51155631 Iim Shillong Brand Management

IIM Shillong Brand Management December 8, 2009

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Charanpreet Singh Associate Dean Praxis Business School [email protected]

Brand Personality Wells Fargo

David A. Aaker, a former professor of marketing strategy at Berkeley and vice chairman of Prophet Brand, wrote in his book Managing Brand Equity: A study of banks in California confirmed that their associations are very similar ... Nothing distinctive -- with the exception of Wells Fargo, which has had a host of associations going along with their ubiquitous stagecoach. In an industry in which similarity is the norm, the stagecoach is an enormous asset, in part because of the richness of the concept, In addition to providing associations with the Old West, horses, and the gold rush, it also effortlessly is linked to reliability in the face of adversity, adventurousness, independence, and even building a new society out of wilderness.

Technology Impact on Marketing

Technology Impact on Marketing E. Jerome McCarthy’s concept of 4Ps, now being redefined •Product: Consumer wants to shape them (produce what can be sold) •Price: Discovered (free can make money, Google) •Place: Physical to virtual •Promotion: Non-personal mass driven to engaging one-on-one CRM

Technology Impact on Brand Management

Technology Impact on Brand Management Consumers love to talk back Lifesavers got 400,000 votes for keeping the pineapple flavour. Consumers are control freaks – power from giving inputs Brands are virtual Sara Lee has sold off most of its factories Nike does not make sneakers Sims allows to create a family on-line and then take care of it – obviously brands get involved

customer relationship management focus on the customer

It’s a business strategy. It’s about how you •

engage

•

transact

•

fulfill

•

service

It’s about how you collect and use intelligence to unify points of contact in order to optimize your customers experience.

check if “yes”  Are your core products or services at risk of being commoditized?  Are your customers demanding that you provide anytime, anywhere, anyway capabilities?

is it time to get serious about CRM?

 Is there a significant difference in the value of your best customers vs. your average customers?  Are you finding the need to customize or personalize products and services?  Do you have a premium brand to protect?

 Are there competitors in your market who are attempting to change the “rules of the game”? Property of Hewlett-Packard - Do not copy or distri

the new consumer expects a value-added experience

their preferred supplier must . .. • know who they are • remember what they said • add value to every interaction • customize products to their needs • make it easy to do business with them

Property of Hewlett-Packard - Do not copy or distri

touch points

CRM ecosystem map (today) interaction direct interaction

voice (IVR, ACD)

conferencing

e-mail/fax

direct mail

web collab.

resp. mgmt.

printing

front office

intelligence

back office

information portal

wireless

operation

product line mgmt.

campaign mgmt.

vertical apps

marketing analysis

product data mart

web commerce

customer activity data mart

customer data mart

PDM data warehouse

customer profile

middleware (EAI toolkits, embedded/ mobile agents) mail & messaging

data mining workbench

mobile mktg (lead mgmt)

mobile sales (prod. CFG)

field service

marketing automation

sales automation

service automation

order promising

order mgmt.

Supply Chain Mgmt.

ERP

core systems

enterprise business intelligence

Property of Hewlett-Packard - Do not copy or distribute without written permission.

Brand Hijack

Marketing without Marketing How to make brand successes appear like serendipitous accidents let go of the fallacy that brand belongs to you, not to the market co-create by collaborating with your consumers

Marketing without Marketing

How to Brand Hijack

inspire customer loyalty, not customer retention

embrace the value of being surprising and imperfect

Brand Hijack

Marketing without Marketing How did Starbucks, eBay build billion $ valuations without leading with a quintessential advertising campaign? Brand Hijacking the art of commandeering a brand

Brand Hijack

Brand Hijack - a complex orchestration of

Brand Hijack

Shawn Fanning did not want to revolutionize the music industry and invent file sharing - wanted to know how to get

Brand Hijack

Provided a blank canvas – users could make a neutral infrastructure their own

Property of Hewlett-Packard - Do not copy or distri

The Web 2.0 phenomenon

Technology enables the Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack – the marketer’s guide

Brand Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack

Brand Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack

Property of Hewlett-Packard - Do not copy or distri

Brand Hijack

Brand Hijack Marketing as a catalyst for cultural development

Brand Management

Today we will talk about….

Measuring Brand Performance Brand Tracking Methods of Brand Tracking – Quantitative • Young & Rubicam’s BAV • J. Aaker’s Brand Personality • Kapferer’s Brand Prism – Qualitative •Projective techniques •Laddering method

Measuring Brand Performance

Measuring Brand Performance

The most obvious measure: Sales - more importantly, market share – variations thereof • Objective • Give a view of history • A good mind can understand outcomes in some detail

Brand Tracking

Measuring Brand Performance

Drawbacks of using sales and market share as the measure: 1.May not be able to accurately predict the future 2.Will not be able to pinpoint the problem areas 3.May lead to Type II (even Type I) errors

Brand Tracking

Measuring Brand Performance

Three components:

Brand Knowledge Brand Equity – premium chargeable/ higher numbers Brand Value – rupee value if the brand is sold or franchised

Brand Knowledge

Brand Tracking Has two components: 1.Brand Awareness – does the consumer know about the brand? 2. Brand Image – what does the consumer associate with the brand?

Brand Knowledge Keller’s Pyramid

Brand Tracking Level 1: Brand Awareness Level 2: Brand Image Level 3: Brand Evaluation Level 4: Brand Loyalty Few brands reach Level 4

Brand Knowledge

Brand Tracking Brand Awareness has two dimensions: 1. Depth (Top-of-mind, unaided, aided recall) 2. Breadth (length of time)

Keller’s Brand Pyramid

Brand Tracking

Brand image has two dimensions: 1. Functional: Real tangible attributes of the brand 2. Emotional: Intangible attributes: images associated with the brand

Keller’s Brand Pyramid

Brand Knowledge

Brand Evaluation has two dimensions: 1. Functional: Brand Value and Credibility 2. Emotional: Self concept, feelings, social approval and empathy

Keller’s Brand Pyramid

Brand Knowledge Brand Loyalty also derives from the same two dimensions – the desire to continue with the same brand for rational or emotional (or a combination of) reasons

Keller’s Brand Knowledge Pyramid Brand Knowledge

Brand Awareness Depth

Brand Image

Brand Evaluation

Brand Loyalty

Breadth

Functional

Emotional

Funct

Emot

Funct

Emot

Brand Knowledge

Measuring Brand Awareness Test for recall – classify into top-of-mind, aided, unaided Test for familiarity – length of exposure

Measuring Brand Image

Brand Knowledge

Quantitative Methods: Young & Rubicam’s BAV J. Acker’s Personality Kapferer’s Brand Prism Qualitative Methods: Projective Techniques Laddering Zaltman metaphor elicitation

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Attempts to measure: • Brand Stature – The current strength of the brand

rand Vitality – The potential for growth

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Brand stature measures the current strength of the brand and depends on: •Knowledge – how well consumers know the brand •Esteem - how highly consumers regard the brand.

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Brand vitality measures the growth potential of a brand and depends on: •Differentiation – how distinct the brand is •Relevance appropriateness to the target consumer

Measuring Brand Performance

Young & Rubicam’s Brand Asset Valuator Methodology: The Y&R method uses 48 image, personality and attribute questions administered to respondents – a set of 12 measuring each of the four dimensions

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Methodology nce the responses along the four dimensions are measured, we have the scores of the brand across the four dimensions he Stature and Vitality measures translate into a 2*2 matrix with 4 quadrants

Measuring Brand Performance Y & R BAV Matrix

2 Low, High

1 High, High

4 Low, Low

3 High, Low

Brand Stature

uadrant 1

Measuring Brand Performance

igh Stature, High Vitality

ail Chief!

eople want to buy, MBAs want to manage

uadrant 2

Measuring Brand Performance

ow Stature, High Vitality nterpretation: merging Brand omparative strength is measured by knowledge and esteem scores – knowledge score is more fundamental

Asset Valuator

Measuring Brand Performance

uadrant 3 igh Stature, Low Vitality nterpretation: otentially Declining Brand cores for differentiation and relevance will give further insights

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance uadrant 4

ow Stature, Low Vitality

ext

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

nderstanding what the scores tell you ….

elevance:

igh relevance means your need-identification is spot-on … the first building block is in place

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

nderstanding what the scores tell you ….

ifferentiation: iven a need identification, how well have you differentiated yourself from the others with respect to the offering

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

nderstanding what the scores tell you ….

mplication of High Relevance, Low Differentiation

our need identification is strong, but competitor’s offerings are seen to be

Measuring Brand Performance

nderstanding what the scores tell you ….

mplication of High Relevance, Low Differentiation he Prescription: on’t tinker with the positioning - concentrate on the clarity of

Measuring Brand Performance

Young & Rubicam’s Brand Asset Valuator Clarity of communication • SAFFOLA • SURF EXCEL • ASIAN PAINTS – APEX ULTIMA • HAPPYDENT • FEVICOL

Asset Valuator

Measuring Brand Performance

nderstanding what the scores tell you ….

mplication of Low Relevance, High Differentiation onsumers clearly see it as different from competition, but do not relate to the benefit or image portrayed by it

Measuring Brand Performance

nderstanding what the scores tell you ….

mplication of Low Relevance, High Differentiation

rescription:

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

• Milkmaid – before repositioning • Paloma ice tea by nestle • Ms. Cigarettes • Reva cars • Marks & Spencer’s in India

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Understanding what the scores tell you he Knowledge score tells you how well the brand is known

unction of: rand building efforts

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Understanding what the scores tell you he Esteem score tells you how well the brand is regarded and respected

unction of: he way the brand has conducted itself on the value attribute … reality

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Understanding what the scores tell you igh knowledge, low esteem:

he brand personality is not reinforced, or has undesired attributes

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

Weak/ Undesired Brand Personality • Australian cricket team • Reliance industries • ITC – before repositioning • Cola companies • IIPM (?)

Measuring Brand Performance

Young & Rubicam’s Brand Asset Valuator

igh knowledge, low esteem:

he brand personality is not reinforced, or has undesired attributes

Measuring Brand Performance Y & R BAV Matrix

Untapped potential Budweiser Heinz

Leadership BMW Starbucks Guiness

Unfocussed Levis- Strauss Xerox

Eroding Kellog’s Reuters

Brand Stature

Young & Rubicam’s Brand Asset Valuator

Measuring Brand Performance

The BAV model could throw up results that lead us to the softer aspect of the brand – the Brand Personality Measures of Brand Personality Jennifer Aaker’s model Kepferer’s Brand Prism

The Aaker’s Model of Brand Personality

Measuring Brand Performance

Aaker’s model gives the brand human qualities and chooses a number of dimensions to describe its personality She measures the associations of 42 traits with the brand on a scale of 1-5 These traits are then collapsed into 5 broad dimensions

The Aaker’s Model of Brand Personality

Measuring Brand Performance

“Sincerity”, measured by whether the brand is seen as: •Honest •Wholesome •Down to earth •Cheerful Kapil Dev

The Aaker’s Model of Brand Personality

Measuring Brand Performance

“Excitement”, measured by whether the brand is seen as: •Daring •Spirited •Imaginative •Up to date / contemporary Dhoni

Measuring Brand Performance

The Aaker’s Model of Brand Personality “Competence”, measured by whether the brand is seen as: •Reliable •Intelligent •Successful Rahul Dravid

Measuring Brand Performance

The Aaker’s Model of Brand Personality “Sophistication”,

measured by whether the brand is seen as: •Upper class •Charming Tiger Pataudi Imran Khan

Measuring Brand Performance

The Aaker’s Model of Brand Personality “Ruggedness”, measured by whether the brand is seen as: •Tough •Outdoorsy Yuvraj Singh Andrew Symonds

Measuring Brand Performance

The Aaker’s Model of Brand Personality

Aaker’s model has limitations: personification of brands is restrictive - a brand possesses dimensions which one may or may not be able to personify

Measuring Brand Performance

Kapferer’s brand identity prism

Kapferer outlined 6 facets of a brand – and these 6 facets underline the dimensions of the brand’s identity

Kapferer’s Brand Prism

Kapferer’s Brand Prism

Measuring Brand Performance

Kapferer’s Brand Identity Prism Physical facet (External): •Packaging •Color •Product look & feel May be prominent or dormant Is the first stage in brand construction

Measuring Brand Performance

Kapferer’s Brand Identity Prism

Brand personality(Internal): This is the link with Aaker’s concept of brand personality

Kapferer’s Brand Identity Prism

Measuring Brand Performance

Brand Relationship (external): •More relevant to b2b and services and deals with the quality of transactions. •Trust, commitment are the key variables.

Brand Relationship (contd.) Key questions

Measuring Brand Performance

How would Sales describe the relationship attributes for their customer management process? How would Customer support describe their approach to increasing customer satisfaction? How does the brand want to be seen by customers in marketing communication?

Kapferer’s Brand Identity Prism

Measuring Brand Performance

Brand Culture (internal): Culture is a deep-seated facet and implies a system of values, a source of inspiration, brand energy. Cultural moorings: urban/ rural/ Indian/ global Foster’s, Rolex, Ceylon tea, Kitchen’s of India, e-choupal The World’s Local Bank

Kapferer’s Brand Identity Prism

Measuring Brand Performance

Reflected consumer (external): Whom is the brand seen as targeted to and the image of the target which the brand offers to the public Marlboro, Raymond’s, Open Source Software

Kapferer’s Brand Identity Prism

Measuring Brand Performance

Consumer Mentalisation (internal): If reflection is the target’s outward mirror, the self-image is the target’s own internal mirror Through our attitude towards certain brands, we develop a certain type of inner relationship with ourselves Marlboro, Raymond’s,

Kapferer’s Brand Identity Prism

Measuring Brand Performance

  The identity prism puts the brand under the microscope of each of its facets Comes up with diagnoses - useful when brand identity prisms are worked out for competitors

Measuring Brand Performance

Qualitative Methods of measuring brand performance

Projective Techniques Laddering

Measuring Brand Performance

Personal values research: In-depth profiling of the consumer and his or her relationship to products: • Offers potential for understanding the "cognitive" positioning of current products •Permits the development of positioning strategies for new products

Personal values research:

Measuring Brand Performance

Macro (sociology): standard survey research methodology combined with a classification scheme to categorize respondents into predetermined clusters or groups VALs – Values, Attitudes and Lifestyles methodology of the Stanford Research

Measuring Brand Performance

Personal values research: Macro (sociology): VALs Administer an interval scaled instrument with a series of questions on VALs Cluster the respondents by running a cluster analysis and give names to each cluster (belonger, emulator, I am me, achiever)

Measuring Brand Performance

Personal values research: Macro (sociology): Product neutral gives the overall value orientation of target segments Silent on the linkages between the product and the personally relevant role it has in the life of the consumer

Personal values research

Measuring Brand Performance

Micro (psychology): Means-end theory (Gutman – 1982) linkages between the attributes that exist in products (the "means"), the consequences for the consumer provided by the attributes, and the personal values (the “ends”) the consequences reinforce

Means-end theory

Measuring Brand Performance

consumer actions produce consequences consumers learn to associate particular consequences with particular product attributes they have reinforced through their buying consumers learn to choose products containing attributes which are instrumental in achieving their desired consequences

Measuring Brand Performance

Means-end theory

Means-End Theory simply specifies the rationale underlying why consequences are important ….namely ….personal values

Measuring Brand Performance

Means-end theory Attributes (A) The Hero Honda Karizma is launched on the platform of power emerging from a 223 cc engine - the attribute

Means-end theory

Measuring Brand Performance

Consequences (C) The power of the bike could lead to the consequences of: •It goes faster (speed) •It is sturdier (power = sturdiness) •It goes long distances

Means-end theory

Measuring Brand Performance

Consequences (C) The consequence of “it goes faster” could further be: You will zip past your friends and classmates.

Means-end theory

Measuring Brand Performance

Values (V) The values of “you will zip past your friends and classmates” could be: •Self esteem among peers and/ or •Attractiveness/fear(!) amongst the opposite sex

Means-end theory

Measuring Brand Performance

Consequences The consequences of “it is sturdier” could further be: •It will last longer •It will have lower maintenance

Means-end theory

Measuring Brand Performance

Values The values of “it will last longer and will have lower maintenance” could be: •Pride in being careful about the money spent vfm buyer

Means-end theory

Measuring Brand Performance

Consequences The consequence of “it goes long distances” could be that •As a sales executive, you could cover more territory and achieve higher sales.

Means-end theory

Measuring Brand Performance

Values The values of “as a sales executive, you could cover more territory and achieve higher sales” could be: •The pride from professional achievement / likelihood of promotion and hence better social status

Laddering

Measuring Brand Performance

Laddering refers to an in-depth, one-on-one interviewing technique used to develop an understanding of how consumers translate the attributes of products into meaningful associations with respect to self, following the MeansEnd Theory

Laddering

Measuring Brand Performance

a tailored interviewing format using primarily a series of directed probes, typified by the “Why is that important to you?” question goal of determining sets of linkages between the key perceptual elements across the range of attributes (A), consequences (C), and values (V).

Measuring Brand Performance

Laddering provides a perspective on how product information is processed from a motivational perspective - the underlying reasons why an attribute or a consequence is important can be uncovered

Laddering

Measuring Brand Performance

the following ladder, starting with a basic dis­tinction between types of snack chips, represents part of the data collection from a single subject in a salty-snack study: (V) (C) (C) (C) (A) (A)

self-esteem I better figure I don’t get fat I eat less I strong taste I flavored chip

Laddering

Measuring Brand Performance

Data Collection One-on-one interviews. Typical question is: “why is that important to you”? Let’s go through an example - the product class chosen is Wine Coolers

1. Evoking the Situational Context •

Interviewer: You indicated that you would be more likely to drink a wine cooler at a party on the weekend with friends, why is that?

•

Respondent: Well, wine coolers have less alcohol than a mixed drink and because they are so filling I tend to drink fewer and more slowly.

•

Interviewer: What is the benefit of having less alcohol when you are around your friends?

•

Respondent: I never really have thought about it. I don’t know.

•

Interviewer: Try to think about it in relation to the party situation. (*) When was the last time you had a wine cooler in this party with friends situation?

•

Respondent: Last weekend.

•

Interviewer: Okay, why coolers last weekend?

•

Respondent: Well, I knew I would be drinking a long time and I didn’t want to get wasted.

•

Interviewer: party?

•

Respondent: When I’m at a party I like to socialize, talk to my friends, make some new friends. If I get wasted I’m afraid I’d make an ass of myself and people won’t invite. It’s important for me to be part

Why was it important to not get wasted at the

Laddering

Measuring Brand Performance

Data Analysis The summary ladder for (1) is:  V: sense of belonging (part of the group) C: socialize C: avoid getting drunk (wasted) A: less alcohol/filling

• •

Interviewer: You said you prefer a cooler when you get home after work because of the full-bodied taste. What’s so good about a full-bodied taste after work? Respondent: I like it. I work hard and it feels good to drink something satisfying.

• •

Interviewer: Why is a satisfying drink important to you after work? Respondent: Because it is. I just enjoy it.

•

Interviewer: What would you drink if you didn’t have a cooler available to you? (*) Respondent: Probably a light beer.

• • •

• •

Interviewer: What’s better about a wine cooler as opposed to a light beer when you get home after work? Respondent: Well, if I start drinking beer, I have a hard time stopping. I just continue on into the night. But with coolers I get filled up and it’s easy to stop. Plus, I tend to not eat as much dinner. Interviewer: So why is continuing to drink into the evening something you don’t want to do?  Respondent: Well, if I keep drinking I generally fall asleep pretty early and I don’t get a chance to talk to my wife after the kids go to bed. She works hard with the house and the kids all day—and it’s

Laddering Data Analysis

Measuring Brand Performance

The summary ladder for (2) is: V

good family life

C able to talk to my wife C

don’t fall asleep

C (consume less alcohol) A

filled up/easy to stop

A full-bodied taste/ less alcohol

3. Negative Laddering (*) •Interviewer: You indicated a distinction between 12 ounce and 16 ounce bottles. What size bottle do you prefer? •Respondent: I always buy a 12 ounce bottle. •Interviewer: What’s the benefit of buying a 12 ounce bottle? •Respondent: I just buy it out of habit. •Interviewer: Why wouldn’t you buy a 16 ounce? (*) •Respondent: It’s too much for me to drink and it gets warm before I can finish it all. Then I have to throw it away. •Interviewer: So how do you feel when you have to throw it away? •Respondent: It makes me mad because I’m wasting my money. •Interviewer: What’s the importance of money to you? •Respondent: I’m in charge of the family budget, so it’s my responsibility to make sure it’s spent right.  

Laddering Data Analysis

Measuring Brand Performance

The summary ladder for (3) is: V responsibility to family C

waste money

C throw it away (don’t drink all of it) C C A

gets warm too much to drink larger size

4. Age-regression Contrast Probe (*) •Interviewer: You said you most often drink coolers at the bar. Why is that? •Respondent: I’ve never really thought about it. I just order them. •Interviewer: Is there a difference in your drinking habits compared to a couple of years ago? (*) •Respondent: Yes, I drink different types of drinks now. •Interviewer: Why is that? •Respondent: Well, before I used to be in college, and the only thing around seemed to be beer. •Interviewer: So why do you drink coolers now? •Respondent: Well, now I have a career and when I do go out I go with coworkers. Drinking a wine cooler looks better than drinking a beer. •Interviewer: Why is that? •Respondent: The bottle shape and the fancy label look more feminine •Interviewer: Why is that important to you? •Respondent: It’s important to me to have a sophisticated image now that I’m in the work force. I want to be just like my coworkers.

Laddering

Measuring Brand Performance

Data Analysis The summary ladder for (4) is: V like my coworkers (belonging) C sophisticated image C more feminine A bottle shape A fancy label

5. Third-person Probe (*) •Interviewer: You mentioned you drink wine coolers at parties at your friend’s house. Why do you drink them there? •Respondent: Just because they have them. •Interviewer: Why not drink something else? •Respondent: I just like drinking coolers. •Interviewer: Why do you think your friends have them at parties? (*) •Respondent: I guess they want to impress us because wine coolers are expensive. They relate quality to how expensive it is. •Interviewer: Why do they want to impress others? •Respondent: Since coolers are new, they are almost like a status symbol. •Interviewer So what is the value to them of having a status symbol? •Respondent: My friends always like to do one better than anyone else. It’s probably related to their self-esteem.

Laddering Data Analysis

Measuring Brand Performance

The summary ladder for (5) is: V

self-esteem

C status symbol C impress (others) C quality A

expensive

6. Redirecting Techniques: Silence (*)/Communication Check (*) •Interviewer: You mentioned you like the carbonation in a cooler. What’s the benefit of it? •Respondent: I don’t think there’s any benefit to carbonation. •Interviewer: Why do you like it in a cooler? •Respondent: No particular reason. •Interviewer: (silence) (*) Respondent: Come to think of it, carbonation makes it crisp and refreshing. •Interviewer: Why is that important? •Respondent: It makes it thirst quenching, especially after mowing the lawn and is a pick-me-up. •Interviewer: Let me see if I understand what you’re saying. (*) What do you mean by saying a pick-me-up? •Respondent: I mean after I finish it’s like a reward for completing a chore I dislike.

Laddering Data Analysis

Measuring Brand Performance

The summary ladder for (6) is: V completing a chore (accomplishment) C C C A A

reward thirst-quenching refreshing crisp carbonation

Laddering

Measuring Brand Performance

Data Analysis •Code all the responses •Classify them into A/C/V •You may need to club multiple responses under the same heading: for example, many of the responses may be clubbed under “avoid the negatives of alcohol”

Measuring Brand Performance

Laddering Data Analysis

Draw the tree diagram, called Hierarchical Value Map

 

Hypothetical Hierarchical Value Map of Wine Cooler Category Self-esteem 23

Family Life 21

• feel better about self • self Image

• maintain respect of others • better family ties • self worth

Belonging 22

|

|

|

• security | | • camaraderie | | • friendship | Accomplishment 20 | / \ •get most from life | / \ | | Impress Others 18 Socialize 19 | • successful image (able to) | / \ • easier to talk | / \ • open up | / \ • more sociable Reward 16

SophistIcated Image 17

• satisfying • compensation / \

• personal status | • how others view me | / | Avoid Negatives / More Feminine 13 of Alcohol 14 / • socially • not too drunk / acceptable • not too tired / | \ | / | \ | / | \ |

/ \ / \ Thirst-quenching 12 \

• relieves thirst •not too sour /

/ Refreshing 10

\ \ \

\ Quality 8

/

| |

\

\

\ \ \ \ |

\

\

\ \ \ \ \ \

|

|

\ \ \ Avoid Waste 15

• doesn’t get warm \ \ \ \ Consume less 11

\

• feel alert, • superior product | \ | • can’t drink more alive • product quality | \ | • can sip \ / \ / \ | \ | | | / \ / \ | \ | | | / \ / \ | \ | | | / \ / \ Label Bottle Less | Smaller Size Carbonation Crisp Expensive (fancy) (shape) Alcohol Filling (10 oz.) (+)1 2 (+) 3 4 5 6 9 7

Table 1: Summary Content Codes for Hypothetical Wine Cooler Example Values (20) Accomplishment (21) Family (22) Belonging (23) Self-esteem   Consequences 8) Quality 9) Filling (10) Refreshing (11) Consume less (12) Thirst-quenching (13) More feminine (14) Avoid negatives (15) Avoid waste (16) Reward (17) Sophisticated (18) Impress others (19) Socialize  

Attributes 1) Carbonation 2) Crisp 3) Expensive 4) Label 5) Bottle shape 6) Less alcohol 7) Smaller

Laddering

Measuring Brand Performance

Data Analysis In terms of Values, there are 4 segments of this product category: •Accomplishment •Family •Belonging •Self-esteem

Laddering

Measuring Brand Performance

Positioning We obtain the 4 segments We also get cues on the combinations of attributes and consequences leading to these segments We can position and communicate our positioning accordingly

Laddering

Measuring Brand Performance

Segment 1 Value : family Attributes linked to this value: less alcohol, filling, smaller size Consequences linked to this: consume less, avoid negatives of alcohol and socialize better

Laddering

Measuring Brand Performance

Segment 2 Value: sense of belonging Attributes: crispness, bottle shape, expensive and fancy label Consequences: quality, impress others, sophisticated image

Laddering

Measuring Brand Performance

Can be used for: (1)segmenting consumers — with respect to their values orientations for a product class or brand; (2)for assessing brands or products in a fashion similar to the use of more traditional ratings; (3)evaluating competitive advertising; and (4)as a basis for developing advertising strategies

Measuring Brand Performance Thank you … Have fun in the project!!