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The Brand Value Chain

Definition
It is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value

Value stages

Marketing Program Investment Product

Customer mindset
Awareness

Market Performance
Price premiums

Shareholder Value
Stock price

Communications
Trade Employee

Associations
Attitudes Attachment Activity

Price elasticities
Market share Expansion success Cost structure

P/E (price/earning) ratio


Market capitalization

Profitability

Multiplier

Program quality
Clarity Relevance Distinctiveness Consistency

Marketplace conditions

Investor sentiment
Market dynamics Growth potential Risk profile Brand contribution

Competitive reactions Channel support Customer size & profile

The sync
Value stage- Marketing Program Investment WITH Multiplier - Program Quality Clarity- how much clarity is there in marketing program How relevant is the program to customers Distinctiveness-from the competitors Consistency- and integration with program

Customer mindset x Customer Multiplier


Brand awareness Brand associations Brand attitudes Brand attachment
(how loyal is a customer towards the brand)

Competitive superiority Channel & other intermediary support Customer size and profile

Brand activity
(how much customer talk about brand or give weightage to the brand in their day to day life)

Market performance x market multiplier


1)Price premiums and 2)price elasticities shows how much extra are customers willing to pay because of brand also how the demand fluctuates with fluctuation in price

3)Market share- success of marketing program 4)Brand expansion- based on the above three 5)Cost structure- prevailing customer mindset, if
favorable opinion and good brand knowledge helps in its adjustment

6)Profitability- When all the above combined together


it gives profitability

Market multiplier
Market dynamics- investors sentiment, supply of fund Growth potential-prospects for brand and also industry Risk profile- for the brand Brand contribution- to the firms brand portfolio so that it doesnt march towards death

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