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THE WPP BRAND EQUITY STUDY

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Presentation on theme: "THE WPP BRAND EQUITY STUDY"— Presentation transcript:

1 THE WPP BRAND EQUITY STUDY
BRANDZ™ THE WPP BRAND EQUITY STUDY A database of 1000+ Millward Brown BrandDynamics™ studies (WPP presents chart) BRANDZ is a massive database of many Millward Brown BrandDynamics studies specially carried for out WPP so that all the WPP member companies, like yourselves, can have access to a unique and in-depth understanding of the brand across the globe.

2 BRANDZ™ Introduction to BRANDZ™ Covers 15,000+ of world's
biggest and key local brands including product, corporate and service 380,000+ consumers explicitly compare brands in 100+ categories In 28 countries from July 2001 BRANDZ™ Commissioned by WPP Benchmark your brand in your category - against 15,000 other brands on a number of different criteria

3 28 Countries Covered to date
Denmark* Sweden Netherlands Belgium Canada Poland UK Czech Rep Germany France Switzerland USA Korea Spain Greece Japan Italy China Taiwan Mexico India Thailand Malaysia Brazil (WPP presents chart) Chile Australia South Africa Argentina *New for 2001 5

4 BrandDynamics™ Pyramid
Can anything else beat it? Presence Relevance Performance Advantage Bonding What is it admired for? Is it satisfactory? Does it cater for me? For a particular brand, respondents are assigned to one level of the pyramid depending on what they know and think about the brand as measured by a series of standard questions. The higher up the pyramid a consumer is, the more loyal they are to the brand. So, starting from the bottom, is the consumer in the pyramid at all? does the brand have Presence in the consumer’s mind Has she tried the brand? Is it salient for her? Has sheheard anything about? If yes to any of these, the consumer is included as a member of the pyramid. But Presence is only the starting point. In order for the consumer to have a strong relationship with the brand, the first step is for the consumer to feel that the brand could cater for her needs and her budget. If she feels it does, she progresses up to the next level, Relevance. It may be the right kind of product for her, but is it any good or are there other brands that are fundamentally better for the job? If she feels the brand has at least acceptable performance then she progresses up to the Performance level. But in most markets, there are several brands with acceptable performance so the consumer only progresses to the next level of the pyramid if she feels that the brand has something that gives people a reason to buy it over others - an Advantage based on something rational, emotional or simply saliency. Finally, the consumer reaches the top of the pyramid if she believes that the brand's advantages are unique or shared by few other brands in which case she is deemed to be bonded to the brand. Do I know about it? 23 23 23 23 17 17 23 44 25 25 38 49 23 23 23

5 Why should we believe the BrandDynamics™ Pyramid?
We have validated the relationship at each level with actual sales. What we found was that for those who got as far as Presence, on average their expenditure across each of these brands was quite low. But for those further up the Pyramid and particularly those who were bonded to brands, the average expenditure on each of those brands was hugely more. Bonding High share of wallet Advantage Performance Relevance Presence Low share of wallet 9

6 Validation of the BrandDynamics™ Pyramid
Here’s the validadtion. Millward Brown carried out a large study on a representative panel of 1,000 people four years ago and asked then the BrandDynamics questions so we could allocate their Pyramid levels, for four different categories. The numbers I am going to show you are from Toothpaste in the UK. The panel members then filled in a purchase diary for eight weeks afterwards to record their toothpaste (and other category purchases). We validated the results against Nielsen data and got an almost perfect match. So we had what people thought of the brands (the BrandDynamics relationship questions) and their actual purchase. The average toothpaste brand has a Presence of 50%, and the consumers spent about 12% of their toothpaste money on those each of those brands. At Relevance the number reaching this level goes down, and the average expenditure on a Relevant brand goes up to 16%. The Performance and Advantage and finally Bonding show the same pattern. Bonded brands attract a massive 50%of expenditure - so you can see the importance of developing the consumer relationship with your brand. (50% is high when you take into account the mix of buyers - solus purchasers will be 100% loyal, but typically are light spenders in a category. Heavy purchasers are more likely to be repertoire shoppers, but getting a 30% share of expenditure for your brand from a heavy purchaser is worth a lot more than 100% from a very light purchaser. Bonding DOES take into account repertoire purchase.) BrandDynamics™ Pyramid Share of Wallet 50 Bonding 20 Advantage 17 Performance 16 Relevance 12 Presence 9

7 Is the Size of the Brand the Only Thing That Matters?
Brand A % Brand B % Bonding 33 26 19 16 11 4 Advantage 56 Performance 62 Relevance 73 Presence 95 9

8 strengths and weaknesses
Brand Signature™ The BrandDynamics™ Pyramid represents the overall relationship of consumers with a brand But the Brand Signature™ actually identifies a brand’s strengths and weaknesses relative to the other brands in the category

9 Cars 2000 (UK) Rover Brand Signature Brand Pyramid Bonding Advantage
Performance Relevance Presence

10 Fading Star Brand Signatures™
Still well known and relevant to a mass audience, but has lost appeal and has little product or image based advantage. Bonding Advantage Performance Relevance We have looked at hundreds of these signatures in each country and seen patterns emerging - eight typical types or typologies. Here’s one just like the example we have just worked on. We have given it a name to describe it - a Fading Star. Presence 15 10

11 Olympic Brand Brand Signatures™
Well known, well loved with a large core following. Talked about in everyday life and part of the cultural fabric of the country. Bonding Advantage Performance Relevance Presence 10 15

12 Classic Brand Brand Signatures™
Well known, well loved with a relatively large core following. Good but not great. Bonding Advantage Performance Relevance (After disucussing) The Classics are really good - just not quite as good as the Olympic ones. Presence 15 10

13 Aspirational Brand Brand Signatures™
Relatively well known but not a brand suitable for a mass audience - often too expensive for most. Would have difficulty in widening its franchise without alienating its core users. Bonding Advantage Performance Relevance Presence 10 15

14 Cult Brand Brand Signatures™
Not widely known and not for everyone - but has a committed and fanatical following. Bonding Advantage Performance Relevance (After discussion) Woody Allen is probably a bit too well know, but you get the idea. Presence

15 Little Tiger Brand Signatures™
Relatively unknown but with strong following amongst a core group. Bonding Advantage Performance Relevance (After discussion) These are the ones to spot early on. If they continue to be relevant to as many as this indicates and you can grow their Presence, you could make a lot of money by investing in them. Presence

16 Defender Brand Signatures™
A good balance between product performance and price - but no real product based or emotionally rooted advantages. Bonding Advantage Performance Relevance (After discussion) There are a lot of these type. Perhaps it is easier to trade on price, or not to worry about why and how you are different from competitors. But the result is that you are likely to lose out on the most committed and loyal followers. Brands need nurturing and looking after, just like any relationship. Presence

17 Clean Slate brand Brand Signatures™
Little known, irrelevant to most consumers and with few advantages Bonding Advantage Performance Relevance (The signature might actually look as if it has some deviations above the Presence level, but they will tend no to be significant because they will be based on so few people - so above Presence the profile is to all intents and purposes flat) Presence 14 10

18 … a one number summary of the Brand Signature™
Brand Voltage™ … a one number summary of the Brand Signature™ - | + Bonding Advantage Performance Relevance Presence Voltage is a one number summary of the Brand Signature. For example, the ‘Fading Star’ here is getting more than its fair share amongst those at Presence, Relevance and Performance - but this is not enough to make for the loss at Advantage and Bonding. And remember, the ‘share of wallet’ at Advantage and Bonding is worth much more than lower down the Pyramid, so the result is an overall negative Voltage. The brand overall is getting less than its fair share of loyalty (and the diagnostics show you it is falling down at Advantage and Bonding). Voltage™ = Millward Brown International [drive:\directory path\filename.ppt\ 10 ] 14 18

19 … a one number summary of the Brand Signature™
Brand Voltage™ … a one number summary of the Brand Signature™ STRONG AND WEAK PROFILES Weak Strong - | + - | + - | + - | + Bonding Advantage Performance Relevance Presence So we see a sort of progression from the weak Fading Star on the left (where typically we see numbers of about minus 5 or minus 10) across to the Olympic signature on the right where we typically see numbers of plus 10 to plus 15. Why is this so useful? Voltage™ = Millward Brown International [drive:\directory path\filename.ppt\ 10 ] 14 18

20 A Proven Link Between Brand Voltage And Market Share
+41% -16% -8% +16% % Brands Gaining Share Minus % Losing Share -60% This Validation is based on 334 Brands where were able to compare the Brands Value Share in the year after we had conducted a BrandDynamics study with its Value share the year before. It shows the difference between the number of brands that grew minus the brands that declined. What you can see is that Brands with high Voltage scores were over 40% more likely to grow than decline, and Brands with very low Voltage 60% more likely to decline than grow. This does not mean that all high Voltage brands are guaranteed to put on share, the actual marketing programs put into place by you and your competitors will still be highly influential. But high voltage brands are in a much stronger position to capitalise on their existing Consumer Equity. What this really means is that if your Brand’s Consumer Equity is ahead of the Market Share, all other things being equal, the brand’s share will follow the Voltage. Now let me show you some data from the titanic corporate struggle between two Superstore leaders – Tesco and Sainsbury. Voltage Low High < -6 -6 to -2 -2 to +2 +2 to +6 >+6 334 Brands

21 BRANDZ™ Map Voltage™ Presence Cult Olympic Little Tiger Aspirational
15 Cult Little Tiger Aspirational 10 Olympic 5 Fading Star Classic Defender Voltage™ Clean Slate -5 -10 -50 -40 -30 -20 -10 10 20 30 40 50 Presence


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