95-5-©1995GeminiConsulting,Inc.“TheValueofBrandEquity”—DavidAaker•Aaker’sarticledescribeshowvalueiscreatedfromstrongbrandequity.•Hedisaggregatesbrandequityintofive“assettypes”:1.Brandloyalty.2.Brandawareness.3.Perceivedquality.4.Brandassociations.5.Otherproprietarybrandassets.Source:ManagingBrandEquity,JournalofBusinessStrategy,July/August1992.cmpmIN8235.04bvtAug95-6-©1995GeminiConsulting,Inc.“TheValueofBrandEquity”—DavidAaker(cont.)Source:ManagingBrandEquity,JournalofBusinessStrategy,July/August1992.HowBrandEquityGeneratesValueBrandEquityProvidesvaluetocustomerbyenhancingcustomer’s:•Interpretationorprocessingofinformation•Confidenceinthepurchasedecision•UsesatisfactionProvidesvaluetofirmbyenhancing:•Efficiencyandeffectivenessofmarketingprograms•Brandloyalty•Pricesandmargins•Brandextensions•Tradeleverage•CompetitiveadvantageBrandloyaltyBrandawarenessPerceivedqualityBrandassociationsReducedmarketingcostsTradeleverageAttractingnewcustomers:•Createawareness•ReassuranceTimetorespondtocompetitivethreatsAnchortowhichotherassociationscanbeattachedFamiliarity-likingSignalofsubstance/commitmentBrandtobeconsideredReason-to-buyDifferentiateorpositionPriceChannelmemberinterestExtensionsHelpprocessandretrieveinformationDifferentiateorpositionReason-to-buyCreatepositiveattitudeandfeelingsExtensionsCompetitiveadvantageBrandEquityAssetTypeValueBuildingMechanismOtherproprietarybrandassetscmpmIN8235.04bvtAug95-7-©1995GeminiConsulting,Inc.“ManagingBrandEquity”—PeterM.Farquhar(1989)•Definitionofbrandequity:the“added”valuewithwhichagivenbrandendowsaproduct.•Threephasestothemanagementofbrandequity:–Introduction:planakeyplatformfornewproductsandextensions.–Elaboration:makethebrandeasytoremember.–Fortification:extendthebrandtootherproducts—throughlineorcategoryextension.•Astrongbrandimpartscompetitiveadvantages:–Providesaplatformfornewproductsandforlicensing.–Resiliencytoendurecrisissituations,reducedcorporatesupport,orshiftsinconsumertastes.–Providesresistancefromcompetitiveattack.•Qualityisthecornerstoneofastrongbrand.•Threeessentialelementstobuildingastrongbrand:–Positivebrandevaluations.–Accessiblebrandattitudes(quicklyrecallfrommemory).–Consistentbrandimage.•Brandequitycanbebuilt,borrowe...
