September 2005Rashi Glazer and Teck Ho1 Brand Equity Assessment Study September 2 nd 2005

September 2005Rashi Glazer and Teck Ho2 Goals of Brand Equity Study  The value of an “extra” unit of brand equity – e.g., if we move from “x” to “y” on a brand equity “scale,” how much is this “worth” (compared to other attributes)?  The investment required or cost to achieve an extra unit of brand equity – this is the brand equity “response function”.

September 2005Rashi Glazer and Teck Ho3 Project Scope  Measure Autodesk’s brand equity in three product categories (Revit, Inventor, and Civil 3D)  Determine the appropriateness of an umbrella branding strategy (e.g., Autodesk Civil 3D versus Civil 3D)  Assess the potential ROI of advertising campaign in brand equity enhancement  Understand how customers choose and make tradeoffs among product features in purchasing decision  Demonstrate the “proof of concept” of the Conjoint methodology

September 2005Rashi Glazer and Teck Ho4 Conjoint Methodology  A product or service is simply a bundle of relevant features  Relevant features include brand, price, functionality, compatibility, ease of use, technical support (determined by focus groups)  The Conjoint methodology allows us to quantify the importance of each feature (and its levels) in customers’ purchase decision  It is the most widely used methodology in marketing research in figuring out brand equity and customer utility function

September 2005Rashi Glazer and Teck Ho5 Product Features and Levels

September 2005Rashi Glazer and Teck Ho6 Approach  Qualitative phase: Six focus groups 3 Products – Revit, Inventor, Civil 3D Customers and Prospects  Relevant product features: Brand, price, functionality, compatibility, ease of use, technical support  Quantitative phase Involving 557 customers and prospects Web-based Survey asking participants to indicate relative liking for product profiles  Statistical models to estimate relative importance of features

September 2005Rashi Glazer and Teck Ho7 Experimental Design  For each product category, we have 3 treatment conditions: Umbrella brand + advertisement (e.g., Autodesk Civil 3D + Print Ad.) Umbrella brand (e.g., Autodesk Civil 3D) Product brand (Civil 3D)  The print ad allows us to estimate the potential ROI of advertising in brand equity enhancement

September 2005Rashi Glazer and Teck Ho8 Print Ad Example: Civil 3D

September 2005Rashi Glazer and Teck Ho9 Conjoint Dial Bentley Micro Station (Base) Autodesk Revit Base product: For example, in Revit category, we choose the Base product to be Bentley Microstation, priced at $4,695, has low compatibility, low ease of use, low usability, and low technical support. The needle is at Incremental feature: For example, Brand moves from Bentley Microstation to Autodesk Revit. The needle stops at 2.87 (an increment of 0.63)

September 2005Rashi Glazer and Teck Ho10 Lesson 1: Autodesk has a superior brand power Bentley Micro Station (Base) Bentley InRoads (Base) ArchiCAD Autodesk Revit ProEngineer Autodesk Inventor Autodesk Civil 3D Bentley GeoPAK SolidWorks (Base)

September 2005Rashi Glazer and Teck Ho11 Lesson 2: Adopt the umbrella branding strategy Bentley Micro Station (Base) Bentley InRoads (Base) Revit Autodesk Revit SolidWorks (Base) Autodesk Inventor Autodesk Civil 3D Inventor

September 2005Rashi Glazer and Teck Ho12 Lesson 3: Print ad can enhance brand equity Bentley Micro Station (Base) Bentley InRoads (Base) Autodesk Revit W/O Print Ad Autodesk Revit with Print Ad SolidWorks (Base) Autodesk Inventor with Print Ad Autodesk Civil 3D with Print AD Autodek Civil 3D W/O Print Ad Autodesk Inventor W/O Print Ad Only prospects’ data are considered in Inventor’s dial because there are a few valid customers’ data.

September 2005Rashi Glazer and Teck Ho13 Lesson 4: Key customers features Bentley Micro Station (Base) Bentley InRoads (Base) Ease of Use 24/7Technical Support SolidWorks (Base) 24/7 Technical support Ease of Use Compatibility Price ($1000 less) Autodesk Revit Brand Compatibility 6 Ease of Use Price ($1000 less) Price Autodesk Civil 3D Brand Compatibility

September 2005Rashi Glazer and Teck Ho14 Lesson 5: Autodesk’s brand premium Bentley Micro Station at $3,695 Autodesk Revit at $4,695 Bentley InRoads at $4,595 Autodesk Civil 3D at $5,595

September 2005Rashi Glazer and Teck Ho15 Brand Value Function Bentley Microstation Autodesk Revit X X $1,000

September 2005Rashi Glazer and Teck Ho16 Lesson 6: Return of Print Ad Autodesk Civil 3D without Print Ad at $4,595 Autodesk Civil 3D with Print Ad at $5, Autodesk Revit without Print Ad at $3,695 Autodesk Revit with Print Ad at $4,695

September 2005Rashi Glazer and Teck Ho17 Lesson 6: Return of Print Ad Autodesk Civil 3D without Print Ad at $4,595 Autodesk Civil 3D with Print Ad at $5, Autodesk Revit without Print Ad at $3,695 Autodesk Revit with Print Ad at $4,695

September 2005Rashi Glazer and Teck Ho18 Brand Equity Response Function Without Print Ad Autodesk Revit (No Investment) With Print Ad Autodesk Revit (Investment) X X $3,695 $4,695 $1,000 ROI = Number of Customers x $1,000 / Investment I I

September 2005Rashi Glazer and Teck Ho19 Lesson 7a: Customers vs. Prospects (Autodesk Revit) Bentley MicroStation (Base) Autodesk Revit Autodesk Revit Bentley MicroStation (Base) Customers Prospects

September 2005Rashi Glazer and Teck Ho20 Lesson 7b: Customers vs. Prospects (Autodesk Inventor) SolidWorks (Base) Autodesk Inventor Autodesk Inventor SolidWorks (Base) Customers Prospects

September 2005Rashi Glazer and Teck Ho21 Lesson 7c: Customers vs. Prospects (Autodesk Civil 3D) Bentley InRoads (Base) Autodesk Civil 3D Autodesk Civil 3D Customers Prospects Bentley InRoads (Base)

September 2005Rashi Glazer and Teck Ho22 Key Takeaways  Autodesk has a superior brand power  Adopt the umbrella branding strategy (definitely use Autodesk brand in Revit, Inventor, and Civil 3D)  The value of branding investment (e.g., print ad) can be significant  Ease of use and compatibility are the most important and functionality is the least important feature  Autodesk has a higher brand equity among customers than prospects  The Conjoint methodology works

September 2005Rashi Glazer and Teck Ho23 Next Steps  Having demonstrated “proof of concept”: Modify stimuli (e.g., more price points) and tighter data collection process to reduce noise and improve predictive power Apply methodology to a broader set of key brands Identify preference differences between customers and prospects and by segments Evaluate marketing campaigns before launch