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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 11

    STRATEGIC BRANDSTRATEGIC BRANDMANAGEMENTMANAGEMENT

    -PROF SUDEEP CHATTERJEE-PROF SUDEEP CHATTERJEE

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 22

    BRAND AUDITBRAND AUDITIt is a comprehensive examination of a brand,It is a comprehensive examination of a brand,

    involving activities to assess the health of a brand,involving activities to assess the health of a brand,

    uncover its sources of equity, and suggest ways touncover its sources of equity, and suggest ways to

    improve and leverage that equity. A brand auditimprove and leverage that equity. A brand audit

    requires understanding sources of brand equityrequires understanding sources of brand equity

    from the perspective of both the firm and thefrom the perspective of both the firm and the

    consumer.consumer.

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 33

    BRAND ARCHITECUREBRAND ARCHITECUREBrand Architecture Research UncoversBrand Architecture Research Uncovers

    Brand Alignment For mergers andBrand Alignment For mergers and

    Acquisitions-Acquisitions- Brand architecture research should beBrand architecture research should be

    conducted on brands to identify the keyconducted on brands to identify the keyelementselements

    Who is the key audience or target marketWho is the key audience or target marketfor each brand?for each brand?

    What is the market position of eachWhat is the market position of eachbrand? What is the brand known for?brand? What is the brand known for?

    What are the strengths, weaknesses,What are the strengths, weaknesses,opportunities and threats for each brand?opportunities and threats for each brand?

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    BRAND ARCHITECUREBRAND ARCHITECUREPlan To Merge BrandsPlan To Merge Brands Mergers and acquisitions should include aMergers and acquisitions should include a

    considered plan for combining (or not) theconsidered plan for combining (or not) thebrands in question. This consideration canbrands in question. This consideration canavoid the embarrassing situation of simplyavoid the embarrassing situation of simply

    mashing two brands together (oftenmashing two brands together (oftenreferred to as a train wreck) and dilutingreferred to as a train wreck) and dilutingthe value of both.the value of both.

    Conducting a brand audit as part of yourConducting a brand audit as part of yourdue diligence will give you valuabledue diligence will give you valuable

    information for valuing the business andinformation for valuing the business andfor capitalizing on the real synergies thatfor capitalizing on the real synergies thatexist.exist.

    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 44

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 55

    BRAND ARCHITECUREBRAND ARCHITECUREBrand Architecture Specifies Brand EquityBrand Architecture Specifies Brand Equity

    Brand architecture is a system of brands, namesBrand architecture is a system of brands, namesand symbols thatand symbols that Defines the relationship between a companysDefines the relationship between a companys

    brands,brands, Rationalizes the brand portfolio, andRationalizes the brand portfolio, and

    Describes how equity flows between and among aDescribes how equity flows between and among acompanys brands.companys brands.

    Brand architecture helps you communicate yourBrand architecture helps you communicate yourbrand to specific target segments.brand to specific target segments.

    As David Aaker says in Brand Leadership, BrandAs David Aaker says in Brand Leadership, Brand

    architecture organizes and structures the brandarchitecture organizes and structures the brandportfolio by specifying brand roles and the nature ofportfolio by specifying brand roles and the nature of

    relationship between brands.relationship between brands.

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 66

    BRAND ARCHITECUREBRAND ARCHITECUREBuilding Effective Brand ArchitectureBuilding Effective Brand Architecture

    Understanding and being able to communicate yourUnderstanding and being able to communicate yourbrand architecture is a tool that will help youbrand architecture is a tool that will help you

    manage your products and brands more effectively.manage your products and brands more effectively.

    Branding researchBranding research helps you create the optimalhelps you create the optimal

    brand architecture by helping you understandbrand architecture by helping you understandyour target segments perceptions about youryour target segments perceptions about your

    master brand, your sub-brands and yourmaster brand, your sub-brands and your

    endorsed brands and how they fit together in theendorsed brands and how they fit together in the

    marketplace.marketplace.

    AA brand auditbrand audit is a great starting place for buildingis a great starting place for building

    the understanding that will lead you to anthe understanding that will lead you to an

    effective and efficient brand architecture.effective and efficient brand architecture.

    http://www.polarismr.com/brand-research-experience.htmhttp://www.polarismr.com/brand-research-experience.htmhttp://www.polarismr.com/brand-audit.htmhttp://www.polarismr.com/brand-audit.htmhttp://www.polarismr.com/brand-audit.htmhttp://www.polarismr.com/brand-research-experience.htm
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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 77

    Interbrands Brand ValuationInterbrands Brand Valuation

    methodologymethodology

    Interbrand a premier brand valuation firmInterbrand a premier brand valuation firmdeveloped a brand valuation methodology with thedeveloped a brand valuation methodology with the

    goal of incorporating marketing, financial, and legalgoal of incorporating marketing, financial, and legal

    aspects.aspects.

    According to Interbrand, brand valuation is basedAccording to Interbrand, brand valuation is based

    on an assessment of what the value is today of theon an assessment of what the value is today of the

    earnings or cash flow that the brand can expect inearnings or cash flow that the brand can expect in

    the future. To calculate brand value thethe future. To calculate brand value themethodology is-methodology is-

    Identify true brand earnings & cash flowIdentify true brand earnings & cash flow

    Capitalise earningsCapitalise earnings

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 88

    Interbrands Brand ValuationInterbrands Brand Valuation

    methodologymethodology

    Further it involves two issues-Further it involves two issues-

    Brand Earnings (Profitability)Brand Earnings (Profitability)

    Brand Strength (An indepth assessment of sevenBrand Strength (An indepth assessment of seven

    Factors)Factors)LeadershipLeadership (Market share, Awareness, Positioning,(Market share, Awareness, Positioning,

    Competitive profile)Competitive profile)

    StabilityStability (Longivity, Coherence, Consistency, Brand(Longivity, Coherence, Consistency, Brand

    Identity, Risks)Identity, Risks)

    MarketMarket (What is the market, size, Nature, Barriers(What is the market, size, Nature, Barriers

    to entry, Market dynamics)to entry, Market dynamics)

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 99

    Interbrands Brand ValuationInterbrands Brand Valuation

    methodologymethodology

    Geographic spreadGeographic spread (International positioning,(International positioning,

    Relative market share, Ambition, Prestige, MarketRelative market share, Ambition, Prestige, Market

    expansion)expansion)

    TrendTrend (Competitive action, Long term market share(Competitive action, Long term market shareperformance, Projected brand performance,performance, Projected brand performance,

    sensibility of brand plans)sensibility of brand plans)

    SupportSupport (consistency of message and spending,(consistency of message and spending,

    above and below line activity, Brand franchise)above and below line activity, Brand franchise)

    ProtectionProtection (Trade mark registration, litigation &(Trade mark registration, litigation &

    disputes and Law)disputes and Law)

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 1010

    Young & Rubicams BAVYoung & Rubicams BAVBAV is Brand Asset Valuator, is the worlds largestBAV is Brand Asset Valuator, is the worlds largest

    database of consumer driven information ondatabase of consumer driven information on

    brands. BAV measures brands on four fundamentalbrands. BAV measures brands on four fundamental

    Measures of equity value & in terms of a broadMeasures of equity value & in terms of a broad

    array of perceptual dimensions.array of perceptual dimensions.

    The four key components of brand health in BAVThe four key components of brand health in BAV

    relate to the different aspects of consumers brandrelate to the different aspects of consumers brand

    perceptions and help in a brands development.perceptions and help in a brands development.

    DifferentiationDifferentiation-Measures the degree to which a-Measures the degree to which abrand is seen as different from others. This is abrand is seen as different from others. This is a

    necessary condition for profitable brand building.necessary condition for profitable brand building.

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 1111

    Young & Rubicams BAVYoung & Rubicams BAV RelevanceRelevance-Measures the breadth of a brands-Measures the breadth of a brands

    appeal, but not necessarily its profitabilityappeal, but not necessarily its profitability EsteemEsteem-Measures how well the brand is regarded-Measures how well the brand is regarded

    & respected& respected

    Knowledge-Knowledge-Measures how familiar & intimate theMeasures how familiar & intimate the

    consumers are with brandconsumers are with brandDifferentiation & Relevance combine to determineDifferentiation & Relevance combine to determine

    thethe brand strengthbrand strength (brands future value)(brands future value)

    Esteem & Knowledge combine to createEsteem & Knowledge combine to create brandbrand

    staturestature (brands past performance)(brands past performance)

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 1212

    Young & Rubicams -PowerGridYoung & Rubicams -PowerGridY&R integrated the two macrodimensions of brandY&R integrated the two macrodimensions of brand

    strength and brand stature into a visual analyticalstrength and brand stature into a visual analytical

    Device known as Power Grid. It depicts the stagesDevice known as Power Grid. It depicts the stages

    in the cycle of brand development, each with itsin the cycle of brand development, each with its

    characteristic pillar patterns- in successivecharacteristic pillar patterns- in successive

    quadrantsquadrants

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 1313

    Brand Valuation MethodsBrand Valuation Methods

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    ISB&M/PGPBM/SBM-5ISB&M/PGPBM/SBM-5 1414

    Important syllabusImportant syllabus BAV modelBAV model

    InterBrandInterBrand Brand Value chainBrand Value chain

    CBBE modelCBBE model

    Brand ArchitectureBrand Architecture

    Global Branding strategy BDI-CDIGlobal Branding strategy BDI-CDI

    matrixmatrix

    Brand Extension strategyBrand Extension strategy


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