The economic value of effective brand strategy

A brand is -

A term based on the assumption that just calling something by a particular name automatically leads to a potential price premium

An advert for a product that you can see anywhere

A name or symbol that identifies one product separately from a competitors

A way of keeping competitors out of any market

Brand awareness is -

The extent to which a brand is on the radar screen of people

How aware a customer is of the main brands that he/she can buy

How aware a channel is of the main brands that it can buy

How important a particular brand is seen at corporate level within the portfolio

Brand values are -

Those things that a product stands for and are the reasons for buying it

Just the things that need to satisfied as the basics - to avoid fundamental dissatisfaction

Things that are so intangible that they cannot really be put into words

The ethics behind a product

Brands -

Usually attract a price premium - but after advertising and promotional costs there is very little, if any, net gain

Usually, but not invariably attract a price premium - depending on the other factors

Rarely, if ever generate a sustainable price premium

Almost without exception guarantee a price premium

The Innocent brand -

Is run from its HQ which is called Fruit of the Loom

Majors on brand values such as greenness and being ethical

Competes aggressively through the theme of it having a Sweet Spot

Emphasises low fat and low salt

A sub-brand is -

A lesser brand to the market leader

A brand which is positioned as ultra-value for money

A secondary brand within the product portfolio

A name which contains the umbrella brand name and some other descriptor that has its own more specific meaning and brand values

Brand Equity is -

Two brands with very close brand values

The premium price of a brand over and above the identical, but unbranded product

Where there are two brands competing head - to head and no one of them is dominant

The cumulative past investment in advertising and promotion and product development of a specific brand

To put a value on brand equity -

All you need is a straightforward projection of incremental prices, volumes and thus cash flows and NPY

You need to identify the many value pots that a brand can fill, then think about your competitive assumptions, do what - ifs with cash flows, and then estimate an approximate NPV

Just focus on one or two value pots and that will suffice

Do not even think about it as it is unrealistic to think that you cam value less tangibles in an uncertain world

Estimating the value of brand equity is -

Something done without having to think about what competitors might be up to

Purely a valuation technique of a marketing strategy as a given

Not just a reactive process on the basis that the brand strategy is a given, but an exploratory process of potential value discovery

Something that definitely requires hiring professional expertise

In terms of value pots to do this, there can be up to -

One to five

One or two

As many as you can think of

One to seven

The economic value of effective brand strategy

A brand is -

Brand awareness is -

Brand values are -

Brands -

The Innocent brand -

A sub-brand is -

Brand Equity is -

To put a value on brand equity -

Estimating the value of brand equity is -

In terms of value pots to do this, there can be up to -

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