Bridging the brand volume/ brand value measurement divide: Towards a multidimensional understanding of brand strength

Abstract

With inflation rising and wages shrinking in real terms, many consumers are forced to consider every penny they spend. To generate profitable revenue in this environment, it is more important than ever for marketers to understand not just the proportion of consumers to whom their brand appeals but also the extent to which those consumers view the brand as worth paying for. Armed with this vital part of the puzzle, meaningful strategic and tactical action plans can be devised to realise that all-important profit margin. The perceptions that drive brand choice are distinctly different from the drivers of brand premium, yet many marketers are still relying on brand trackers and measurement techniques that focus exclusively on a brand’s ability to generate sales volume through legacy measures of consideration and preference. GfK’s Brand Architect provides new metrics and insight for brand strength and performance, volume and value. It does this in three ways: by providing better predictors of volume through the use of realistic brand choice simulations; by capturing the value/premium equation of a brand; and by evaluating the propensity to brand switch by observing how consumers behave across multiple brand choice situations. The approach, in which lies embedded behavioural science and conjoint analysis, has been validated during our own extensive studies. In this paper, we explain the framework and use real brands to show how the technique can be used for effective brand management. We have provided a summary of the validation work we have carried out to show that this approach is rooted in commercial reality. It cannot only provide a highly strategic framework for brand management, but it also offers deeper insights into brand repertoires and richer diagnostics on how to drive volume, value or both according to the brand’s objectives.