Contact BSI
Derrick Daye
888.706.5489 Email us

Brand Equity

Brand Equity

Brands Learn More With Brand Equity Measurement


Brands Learn More Through Brand Equity Measurement

“If you can’t measure it, you can’t manage it.” Peter Drucker

This wisdom of Peter Drucker holds true for brand equity. But to measure or manage it, you must first understand it. Executives and marketers alike are often confused about what brand equity actually is. Is it the asset value of the brand? Is it the price premium that the brand is able to command? Is it the reduced price sensitivity that it can create? Is it the emotional connection that the brand makes with people? Is it the loyalty that customers demonstrate toward the brand? Is it the brand’s personality? Is it the brand’s positive associations? Is it the unique identity that it brings to its products and services? Is it the degree to which the brand personifies those products and services? Is it the way the brand is able to share values with its customers and serve as a self-expression vehicle for them? Is it the goodwill that the brand generates? Is it the memory triggers that the brand creates in people’s minds? Is it the ability of the brand to create meaning that extends beyond one product category allowing for brand extension? Is it the brand’s promise? Is it the brand’s unique value proposition? Yes, it is all of these.

If a brand has equity it implies that the brand is an asset that has value. In fact, many studies over time have demonstrated that brand equity is a significant contributor to stock price, company valuation and shareholder value.

So what should the purpose of brand equity measurement be?

  • To measure the brand’s health and vitality
  • To understand how well the brand is positioned against its competitors
  • To serve as a diagnostic tool
  • To uncover any underlying weaknesses that require intervention
  • To identify opportunities to further strengthen the brand
  • To provide the information from which a brand scorecard can be built

That is, a brand equity measurement system’s output should be diagnostic and actionable.

Read More
Brand Equity Brand Research

Measuring Your Brand Equity


Brand Equity Measurement

Brand equity measurement is a core discipline of The Blake Project. Over the years we have measured the equity of numerous brands across dozens of industries through the lens of our proprietary BrandInsistence brand equity measurement system, which measures the primary drivers of customer brand insistence.

The two most important measures of brand equity are (1) unaided awareness and (2) relevant differentiation. We measure relevant differentiation in two ways. We identify top-of-mind brand associations (open-ended questions) and we measure how well the brand delivers against the
twenty-four most important category attributes, benefits and values. In addition, we measure (3) brand value perceptions, (4) brand accessibility and (5) the customer’s emotional connection to the brand. Together, these are the five drivers of customer brand insistence.

We also measure (6) brand vitality and (7) customer attitudinal loyalty toward the brand. Finally, we measure (8) how strongly the brand exhibits different personality attributes.

Most importantly, we measure each of these not only for our clients’ brands but also for their competitors’ brands. Positioning, by definition, is vis-à-vis something else, in this case, competitors’ brands.

Based on these measures, we identify brand strengths, weakness, opportunities and threats (SWOT), including brand positioning SWOT. Finally, these lead to implications and recommended actions.

Brand equity measurement that includes each of these metrics allows for problem diagnosis and correction. We recommend that this type of rigorous measurement be conducted once a year on behalf of the brand. Only if some substantial and extraordinary product or marketing action is taken might one want to conduct this type of measurement more frequently, most likely immediately before and after the action is taken.

It is important to have selected the appropriate category description, competitive frame of reference and competitive set to include in the brand equity study. It is equally important to attain a large enough ending sample so that small movements in each of these factors can be detected.

In summary, The Blake Project’s BrandInsistence brand equity measurement system can accomplish the following objectives for your brand:

• Measure the brand’s equity across a variety of dimensions at different points in time over time

• Provide diagnostic information on the reasons for the changes in brand equity

• Gauge and evaluate the brand’s progress against goals

• Provide direction on how to improve brand equity

• Provide insight into the brand’s positioning vis-à-vis its major competitors including its strengths, weaknesses, opportunities and threats

• Provide direction on how to reposition the brand for maximum effect

As the father of modern management Peter Drucker once said, “You can’t manage what you don’t measure.” This is true of brand equity as well. If you are responsible for building a competitive advantage for your brand you need to measure and understand what value your brand delivers to its customers.

Contact us for more.

Sponsored ByThe Brand Positioning Workshop, the Brand Storytelling Workshop Series and Brand Strategy and Customer Co-Creation Workshops

Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education

FREE Publications And Resources For Marketers

Read More
Brad VanAuken Brand Equity

Measuring Brand Performance



“You can’t manage what you don’t measure.” ~ Peter Drucker

If you are a brand manager, by definition, you are measuring the performance of your brand on a regular basis. Otherwise, how can you successfully manage your brand? Here are the items I recommend brand managers measure:

  • Unaided brand awareness (for the categories in which the brand competes and perhaps for the customer benefits the brand delivers)
  • Top-of-mind brand associations (your brand’s true position in its customer’s minds)
  • Perceived brand delivery against the most important customer benefits
  • Attitudinal loyalty toward the brand
  • What customers think makes your brand unique (differentiation)
  • Brand price sensitivity (a measure of brand strength)
  • Brand vitality (a measure of brand marketplace momentum)
  • Brand quality perceptions
  • Brand value perceptions
  • Brand accessibility perceptions
  • Emotional connection to the brand
  • Brand values alignment with its customers
  • Brand distribution
  • Brand market share
  • Brand sales
  • Brand profitability

If you have access to these brand metrics, it is more likely that you are actively managing your brand to increase its strength and performance. One should measure most of these items at least once a year and immediately after major brand initiatives.

Sponsored By: Brand Aid

Read More
Brand Equity Derrick Daye

Questioning Brand Equity Measurement



I recently came across an interesting Q&A with Professor Byron Sharp (pictured above) from the Ehrenberg-Bass Institute for Marketing Science. Byron was commenting on the validity, or lack thereof, of various brand equity measurement approaches: 

Interviewer: But you don’t like these brand tracking services ? 

Byron: There is an industry that provides special scores on brands, based on surveying customers.  These services mostly claim to be measures of things like brand loyalty or brand equity.  They usually have exotic names like commitment model, brand esteem, brand voltage, brand asset evaluator….Essentially they claim to be able to predict whether the brand is about to gain or lose market share. 

I think any claims made for these proprietary products should be subject to independent examination.  It’s the job of academics to do this testing. Some of the claims are so extraordinary, and so important that they deserve to be checked out. If they turn out to be true that would be fabulous. 

Interviewer: And do these proprietary brand health surveys, these metrics, work? 

Byron: Well that’s just the thing. No-one knows… 

Read More
Brand Equity Brand Watch Mark Ritson

Negative Brand Equity: A BP Death Sentence?


Buy shares in BP. That was the bizarre advice from Royal Bank of Scotland analysts last week after those bright sparks worked out that even the worst possible costs of the Deepwater Horizon will total less than the actual drop in BP’s market value.

RBS has, of course, got it wrong again. Long after the costs have been paid and the oil cleaned up, BP will continue to live in infamy as one of the world’s most shamed brands. The official terminology for this kind of perilous state is negative brand equity. And it spells disaster and probable death for the company that was once known for being “Beyond Petroleum”.

Negative brand equity occurs when a company’s brand actually has a negative impact on its business – meaning that the company would be better off with no name at all. It happened in the Seventies when Tesco’s brand was so poorly perceived that Imperial Tobacco decided not to acquire the retailer for fear of being associated with such a tarnished and unpopular organisation. It happened again in the Nineties when Skoda discovered to its horror that it could not get British consumers to buy its cars despite spending millions on advertising. Consumer research later confirmed that two-thirds of its target market would literally not consider anything at any price that carried the Skoda badge.

And now we have BP. Like every case of negative brand equity before it, the peculiarities of the situation mean that all the traditional advantages of branding are now inverted. BP would be better off whitewashing its forecourts and removing all evidence of its Helios brand identity. That said, the actual impact of the Deepwater disaster on BP’s petrol pump sales is likely to be localised and temporary. We know from past history that petrol consumers are a fickle bunch. When the Exxon Valdez oil tanker spilled its load into Prince William Sound in 1989 the enduring impact on Exxon’s gas sales, even in the state of Alaska, was virtually zero.

Read More