Techniques for Measuring and Managing Brand Value

This article discusses the techniques for measuring and managing brand value using specific organization examples. It covers brand extension, brand reinforcement, brand revitalization, brand collaboration, and measuring brand awareness through website traffic, social media activities, and surveys.

LO3: Evaluate how brands are leveraged/extended over time domestically and internationally.
A brand is known and related with its brand name and equity. Every product that is
released and introduced in to the market is done under the brands name. With time, brands
earn and gain recognition as their products mature. When the brand comes up with an
innovative idea and want to introduce a new product, they extend their brand which is
therefore called brand extension. This is done under the same name of the brand. “IT’S FAR
LESS EXPENSIVE TO LAUNCH A NEW PRODUCT UNDER A WELL-KNOWN BRAND THAN TO LAUNCH AN ENTIRELY
NEW BRAND. A BRAND EXTENSION HAS AWARENESS AND RECOGNITION BUILT IN. A FAMILIAR BRAND NAME
INSTANTLY COMMUNICATES MESSAGES TO CONSUMERS BASED ON THE EXISTING BRAND PROMISE.” as said
by Gunelius (Gunelius, 2018).
The well-known product that is already in the market has a set reputation, popularity
and brand loyalty which is linked with the brand, thus when the new product is launched it
acquires the same elements which the brand is known for. Customers expect the same
quality which they received from the brands other products. This is far more efficient that
creating a whole new brand. There should be some kind of association between the brand
and this new product or brand. It is then considered to be “fit” and will succeed. Research is
done to see which category will the customers accept and will be considered “fit”. Leverage
is needed to lead the customers to believe that the product will be better than their
competitors due to their brand image. If not, this could negatively affect the brand and
cause it to dilute. “HAVING A GREAT REPUTATION FOR QUALITY IS NOT ENOUGH TO LAUNCH A BRAND
EXTENSION. HUNDREDS OF BRANDS HAVE A GREAT REPUTATION. WHAT IS RELEVANT IS WHETHER CUSTOMERS
IN THE NEW TARGET CATEGORY FIND SOME REASON TO PREFER THE NEW BRAND EXTENSION TO CURRENT
OFFERINGS” (Tauber, 2012) Brand extension is usually done to gain competitive advantage
and have control of larger market share. Apple is an example of a successful brand
extension which have extended their brand into many different categories. They have used
this to increase their overall core business by extending their brand and leveraging it. Apple
has introduced iPod, iPhone and iPad which use the software IOS which after many studies
have shown that they find the GUI (Graphical User Interface) to be easier to use than its
competitor Android. Studies have shown that 70% of the market is mainly android but
studies showed that every android user that used IOS for a month grew to enjoy it more
than android (Novac, 2017) Due to the software being available on all these devices, any
product that is bought introduces this operating system to this customer. As they use it
more and more every day, they grow to find it easier than android and are unable to move
back to it. As customers start being loyal to Apple and its operating system, they opt for
purchasing MacBook’s and iPad’s. Each correlating with each other. However, brand
extensions are also bound to fail if they are totally mismatched and have no relevance at all.
An example of an unsuccessful brand extension which occurred in the 1980s by Levi’s
Strauss and Co. when they decided to extend their brand and launching three-piece suits
under the sub brand called Levi’s Tailored Classics. Years of really low sales later they
stopped producing the product completely. This happened due to the customers image of
Levi’s being casual rough clothes and not formal business suits. This is why it is important for
brands to research their brand and consumers to effectively introduce an extension which
will suit their customers and target audience. After analyzing and listening to their

customers were, they able to introduce a sub brand 5 years later being Khaki Pants under
Levi’s Dockers. Offering clothes that their target audience knows them for but with a
different touch. (Kardashian, 2019)
“Determine who you are and what your brand is, and what you’re not. The
rest of it is just a lot of noise.” – Geoffrey Zakarian, Restaurateur
There may be many different strategies that can be used when brand extending,
these are done after doing extensive research on the customers and what it is that would
cater to them. As their needs and wants change, the brand has to act accordingly to acquire
more brand equity and gain more market share. One of the strategies is to extend the brand
value which can include repositioning a product in a different form or repositioning a
different product in the same form. An example of this being Coca Cola repositioning its
Coke, which is the same product but is sold in a glass bottle rather than a metal tin. This is
done because some like the more expensive feel which tackles the mentality of the
customers to relate it with the brand itself. "IT'S REALLY HARD TO PINPOINT ONE OR TWO SPECIFIC
REASONS WHY PEOPLE LIKE IT, BUT WHAT WE KNOW IS THEY DO." (Holts, 2016). Some other ways
which this can be done is through having design or price changes. Features can be renewed
such as the ingredients. Canada Dry has done something similarly by introducing different
flavors to their brand. A few of them being blueberry, lemon and orange.
Many forms and strategies are used to maintain the brand equity of the brand. One
of them is by reinforcing the brand. Reinforcement of brands is basically keeping the brand
alive and well known within their current customers and new ones. This is done by
showcasing the audience and target market by portraying to them how they are different
from their competitors. What the core benefits of the product are and how it will be
satisfying the demand of consumers. Monitoring is needed to be done during the product
life cycle when it is first introduced and grows eventually into the maturity phase. By doing
so, analysts are able to know what the consumers want and how their needs are changing
accordingly with time. This is done to remind the consumers what it is that the brand stands
for and its benefits that make them stand out from their competitors. (Srivastasa, 2020)To
keep up brand awareness, it is important to introduce innovations through research and
tackle the needs of the customers. As the quote below by Seth Godin states catering to the
customers wants and needs will keep up the brand image.
“Don’t find customers for your products, find products for your customers.” – Seth Godin
Some other ways of being able to reinforce your brand is through marketing, by
advertising consistently and showcasing commercial on television regularly which will be
brought to the eyes of the consumers repeatedly. This increases brand awareness and
recollection of the brands image in their head. An example of this is a Pakistani brand Qarshi
Jam-e-Shirin which has used this strategy to gain its brand awareness through its addictive
jingle which gets stuck in your head. Consumers or audience end up singing it unconsciously.
The slogan “light light refreshing… Qarshi Jam-e-shirin” is used in the advertisements in
commercials which are repeatedly played. (Nizami, 2018) Similarly, the audience which is
the Pakistani residents are the people they target. Customers complained on loving their

products but due to many of the audience having Diabetes in Pakistan were not able to have
it often. They listened to their customers’ needs and reinforced their brand by introducing a
new product Sugar Free Qarshi Jam-e-Shireen to cover more market and increase brand
loyalty.
Being able to revitalize a brand is as important as reinforcing the brands image. This
strategy is basically implemented when the product reaches the maturity stage in the
product cycle. At this stage the product is at its peak where profits are highest and have
already made its mark in the market. After the maturity stage it starts to decline and fall
down with lesser profits. At this stage it is time to revitalize the product due the numerous
amounts of competitors offering the same product which makes the original one almost
forgetful. Technology and design have to be met to sustain their market share. Keeping the
brand relevant and introducing new elements or products is always important to maintain
brand image in customers eyes. Globalizations is another aspect which is important as
sometimes the target market can be achieved by expanding to different countries and be
revitalized. Some new technological aspects can also be introduced to products to meet
trends which can subside them from their competitors. (M, 2019) To increase the usage of
this product, reminders of the brands through advertisements similarly as Qarshi Jam-e-
Shirin has done mentioned above can increase it. Targeting new audiences which were not
tackled before. The product can also be augmented by giving something extra with their
products to increase loyalty of customers and have them purchase their products again.
“BRAND REVITALIZATION BRINGS ABOUT A CONSIDERABLE TRANSFORMATION IN THE WAY THE OUTER WORLD
PERCEIVES THE COMPANY AND ITS PRODUCTS” (M, 2019). An example of this is Johnsons which used
to mainly cater items for babies, the main purpose of them being for soft skin and hair. They
repositioned and revitalized their products effectively and started selling to women. A new
target audience was tackled as well. (Bhasin, 2019)
The collaboration of two brands is both of them coming together and creating an
alliance which creates a unique product to gain competitive advantage. Including this, its
purpose is to gain profits and dabble in each other’s markets. This ultimately is an easier
way to expand to newer audiences. This is supposed to be beneficial to both parties. Brands
which share the common goals, values, target market and objectives usually come together
and collaborate to create a product which will help them achieve it by using each other’s
brand image. Brands have recently started doing this a lot more often when introducing a
new product or extending the brand as it is easier and more market is available instantly.
The benefits of this are the increase in market share, increase in profits, and more
customers. “IN TODAY’S DYNAMIC MARKETS AND THE EVER-CHANGING BUSINESS SCENARIOS, IT IS VERY
IMPORTANT FOR THE BRANDS TO SURVIVE AND THRIVE IN THE MARKET RETAINING THE LOYAL SET OF
CUSTOMERS BY OFFERING THE PRODUCTS THAT ARE UNIQUE AND INNOVATIVE AMIDST THE TOUGH
COMPETITION.” (Bhasin, 2018) An example of a brand collaboration on an international level is
the clothes outlet brand Forever 21 and the Cheese snack Cheetos. These two brands
collaborated together to create a line of clothes, accessories and swimwear which had
elements of the Cheetos branding incorporated in them. This collaboration was effective
and very smart as they share the same main key audience. Both of them cater to young
people as Forever 21 is a brand for the youngsters and Cheetos is very popular amongst
them. Combining them both and being able to wear the brand character Chester Cheetah

helped both the brands and achieved all around success. The line consisted of crop tops,
one-piece swimsuits, slippers, beach towel, swim trunks and graphic tees. This not only
increased their profits but both brands were able to share resources and increase each
other’s brand recognition through the other brand. (Griswold, 2019) This was a
collaboration which was introduced for a limited time and not produced after a certain
amount of time. This was very affective because the hype is only there for a minimum
period and after that there is no need for it to keep being produced. An example for two
brands that collaborated together but ended up failing are Target and Neiman Marcus. This
collaboration failed due to the market that Target targets are people who search for cheap
products and do not want to spend a lot when shopping there. Whereas, Neiman Marcus is
a high-end expensive brand which caters to richer people. The line that was introduced in
Target ended up to be way too expensive and edgy for their market audience. Usually when
higher end brands collaborate with brands such as Target, the products are to be of low
price so they are easier for the customers to want to buy. “THIS PARTNERSHIP FAILED BECAUSE THE
BRANDS COULDN'T MAKE BOTH TARGET AUDIENCES' HAPPY WITH THEIR COLLECTION.” (Riserbato, 2020)
As the target audience for Target is people who want items for cheap, collaborating with
Neiman Marcus and offering a line which is cheap and easy to afford for their audience
would have turned out to be successful for both brands. Due to target having large number
or customers, many sales would have been made and Neiman Marcus would have been
introduced to larger amount of people and gained brand recognition. In comparison to
Forever 21 and Cheetos who had the same target audience being youngsters were they able
to achieve success.
Collaborations at Domestic Level
When brands expand to countries all around the world, they face issues with
different cultures, people and laws. It is important for brands to position themselves where
they are tackling this new market and audience with extra care and research. Being able to
keep the brands power on a global level involves adaptations. Global branding focuses on
expressing the brand in images and advertisements to let this new market gain recognition
of this brand. By doing campaigns and positioning your statements to reach the audience.
An example of this is Nike expanding to Muslim countries but in the context of expanding to
the middle east. They advertised tackling women to get out of their comfort zone and do
what they love. Supporting women empowerment and influencing any removement of
stereotypes that people might relate with middle eastern women. They have also recently
released workout clothes with hijab in just to tackle this target audience. By finding new
markets in different countries and tackling them through cultural and traditional aspects
were they able to find success.

LO 4: Evaluate techniques for measuring and managing brand value using specific organization
examples.
The moment a new product is launched into a market, its starts having an impact on
the brand either negatively or positively. It is making its mark in the company one way or
another. It will affect the brands awareness, market share, consumer attitudes and the
intent of them purchasing. All of these aspects need to measured and managed with time.
Measuring these is often quite difficult but an important element that needs to be done to
have a good understanding of your brand and how the audience perceives it.
Some techniques that can be used to measure brand awareness is through studying
the growth in traffic coming on to your websites or platforms where the products are sold.
By this you are able to get a good understanding of how it is growing and affected the
brands awareness. Another technique is to measure he activities on social media platforms,
checking the growth in followers and comparing these with competitors to find your reach.
“THE MORE FOLLOWERS, THE BETTER YOUR BRAND AWARENESS IS.” As said by Mia in an article.

(Mäkipää, 2019) Surveys can also be done by asking visitors or customers on where they
heard about the brand from and what images could they recall when thinking of their brand.
By doing these in intervals, you will be able to measure it with time and how it has grown.
(Mäkipää, 2019) An example of this is when you go to dine in a local restaurant, you may
often times receive a customer survey after your meal which they ask you to fill out.
Roasters a local restaurant brand in Islamabad uses this technique to gain insight on
customers view on their brand and quality of their services. There is a question which asks
“where have you heard about us?” This is to have an idea of where they are marketing right
and to measure the brand awareness. Another aspect in a brands value is the market share
which the brand has control over. Market share is basically the sales measured as a
percentage of the brands total revenues. (Nickolas, 2018) This can be achieved by dividing
its sales by the brands total sales over a period of time to determine the market share. An
example of this is if we want to calculate the market share of McDonalds for the year 2019.
The sales of that year will be divided by the total sales of McDonalds. Which they generated
a total revenue of 2019 is 21.08 billion US dollars. (Lock, 2020) And their total sales have
recently exceeded 100 billion US dollars. By dividing the 2019 revenue by total revenue
gives us the market share. Which is 21.4% market share. (t4, 2020)
“We don't have a monopoly. We have market share. There's a difference.”
- Steve Ballmer
Customers are known me the most important part of any brand as it is what makes
them what they are. Without them they can not exist. Most brands and companies put
customers needs above all due to this. Being able to measure the attitude that they have
towards their products and brand is important to know. It can be measured with a couple of
strategies being through surveys and questionnaires. The best way to know their attitude
towards the brand is to hear from them. Surveys are more effective than one on one
interviews due to it being anonymous and it encourages them to be honest in their answers.
As mentioned above Roasters provide their customers with surveys after their meal to be
filled out. The questions that are asked on this survey are “How was the food? How was the
service? How was the cleanliness? What do you think about Roasters? What could have
been improved?” All of these questions are asked to be able to get an idea and measure the
aspects which Roasters could be lacking in and could improve. The customers satisfaction
being their main priority. The other questions indicating their attitude towards their brand
and what could be done to improve it. This will help them in gaining insight and will be able
to implement immediately to cater to the customers attitudes towards their brand.
Customers often times view items in stores and online but are not ready to buy to the
brands lack of purchasing intent. This has a direct link with the optimal price. The optimal
price is the best price that the brand can offer to their customers and usually this is the
cheapest one. This will be the highest product which can attract customers to their brand
and open up to other products as well. The purchasing intent can be measured the elasticity
of the products price points. A new brand can be added in to reel in customers and increase
the purchasing intent of customers. Burger King is an example where they have measured
their profits against their prices to reel in customers. Instead of making a price to be 4.00$
for their fries, they have opted to making it 3.99$ (Q, 2019) as studies have shown that is
psychologically seen as less than 4.00$. However, there is just a cent difference in these

two. But it is a pricing strategy that customers think it is more due to the zeros and 3.99$
seems cheaper. (Boachie, 2016) “THIS MEANS THAT ROUNDED NUMBERS "FEEL RIGHT" BECAUSE THE
PURCHASE IS BEING DRIVEN BY FEELINGS AND THE PRICE IS PROCESSED QUICKLY.” (Boachie, 2016)
Once a brand and company has established and been in the market for years, it
becomes even more difficult to maintain the brand equity and market share which they
have acquired in their brands age. They struggle to grow and innovate new products to stay
anew in the market and not be forgotten. This is done by applying many strategies and
managing the brand equity audit. A brand audit basically shows how the brand is
performing according to its goals and objectives. It also shows the position that your brand
holds in the market. This shows the performance of the brand, strengths and weaknesses,
strategy alignment and where you stand in the market. This can consist of many steps but
the first one is as to start off by stating your objectives and goals by planning out the target
customers and the marketing plan on how to reach them. Applying KFC to this step, they
already have a marketing plan which they would use to advertise to their given target
market. KFC is an international brand which expanded to Pakistan which caters to the
people of this culture. Thus forth, all the food which is sold at this fast-food restaurant is
halal as it is a legal factor. They used brand audit when they were introducing the Zingeratha
to their menu. Their target audience being the Pakistani people making it cheap for the
lower-mid class people. The next step is to question the customers and conduct surveys to
get a better understanding of what it is that they want. KFC did research and interviews and
surveys to the people in local paratha roll restaurants. This was done to get a better
understanding of what people like in their paratha rolls from sauces to vegetables.
Reviewing the website and examining the traffic that it gets is important and should be
measured. This is done to review if the marketing strategies are doing right by targeting the
right audience or should it be changed. KFC was not getting many traffic after online ads,
resulted them in advertising on TV commercials and billboards. Next is to review data on
social media and examine how your message is being perceived by the audience. KFC used
social media applications such as Instagram and Facebook and tracked the interactions it
was getting with the amount of reach and listened to their comments. Next step is to review
the sales data, examining each aspect which could be resulting in losses or less profit. This
can only help the brand. In a market that is as much developed as the fast food one, there
will always be competitors. New ones and old ones which will face as the threat to your
brand. By doing research on them are they able to figure out where they stand in the
market. KFC viewed other brands such as McDonalds and What a Paratha as competitors for
this product. They evaluated their strengths and took advantage of it to gain competitive
edge. Due to What a Parathas lack of marketing, emphasis on KFC’s marketing impacted
them immensely. The last step is to monitor and measure the results with the targets if they
are being met with time. As the market changes, innovations are needed. KFC with time
decided to introduce a meal with Zingeratha to meet targets. (Awan, 2020) (Smith, 2016)
There are many ways or marketing your brand and products to the consumers either
it be through advertisements, campaigns or brand ambassadors. There are countless
number of ways to do so. More marketing teams have started to launch campaigns to
showcase their different elements from their competitors. This helps in gaining more
recognition and awareness of the brand. “THE GOAL OF THESE CAMPAIGNS IS TO ESTABLISH A

RELATIONSHIP WITH THE BRAND’S CORE AUDIENCE AND BUILD ASSOCIATIONS BETWEEN THE BRAND AND
CERTAIN IDEALS.” (Eve, 2020) To measure the success of these campaigns is when brand
tracking is used. It studies the impact that brands decisions have on consumers and the
impact that consumers have on the brand. This helps in creating and aligning the right
message which the customers would like to support tends to increase loyalty of them.
This helps in enhancing the customer experience and brand image. To track your
brand, there needs to be a clear line of the message that is being portrayed and to
which target audience it is. These should then be tracked against other brands
accordingly. Data can be collected through doing surveys and questionnaires on how
strongly they feel with the message that the brand stands for. The results should then
be analyzed and adjusted as should according to the consumers. An example of this is
Proctor and Gamble which launched a campaign, “Proud Sponsors of Moms” instead of
focusing on one product, they backed the whole brand and were able to gain success
through it. This positive message was looked upon positively to the consumers and
loved what they stood for. This increased their brand loyalty and recognition
effectively. (Chapman, 2011)
When setting up campaigns and advertisements, every aspect that goes into
making a brands image requires money. When marketing to the target audience,
money is needed to cover the costs of research, advertising and distributing. Basically,
a brand cannot create its image without a financial team to use money accordingly
where needed. The finance team creates budgets for each department to use. This is
done because if an extra amount of money is used, the company will face losses since
it could have been used somewhere else. A local brand with minimum income
Burger’s.co is a small brand located in F-11 Islamabad. It is still growing and does not
earn enough profits to carelessly have larger budgets. They have a certain amount of
revenue from which they have to pay their employees, cover costs, rent, bills,
advertisements, taxes and etc. The finance team is responsible of setting appropriate
budgets for each department to focus on their objectives. The marketing team
advertising and creating brand image while being in correlation with the finance
department. By doing this they are able to gain brand awareness while being able to
gain profits and not go bankrupt. (Stewart, 2020)
Every brand has a set value, the brand valuation is the process of calculating
this value. It is similarly made to Brand equity but that focuses more on the consumers
perspective while brand value focuses on the companies. When doing the valuation of
brand, it is important to research and analyze the legal, behavioral and financial
aspects. Legal Analysis consisting of the trademarks that could be of value to the
brand. Behavioral being the stakeholders, customer segments and geography of the
brand. Financial focusing on the economic settings of the brand and is most used. “THE
NATURE AND CONCEPT OF VALUE IS DIFFICULT TO GRASP ON ACCOUNT OF BEING SUBJECTIVE IN NATURE,
THESE THREE METHODS OF ANALYSIS OBJECTIFY THE VALUING OF BRANDS.” (Sharma, 2016) There are
many different approaches where the value of the brand can be determined from. One of
them is the cost-based approach. This method states that by summing up all the costs that
have been caused from the beginning of the development of this brand determines the

value. The time period has to be specified and every single activity of the brand needs to be
calculated. For larger brands that have been in the industry for a long time find it difficult to
this. An example being Coca Cola which has been a brand from 1886. This makes it
impossible to do for Coca Cola. Including this, certain activities and products are difficult to
allocate and figure out the costs for. Brand value does not increase with the amount of
money that is put in to the development. This making the method totally wrong. This
method focuses on the amount of money going in but brand value focuses on the output
and return it will be receiving. Another approach on this is the market based. This amount is
based on the brand being sold and what is the price that a willing buyer is down to pay. This
is usually used when the brand is to be sold. One method in this approach is to compare the
brand with other brands which have been sold in the market. This is very flawed as data is
difficult to find with similar brands especially as it cannot be applied directly to the brand
with its own brand value at issue. Coca Cola would not be able to use this method due to
having higher brand value and market share in the market. Competitors such as Coca Cola
are less. Another approach is through financially. This approach evaluates the net earnings
that will be earned in the future and that determines the brand value. It shows the potential
future of the brand and showcases the expectable value. One of the methods in this
approach is to base the value on the price that would have to be paid when trademarking
their brand. However, they are first to determine the net sales and revenues that the brand
would gain in the future. Another method is the price premium method where it multiplies
the price differential of the brands product from a generic one with the total sales of the
brand. This assumes that it creates a little more benefit for consumers. In this method the
value is basically gained and more beneficial with the costs of the generic products in the
market. (Kriegbaum, 1998)
As brands grow and age with time, consumers start losing interest and it is the job of
the brand to keep staying innovative through different products to satisfy their target
audience needs. Strategies mentioned above to measure brand awareness and tracking
brand is important to have a good idea of what consumers want and need to implement the
changes accordingly. When every aspect is being measured, clear results and numbers are
achieved which makes setting goals and changing up strategies easier to know what step
helped the brand grow or have no impact. Through social campaigns and different
marketing strategies being in link with the finance team are they able to promote and
endure in the market.