Brand Tracking. increase brand equity. Per E Åsberg, November 4th 2008

Transcription

1 Brand Tracking A way to control and increase brand equity Per E Åsberg, November 4th 2008

2 Today s agenda About Brand Tracking What is brand tracking? How is it used and how will you use it? How does brand tracking work technically? Controlling Brand Equity About brand equity Measuring communication effect on the consumer using brand tracking The three steps of consumer impact Increasing Brand Equity General views on how to increase brand equity

3 About the lecturer Master of Science in Computer Engineering from KTH Studies focused on marketing Master Thesis about Brand Alliance Strategies at Porsche Employed as Key Account Manager at Scandinavia s leading market research company within brand tracking Nepa Questions concerning this lecture, market research or upcoming job openings, contact: [email protected]

4 Section I of III About Brand Tracking

5 What is brand tracking? Brand Tracking is a way to continuously measure the development of a brand within some key variables, such as Ad Awareness, what brands the consumer prefer and what he/she is using.

6 Companies are willing to pay to learn what you think

7 Brand tracking and evaluations of campaigns are important parts of every day marketing Communication M E D I U M Poolia Manpower Proffice Brand tracking: have consumers noticed us?

8 Brand tracking is a way to monitor the results If you literally put millions into conceptualizing, producing and distributing a commercial message, it s just common sense to put a few thousand Swedish crowns on knowing if those millions had any effect! Anonymous brand manager at global company

9 We start off with panels of people interested in answering questions A stratified representative selection is created from a diversified group of panels consisting of over panelists. - Age (15-74 years old) - Gender - Region The most common recruitment methods are: - Telephone recruitment - Online recruitment - CAPI recruited (Face to face)

10 An example of one such panel is Panelen.se People join the panel by logging on to and filling in their contact information

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12 We then send them a survey that they complete 1 Collection of data using online surveys A representative selection (age, gender and region) is created from various panels consisting of over respondents. The respondents are invited to take part in the online survey through a link in an e- mail. The respondents answer the questions when they have the. time to do so. 2 Processing the data The open-ended answers are coded as the brands appear within a category. The system is a learning system, meaning that all openended answers are registered and that no limitation exists concerning the number of measurable competitors. 3 Delivery of data The data can be delivered in a number of formats. - In Excel tables - Directly into a database - In SPSS format - As tab separated data - As comma separated data - As diagrams

13 A survey may look like this

14 To track a market is to know it A company can for a long period of time follow the development of theirs and competitors brands and evaluate the market as a whole as well as individual brands. How was BMW s last campaign received by the consumer? Which car brand does the consumer prefer? What do they intend to buy? How many people own a Volvo?

15 Nepa s tracking includes 3-4 variables The Nepa Model Respondent background information Attention Intention Current experiences Brand Awareness - Top of Mind - In Mind Preference - Top of Mind - In Mind Latest purchase - Main brand - Other brands Ad Awareness - Top of Mind - In Mind

16 Each variable is identified using a question Ad Awareness Which car brands have you noticed any advertisement from over the last month? Which car brands have you heard of? Brand Awareness Preference Which car brand do you prefer? What other brands are interesting? What car brand do you own? Latest purchase

17 The answers make out the consideration set and are split into Top of Mind and In Mind Top of Mind (ToM) This is the brand the consumer puts in first position. Often, this means that this is the most likely candidate for a later purchase, which makes this position the most wanted for all brands. Volvo Saab Chrysler Mercedes Skoda Fiat In Mind (IM) The rest of the brands mentioned are included in the consideration set but has a lower chance of being bought in the end. A brand that is not included here virtually does not exist in the mind of the consumer.

18 Example: The car industry is very advertisement intensive which brands stand out? 1st 2nd 3rd Ad Awareness, Topof Mind, first halfof 2007, basedon respondents

19 Advertisement alone does not explain the consumer s choice of brand Ipren is the brand of pain relievers in Sweden with the highest Ad Awareness in fact, it s close to the most noticed commercials over all categories

20 Advertisement alone does not explain the consumer s choice of brand However, we still say good old-fashioned Alvedon when we are asked to mention what brand we prefer

21 The greatest advantage of brand tracking is your ability to see the development over time in your industry 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Alvedon Ibumetin Ipren Panodil Treo Eeze Zon Voltaren Bamyl Eox We can see when each brand invests in communication (arrows) and what impact the campaign has

22 Section II of III Controlling Brand Equity

23 Explaining brand equity is difficult due to the vast number of different definitions available A set of brand assets and liabilities linked to a brand, its name and symbol, that adds to or subtract from the value provided by a product or service to a firm and/or to that firm s customers. David Aaker, 1991

24 The purpose of branding is to boost the equity of a brand Generic cola Look: 70% Taste: 63% Refreshment: 77 % Coca Cola Look: 72% Taste: 87% Refreshment: 90 % The consumer will perceive a difference if the same product is marketed under different brands. That difference constitute the brand equity the power of the brand.

25 A brand and its worth exists in the mind of the consumer and there is where to measure it It doesn t matter what the brand managers believe their brand to be it is the consumer s view that determine perception of the products and in the end sales.

26 There are two way to measure brand equity Kotler & Keller, Marketing Management, p. 289 it is important for marketers to (1) fullly understand the sources of brand equity and how they affect outcomes of interest, as well as (2) how these sources and outcomes change, if at all, over time. Solution to (1) Brand Audits Solution to (2) Brand Tracking

27 The first step towards building and measuring brand equity is brand awareness Brand Awareness Brand Recall Brand Recognition Brand recall are the brands you can name off hand within a certain category and it is this that is usually measured in real life. Brand recognition are brands you recognize when shown.

28 Brand Awareness and Brand Image are often named the two attributes defining Brand Equity Brand Awareness Suiting Brand Image Brand Universe Brand Awareness defines what part of the brand universe each consumer is aware of, while brand image determine which one of these choices that are most appropriate in each situation

29 People need to have heard of you in order to buy you, but they must also like your image Have I seen this brand before? What does this brand stand for? Brand Awareness Brand Equity Brand Image

30 Time for tea and coffee

31 The first step to measure Brand Equity is to measure general Brand Awareness Which ones of the following car brands have you heard of? Which car brands have you heard of? Saab Volvo Fiat BMW Ford (Brand recognition) (Brand recall) By asking people to name which car brands they know of, you are measuring their Brand Awareness. In general, people know of 7-8 car brands up front.

32 17% 15% 14% 13% One half of Brand Equity, Awareness, is easily measured by asking just one question 52% 34% 11% 11% 9% 7% 7% 5% 6% 5% 3% 2% 2% 1% 2% Volvo and Saab have high Brand Awareness in Sweden and therefore possess high Brand Equity on the Swedish market. Chrysler as a new market entry and Opel as a relatively inactive brand are having problem maintaining Brand Awareness.

33 The other half, Brand Image, is more abstract and cannot easily be measured Brand Strength Experiences Uniqueness Associations Reputation History Since Brand Image consist of so many different parts, some of which are very abstract, it is difficult to determine how to measure it. Also, reputation and associations are different from consumer to consumer.

34 Instead, we go one step ahead and measure which brands people actually prefer??? Strong Brand Image?? = High preference???????

35 When measuring brands, steps often form between Brand Awareness, Preference and what you actually buy in the end 45% 40% 35% 30% 25% 20% 15% 10% 5% Which brands of chocolate pralines have you heard of? Which brands of chocolate pralines do you prefer? Which brands of chocolate pralines have you bought recently? 0% Aladdin Paradis Marabou Merci Fazer There is a decline from Brand Awareness to Preference and finally to what you buy in the store.

36 Between these brands, there is an order that is maintained almost regardless of variable 45% 40% 35% 30% 25% 20% 15% 10% 5% Which brands of chocolate pralines have you heard of? Which brands of chocolate pralines do you prefer? Which brands of chocolate pralines have you bought recently? 0% Aladdin Paradis Marabou Merci Fazer The top five chocolate praline brands in Sweden are Aladdin, Paradis, Marabou, Merci and Fazer almost regardless of what single variable you measure.

37 The order in which these brands are mentioned could also be their relative Brand Equity strength In this category, the relative strength of the Brand Equity of these brands can be assumed to be the above however their absolute strength is much more difficult to measure.

38 A brand tracking gives you a general picture of the strength of communication and brand image = 75,6 However, you cannot set a definite number on the strength of the brand equity, since it depends on what variables you believe most important and how you measure them.

39 There are companies that regularly measure the value of global brands BusinessWeek chose Interbrand s methodology because it evaluates brand value in the same way any other corporate asset is valued on the basis of how much it is likely to earn for the company in the future. Interbrand uses a combination of analysts projections, company financial documents, and its own qualitative and quantitative analysis to arrive at a net present value of those earnings. Quote from BusinessWeek s homepage

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41 Section III of III Increasing Brand Equity

42 Increasing brand equity comes down to optimizing two factors: the communication itself and the brand image communicated

43 It s all about what you say and how you say it

44 The communication needs to be powerful enough to reach through to the consumer and the message clear and understandable The communications strategy (platforms used, number of ads shown, discernability) is the power that moves the rocket foward The messege delivered determines how the consumers percieve the brand and if the image wanted is created

45 If the advertisement budget is too small, there is a risk the message will not reach through Exposure show the ad enough times and in the right channels Attention make sure the advert stands out/is noticed Comprehension make sure that people understand what you are trying to say Source: Keller There is a lot of communication going on can you stand up to the competitors?

46 Make sure you are saying something that gives you the expected brand image Yielding the consumer should like what you have to say Intentions the consumer plans to buy your product Behaviour the consumer buys your product Source: Keller Do people like what you have to say? Do they label you in the way you intended?

47 An error would be trying to make your brand stand for everything at once Quality? Low price Design Customization Innovation Global Service

48 How do you increase your brand equity? 1. Reinforce your brand with campaigns carrying the same message 2. Create brand extensions / co-branding with similar associations 3. Differentiate your brand to make it stick in consumers minds

49 1. Reinforce your brand with campaigns carrying the same message ICA communicates special prices for members, a sense of togetherness, humor and the occational CSR-campaign

50 2. Create brand extensions / co-branding with similar associations Pizza Hut co-locating with Taco Bell is a form of co-branding. Pizza Huts brand and offering can be more easily understood through its reference to Taco Bell

51 Pizza Huts spin-off WingStreet show great similarity to the Pizza Hut concept, even though Pizza Hut is only visible as a weak endorser.

52 3. Differentiate your brand to make it stick in the consumers mind As stated in every Marketing 101 course: differentiation is the single most important step in creating brand equity. It is the velcro that makes the message stick!

53 Epilogue What are the key take-outs?

54 Brand tracking is a continuous survey where a respondent submit her opinion concerning a brand Companies normally keep track of if their ads are noticed, what brands people prefer and what they actually buy Nepa is leading in Scandinavia on this type of market research

55 Brand equity has no single definition but could roughly be said to be a brands strength and image combined The meaning of a brand differ more or less between people Proper Brand Equity is a prerequisite for being considered in a purchase situation

56 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Aladdin Paradis Marabou Merci Fazer Brand tracking can be used to measure brand equity, but only in part and indirectly There are different methods for establishing brand equity but the value they assign to a brand is not universal you just have to chose one method you believe in However, it is fairly simple to measure some of the effects of brand equity, such as actual sales and brand awareness

57 The simplest way to build strong brand equity is to differentiate from other brands and thereby giving the consumer a way to distinguish you from the competitors Make sure you communicate the same message and that consumers understand what you want to say How do you know how your brand is doing? Brand tracking!

58 By Per E Åsberg, 2008 [email protected]