Measuring a brand - Product and firm level Flashcards
At the Product Level
Price Premium
Revenue Premium
Premium over average
Price Premium Method
P1 - P2= Brand equity of product 1
Price Premium Advantages
Simple, Fast, Intuitive, Objective (standard unit of measure, no interpretation required), easy to compare
Price Premium Disadvantages
Penalizes cheap products’ High equity,
Does not give info on the actual underlying driver of equity,
We have to make the assumption that the private label has 0 equity
(+ We have to find one)
Revenue premium
Similar than price premium, butt for total revenues.
TR1 - TR2 = 1’s BrEquity
Revenue premium Advantages
Simple fast, intuitive, objective, easily comparable, Dashboard
Revenue premium Disadvantages
Does not give a lot of info,
Requires a no-name or private label equivalent
Private label is Supposed to have 0 equity,
Assumes that private label and branded products require the same cost (in terms of 4P’s ALL)
Premium over average
Compute average of a range of competing products and apply Price Premium Technique.
Compare P1 to P2, P3 until PN
(Negative equity, unfavourable response of customer to presence of BrElement)
Premium over average drawback
Selection of products you make to compute your calculations.
Do they include everything? Or only the cheapest? Or the most Expensive?
Price measures at the product level can only
Validate or complement results of the real brand audit, the one done on the customer side
Firm Level
Interbrand
Brand Z
Interbrand
Brand Value = Value of company - Value of physical Assets + Cash on hand + Patents and Formulas
Interbrand drawbacks
Some companies disadvantaged if very high costs need are to be incurred to provide a service (Tech Companies)
Hard to determine or obtain data. Need a full team or to get disclosed information on public domains to conduct that type of firm level study
Brand Z
Opportunity to compare brands across different industries
